The Prevention of Money Laundering Act (PMLA) was enacted in 2002 to combat money laundering and related criminal activities in India. The act aims to prevent the use of illegally obtained money to fund terrorism or other crimes. It defines money laundering and establishes penalties for committing the offense. The PMLA also requires certain entities to report suspicious transactions and empowers authorities to investigate money laundering cases, attach suspicious assets, and arrest suspected launderers. It grants jurisdiction to Indian courts to try money laundering cases and allows for extradition in some instances.

1. Prevention of Money
laundering Act,2002
Riddhi Pratim Dutta

2. Author:
Riddhi Pratim Dutta
Copyright Date:
2023
About

3. Summary
The Prevention of Money Laundering Act (PMLA) is an Indian law enacted in
2002 to combat money laundering and related offences. The act aims to prevent
the use of the proceeds of crime for terrorist activities and other criminal
purposes. Money laundering is a criminal activity that involves disguising the
proceeds of crime as legitimate funds. The act provides for the establishment of
a specialized agency, the Enforcement Directorate (ED), which is responsible for
enforcing the provisions of the act

4. Salient Points
Money laundering and its
punishment: The act defines money
laundering and prescribes
punishment for the same. The
punishment includes imprisonment
for a term ranging from three years
to seven years and a fine of up to
Rs. 5 lakhs.

5. Salient Points
Prevention and reporting of money
laundering: The act requires
reporting entities to maintain
records of transactions and report
suspicious transactions to the
authorities. The reporting entities
include banks, financial institutions,
and other entities specified by the
government.

6. Salient Points
Attachment and confiscation of
property: The act provides for the
attachment and confiscation of
property derived from or involved in
money laundering. The authorities
can initiate proceedings for the
attachment and confiscation of
property if they have reason to
believe that the property is involved
in money laundering.

7. Salient Points
Powers of the authorities: The act
confers extensive powers on the
authorities, including the power to
search, seize, and arrest persons
suspected of money laundering.
The authorities can also freeze
accounts and assets suspected of
being involved in money laundering.

8. Salient Points
Jurisdiction: The act provides for
the jurisdiction of the courts to try
offences under the act. The courts
have jurisdiction over offences
committed within the territory of
India, and the authorities can also
seek the extradition of persons
suspected of money laundering.

9. Hasan Ali Khan case: The Hasan Ali Khan case is one of
the most high-profile money laundering cases in India.
Hasan Ali Khan was a Pune-based businessman who was
accused of laundering money worth over Rs. 36,000
crores. The ED investigated the case and filed a charge
sheet against Khan and others under the PMLA. The case
highlighted the need for a strong anti-money laundering
regime in India.
NSEL scam: The National Spot Exchange Limited (NSEL)
scam is another major money laundering case in India. The
scam involved the laundering of money worth over Rs.
5,600 crores. The ED investigated the case and arrested
several persons, including the chairman of the exchange,
Jignesh Shah. The case highlighted the need for effective
regulation of commodities exchanges in India.
Case references

10. The Prevention of Money Laundering Act is an
important tool in the fight against money
laundering and related offences. The act provides
for stringent measures to prevent money
laundering and empowers the authorities to
investigate and prosecute cases of money
laundering. The act has been instrumental in
investigating and prosecuting high-profile money
laundering cases in India, such as the Hasan Ali
Khan case, the NSEL scam, and the Vijay Mallya
case.

11. Thank you