Prevention of Money Laundering Act, 2002

  • After the 9/11 attacks, the attention of the world turned to terror financing. After establishing the Financial Action Task Force (FATF), India was under pressure to deal with terror financing issues.
  • Thus, the Prevention of Money Laundering Act (PMLA) was enacted to deal with money laundering.
  • The law was enacted to combat money laundering in India and has three main objectives :
    • To prevent and control money laundering.
    • To provide for confiscation and seizure of property obtained from laundered money.
    • To deal with any other issue connected with money-laundering in India.
  • The Enforcement Directorate is empowered to conduct a Money Laundering investigation.
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