Prevention of Money Laundering Act, 2002
Prevention of Money Laundering Act, 2002was enacted in the Parliament of India to prevent money-laundering.
The PMLA 2002 defines the purpose of the act as:
- To prevent money laundering,
- To provide for confiscation of property derived from money-laundering and
- for matters connected therewith or incidental thereto.
Number of sections in PMLA 2002: there are 75 sections in the Prevention of Money Laundering Act, 2002
Amendments in PMLA 2002: The PMLA 2002 has been amended three times- in the year 2005, 2009 and 2012.
PMLA 2002 came into force with effect from July 1, 2005
Some important points related to the Prevention of Money Laundering Act, 2002
- The offence of Money Laundering has been defined in Section 3 of the Prevention of Money Laundering Act, 2002 (PMLA).
- Punishment for Money-laundering- may vary from 3 years to 7 years and fine which may extend upto Rs 5 lakhs.
- However, the maximum punishment may extend to 10 years instead of 7 years in cases where the proceeds of crime involved relate to any offence under paragraph 2 of Part A of the Schedule (This includes- Offences under the Narcotic Drugs and Psychotropic Substance Act, 1985).
Financial Intelligence Unit – India (FIU-IND)
Financial Intelligence Unit – India (FIU-IND) is the central national agency that is responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions in India.
It was set by the Government of India vide Office Memorandum dated 18th November 2004.
FIU-IND is an independent body. It reports directly to the Economic Intelligence Council (EIC) that is headed by the Finance Minister.
Read the full PMLA 2002 Act from here.
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