The government has significantly expanded the authority of the Department of Money Laundering Investigation (DoMLI) through a new ordinance aimed at strengthening action against financial crimes. The ordinance introduces major amendments to the Asset (Money Laundering) Prevention Act, 2008, including revisions to Section 13 related to complaint filing procedures.
Under the revised framework, DoMLI can now investigate money laundering cases independently, even when no specific underlying criminal offense has been established. Previously, investigations into money laundering were required to be connected to a predicate offense. The new provision greatly broadens the department’s investigative jurisdiction.
Officials said earlier amendments had allowed nearly 40 agencies—including the police, customs offices, forest authorities, the Commission for the Investigation of Abuse of Authority, and the Department of Revenue Investigation—to file money laundering cases separately. This weakened DoMLI’s central role and limited the effectiveness of enforcement efforts. The latest amendment restores DoMLI’s leading authority while also expanding the list of offenses that may trigger investigations, such as smuggling, customs and excise violations, and direct and indirect tax crimes.
The ordinance also places greater emphasis on financial market misconduct. Activities such as insider trading, market manipulation, and other practices that disrupt securities or commodities markets now fall under DoMLI’s jurisdiction. In addition, offenses related to banking and financial systems, foreign exchange violations, insurance fraud, and negotiable instruments are now explicitly included.
To speed up legal proceedings, money laundering cases can now be filed directly in the Special Court. The department has also been granted proactive powers to request further investigation and recommend prosecution if it determines that no action has been taken on a related offense.
The effects of the amendment are already becoming visible. Authorities are preparing to file money laundering charges against several individuals currently in custody, including Deepak Bhatt and Sulav Agrawal. Through these reforms, the government is signaling a tougher approach toward financial crimes that threaten the economy and capital markets.
