PMLA: Combating Money Laundering and Financial Crimes
April 8, 2024
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Concept :
- The Prevention of Money Laundering Act (PMLA), enacted by the Indian government, targets money laundering and associated financial offenses.
- Enacted in 2002, the PMLA aims to prevent and control money laundering activities and confiscate proceeds of crime derived from illicit activities.
Key Provisions:
Offences and Penalties:
- The PMLA criminalizes money laundering activities and imposes stringent penalties on offenders.
- Offences under the Act include concealing, acquiring, possessing, or using proceeds of crime.
- Aiding, abetting, or participating in any process connected with proceeds of crime is prohibited.
Definition of Money Laundering:
- Any process or activity concealing the illicit origin of funds obtained through criminal activities defines money laundering.
- The Act tackles a wide range of predicate offenses, such as terrorism, drug trafficking, organized crime, corruption, tax evasion, and fraud.
Designated Authorities:
- The PMLA designates various authorities responsible for enforcing and implementing its provisions.
- The Enforcement Directorate (ED) leads money laundering investigations and enforcement under the Act.
Attachment and Confiscation of Proceeds of Crime:
- PMLA enables attachment and confiscation of proceeds from money laundering, considered as a vital feature.
- Additionally, the Act authorizes freezing and seizing assets suspected of money laundering during investigation and trial.
Legal Framework for International Cooperation:
- The PMLA provides a legal framework for international cooperation and mutual legal assistance in combating money laundering and related offences.
- India engages in agreements related to exchange of information and cooperation related to anti-money laundering investigations with other nations.
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