The Prevention of Money Laundering Act (PMLA) is an act of Parliament passed in 2002 . The PMLA was enacted to combat money laundering in India . SEBI Chairman is responsible for ensuring market regulations are followed, which includes preventing money laundering in the securities
The main purpose of the Prevention of Money Laundering Act (PMLA) is to combat money laundering in India . It aims to prevent and control money laundering, confiscate property derived from it, and penalize those involved .
Key Objectives of the PMLA:
- Prevention: To prevent money laundering by establishing obligations for financial institutions, reporting entities, and intermediaries .
- Combating: To combat money laundering by providing mechanisms for investigation, prosecution, and asset recovery .
- Confiscation: To confiscate property derived from or involved in money laundering .
- Penalization: To penalize individuals and entities involved in money laundering activities .
- International Cooperation: To foster international cooperation in combating money laundering .
- the PMLA seeks to stop criminals from “cleaning” their ill-gotten gains and using them as legitimate funds . It empowers authorities to track down, seize, and punish those involved in the process …
