The Central government is considering a proposal to make money laundering a separate criminal offence to be investigated by the Enforcement Directorate, irrespective of a probe by other agencies. This will facilitate quick action against those indulging in money laundering.
The Special Investigation Team (SIT) on black money has also been of the view that money laundering investigations by the Enforcement Directorate should be allowed without any dependence on registration of cases by other police agencies under the legal provisions listed in the schedule of the Prevention of Money Laundering Act (PMLA).
An offence elsewhere
Under the current arrangement in India, the fate of money laundering cases depends on that of the probe and prosecutions in predicate offences pursued by primary agencies. Many in government agencies are of the view that certain restrictions on money laundering investigations on several occasions cause impediments in taking the cases to their logical conclusion.
Money laundering in itself has been defined as a criminal offence in several countries. Besides, there are separate legislations for dealing with funds generated through activities like drug trafficking or terror financing. The United States has very stringent laws to check money laundering.
Situation in U.K.
In the United Kingdom, police have to prove predicate offence through circumstantial evidence, linking it to the funds generated and laundered.
Wherever money laundering is treated as a stand-alone crime, U.K. agencies are not required to wait for the outcome of investigations into the predicate offence.
Also, they are not supposed to prove that the funds are proceeds of a particular offence.
Based on enough circumstantial evidence, they have to just establish that the proceeds had a criminal origin.
According to experts, the government will have to bring about several amendments to the PMLA, including the current definition of the “proceeds of crime” that is right now dependent upon the predicate offences as listed in the Act’s schedule.
