|Home > Definitions
||Authorised person means an
authorised person as defined in clause (c) of section 2 of the
Foreign Exchange Management Act, 1999
||2(1)(da) of PMLA
||Banking company means a banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies and includes any bank or banking institution referred to in section 51 of that Act.
||2(1)(e) of PMLA
|Chit Fund Company
||Chit fund company means a company managing, conducting or supervising, as foremen, agent or in any other capacity, chits as defined in Section 2 of the Chit Funds Act, 1982.
||2(1)(h) of PMLA
||Co-operative bank shall have the same meaning as assigned to it in clause(dd) of section 2 of the Deposit Insurance and Credit Guarantee Corporation Act 1961.
||2(1)(i) of PMLA
||CClient means a person who is
engaged in a financial transaction or activity with a reporting
entity and includes a person on whose behalf the person who
engaged in transaction or activity, is acting.
||2(1)(ha) of PMLA
||Financial Institution means a
Financial Institution as defined in clause (c) of section 45-I
of the Reserve Bank of India Act, 1934 (2 of 1934) and includes
a chit fund company, a housing finance institution, an
authorized person, a payment system operator, a non-banking
financial company and the Department of Posts in the Government
||2(1)(l) of PMLA
|Housing Finance Institution
||Housing Finance Institution shall have the same meaning as assigned to it in clause (d) of section 2 of the National Housing Bank Act, 1987.
||2(1)(m) of PMLA
||Intermediary means, -
- a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser or any other intermediary associated with Securities market and registered under Section 12 of the Securities and Exchange Board of India Act, 1992 ; or
- an association recognised or registered under the forward contracts (Regulation) Act, 1952 or any member of such association; or
- intermediary registered by the Pension Fund Regulatory and Development Authority; or
- a recognised stock exchange refereed to in clause (f) of Section 2 of the Securities Contracts (Regulation) Act 1956.
|2(1)(n) of PMLA
||Whosoever directly or
indirectly attempts to indulge or knowingly assists or knowingly
is a party or is actually involved in any process or activity
connected with the proceeds of crime and including its
concealment, possession, acquisition or use and projecting or
claiming it as untainted property shall be guilty of offence of
||3 of PMLA
|Non-banking Financial Company
||Non-banking financial company shall have the same meaning as assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934.
||2(1)(q) of PMLA
|Non profit organisation
||Non profit organisation means any entity or organisation
that is registered as a trust or a society under the Societies
Registration Act, 1860 (21 of 1860) or any similar State
legislation or a company registered under section 25 of the
Companies Act, 1956 (1 of 1956).
||2(1)(ca) of Rules**
|Officially Valid Document
||Officially valid document
means the passport, the driving licence, the Permanent Account
Number (PAN) Card, the Voter's Identity Card issued by the
Election Commission of India , Job card issued by NREGA duly
signed by an officer of the State Government, the letter issued
by the Unique Identification Authority of India containing the
details of name, address and Aadhar number or any document as
notified by the Central Government in consultation with the
Regulator. provided that where simplified measures are applied
for verifying the identity of the clients the following document
shall be deemed to be ‘officially valid document’ :
(a) identity card with applicant's photograph issued by
the Central/State Government Departments, Statutory/Regulatory
Authorities, Public Sector Undertakings, Scheduled Commercial
Banks, and Public Financial Institutions;
(b) letter issued by a gazetted officer, with a duly
attested photograph of the person.
|2(1)(d) of Rules*
||Persons includes -
- an individual,
- a Hindu undivided family,
- a company,
- a firm,
- an association of persons or a body of individuals, whether incorporated or not,
- every artificial juridical person, not falling within any of the preceding sub-clauses, and
- any agency, office or branch owned or controlled by any of the above persons mentioned in the preceding sub-clauses.
|2(1)(s) of PMLA
||Prescribed value means the value of transaction prescribed under these rules.
||2(1)(e) of Rules*
||Principal officer means an officer designated by a banking company, financial institution and intermediary, as the case may be.
||2(1)(f) of Rules*
|Proceeds Of Crime
||Proceeds of crime means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property.
||2(1)(u) of PMLA
||Property means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible and includes deeds and instruments evidencing title to, or interest in, such property or assets, wherever located.
||2(1)(v) of PMLA
||Records include the records maintained in the form of books or stored in a computer or such other form as may be prescribed.
||2(1)(w) of PMLA
||Reporting entity means a banking company, financial institution, intermediary or a person carrying on a designated business or profession.
||Regulator means a person or an authority or a Government which is vested with the power to license, authorise, register, regulate or supervise the activity of reporting entities or the Directors as may be notified by the Government for a specific reporting entity or a class of reporting entities or for a specific purpose.
||2(1)(fa) of Rules**
||Scheduled offence means -
- the offences specified under Part A of the Schedule; or
- the offences specified under Part B of the Schedule if the total value involved in such offences is thirty lakh rupees or more, or
- the offences specified under Part C of the Schedule.
|2(1)(y) of PMLA
||Suspicions transaction means a transaction
referred to in clause (h), including an attempted transaction, whether or not made in cash which, to a person acting in good faith -
(a) gives rise
to a reasonable ground of suspicion that it may involve
proceeds of an offence specified in the Schedule to the Act,
regardless of the value involved; or
(b) appears to be made in circumstances of unusual or unjustified complexity; or
(c) appears to have no economic
rationale or bonafide purpose; or
(d) gives rise to a reasonable
ground of suspicion that it may involve financing
of the activities relating to terrorism;
Explanation : Transaction involving financing of the activities relating to terrorism includes transaction involving funds suspected to be linked or related to, or to be used for terrorism, terrorist acts or by a terrorist, terrorist organization or those who finance or are attempting to finance terrorism.
|2(1)(g) of Rules***
||Transaction means a purchase, sale, loan, pledge, gift, transfer, delivery or the arrangement thereof and includes –
- opening of an account;
- deposits, withdrawals, exchange or transfer of funds in whatever currency, whether in cash or by cheque, payment order or other instruments or by electronic or other non-physical means;
- the use of a safety deposit box or any other form of safe deposit;
- entering into any fiduciary relationship;
- any payment made or received in whole or in a part of any contractual or other legal obligation;
- any payment made in respect of playing games of chance for cash or kind including such activities associated with casino; and
- establishing or creating a legal person or legal arrangement.
|2(1)(h) of Rules*
||Transfer includes sale, purchase, mortgage, pledge, gift, loan or any other form of transfer of right, title, possession or lien.
||2(1)(za) of PMLA
||Value means the fair market value of any property on the date of its acquisition by any person, or if such date cannot be determined, the date on which such property is possessed by such person.
||2(1)(zb) of PMLA
|*Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005
|*Inserted by Notification No.
13/2009 dated 12-11-2009
|*** Amended vide Notification No 4/2007 dated 24-05-2007
and Notification No. 13/2009 dated 12-11-2009