ED to focus on checking money laundering through online gaming following govt ban

The Enforcement Directorate (ED) has decided to initiate ''focused strategies'' to investigate financial crimes arising from the recent Union government ban on real-money online gaming.

The federal agency will also ensure the timely filing of charge sheets and pursue the ''fast tracking'' of trials in money laundering cases.

These issues were discussed during the 32nd quarterly conference of all zonal officers, comprising supervisory heads of the agency, held in Srinagar, Jammu and Kashmir, from September 12 to 13.

ED Director Rahul Navin chaired the two-day sessions.

The conference was held in the summer capital of the Union Territory with the aim of ''restoring confidence in the security environment of the state after the unfortunate terrorist attack that took place at Pahalgam a few months ago.'' ''The successful completion of the conference demonstrated that J&K remains a safe, vibrant and forward-looking venue for national and international-level deliberations,'' the ED said on Monday.

One of the key discussions included the need for ''focused strategies'' to address the ''upcoming challenge'' in the online gaming and betting sector, following the recent government ban on such activities, the agency said.

Senior officers were also directed to uphold ''preventive vigilance'' and reaffirm ED's core values of integrity, accountability, commitment and excellence.

The agency said ''strong'' cases being investigated in the cyber and digital fraud domains were acknowledged during the meeting, and it was decided that investigation methods and case compilations be ''systematically consolidated.'' It was also discussed that ''conflicts'' between the Insolvency and Bankruptcy Code (IBC) and the Prevention of Money Laundering Act (PMLA) need to be addressed. Cases where IBC provisions are allegedly being ''misused'' may be identified, the agency added.

ED Director Navin instructed officials to pursue Foreign Exchange Management Act (FEMA) cases with ''greater seriousness'' and to expedite the closure of pending FERA (now repealed) adjudication cases.

The agency said revised rules are being framed to enable effective possession of ''confirmed attached properties'', preventing offenders from enjoying the proceeds of crime.

The conference also shared that letters have been sent to Registrars of all Chief Justices, proposing the establishment of exclusive PMLA courts.

The ED said its conviction rate under PMLA stands at over 94 per cent, with convictions secured in 50 out of 53 cases — among the highest success rates in India and globally.

''The discussions also noted that PMLA prosecutions are linked to the progress of predicate offences, and delays or adverse outcomes in those cases affect PMLA trials,'' the agency said.

It further noted that the ED has successfully restituted or restored assets worth over Rs 34,000 crore to victims and legitimate claimants cheated in various frauds. Restitution is a provision under PMLA, and the agency has been undertaking this exercise more actively in recent years.

Discussions were also held on the need to revise existing circulars and operational manuals.

The ED, which functions under the Union finance ministry, enforces the criminal provisions of the Prevention of Money Laundering Act (PMLA), the Fugitive Economic Offenders Act (FEOA), and the civil provisions of the Foreign Exchange Management Act (FEMA).

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)