Call Us Today +91-011-44127897

Prevention Of Money Laundering

Get in touch

Introduction

In the ever-evolving landscape of global finance, preventing money laundering has become a paramount concern for governments and financial institutions. Money laundering poses a significant threat to the integrity of financial systems, and robust measures are crucial to curb illicit financial activities. India, as part of the international community, has implemented stringent measures to combat money laundering, with a focus on prevention, detection, and prosecution.

Legal Framework

The Prevention of Money Laundering Act, 2002 (PMLA) serves as the cornerstone of India’s legal framework against money laundering. This legislation was enacted to address the increasing concerns related to the generation and use of illicit funds, thereby safeguarding the stability and integrity of the financial system.

Global Cooperation

India actively participates in international efforts to combat money laundering. It is a member of the Financial Action Task Force (FATF), an intergovernmental body that sets global standards for combating money laundering and terrorist financing. Adherence to FATF guidelines enhances India’s ability to combat transnational financial crimes.

Our Services

Adjudicating Authority: An Adjudicating Authority is appointed to hear appeals against the attachment of properties under PMLA. This authority plays a crucial role in ensuring a fair and transparent process in cases of property attachment related to money laundering offenses.

Financial Intelligence Unit-India (FIU-IND): FIU-IND, established under PMLA, serves as the central national agency responsible for receiving, processing, analyzing, and disseminating information related to suspicious financial transactions. It acts as a vital intelligence gathering and dissemination hub to combat money laundering and related offenses.

Key Highlights

    • Money Laundering Offenses: PMLA criminalizes the process of money laundering and related offenses. It encompasses activities such as acquiring, possessing, or projecting proceeds of crime as untainted property. The act also criminalizes the involvement in or aiding the concealment or acquisition of proceeds of crime.

    • Designated Authority: The Act establishes the Directorate of Enforcement as the designated authority responsible for enforcing provisions related to money laundering. The Directorate works in coordination with other enforcement agencies to investigate and prosecute offenses under PMLA.

    • Adjudicating Authority: An Adjudicating Authority is appointed to hear appeals against the attachment of properties under PMLA. This authority plays a crucial role in ensuring a fair and transparent process in cases of property attachment related to money laundering offenses.

    • Financial Intelligence Unit-India (FIU-IND): FIU-IND, established under PMLA, serves as the central national agency responsible for receiving, processing, analyzing, and disseminating information related to suspicious financial transactions. It acts as a vital intelligence gathering and dissemination hub to combat money laundering and related offenses.

Related capabilities

Leagal Updates