PMLA

PMLA (Prevention of Money Laundering Act) proceedings deal with offenses relating to money laundering, concealment of illicit proceeds, and projection of such proceeds as legitimate assets. These matters involve parallel investigative, adjudicatory, and trial mechanisms that can be intricate and multi-layered. Below is an overview of the typical stages involved in PMLA cases:

Predicate Offense Registration

PMLA proceedings usually begin when a predicate offense (known as a “scheduled offense”) is registered by police or other agencies. These offenses form the foundation for alleging money laundering.

Investigation by Enforcement Directorate (ED)

The Enforcement Directorate initiates investigation into the alleged laundering of proceeds of crime. This may include financial analysis, bank transaction tracing, and examination of assets or business structures.

Summons & Statements

Individuals and entities linked to the transactions may receive summons for recording statements under the Act. These statements are significant evidentiary components in PMLA matters.

Search & Seizure

ED may conduct search operations at premises, offices, or properties to obtain financial records, electronic data, and other materials relevant to laundering activities.

Provisional Attachment of Property

If proceeds of crime are identified, ED may provisionally attach movable or immovable properties believed to be derived from unlawful activities. This prevents their transfer or dissipation.

Complaint Before Adjudicating Authority

Following attachment, ED files a complaint before the Adjudicating Authority seeking confirmation of attachment. The Authority reviews evidence and hears parties involved.

Confirmation of Attachment

Upon confirmation, attached properties remain under restraint and may ultimately be confiscated by the Government subject to trial outcomes.

Prosecution Complaint

ED files a prosecution complaint (similar to a chargesheet) before the Special PMLA Court. The accused is then required to face trial for money laundering offenses.

Trial Before Special Court

Both prosecution and defense present evidence. The Court examines whether proceeds of crime existed, whether laundering occurred, and whether the accused is legally culpable.

Bail Considerations

Bail under PMLA is governed by stricter twin conditions requiring the Court to be satisfied that the accused is not guilty and unlikely to commit any offense while on bail.

Confiscation & Sentencing

If convicted, properties may be confiscated permanently and sentencing may include imprisonment and monetary penalties.

Appeals

Adverse orders may be challenged before higher appellate forums including the Appellate Tribunal, High Court, and Supreme Court.