Notification under PMLA Act,2002

## Policy Analysis Report: Appointment of Director under Prevention of Money-Laundering Act, 2002 **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Finance, Department of Revenue, Government of India, dated November 24, 2022. This notification pertains to the appointment of a Director under the Prevention of Money-laundering Act, 2002. Specifically, it appoints the Principal Additional Director General Audit, Central Board of Indirect Taxes and Customs, as the Director to exercise powers under Section 13 of the Act with regard to dealers in precious metals and precious stones and real estate agents. The key finding is the expansion of oversight under the Act to include these specific sectors, effective November 15, 2022. **2. Introduction:** This report provides an overview and analysis of Notification S.O. 5475(E) issued by the Ministry of Finance, Department of Revenue on November 24, 2022, concerning the appointment of a Director under the Prevention of Money-laundering Act, 2002 (PMLA). The analysis is based solely on the information provided within the text of the notification. **3. Policy Overview:** * This is a new appointment under existing legislation, The Prevention of Money-laundering Act, 2002. * **Core Objective(s):** Based on the text, the core objective is to strengthen the enforcement and oversight capabilities under the PMLA by specifically assigning authority for supervising dealers in precious metals and precious stones and real estate agents. **4. Background and Rationale:** This is a new appointment to facilitate the existing act. The rationale appears to be expanding the scope of oversight under the PMLA to include sectors deemed vulnerable to money laundering activities. Dealers in precious metals and precious stones and real estate agents are now explicitly included within the Director's purview, suggesting a perceived need for increased scrutiny of these industries. This could be due to prior instances or a general assessment of risk. **5. Key Provisions / Changes:** This is a New Appointment, therefore the provisions are: * **Appointment:** The Principal Additional Director General Audit, Central Board of Indirect Taxes and Customs, is appointed as the Director. * **Authority:** The Director is empowered to exercise powers under Section 13 of the Prevention of Money-laundering Act, 2002. * **Scope:** The Director's authority extends specifically to dealers in precious metals and precious stones and real estate agents. * **Effective Date:** The appointment is effective from November 15, 2022. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * Dealers in precious metals and precious stones. * Real estate agents. * The Central Board of Indirect Taxes and Customs. * The Ministry of Finance, Department of Revenue. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Central Board of Indirect Taxes and Customs (through the appointed Director) is responsible for implementing this appointment. The Ministry of Finance, Department of Revenue, oversees the implementation. * **Timelines or procedures:** The appointment is effective from November 15, 2022. The notification does not detail specific procedures, but the Director is expected to exercise powers under Section 13 of the PMLA, which likely involves investigating and taking action against entities found to be involved in money laundering. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes include: * Increased monitoring and compliance within the precious metals, precious stones, and real estate sectors concerning money laundering activities. * More effective enforcement of the Prevention of Money-laundering Act, 2002, within these sectors. * Reduced opportunities for money laundering within the specified industries. **9. Conclusion:** The notification appointing the Principal Additional Director General Audit, Central Board of Indirect Taxes and Customs, as the Director under the Prevention of Money-laundering Act, 2002, represents a significant step toward enhancing oversight and enforcement capabilities within the precious metals, precious stones, and real estate sectors. This appointment signifies the government's intent to address potential vulnerabilities to money laundering within these industries and to ensure compliance with the PMLA.

Key Entities Referenced