PMLA and FEMA cases record substantial rise

New Delhi, July 25 : Cases taken up for investigation under the Foreign Exchange Management Act (FEMA) and recorded under Prevention of Money Laundering Act (PMLA) have seen a substantial jump in the last few years.

During the last ten years, the Directorate of Enforcement has taken up around 24,893 cases for investigation under the provisions of FEMA and has recorded around 3,985 cases under the PMLA.

The data disclosed that while the total number of cases under FEMA and PMLA in the year 2020-21 was 2,747 and 981, it increased to 5,313 and 1,180 in the year 2021-22.The Minister of State, Finance, informed the Lok Sabha on Monday that Directorate of Enforcement is an investigation agency which is mandated with the task of enforcing provisions of FEMA, PMLA and Fugitive Economic Offenders Act, 2018 (FEOA).

The role of Directorate comes into picture as and when any contravention under FEMA and occurrence of scheduled offence disclosing the generation of PoC (Proceeds of Crime) as defined under Section 2(1)(u) of PMLA is noticed by the Directorate or a warrant of arrest issued by the Magistrate or Court after taking cognizance of any scheduled offence appended to FEOA and where the amount involved is Rs 100 crore or above, provided the accused has gone outside India.The minister said that till March 31, 2022, the Directorate of Enforcement recorded around 5,422 cases under PMLA.

"It is pertinent to mention here that, after recording of a case under PMLA necessary action as per the provisions of PMLA is taken which resulted in attachment of proceeds of crime to the tune of Rs 1,04,702 crore (approx.), filing of Prosecution Complaint in 992 cases resulting in confiscation of Rs 869.31 crore and conviction of 23 accused persons under PMLA," he said.Similarly, till March 31, 2022, the Directorate of Enforcement took up around 30,716 cases for investigation under FEMA.

"It is pertinent to mention here that after taking up a case for investigation under FEMA, necessary action as per the provisions of FEMA is taken which resulted in issuance of 8,109 Show Cause Notices (SCNs).Further, 6472 SCNs were adjudicated under FEMA, thereby imposing a penalty of around Rs 8130 crore.

Further, assets to the tune of Rs 7080 crore (approx.) have been seized under FEMA," said the minister.kvm/dpb #PMLA #FEMA #substantial #Delhi #Delhi #New Delhi .