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The Prevention of Money Laundering Act, 2002 (PMLA) came into force with effect from 1st July, 2005. Section 5 governs the power of the Directorate of Enforcement to issue Provisional Attachment Orders (PAO) against properties alleged to be proceeds of crime.

Legislative amendments and judicial interpretation of Section 5 have shaped the procedural requirements for valid attachment, the timeline for confirmation by the Adjudicating Authority, and the rights of persons whose properties are attached.

Sri Law Associates has successfully challenged PAOs at the Adjudicating Authority, Appellate Tribunal (ATFP/SAFEMA), High Courts and the Supreme Court of India, securing release of attached properties for clients.

The Prevention of Money Laundering Act, 2002 (PMLA) came into force with effect from 1st July, 2005. Section 3 defines the offence of money laundering — the core offence which triggers all PMLA action by the Directorate of Enforcement.

Amendments to Section 3 over the years have broadened the definition of the offence, with significant implications for persons involved in financial transactions connected to scheduled offences. The interpretation of Section 3 has been the subject of extensive judicial scrutiny including by the Hon'ble Supreme Court of India.

Sri Law Associates specialises in PMLA defence at all stages, including challenging the very constitution of the offence under Section 3 where the factual and legal grounds so permit.

The Prevention of Money Laundering Act, 2002 came into force with effect from 1st July, 2005. The Act was amended several times.

Sec-2 (1) (u) – “proceeds of crime” means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property;

The Government, through these amendments, has expanded the ambit of proceeds of crime, giving rise to key judicial interpretations regarding value equivalence.

Digital trade is the order of the day. So also is the craving for digital money — cryptocurrency. The legal position of cryptocurrency in India has evolved significantly since the RBI's circular of 2018 which was struck down by the Supreme Court of India in Internet and Mobile Association of India Vs Reserve Bank of India (2020).

Post the Supreme Court judgment, the trading in cryptocurrency in India occupies a grey area — not prohibited but also not fully regulated. The Foreign Exchange Management Act (FEMA) has implications for cross-border transactions in cryptocurrency, and the Directorate of Enforcement has initiated action in several cases.

Sri Law Associates advises on FEMA compliance, including in the emerging area of cryptocurrency and digital assets, helping clients navigate the evolving regulatory landscape.