FERA
An Act to consolidate and amend the law
regulating certain payments, dealings in
foreign exchange and securities,
transactions indirectly affecting
foreign exchange and the import and
export of currency, for the conservation
of the foreign exchange resources of the
country and the proper utilisation
thereof in the interests of the economic
development of the country.
FEMA generally deals with foreign
exchange-related cases and mostly
contains provisions similar to
income-tax laws. PMLA, in contrast,
allows confiscation and attachment of
properties in addition to arrest of an
accused.
There are at least half a dozen severe
provisions in PMLA that are missing from
FEMA but existed in FERA, Matta says. ED
can now impose a penalty on banking and
other financial institutions if it is
convinced that the organisation failed
to maintain or retain records in
accordance with the provisions of PMLA
as already specified to them.
In accordance with PMLA rules, banks are
required to report information relating
to cash and suspicious transactions to
the Financial Intelligence Unit (FIU),
which in turn will alert the relevant
investigative agency. |
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