The Prevention of Money Laundering Act, 2002 (PMLA) is the primary legislation in India aimed at combating money laundering. Here are some key aspects of the Act:
Key Aspects of the Prevention of Money Laundering Act, 2002
- Objectives
- Prevent and Control Money Laundering: The Act aims to prevent and control money laundering activities in India.
- Confiscation of Property: It provides for the confiscation and seizure of property obtained from money laundering.
- Address Related Issues: The Act also deals with other issues connected with money laundering in India.
- Obligations on Financial Institutions
- Customer Due Diligence (CDD): Financial institutions are required to verify the identity of their clients and maintain records.
- Reporting: Institutions must furnish information in a prescribed form to the Financial Intelligence Unit – India (FIU-IND).
- Enforcement and Penalties
- Offence of Money Laundering: The Act defines money laundering and prescribes penalties for those involved in such activities.
- Special Courts: It provides for the establishment of special courts to handle cases related to money laundering.
- Amendments
- The Act has been amended several times, including in 2005, 2009, and 2012, to strengthen its provisions and address emerging challenges.
You can find more detailed information on the .