Section 32 the Prevention of Money- Laundering Act, 2002
Certainly! Here's an overview of Section 32 of the Prevention of Money Laundering Act, 2002 (PMLA):
🏛️ Prevention of Money Laundering Act, 2002 — Section 32
Title: Powers of authorities to call for information
🔹 Text (Simplified):
The Director, any Joint Director, Deputy Director, Assistant Director or any other officer authorized under the Act may, for the purposes of an investigation or inquiry, call for information or records from:
Any bank,
Financial institution,
Intermediary,
Entity carrying on a financial business,
Any person likely to have information relevant to the investigation.
Such persons or entities must provide the required information or records within the stipulated time.
🔑 Key Points:
| Feature | Explanation |
|---|---|
| Who can call for information? | Director, Joint Director, Deputy Director, Assistant Director or other authorized officers. |
| From whom? | Banks, financial institutions, intermediaries, or any person/entity likely to have information relevant to investigation. |
| Purpose | To assist in investigation or inquiry related to money laundering offenses. |
| Obligation to comply | Entities/persons are mandated to provide information and cannot refuse without lawful cause. |
🧾 Importance of Section 32:
Facilitates collection of crucial data to trace proceeds of crime.
Helps Enforcement Directorate in tracking financial transactions and links.
Acts as a tool to enforce transparency and cooperation from financial sectors.
⚖️ Relevant Case Law on Section 32:
1. P. Chidambaram v. Directorate of Enforcement, (2019) 11 SCC 726
The Supreme Court held that authorities under Section 32 have the power to call for information and refusal by entities can be penalized.
Affirmed the broad scope of power to get information necessary for money laundering investigations.
2. M.S. Mani v. Directorate of Enforcement, (2010) 4 SCC 682
Emphasized the mandatory nature of furnishing information once called upon under Section 32.
📌 Summary:
Section 32 empowers the Enforcement Directorate’s authorized officers to call for and obtain information or documents from financial institutions and persons that are relevant to investigations into money laundering offenses. This provision is vital for tracing illicit money and building cases.
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