Enforcement Directorate Files Money Laundering Case Against Preacher
ED registers money laundering case against a preacher, probing financial irregularities.
Photo by Kevin Grieve
The Enforcement Directorate (ED) has registered a money laundering case against a preacher, based on an FIR filed by the Delhi Police. The case involves allegations of financial irregularities and the use of funds for illegal activities.
The ED's action highlights its increasing role in investigating financial crimes, particularly those involving high-profile individuals or organizations. This case underscores the government's focus on combating money laundering and ensuring financial transparency, which is crucial for national security and economic stability.
Key Facts
ED registered money laundering case against a preacher
Based on Delhi Police FIR
Allegations of financial irregularities
UPSC Exam Angles
Powers and functions of the Enforcement Directorate (ED)
Provisions and implications of the Prevention of Money Laundering Act (PMLA), 2002
Role of other financial intelligence and law enforcement agencies (e.g., FIU-IND, CBI)
Impact of financial crimes on national security and economic stability
Constitutional and legal framework for combating corruption and financial irregularities
Visual Insights
From FIR to ED Investigation: A Legal Flow
This flowchart illustrates the typical legal pathway from the registration of a First Information Report (FIR) by local police to the initiation of a money laundering investigation by the Enforcement Directorate (ED), as highlighted in the news.
- 1.Information of Cognizable Offence Received (e.g., by Delhi Police)
- 2.Police Registers FIR (First Information Report)
- 3.Police Investigation Commences (under CrPC)
- 4.Police Investigation Reveals 'Proceeds of Crime' or a 'Scheduled Offence' under PMLA
- 5.Police Files Chargesheet/Report to Magistrate
- 6.Enforcement Directorate (ED) Takes Cognizance of the Scheduled Offence
- 7.ED Registers ECIR (Enforcement Case Information Report)
- 8.ED Investigation under PMLA, 2002 (Search, Seizure, Arrest, Provisional Attachment)
- 9.ED Files Prosecution Complaint before Special PMLA Court
- 10.Adjudication by Adjudicating Authority / Trial by Special Court
More Information
Background
The Enforcement Directorate (ED) is a multi-disciplinary organization mandated to investigate money laundering offences and violations of foreign exchange laws. It was formed in 1956 and initially dealt with exchange control laws. Over time, its mandate expanded significantly, especially with the enactment of the Prevention of Money Laundering Act (PMLA) in 2002 and the Foreign Exchange Management Act (FEMA) in 1999.
The PMLA was enacted to combat money laundering, confiscate property derived from or involved in money laundering, and deal with related matters. The Delhi Police FIR serves as the 'predicate offence' for the ED to initiate a PMLA case.
Latest Developments
The ED has registered a money laundering case against a preacher based on an FIR by the Delhi Police. This action is part of the ED's increasing focus on investigating financial irregularities, particularly those involving high-profile individuals or organizations.
The case highlights the government's commitment to ensuring financial transparency and combating illicit financial flows, which are crucial for national security and economic stability. Such cases often involve complex financial trails and require coordinated efforts between various law enforcement and financial intelligence agencies.
Practice Questions (MCQs)
1. Consider the following statements regarding the Enforcement Directorate (ED) in India: 1. It functions under the administrative control of the Ministry of Home Affairs. 2. It is primarily responsible for enforcing the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and the Foreign Exchange Management Act (FEMA), 1999. 3. The ED has the power to attach properties derived from or involved in money laundering, even if they are located outside India. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is incorrect. The Enforcement Directorate functions under the administrative control of the Department of Revenue, Ministry of Finance, Government of India. Statement 2 is correct. The ED is indeed responsible for enforcing PMLA, 2002, and FEMA, 1999. It also handles certain provisions of the Fugitive Economic Offenders Act, 2018. Statement 3 is incorrect. While the ED can attach properties derived from or involved in money laundering, its jurisdiction for direct attachment of properties is generally within India. For properties located outside India, it relies on mutual legal assistance treaties and agreements with other countries, but direct attachment power for properties *outside* India is not inherent in the same way as domestic properties. The PMLA focuses on 'proceeds of crime' within India or brought into India.
2. With reference to the Prevention of Money Laundering Act (PMLA), 2002, consider the following statements: 1. The Act defines "money laundering" as an independent offence, distinct from the predicate offence. 2. The burden of proving that the property involved in money laundering is untainted lies on the accused. 3. The Act provides for the establishment of Special Courts for the trial of money laundering offences. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: D
Statement 1 is correct. PMLA defines money laundering as a separate offence under Section 3, even though it originates from a "predicate offence" (scheduled offence). Statement 2 is correct. A significant feature of PMLA is that once the ED establishes a link between the accused and the proceeds of crime, the burden of proof shifts to the accused to prove that the property is not tainted or acquired through illegal means. This is a departure from the general principle of 'innocent until proven guilty'. Statement 3 is correct. Section 43 of the PMLA empowers the Central Government, in consultation with the Chief Justice of the High Court, to designate one or more Courts of Session as Special Courts for the trial of offences punishable under the Act.
3. In the context of India's efforts to combat financial crimes, which of the following statements about the Financial Intelligence Unit - India (FIU-IND) is/are correct? 1. It is the central national agency responsible for receiving, processing, analyzing, and disseminating information relating to suspect financial transactions. 2. It functions under the administrative control of the Ministry of Home Affairs. 3. It primarily investigates cases of money laundering and terror financing. Select the correct answer using the code given below:
- A.1 only
- B.1 and 2 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: A
Statement 1 is correct. FIU-IND was established in 2004 as the central national agency responsible for receiving, processing, analyzing, and disseminating information relating to suspect financial transactions to enforcement agencies and foreign FIUs. Statement 2 is incorrect. FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister. It is administratively under the Department of Revenue, Ministry of Finance. Statement 3 is incorrect. FIU-IND is an *intelligence* agency, not an *investigative* agency. It collects and analyzes financial intelligence and disseminates it to appropriate law enforcement agencies (like ED, CBI, NIA) for investigation. It does not conduct investigations itself.