Record-Keeping Obligations for Reporting Entities under PMLA
The Prevention of Money Laundering Act (PMLA), 2002 places strict obligations on banks, financial institutions, and other reporting entities to maintain transaction records and client information. These requirements are critical for ensuring transparency, detecting suspicious activities, and enabling investigators to trace the origins of funds when necessary. Under PMLA, records must be kept in such…
Read article Key Rules Under the Prevention of Money Laundering Act (PMLA), 2002
The Prevention of Money Laundering Act (PMLA), 2002 is India’s primary legislation to combat money laundering and safeguard the integrity of the financial system. To operationalize its provisions, several rules have been framed—most notably the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, which place specific obligations on banks, financial institutions, and other reporting entities.…
Read article
Implications of Non-compliance of PMLA Obligations, Secrecy Obligations
A person shall be guilty of offence of money-laundering if such person is found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is involved in one or more of the following processes or activities connected with proceeds of crime, namely:— (a) concealment; or (b) possession; or…
Read article Enhanced Due Diligence (EDD) under PMLA: Strengthening AML Safeguards
Enhanced Due Diligence (EDD) is a critical compliance requirement under the Prevention of Money Laundering Act (PMLA), 2002, designed to safeguard the financial system against money laundering and terrorism financing. It applies when customers, transactions, or jurisdictions pose higher risks, demanding stricter scrutiny beyond routine checks. What Is Enhanced Due Diligence? While Customer Due Diligence…
Read article Punishment for Money Laundering: Legal, Financial, and Banking Implications
Money laundering is among the gravest financial crimes worldwide, carrying strict penalties that extend beyond imprisonment to fines, asset confiscation, and even political disqualification. In India, the Prevention of Money Laundering Act (PMLA), 2002, forms the cornerstone of anti-money laundering enforcement, while globally, regulators impose equally stringent measures to deter such crimes. Legal Penalties in…
Offence of Money Laundering under PMLA, 2002
Money laundering is one of the most serious financial crimes, threatening the integrity of financial systems worldwide. In India, the Prevention of Money Laundering Act (PMLA), 2002 defines and criminalizes this offence under **Section 3**, prescribing strict punishments, including imprisonment and fines. What is Money Laundering? At its core, money laundering is the process of…
Read article