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