Amendments in Prevention of Money Laundering Act (PMLA)
The Central Government of India has issued a new notification which stated the changes which have been made in the Prevention of Money Laundering Act (PMLA).
What is the Prevention of Money Laundering Act, 2002?
- The Prevention of Money Laundering Act, 2002 was an Act passed in the Indian Parliament.
- It was the first enacted by the Central government in 2002 to stop money-laundering activities and also has provisions which allow for the confiscation of property derived from money-laundering.
- The PMLA Act and its Rules were notified to impose the obligation on banking companies, financial institutions and intermediaries to verify the identity of clients, maintain records and furnish information in the prescribed form to Financial Intelligence Unit – India (FIU-IND).
- The PMLA Act has been amended in the year 2005, 2009 and 2012.
- Under the PMLA Act, the Enforcement Directorate (ED) has been empowered to conduct the investigations in the various money-laundering cases.
- A new explanation has been added to the new Section 45 has clarified that now all PMLA offenses will be cognizable offense and will be treated as a non-bailable offense.
- The new Act has also authorized and empowered the officers of the ED to arrest an accused without a warrant, subject to certain conditions.
- One more important amendment has been added to Section 3 of the PMLA Act has made the concealment of proceeds of crime, any possession or acquisition, the projection of untainted money or claiming as untainted property as independent and complete offenses.
What the law has changed?
The PMLA Act will make it possible for the ED to easily tackle the black money menace which is evolving at an accelerated pace. Black money is a menace.