{"id":10396,"date":"2023-05-05T07:30:44","date_gmt":"2023-05-05T02:00:44","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=10396"},"modified":"2025-03-29T20:01:00","modified_gmt":"2025-03-29T14:31:00","slug":"prevention-of-money-laundering-act-pmla","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/prevention-of-money-laundering-act-pmla\/","title":{"rendered":"Prevention of Money Laundering Act (PMLA)"},"content":{"rendered":"<h2><strong>About Prevention of Money Laundering Act (PMLA):<\/strong><\/h2>\n<ul>\n<li>It is an Act <strong>to prevent money laundering<\/strong> and to <strong>provide for the confiscation of property derived from<\/strong> or involved in <strong>money laundering<\/strong>.<\/li>\n<li>The Act was formulated for the following <strong>objectives:<\/strong>\n<ul>\n<li><strong>Prevent money-laundering<\/strong>.<\/li>\n<li>Combat\/<strong>prevent channelising of money into illegal activities<\/strong> and economic crimes.<\/li>\n<li>Provide for the <strong>confiscation of property<\/strong> derived from, or involved\/used in, money laundering.<\/li>\n<li>Provide for matters connected and incidental to the acts of money laundering.<\/li>\n<\/ul>\n<\/li>\n<li>The <strong>Enforcement Directorate<\/strong> <strong>(ED)<\/strong> in the Department of Revenue, Ministry of Finance, is <strong>responsible for investigating the offences<\/strong> of money laundering <strong>under the PMLA<\/strong>.<\/li>\n<li><strong>Financial Intelligence Unit \u2013 India (FIU-IND)<\/strong> under the Department of Revenue is the <strong>central national agency responsible for receiving, processing<\/strong>, analysing, and <strong>disseminating information relating to suspect financial transactions<\/strong>.<\/li>\n<li>The <strong>scheduled offences are<\/strong> separately <strong>investigated by agencies<\/strong> mentioned <strong>under respective acts<\/strong>, for example, the local police, CBI, customs departments, SEBI, or any other investigative agency, as the case may be.<\/li>\n<li><strong>Actions that can be initiated against the person involved in money laundering:<\/strong>\n<ul>\n<li><strong>Seizure\/freezing of property and records and attachment of property<\/strong> obtained with the proceeds of crime.<\/li>\n<li>Any person who commits the offence of money laundering shall be punishable with \u2013\n<ul>\n<li><strong>Rigorous imprisonment for a minimum term of three years<\/strong> and this may <strong>extend up to seven years<\/strong>.<\/li>\n<li><strong>Fine (without any limit).<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1)\u00a0What is money laundering?<\/h3>\n<p>Money laundering is the illegal process of making large amounts of money generated by criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process \u201claunders\u201d it to make it look clean.<\/p>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/www.business-standard.com\/economy\/news\/accountants-managing-client-money-under-pmla-ambit-finmin-notifies-rules-123050401104_1.html\" target=\"_blank\" rel=\"nofollow noopener\"><u>CA, CS handling client money in PMLA ambit; FinMin notifies rules<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PMLA aims to prevent money laundering and provide for confiscation of property derived from money laundering.<\/p>\n","protected":false},"author":5,"featured_media":10397,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-10396","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/10396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=10396"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/10396\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/10397"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=10396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=10396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=10396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}