The Prevention of Money Laundering Act
The Prevention of Money Laundering Act, 2002 (PMLA) forms the
core of the legal framework put in place by India to combat money
laundering. PMLA and the Rules notified there under came into force
with effect from July 1, 2005 . Director, FIU-IND and Director
(Enforcement) have been conferred with exclusive and concurrent
powers under relevant sections of the Act to implement the
provisions of the Act.
The PMLA and rules notified thereunder impose obligation on
banking companies, financial institutions and intermediaries to
verify identity of clients, maintain records and furnish information
to FIU-IND. PMLA defines money laundering offence and provides for
the freezing, seizure and confiscation of the proceeds of crime.