Money laundering cases: Courts can order release of accused under police custody: HC

• The Punjab and Haryana high court has made it clear that courts can order release of an accused of money laundering under police custody without fulfilling twin conditions as mandated under the Prevention of Money Laundering Act (PMLA), 2002.

The Prevention of Money Laundering Act (PMLA)

• It tackles the issue of "dirty money." It defines money laundering as the act of disguising illegally obtained funds ("black money") as legitimate income ("white money").

The PMLA aims to:

• Stop money laundering in its tracks.
• Prevent criminals from using money for illegal activities.
• Take away property gained through money laundering.
• Punish those who launder money.
• Set up a system to handle money laundering cases.
• Government agencies play a key role:
• The Enforcement Directorate investigates money laundering offenses.
• The Financial Intelligence Unit analyzes suspicious financial transactions.
• Other agencies like police and customs investigate the underlying crimes that generate the "dirty money."

Consequences:

• Their assets can be seized or frozen.
• They can be imprisoned for several years and fined heavily.
• The PMLA also requires banks and other financial institutions to be vigilant by verifying customer identities and reporting suspicious activity.

Prelims Takeaway

• PMLA
• Black money