LAW

1. 1
PREVENTION OF MONEY
LAUNDERING ACT, 2002
(PMLA)
SUBMITTED BY:-
ANSARI AHMED (116)
ADIL PATEL ( 111)
KADIR PHATAN ( )
SUDHIR DESAI (22)
SURAJ WAGHNARE ( )

2. WHAT IS MEANT BY MONEY LAUNDERING ?
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Money laundering is the process of creating the
appearance that large amounts of money obtained from
serious crimes, such as ILLEGAL ACTIVITY, originated from a
legitimate source.
IT’s also INCLUDES:
> Drug Trafficking
> Extortion
> Corruption
> Fraud

3. DEFINITION
PREVENTION OF MONEY LAUNDERING ACT, 2002
Its an Act of the Parliament of India enacted to prevent money-laundering and to provide for
confiscation of property derived from money-laundering . PMLA and the Rules notified there
under came into force with effect from July 1, 2005. The Act and Rules notified there under
impose obligation on banking companies, financial institutions and intermediaries to verify
identity of clients, maintain records and furnish information in prescribed form to Financial
Intelligence Unit – India
The act was amended in the year 2005, 2009 and 2012.
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4. OBJECTIVES
THE PMLA SEEKS TO COMBAT MONEY LAUNDERING IN INDIA AND HAS THREE
MAIN OBJECTIVES:
> To prevent and control money laundering
> To confiscate and seize the property obtained from the laundered money
> To deal with any other issue connected with money laundering in India.
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5. PUNISHMENT UNDER PMLA
Section of PMLA prescribes the Punishment for Money-Laundering
as under:
which shall not be less than Three years, but
which may extend to 7 years/10 years, and
shall also be liable to fine.
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6. CURRENTLY ACT USED ON
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• The Enforcement Directorate (ED), which is investigating money
laundering charges against Vijay Mallya, under the Prevention of
Money Laundering Act 2012 (PMLA).
• Report filed CBI Even in last year. ED is also investigating the
overall financial structure of his Company KINGFISHER.
• It is also looking into whether some of this money was sent
abroad illegally.
• The agency has also written to the 17-bank group led by State
Bank of India that lent money to the grounded airline and then
moved the debt recovery tribunal (DRT) to get back the money.
• ED has also sent official requests seeking details of investigations
conducted by the income tax and service tax departments

7. • Mr. Ramlinga Raju confessed that he had manipulated the
financial accounts and over sizing the company’s cash reserves by
1.5$billion dollar
• He mislead various investors, used dummy accounts to trade
satyam shares, the major reason behind this was Mayta’s
acquisition.
• The wealth of investors of satyam was washed out because of the
scandal
• Failure of auditors: company in order to show increase in
revenues created fictitious debtors and resulted in fictitious bank
balance 7

8. STEPS TAKEN BY AUTHORITIES
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• Chartered accountants body ICAI constituted a six-member special
committee to look into the auditing of crisis-hit Satyam Computer and
submit its auditing report on February, 11.
• Government asked the Serious Frauds Investigation Office (SFIO)-- a body
set up to crack complex white collar crimes-- to probe the financial
irregularities in Satyam Computer Services and report its findings in three
months.
• Raju was arrested on charges of cheating, fraud and and other criminal
charges under various sections of Indian Penal Code (IPC).
• The Securities and Exchange Board of India (SEBI) officials came to
Hyderabad to investigate the entire scam, but they could not do so as Raju
was in the custody of CID
Mr. Ramlinga Raju
7 YEAR OF JAIL
5.5 CRORE FINE

9. CONCLUSION
It is to be noted that even after so many efforts and
prevailing laws, India is among six countries being
actively monitored by Interpol and International
banking watchdogs after the detection of massive
money-laundering because of inadequate internal
compliance procedures.
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10. THANK YOU
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