India 2018

254 India 2018
involved in such contravention. Under the PMLA, the Directorate can initiate
investigations only after a Law Enforcement Agency books a case under one of
the offences listed in the Schedule to the Act. The Directorate investigates the
case to ascertain whether proceeds of crime have been generated from the
predicate offence booked by the Law Enforcement Agency, and such proceeds
have been laundered. If a prima-facie case is made out, the Directorate attaches
or seizes the tainted property. The Act also provides for initiating investigations
for tracing and immobilizing tainted property arising out of transactions having
cross border implications. Such investigations are carried out through Letters
of Request with the foreign administrations. The offence of money laundering
under PMLA is punishable with imprisonment of not less than three years which
may extend to seven years and also with fine. In case of violations pertaining to
NDPS Act offences, the imprisonment may extend to 10 years. Upon conviction
under PMLA, the attached property is liable to be confiscated.
Financial Intelligence Unit-India
Financial Intelligence Unit-India (FIU-IND) is the central national agency for
receiving, processing, analyzing and disseminating information relating to
suspect financial transactions. FIU-IND was established by the Government of
India in 2004 for coordinating and strengthening collection and sharing of
financial intelligence through an effective national, regional and global network
to combat money laundering, related crimes and terrorist financing. It is an
independent body reporting to the Economic Intelligence Council (EIC) headed
by the Finance Minister. For administrative purposes, FIU-IND is under the
Department of Revenue, Ministry of Finance. FIU-IND is established as an
administrative FIU i.e., as an independent government body that receives
analyses and disseminates STR to the appropriate law enforcement or
investigation agency. FIU-IND does not investigate cases. The main functions
of FIU-IND include domestic co-operation, international co-operation, outreach,
compliance and administration of an Information Technology based
platform(FINnet) providing end-to-end solution for filing, analysis and
dissemination of information, including making request and submission of
feedback.
Narcotics Control
The Narcotics Control Division administers the Narcotic Drugs and Psychotropic
Substances Act,1985 (61 of 1985), which prohibits ,except for medical and
scientific purposes, the manufacture, production, possession, sale, purchase,
transport, warehouse, use, consumption, import inter-State, export inter-State,
import into India, export from India or transhipment of narcotic drugs and
psychotropic substances.
Customs, Excise and Service Tax Appellate Tribunal
Customs, Excise and Service Tax Appellate Tribunal (earlier known as Customs
Excise and Gold (Control) Appellate Tribunal) was formed as a quasi-judicial
body to hear appeals from the orders and decisions passed by the