In this article, we will discuss PMLA 2002. So, let’s get started.
Prevention of Money Laundering Act (PMLA), 2002
- Money Laundering refers to the conversion or misrepresentation of money which has been illegally obtained by unlawful sources and methods.
- It is a criminal offence in India and charges in this instance refer to statutory provisions of the Prevention of Money Laundering Act, 2002.
- The PMLA was enacted in response to India’s global commitment ( Vienna Convention) to combat the menace of money laundering. These include:
- United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances 1988
- Basle Statement of Principles, 1989
- Forty Recommendations of the Financial Action Task Force on Money Laundering, 1990
- Political Declaration and Global Program of Action adopted by the United Nations General Assembly in 1990
- The PMLA is applicable to all persons which include individuals, companies, firms, partnership firms, associations of persons or incorporations and any agency, office or branch owned or controlled by any of the above-mentioned persons.