Page 12 - Bullion World Volume 3 Issue 9 September 2023

Bullion World | Volume 3 | Issue 9 | September 2023

The Prevention of Money-laundering Act 2002 • Section 51 of the Black Money (Undisclosed Foreign
• The prevention of Money Laundering Act 2002 is Income and Assets) and Imposition of Tax Act, 2015
applicable to whole of India, came into force with
effect from July 1, 2005. It was enacted to prevent Authorities Under PMLA
money-laundering and to provide for confiscation • Enforcement Directorate (ED)
of property derived from, or involved in, money- • Financial Intelligence Unit (FIU) of India
laundering and for matters connected therewith or • Officers to assist authorities
incidental thereto
• The Prevention of Money-laundering Act, 2002 Punishment for Money-laundering
consists of 10 chapters containing 75 sections and • Section 4 of PMLA prescribes the Punishment for
1 Schedule Money-Laundering as under:
• Rigorous Imprisonment minimum for 3 years and
The objectives are: maximum up to 7 years (10 years for offence under
1. To prevent money-laundering NDPS)
2. To combat/prevent channelizing of money into illegal • Fine (Without any limit)
activities and economic crimes
3. To provide for the confiscation of property derived Financial Intelligence Unit of India (FIU -IND)
from, or involved/used in, money-laundering • Governments in several countries have formed
4. To provide for matters connected and incidental to Financial Intelligence Units (FIU) to receive, process
the acts of moneylaundering and disseminate information on money related crimes.
They function as a national centre for the receipt
Scheduled Offence/Predicate Offences and analysis of suspicious transactions, information
Every Scheduled Offence is a Predicate Offence about money laundering, other related offences and
• The scheduled offences are divided into three financing of terrorism. FIUs in most countries has
parts - Part A, Part B and Part C administrative and law enforcement nature. Financial
• Part A of schedule to PMLA has 156 offences under Intelligence Unit work in cooperation with the
28 criminal acts international bodies like the FATF and the Egmont
• Part B of schedule has offence under section 132 Group.
of the Customs Act, 1962 - false declaration, false • The FIU- IND was set by the Government of India on
documents, etc. (If the total value involved in such 18th November 2004 as the central national agency
offences is 1 crore or more) responsible for receiving, processing, analyzing and
• Part C of schedule covers offence of cross border disseminating information relating to suspect financial
implications and covered in: transactions.
• Part A • FIU-IND is an independent body reporting directly to
• Chapter XVII of the Indian Penal Code the Economic Intelligence Council (EIC) headed by
the Finance Minister.

Reporting Entities

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