Law Relating to Prevention of Money Laundering ( Exhaustive Commentary & Updated Case Laws) by Y P Bhagat – 2nd Edition 2025

Description

LAW RELATING TO PREVENTION OF MONEY LAUNDERING  (Exhaustive Commentary & Updated Case Laws) SECOND EDITION 2025 The Prevention of Money Laundering Act, 2002 (PMLA) is India’s primary legislation aimed at preventing money laundering. It was enacted to combat money laundering, provide for the confiscation of laundered proceeds, and establish mechanisms for related matters. The Act imposes obligations on various entities like banks, financial institutions, and intermediaries to verify client identities, maintain records, and report suspicious transactions.
Key Aspects of the PMLA:
Objective:
The PMLA’s primary goal is to prevent money laundering, a process of concealing the origins of illegally obtained money by making it appear legitimate.
Scope:
It extends to the whole of India and covers a wide range of activities related to money laundering.
Obligations:
The Act places specific obligations on various entities to:
Verify the identity of clients.
Maintain detailed records of transactions.
Report suspicious transactions to the Financial Intelligence Unit-India (FIU-IND).
Offenses:
The PMLA defines money laundering as any activity connected with proceeds of crime, including concealment, possession, acquisition, or use of such proceeds.
Punishments:
Violations of the PMLA can lead to imprisonment for a term of three to seven years, and in certain cases, the term can extend up to ten years, along with fines.
Confiscation:
The PMLA allows for the confiscation of property derived from or involved in money laundering.
Adjudicating Authority & Appellate Tribunal:
The Act provides for an adjudicating authority and an appellate tribunal to handle money laundering matters.
In essence, the PMLA provides a comprehensive legal framework to:
Prevent: money laundering activities.
Punish: those involved in money laundering.
Confiscate: illegally obtained assets.
Establish: a framework for investigating and prosecuting money laundering