Significant rise in money laundering cases: Govt

New Delhi, March 27 (IANS) The number of cases filed under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) by the Directorate of Enforcement has recorded a significant rise in the last few years.

While the Money Laundering cases recorded during the year 2018-19 stood at 195, it increased to 562 in the year 2019-20, 981 in 2020-21, and 1180 in the year 2021-22. Similarly, the year 2022-23 (Till February 28) witnessed 579 such cases.

According to a written reply by the Ministry of Finance in Lok Sabha on Monday, the Directorate of Enforcement is an investigation agency which is mandated with the task of enforcing provisions of FEMA, PMLA and Fugitive Economic Offenders Act, 2018 (FEOA). The role of Directorate comes into picture as and when any contravention under FEMA and occurrence of scheduled offence disclosing the generation of Proceeds of Crime (PoC) as defined under Section 2(1)(u) of PMLA is noticed by the Directorate or a warrant of arrest issued by the Magistrate or Court after taking cognizance of any scheduled offence appended to FEOA and where the amount involved is Rs 100 crore or above, provided the accused has gone outside India.

During investigations under the provisions of PMLA and FEMA, role of several Indian shell companies and foreign companies or offshore shell companies in money laundering has been noticed. Necessary action as per provisions of PMLA and FEMA has been taken in these cases. Disclosure of further information may not be in larger public interest as the same may hamper ongoing investigations, the reply said.

–IANS

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