| Syllabus: GS- III, Subject: Internal Security, Topic: Money Laundering and prevention, Issue: Prevention of Money Laundering Act(PMLA) |
History of money laundering law:
- In 1988, the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances was held, urging countries to combat money laundering from drug crimes.
- The Financial Action Task Force (FATF) was established in 1989 to tackle money laundering, following a summit in Paris.
- In 1990, the UN General Assembly adopted the Political Declaration and Global Programme of Action, calling for member countries to enact legislation against money laundering.
- India enacted the Prevention of Money Laundering Act (PMLA) in 2002, influenced by UN resolutions and FATF recommendations.
Concerns associated with PMLA 2002:
- Originated by UN Resolution and FATF framework targeting drug money laundering.
- Enacted under Article 253 to implement international conventions.
- Originally confined to drug money, subsequent amendments broadened its scope to include other offenses like corruption.
- PMLA’s presumption of guilt reverses the fundamental principle of innocence until proven guilty,resulting in prolonged detention without trial.
Conclusion:
- The judicial approach to bail in PMLA cases appears technical, contrasting with the emphasis on personal liberty.
| +1 advantage for mains(Case law)
● In Gudikanti Narasimhulu And Ors vs Public Prosecutor, High Court Of Andhra (1978) Justice Iyer emphasized the importance of personal liberty under Article 21 of the constitution, calling for judicious exercise of curial power concerning bail. |
