The Creation Of A Strict Regulatory Regime For Financial Institutions Will Require Financial Institutions To Abandon Their Polices Of Customer Confidentiality.
Prevention of money laundering act, 2002: The principal reasons for this are the existence of corruption in the system. India has prohibited money laundering under the prevention of money laundering act, 2002 (pmla) and also in the narcotic drugs and psychotropic substances act, 1985 (ndps act) (amended in 2001).
Section 3 Of Prevention Of Money Laundering Act, 2002 Says €Œwhosoever Directly Or Indirectly Attempts To Indulge Or Knowingly Assists Or Knowingly Is A Party Or Is Actually Involved In Any Process Or Activity Connected With The Proceeds Of Crime And Projecting It As Untainted Property Shall Be Guilty Of Offence Of Money Launderingâ€.
The money so converted is illegal and is obtained from illegal activities. The act imposes obligations on banking companies, financial institutions, and intermediaries to verify identities of clients, maintain records and furnish information in prescribed form to the competent authorities. Introduction money laundering is the process of concealing the source of money obtained by illicit means.
India Has Dealt With The Issue Of Money Laundering Via Various Legislations Such As The Conservation Of Foreign Exchange And Prevention Of Smuggling Activities Act, 1974, The Income Tax Act, 1961, The Benami Transactions (Prohibition) Act, 1988, The Indian Penal Code And Code Of Criminal Procedure, 1973, The Narcotic Drugs And Psychotropic Substances Act,.
Money laundering is a criminal activity through which illegitimate money is turned into a legitimate source of income. (ii) break open the lock of any door, box, locker, safe, almirah, or. India, in june 2010 attended as the 34 th member of the financial action task force (“fatf”), an inter government body that looks after money crime and provide suggestion to the government for crimes like terrorist financing, money laundering and other ills of a financial system.
What Is The Punishment For The Offence Of Money Laundering?
This act has been amended three time i.e., in 2005, 2009, and 2012. India has criminalised money laundering under both the prevention of money laundering act, 2002 (pmla), as amended in 2005 and 2009, and the narcotic drugs and psychotropic substances act, 1985 (ndps act), as amended in 2001. The last amendment was done in 2012 and it was implemented on february 15, 2013.
In India, Laws Which Are Framed For Crimes Done With Prescribed Punishment Are Under The Prevention Of Money Laundering Act, 2002.
Annual income generated from the illegal drug trade is one of the highest in the world as india alone accounts for 6% of the global cannabis consumption and a rising trend of psychotropic substances. The prevention of money laundering act, 2002 (“pmla”)along with the prevention of money laundering (maintenance of records) rules, 2005 (“rules”) are the principal laws enacted to prevent money laundering activities in india.there are specialised authorities dealing with money laundering issues such as the reserve bank of india / securities and exchange board of india. Money laundering, hawala, the prevention of money laundering act, 2002 1.