Black Money – Domestic and International Efforts

SIT moots independent ED probe into money laundering

  1. New recommendation: The Special Investigation Team (SIT) on black money has recommended that money laundering investigations by the Enforcement Directorate (ED) should be allowed without any dependence on registration of cases by other agencies.
  2. Background: The Prevention of Money Laundering Act (PMLA) at present provides that the ED can pursue only those cases which have been registered by agencies like the Central Bureau of Investigation (CBI), State police units and the Income-Tax Department.
  3. Previous recommendations: Based on the SIT’s recommendations, the Central government had earlier brought in some crucial amendments to the PMLA, apart from the Income-Tax Act and the Foreign Exchange Management Act.
  4. These were to strengthen the legal framework for effective action against those holding unaccounted income.
  5. A latest amendment to the PMLA empowers the ED to continue with the money laundering investigations even if the police case is closed in the court.
  6. The ED can still pursue the probe into a financial angle and file a separate charge sheet.

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