AML KYC Tutorial | Prevention of Money -Laundering Act (PML Act)

 

Prevention of Money-Laundering Act (PML Act)

Prevention of Money-Laundering Act (PML Act) is to prevent the laundering of money and to provide for confiscation of property derived from, or involved in, laundering and for matters connected therewith or incidental thereto. This act was formed in 2002 by the Act of the Parliament of India enacted by the NDA government. To add on, this act was amended in 2005, 2009, and 2012 respectively. Also, this PMLA aims to fight the crime of 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; and
  • To deal with any other issue connected with money laundering in India
  • WHEREAS the Political Declaration and Global Programme of Action, annexed to the resolution S-17/2 was adopted by the General Assembly of the United Nations at its seventeenth special session on the twenty-third day of February 1990; 
  • AND WHEREAS the Political Declaration adopted by the Special Session of the United Nations General Assembly held on 8th to 10th June 1998 calls upon the Member States to adopt national money laundering legislation and program; 
  • AND WHEREAS it is considered necessary to implement the aforesaid resolution and the Declaration; 
  • BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows

Definitions of Money-Laundering Act 

In this Act, unless the context otherwise requires, —

(a) “Adjudicating Authority” means an Adjudicating Authority appointed under sub-section
(1) of section 6;
(b) “Appellate Tribunal” means the Appellate Tribunal established under section 25;
(c) “Assistant Director” means an Assistant Director appointed under sub-section (1) of
section 49;
(d) “attachment” means prohibition of transfer, conversion, disposition or movement of
property by an order issued under Chapter III;

 

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