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.
