Agency under PMLA
- November 28, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Agency under PMLA
Context :The Centre has brought Competition Commission of India (CCI) within the ambit of agencies that have to mandatorily share information, including confidential ones, with the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA Act).
- It has empowered the ED to obtain corporate information from CCI, putting at risk the confidential information shared by corporate India with the competition watchdog under its merger control and anti-trust framework.
- No safeguards have been provided in the notification to prevent the misuse and unauthorised leakage of such information from ED.
- CCI had introduced the concept of “confidentiality ring” to give comfort to the corporates sharing commercial information with the competition watchdog.
- Confidentiality ring–Under the confidentiality ring controlled and limited access is given to the parties of the commercially sensitive information.
- The amendment is made in exercise of its powers under Section 66 of the PMLA, in the public interest.
- Under Section 66 of the Act, the 15 entities are bound to disclose case information to the ED if the probe falls under its jurisdiction. Based on the information, the ED can file a case under the PMLA, if it deems fit.
- Director (Financial Intelligence Unit, India, under the Ministry of Finance, Department of Revenue), Cabinet Secretariat (Research and Analysis Wing), Ministry of Home Affairs/National Security Council Secretariat/Intelligence Bureau, Economic Offences Wing of Central Bureau of Investigation, Chief Secretaries of State governments, Reserve Bank of India, Department of Company Affairs, and Securities and Exchange Board of India were required to share information with the ED.
- Latest addition–Apart from CCI, the ministry of finance has also added 14 other bodies bound to share information with ED under PMLA.
- National Investigation Agency (NIA), Serious Fraud Investigation Office (SFIO), State Police, Director General of Foreign Trade (DGFT), Ministry of External Affairs (MEA), National Intelligence Grid, Central Vigilance Commission (CVC), Defence Intelligence Agency, National Technical Research Organisation (NTRO), Military Intelligence, and Wildlife Crime Control Bureau.
- Regulator under PMLA Rules 2005, Special Investigation Team (SIT) constituted by the Ministry of Finance and inquiry appointed under Civil Services Rules or Public Services Inquiry Act or any preliminary enquiry appointed with the approval of CVC are also included in the list.