Prevention of Money Laundering Act, 2002 (PMLA)
Why in news?
Enforcement Directorate's arrest Chairman of the Al Falah Group under Section 19 of the PMLA in connection with a ₹415 crore money laundering case.
Key provisions of the PMLA include:
- It is a law enacted to prevent money laundering and provide for the confiscation of property derived from or involved in money laundering.
- Punishment for money laundering, which can include rigorous imprisonment of a minimum of three years extending up to seven or ten years depending on the severity and the scheduled offences involved, along with fines.
- The Act imposes obligations on banking companies, financial institutions, and intermediaries to verify clients' identities, maintain records, and furnish information related to suspicious transactions to the Financial Intelligence Unit (FIU-IND).
- The Act enables the government to confiscate properties involved in or derived from money laundering.
- Scheduled offences listed in the Act are crimes whose proceeds, when laundered, attract investigation under the PMLA.
- The Enforcement Directorate (ED) is the key investigative agency for PMLA cases.
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