Prevention of Money Laundering

The Prevention of Money Laundering Act, 2002 (PMLA)

is an Indian law enacted to combat money laundering and to confiscate property derived from, or involved in, money laundering. Here’s a brief overview in legal terms:

1. Objective: The primary objective of the PMLA is to prevent money laundering, establish provisions for confiscation of property involved in or derived from money laundering, and to provide for matters connected with or incidental to the process.
2. Offense of Money Laundering: Defined under Section 3 of the Act, the offense of money laundering involves directly or indirectly attempting to indulge in, or knowingly assisting in, the process of integrating illicitly acquired money into the legitimate economy. This includes concealment, possession, acquisition, or use of proceeds of crime.
3. Proceeds of Crime: As per Section 2(u), it refers to any property derived or obtained directly or indirectly as a result of criminal activity relating to a scheduled offense, or the value of such property.
4. Enforcement Directorate (ED): The ED is the key authority under the PMLA responsible for investigating and prosecuting offenses of money laundering, and ensuring the attachment, confiscation, and recovery of the proceeds of crime.