Revamping Money Laundering Investigations: New ED Guidelines

The Enforcement Directorate (ED) advises using more than just 'criminal conspiracy' when registering money laundering cases. Citing court rulings, the ED now emphasizes employing additional sections like 66(2) of the PMLA for stronger legal grounds. This new approach follows recent case dismissals, including those against prominent figures.

The Enforcement Directorate (ED) has issued new guidelines to its officials, advising against relying solely on 'criminal conspiracy' when registering money laundering cases. Instead, officials are encouraged to incorporate additional sections, such as 66(2) of the PMLA, to fortify legal proceedings, according to sources.

This directive follows several court rulings, including from the Supreme Court, which indicated that section 120-B of the IPC (now 61(2) of the Bharatiya Nyaya Sanhita, 2023) cannot independently justify registering a criminal case under the Prevention of Money Laundering Act (PMLA). The law mandates that a 'scheduled offence' accompanies any application of the act.

The updated guidelines are a response to recent cases where ED's FIRs were quashed, including those against Karnataka's deputy chief minister D K Shivakumar and retired IAS officer Anil Tuteja. In response, the ED utilized section 66(2) of the PMLA, sharing fresh evidence with predicate agencies to ensure a more robust foundation for money laundering cases.

(With inputs from agencies.)