PMLA Amendment enabling ED to proceed against Property held outside India applicable from 19th April [Read Notification]

The amendment to the Prevention of Money Laundering Act ( PMLA ) made vide Finance Act 2018 regarding the property held outside Indian territory is applicable with effect from 19^th April 2018, said a Notification issued by the Finance Ministry.

The section 208 of Part XIV of the Finance Act, 2018 (13 of 2018) now allows proceeding against property equivalent to proceeds to crime held outside the country also.

The Budget 2018 contained a proposal to amend the Prevention of Money Laundering Act (PMLA), 2002 aiming to widen its scope by providing for action against property, equivalent to proceeds of crime, held outside the country.

So far, the government could only proceed against property held within the country.

The amendments made through the Finance Act, 2018 would also take care of certain procedural difficulties faced by the Enforcement Directorate (ED) in the prosecution of PMLA cases.

The definition of “proceeds of crime” in PMLA was amended in 2015 to include “property equivalent held within the country” in case proceeds of crime is taken out or held “outside the country”, an official statement said.

Previously, the definition was amended in 2015 to include “property equivalent held within the country” in case proceeds of crime is taken out or held “outside the country”.