PMLA Amendment 2019 – Plugging The Loopholes

The Finance Act, 2019 (the 2019 Act) is the Central Government's endeavour to tighten the gaps around the existing provisions of the Prevention of Money Laundering Act, 2002 (PMLA). Amidst the growing number of financial crimes and high-profile cases, the 2019 Act attempts to make the existing provisions stricter and better armoured to detect suspicious transactions. Additionally, the Act, along with the other amendments, has a greater aim of targeting money laundering and terrorist financing. The 2019 Act attempts to remove the ambiguity in the existing provisions by amending eight clauses of the PMLA.

Crime and Punishment

In cases of money laundering, a major ambiguity exists in the PMLA's clause concerning what constitutes 'proceeds of crime'. This ambiguity, the Directorate of Enforcement (ED) has contended, adversely affects its ability to investigate the money trail, the adjudication of attachments before the PMLA Adjudicating Authority and Tribunals, as