What is money laundering Act 2012?
– (1) If any person or entity is convicted of the offence of money laundering under this Act, the court may pass an order for confiscation of any property, within or outside the country, involved directly or indirectly in money laundering or predicate offence in favour of the State.
What is money laundering act in India?
As the name suggests, The Prevention of Money-Laundering Act (PMLA), 2002 is an Act to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto.
Who regulates money laundering in India?
4. Which Authorities Regulate the Prevention of Money Laundering Act? Ministry of Finance, The Directorate of Enforcement in the Department of Revenue is responsible for investigating offences of money laundering.
When was PMLA Amendment Act 2012 came in to effect?
The PMLA was enacted in 2002, but was amended thrice, first in 2005, then in 2009 and then 2012. The 2012 version of the amendment received president’s assent on January 3, 2013, and the law became operational from February 15, when the finance ministry notified it.
What is the duty of reporting organization as per Section 25 of MLPA 2012?
Under Section 25(1)(d) of MLPA, 2012, ROs shall have to report any doubtful transaction or attempt of such transaction as defined under Section 2(z) of the same act as suspicious transaction report to the BFIU immediately on its own accord.
Why is it called laundering money?
Money Laundering is called what it is because it perfectly describes what takes place – illegal or dirty money is put through a cycle of transactions, or washed, so that it comes out the other end as legal or clean money.
When was PMLA introduced?
The PMLA was enacted in 2005 to prevent money laundering and to provide for the confiscation, attachment, and seizure of proceeds from money laundering and related acts and matters, whether directly or indirectly. The main law against money laundering in India is Protection of the Money Laundering Act, 2002 (PMLA).
Which are the 3 stages of money laundering?
Money laundering typically includes three stages: placement, layering and integration stage.
What is the CFT under KYC AML regulations?
Combating of Financing of Terrorism (CFT) The objective of KYC/AML/CFT guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities.
When should a CTR and STR be submitted?
It is further clarified that cash transaction reporting by branches to their Principal Officer should invariably be submitted on monthly basis (not on fortnightly basis) and the Principal Officer, in turn, should ensure to submit CTR for every month to FIU-IND within the prescribed time schedule. 5.
Is the prevention of Money Laundering Act an evolutionary Act?
The Prevention of Money Laundering Act is a evolutionary act in a sense that over the years this act has undergone various amendments that has restructured the act in one way or the other and the series of amendments under this act commenced three years after the introduction of the original or one can say the parent act.
What is the definition of money laundering?
This definition of money laundering underwent another change by the amendment act 2019 as this amendment added an explanation to the section of defining the term money laundering which stated that the person shall be accused of money laundering if in any manner whatsoever that person is involved in the
Is money laundering an offence of continuing nature?
This amendment further mentioned that the person will be considered to be involved in the offence of money laundering till the time that person is getting the fruits of activities related to money laundering as this offence is of a continuing nature.
What is the maximum punishment under the criminal law in India?
The 2012 amendment act amended the monetary punishment that can be levied upon the accused under this act as in the parent act the fine could be Rs.5,00,000 maximum but now after the amendment the figure of Rs.5,00,00 has been struck off which implies that now fine can extend to any amount which the special courts deems fit as per the case.