This document discusses money laundering, including definitions, reasons for money laundering, how it works, and efforts to prevent it. It defines money laundering as cleaning money obtained from illegal activities to make it appear legitimate. Reasons for money laundering include avoiding investigations and taxes. The Prevention of Money Laundering Act of 2002 aims to prevent laundering and related crimes through provisions like confiscation of illegally obtained property and punishment. Technology like AI and data analytics helps financial institutions monitor transactions and detect suspicious patterns.

1. Bhakti Mane |
Nishad Durge |
Milind Kowli |
Anushka Achrekar |
Madura Parab |
Nisarga Raut |
Manas Satam |
Omkar Patil |
Felicia Fernandes |

2. • Typically, “Laundering” means
“Cleaning”. Thus, money laundering
means cleaning of money.
• Money laundering means
converting of black money into
white money.
• A financial transaction generating
an asset or value through an illegal
conduct.

3. • To avoid attracting
investigations by
legal authorities.
• Do not want to
have to
acknowledge it as
income.
• To deal with the
problem of having
millions of dollars
in cash obtained
illegally.
• Prevention of
Money
Laundering Act,
2002 was enacted
to fight against the
criminal offence of
legalizing the
income/profits
from an illegal
source
• To prevent money laundering.
• To combat channelising money into illegal activities and
economic crimes.
• To provide for confiscation of property derived from or involved
in money laundering.
• To punish those who commit the offence of money laundering.
• Prevention of Money Laundering Act, 2002 with effect 1 July
2005

4. How does Money Laundering
work?

7. Why????
• A tool to stabilize the currency and fight inflation.
• To discourage the use of high-denomination notes for illegal transactions.
• To encourage digitisation of commercial transactions
Whatt????
A process of withdrawing a particular form of currency from
circulation.

9.  Anti Money Laundering (AML)
• It is a framework that puts best practices
into action to detect suspicious activity.
• How banking AML works
Identity checks
AML holding period
AML transaction monitoring software

10.  Encountering Suspicious or Illegal Activity
•Banks regularly track accounts for illegal activities.
•Suspected accounts are freezed by banks.
•File a Suspicious Activity Report

11. High court
Special Court
Adjudication
Enforcement Directorate
Permanent Attachment
Provisional Attachment
confiscation
Appellate Tribunal
Presumptions &
Burden of Proof

12.  Technology helps in the prevention of financial crime all across the
world.
• Artificial Intelligence (AI)
• Machine Learning (ML)
• Data Analytics
 Financial institutions have to monitor a growing volume of data.
E.g. KYC AML, or Know Your Customer.
 5 ways popularly used to combat money laundering are:
1. Improve searches with technology
2. Have regular cross communication
3. Use data analytics to find patterns
4. Standardize your systems
5. Structural training is essential

16. Normally
Offence Related to Para A of part A
Schedule
Imprisonment of min 3
yrs to max 7 years.
Fines
Imprisonment of min 3 yrs to max 10
years.
Fines

18. Country Ranking Overall Score
Afghanistan 1 8.16
Haiti 2 8.15
Myanmar 3 7.86
Laos 4 7.82
Mozambique 5 7.81
Cayman Islands 6 7.64
Sierra Leone 7 7.51
Senegal 8 7.30
Kenya 9 7.18
Yemen 10 7.12
Country Ranking Overall Score
Estonia 141 2.36
Andorra 140 2.83
Finland 139 2.97
Bulgaria 138 3.12
Cook Islands 137 3.13
Norway 136 3.19
New Zealand 135 3.24
Sweden 134 3.32
Slovenia 133 3.35
Denmark 132 3.46

20.  PMLA : A step taken by Indian Government for tracing and stopping fraudulent monetary
activities.
 The advancement in technology has reduced money laundering by reducing its chances of
detection.
 India needs to enact strict compliance programs for the financial industry that make money
laundering more difficult.
 Financial organizations must be required to report suspicious transactions.
 Due to the high corruption rate, it is hard to be effective as this law can be bypassed and
authorities can be bought with a large amount of money.