Understanding Money Laundering And Enforcement Directorate
ENFORCEMENT DIRECTORATE
Established in 1956 to Collect Intelligence information and act on financial irregularities and on violations under acts like
FEMA (FERA)
COFEPOSA
PMLA
FDI/FPI
Shell Companies
Illegal Foreign Transactions
Hawala Scams
PONZI Schemes (Networking Marketing)
Understanding Money Laundering And Enforcement Directorate
Hierarchy of Enforcement Directorate
Director
Special/ Additional Director
10 Zonal Deputy Directors
11 Sub Zonal Assistant Director
MONEY LAUNDERING
Offences of Money Laundering (Sec 3)
Punishments for Money Laundering (Sec 4)
Main Function Of Courts And Tribunals
ENFORCEMENT DIRECTORATE:
Attachments of property, investigation (Sec 5)
Provide summary, searches, seizures, arrest and prosecution( Sec 16- 24)
Mutual legal assistance from states/ countries to attach property (Sec 56-60)
TRIBUNALS
Appellate Tribunal (Sec 25)
Appeal to Appellate Tribunal (Sec 26)
Appeals to HC (Sec 42)
COURTS
Special Courts (Sec 43)
Offences triable by Special Courts (Sec 44)
Appeals & Revision (Sec 47)
Reciprocal Arrangements Under Sections Of Prevention Of Money Laundering Act
Arrangements with Foreign Countries (for Enforcement and exchange of information) (Sec 56 PMLA)
Letter of request to a contracting state (for investigation through special court) (Sec 57 &166A of Crpc)
Letter of request by a contracting state to India (for investigation through special court) (Sec 58 & 166B Crpc)
Release of confiscated property by Spl Court on finding of court of contracting state (Sec 58A)
Letter of request by a contracting state to release or attach when investigation cannot be conducted (Sec 58B)
Reciprocal arrangements for process & assistance of transfer of accused person (Sec 59)
Attachment, seizure & confiscation in a contracting state or in India (Sec 60)
Comparison Of Jurisdictional Powers Of Enforcement Directorate And CBI
CASE 1: Anti Corruption and money laundering by Politicians
CASE 2: Disproportionate Assets and money laundering by Politicians
CASE 3: Financial Cases and money laundering by Politicians
CASS 4: Other types of scams
In the above cases:
Power of CBI is LIMITED by state government (Sec 6 of Delhi Special Police Establishment Act)
Power of EC is VAST/UNLIMITED
Top Money Laundering Cases
Hawala Scandal
INX Media Laundering Case
Agustawestland Chopper Scam
Punjab National Bank Scam
Aircel Maxis Scam
IMA- I Monetary Advisory Ponzi Scam
D.K Shivakumar Money Laundering Case
How To Act Or Defend False Money Laundering Cases
How to ACT/Report:
Complain to CBI or ED Authority/Tribunal
Private Complaint under 200 CrPc before special court (If no action from senior officials too)
How to Defend False ED cases:
False ED cases are with vengeance motive or political vendetta
The Investigation report usually runs in to thousands of pages so the findings related to income, expenditure and assets including foreign transactions shall be key.
Courts have criticized in many cases for wrongful attachment of properties