In the increasing realm of money laundering prevention, the attachment of property plays a paramount role. Addressing the PMLA of Indian legislation which highlights the curbs on money laundering, the investing agency, the ED(Enforcement Directorate) has the power to attach any property provisionally. The concept of attachment of property under PMLA is upheld by the Hon’ble Supreme Court, including the power of ED to arrest the person, search, and seize the attached property. Prevention of Money Laundering Act under section 3 prohibits the transfer, conversion, disposition, or movement of any illegal property seized by the ED.
Exploring the article will highlight the concept of attachment of property under PMLA following the recent judgement of the Hon’ble Supreme Court(SC).
The section 3 of the PMLA actively defines the money laundering. It provides enough power to the ED to proceed with the case whosoever directly or indirectly attempts to attempts or indulge or assists, knowingly or unknowingly, the party gets involved or connected with a crime or projecting or claiming an untainted property, is a guilty and proceeds with the offence of money laundering.
After the amendment, the definition gets little changed, it states that any property obtained directly or indirectly by a person connected to a criminal activity or where such property is taken or held outside the country has equivalent value within the country or abroad.
Section 3 of the Prevention of Money Laundering Act , attachment of property prohibits the transfer, conversion, or movement of such property held by the ED or found attached to the criminal offence. Under the act, the property attached to the money laundering is attached by the appointed authority and can be attached for a period of up to 180 if the attached authority has a solid reason to make the court believe. However, the law must be recorded in writing forms by an appointed authority for such reason.
If the authority has any solid reason to believe based on the material that proceeds of crime or property involved in the money laundering then they need to attach the property provisional, where a provisional property attachment later is used. Below is the process highlights in the attachment of property law.
1- The authorised officers process a copy of such property to the concerned person, including the person in possession of the property or adjudicating authority.
2- The offices not below the rank of deputy director shall forward a copy of the attachment order to the concerned officer in a sealed envelope.
3- The authority keeps the order and material for the specific threshold.
4- The officers attaching the property must file a complaint with the rights facts and strong evidence within 30 days of attachment.
The increasing tactics of money laundering have hampered the economy of many countries over the recent years. This has forced the legislation to take aggressive steps to tackle the case of money laundering, processing a law of attachment of property under the Prevention of Money Laundering Act. Section 3 of the PMLA prevents and regulates the flow of any such property linked illegally. For detailed information on the attachment of property under the PMLA, must visit CA. Manoj K Pahwa, the best FEMA consultant in Delhi , reviews and deals with FEMA compliance.