PMLA stands for Prevention of Money Laundering Act. It is an Indian law that was enacted in 2002 with the objective of preventing money laundering and combating financing of terrorism.
The law provides for the investigation, prosecution and confiscation of proceeds of crime, which are defined as any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled.
SOME NEED
The PMLA requires financial institutions, such as banks and other financial intermediaries, to maintain records of transactions and to report suspicious transactions to the Financial Intelligence Unit (FIU) of India. The law also provides for the establishment of a specialized agency called the Enforcement Directorate (ED),
- Enforcement Directorate (ED): The ED is responsible for the enforcement of PMLA and is the primary investigating agency for money laundering cases in India.
- Financial Intelligence Unit-India (FIU-IND): The FIU-IND is the central agency for receiving, analyzing, and disseminating information relating to suspicious financial transactions.
- Central Bureau of Investigation (CBI): The CBI is India's premier investigative agency and is responsible for investigating cases of economic offenses, including money laundering.
- Reserve Bank of India (RBI): The RBI is India's central bank and is responsible for implementing various policies and regulations to prevent money laundering in the banking sector.
- Securities and Exchange Board of India (SEBI): The SEBI is the regulatory body for the securities market in India and is responsible for regulating and monitoring the capital market to prevent money laundering activities.
- Income Tax Department: The Income Tax Department is responsible for investigating tax evasion cases, which can be linked to money laundering.
- Customs Department: The Customs Department is responsible for monitoring the cross-border movement
Every reporting entity is required to maintain a record of all transactions for ten years from the date of the transaction.
Reporting entities must verify the identity of customers and maintain a record of such verification.
Reporting entities must maintain a record of all transactions of value equal to or exceeding the prescribed threshold limit.
Every reporting entity must have a policy on know your customer (KYC) and anti-money laundering (AML).
The policy should be approved by the board of directors or the equivalent and be reviewed periodically.
The policy should contain guidelines for customer identification, risk assessment, and monitoring of transactions.
Reporting entities must report suspicious transactions to the Financial Intelligence Unit-India (FIU-IND).
Reporting entities must ensure that their employees are trained to identify and report suspicious transactions.
Reporting entities must maintain confidentiality of the identity of the person reporting the suspicious transaction.
Non-compliance with PMLA provisions may result in imprisonment or fine
Imprisonment: The Act provides for imprisonment ranging from three to seven years for various offenses, such as money laundering, providing false information, or willfully concealing any property involved in money laundering.
Fine: The Act provides for a fine of up to twice the value of the property involved in the offense or INR 10 lakh, whichever is higher.
Confiscation: The Act empowers the authorities to confiscate any property involved in money laundering or acquired through the proceeds of crime.
Attachment: The authorities can attach any property that is suspected to be involved in money laundering or proceeds of crime during the investigation.
Prohibition from conducting business: The Act also empowers the authorities to prohibit a person involved in money laundering or any related offense from conducting any business or trade.
some crime include in PMLA
- (Indian Penal Code)
- (Prevention of Corruption Act)
- (Narcotics Drugs and Psychotropic Substances Act)
- (Antiquities and Art Treasures Act)
- (Trademark Act
- (Wildlife Protection Act)
- (Copyright Act)
- (Information Technology Act)
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