PMLA
Money Laundering Provisions and ED's Role in Terror Financing
The Prevention of Money Laundering Act, 2002 (effective July 2005) is the primary legislation for prosecuting money laundering offences and confiscating proceeds of crime. The Enforcement Directorate (ED) administers the PMLA and has powers of attachment, arrest, and prosecution. Under the PMLA's three-stage framework — placement, layering, integration — Maoist extortion money enters the formal economy through shell companies, real estate, and cash-intensive businesses. Terror financing is a "predicate offence" under the PMLA: proceeds from extortion (an offence under UAPA) constitute "proceeds of crime" under PMLA, enabling the ED to attach and confiscate assets even without a conviction.
- PMLA, 2002: Enacted to comply with FATF recommendations; effective July 2005
- Three stages: Placement (cash enters system) → Layering (concealment) → Integration (back to economy)
- ED's key power: Provisional attachment of property without court order (up to 180 days)
- Predicate offence: Extortion / terror financing under UAPA triggers PMLA prosecution
- Conviction threshold: Reverse burden of proof — accused must prove property is not proceeds of crime
● Tracked since March 23, 2026 · last seen March 31, 2026 · updates as the daily brief publishes