Section 29 the Prevention of Money- Laundering Act,
Here is an overview of Section 29 of the Prevention of Money Laundering Act (PMLA), 2002:
Section 29: Attachment of property involved in money laundering
Key points:
When applicable:
If a competent authority (usually the Enforcement Directorate or designated officer) has reason to believe that any property is involved in money laundering, they may provisionally attach such property.
Procedure:
The competent authority can provisionally attach any property which is suspected to be proceeds of crime.
Such attachment must be done within 180 days from the date of attachment, during which the competent authority files a prosecution complaint.
The attachment can be extended by the Adjudicating Authority if the investigation or prosecution is ongoing.
Effect:
Once attached, the property cannot be transferred, disposed of, or dealt with by any person.
The attachment is provisional and subject to confirmation by the Adjudicating Authority.
Adjudicating Authority:
After provisional attachment, the property is referred to the Adjudicating Authority which confirms the attachment after an inquiry.
Importance:
Section 29 is critical for the freezing of assets suspected to be involved in money laundering.
It aims to prevent the dissipation or disposal of proceeds of crime until the matter is adjudicated.
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