Prevention of Money Laundering Act, 2002

The Prevention of Money Laundering Act, 2002 (PMLA 2002) (Act No. 15 of 2003) of India was enacted on 15 January 2003 and forms the core of the legal framework put in place by India to combat money laundering. PMLA 2002 and the Rules notified there under came into force with effect from 1 July 2005.

The PMLA 2002 and rules notified thereunder impose obligation on banking companies, financial institutions and intermediaries to verify identity of clients, maintain records and furnish information to the Financial Intelligence Unit - India (FIU-IND). PMLA 2002 defines money laundering offence and provides for the freezing, seizure and confiscation of the proceeds of crime.