Prevention of Money Laundering Act, 2002
Authorities and Assistance: Sections 48 to 54
The PMLA assigns its powers not to the ED at large but to specific ranks of officers, and the rank required rises with the intrusiveness of the power. Chapter VIII defines these authorities, provides for their appointment and jurisdiction, and, through Section 54, obliges a wide range of other officers, from the police to regulators, to assist them. This note sets out the ladder of authorities, what each rank can do, the duty to assist, and how the ED differs from FIU-IND.
The ladder of PMLA authorities, the web of agencies bound to assist, rank thresholds, and ED distinguished from FIU-IND
1. Classes of Authorities: Section 48
Class | Authorities |
|---|---|
s. 48(a) | Director, Additional Director or Joint Director |
s. 48(b) | Deputy Director |
s. 48(c) | Assistant Director |
s. 48(d) | Such other class of officers as may be appointed for the purposes of the Act |
2. Appointment, Jurisdiction and Directions: Sections 49 to 53
i. Appointment, s. 49. The Central Government appoints authorities; the Director or other designated authorities may appoint officers below the rank of Assistant Director.
ii. Jurisdiction, s. 51. Authorities exercise their powers in accordance with directions of the Central Government, the Director, or other superior authorities.
iii. Directions, s. 52. The Central Government may issue orders and directions to the authorities, without interfering with their discretion in individual cases.
iv. Empowerment, s. 53. The Central Government may empower officers of the Central or State Governments to act under the Act.
3. Rank and Power
Power | Minimum rank |
|---|---|
Survey, s. 16 | An authority within its assigned area |
Provisional attachment, s. 5 | Deputy Director, authorised by the Director |
Search and seizure, s. 17 | Authorised by the Director or a Deputy Director and above |
Search of persons, s. 18 | An authority authorised by the Central Government |
Arrest, s. 19 | Director, Deputy Director, Assistant Director, or an officer authorised by the Central Government |
Summons and statements, s. 50 | Director, Additional or Joint Director, Deputy Director or Assistant Director |
Power to call for records | Under s. 50(1), the civil-court powers of discovery and production |
4. Authorities Required to Assist: Section 54
§ The duty to assist The duty. Specified officers are empowered and required to assist the authorities in the enforcement of the Act. Who. They include officers of customs and central excise; officers under the NDPS Act; income-tax authorities; members of recognised stock exchanges; officers of the RBI; police officers; officers under FEMA; officers of SEBI, IRDAI and PFRDA; the National Housing Bank; registering officers under the Registration Act; and others specified. In practice. The police provide assistance in searches and arrests; income-tax authorities share returns and assessments; customs share import and export data; the RBI, SEBI and other regulators provide supervisory and transactional information. |
Agency | Typical assistance |
|---|---|
Police | Registration of the predicate FIR; security during searches; assistance in arrests |
Income-tax authorities | Returns, assessments, search findings, undisclosed income |
Customs | Import and export records; trade-based laundering; valuation |
RBI | Banking supervision data; foreign exchange records |
SEBI, IRDAI, PFRDA | Securities, insurance and pension transactions; intermediary records |
Registrars | Property registration records |
5. The ED and FIU-IND Distinguished
Basis | Directorate of Enforcement | FIU-IND |
|---|---|---|
Function | Investigation, attachment, prosecution | Intelligence: collection, analysis, dissemination |
Powers over individuals | Survey, search, arrest, summons | None of arrest or search |
Powers over reporting entities | Summons and search where relevant | Inquiry, audit and penalties under s. 13 |
Output | Prosecution complaints and attachment orders | Intelligence reports to law enforcement and regulators |
Common ground | Both under the Department of Revenue; FIU-IND disseminates to the ED |
6. Frequently Asked Questions
Who are the authorities under the PMLA?
Under Section 48, the Director, Additional Director or Joint Director; Deputy Director; Assistant Director; and other officers appointed.
Which officers are bound to assist the ED?
Under Section 54, officers including the police, customs, income-tax, NDPS, RBI, SEBI, IRDAI, PFRDA and registration authorities, among others.
What is the difference between the ED and FIU-IND?
The ED investigates and prosecutes; FIU-IND collects, analyses and disseminates financial intelligence and regulates reporting entities' compliance.