WHAT IS MONEY LAUNDERING ?
When a person uses or invests black money, he may be indulging in an act of Money Laundering.
A person who makes money by doing illegal activities, invests his money in Banks, in Gold, or in Properties, or in Cars.
All these things are liable to be confiscated by government under this law.
WHAT ARE MONEY LAUNDERING LAWS?
The Prevention of Money Laundering Act, 2002 is passed by
Parliament to confiscate properties of purchased with illegal money or which can be related to ill gotten money. (Fruits of illegal activities)
How money laundering Law works?
If a person is found out doing illegal activity like smuggling, hawala, etc, the Police or the custom Officers file a complaint in a Criminal Court, making allegations against the person.
As soon as the complaint is filed, the money laundering Law
authorities got power to attach and to confiscate of properties all these
persons.
Even if the later, the
complaint or allegations are not proved and even if the person is acquitted, the property can
still remain confiscated to the Government.
Why such a harsh law?
The money laundry authorities are not concerned with the
allegations of Crime.
That is for
Criminal Courts to decide.
The money
laundering authorities, simply attached the properties and ask a person to show
that the properties which are purchased, are purchased from his legal Income.
If the person fails to prove, the properties are confiscated to the Government.
That's it. Simply put.
What are the safeguards for protecting a person's legally acquired property?
As soon as properties are attached, the person is given a show cause notice to disclose legal sources from which thiese properties are purchased.
Adjudicating Authority decides after hearing him. If order is against him, he is given right to file appeal to Appellate Tribunal at New Delhi.
Adjudicating Authority decides after hearing him. If order is against him, he is given right to file appeal to Appellate Tribunal at New Delhi.
The Appellate Tribunal strictly interprets the
Law and decided his Appeal.
If he is not
satisfied he can go to High Court and Supreme Court.
HARESH RAICHURA
19/4/2014
References:
1. The
prevention of money laundering Act, 2002.
2. The prevention of money laundering (Amendment) Act, 2013
- - The Prevention of Money-Laundering (Forms,
Search and Seizure and the Manner of Forwarding the Reasons and Material to the
Adjudicating Authority, Impounding and Custody of Records and the Period of
Retention) Rules, 2005
The Prevention of Money-laundering (Manner of
Receiving the Records Authenticated outside India) Rules, 2005.
The
Prevention of Money-laundering (Appeal) Rules , 2005.
The Adjudicating Authority (Procedure)
Regulations, 2013.
