Vidhi Codex

The Prevention of Money-Laundering Act, 2002

The Prevention of Money-Laundering Act, 2002

Criminal200281 sections10 chapters

The Prevention of Money Laundering Act, 2002, regulates the conversion of criminally acquired wealth into seemingly legitimate assets within India. It applies to citizens, businesses, and reporting entities like banks, financial intermediaries, and casinos. These entities must verify identity, maintain transaction records, and report suspicious activities to authorities. This law is crucial because it empowers investigators to freeze, seize, and confiscate property derived from serious offences like terror funding and corruption. By imposing rigorous imprisonment, it deters financial crimes, protects the entire national economy, and ensures that criminals cannot profit from their illegal actions, thereby maintaining public trust and security.

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Chapter I PRELIMINARY →

  1. 1Short title, extent and commencement.
  2. 2Definitions.

Chapter II OFFENCE OF MONEY-LAUNDERING →

  1. 3Offence of money-laundering.
  2. 4Punishment for money-laundering.

Chapter III ATTACHMENT, ADJUDICATION AND CONFISCATION →

  1. 5Attachment of property involved in money-laundering.
  2. 6Adjudicating Authorities, composition, powers, etc.
  3. 7Staff of Adjudicating Authorities.
  4. 8Adjudication.
  5. 9Vesting of property in Central Government.
  6. 10Management of properties confiscated under this Chapter.
  7. 11Power regarding summons, production of documents and evidence, etc.
  8. 11AVerification of Identity by Reporting Entity.

Chapter IV OBLIGATIONS OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES →

  1. 12Reporting entity to maintain records.
  2. 12AAccess to information.
  3. 12AAEnhanced due diligence
  4. 13Powers of Director to impose fine.
  5. 14No civil or criminal proceedings against reporting entity, its directors and employees in certain cases.
  6. 15Procedure and manner of furnishing information by reporting entities.

Chapter V SUMMONS, SEARCHES AND SEIZURES, ETC →

  1. 16Power of survey.
  2. 17Search and seizure.
  3. 18Search of persons.
  4. 19Power to arrest.
  5. 20Retention of property.
  6. 21Retention of records.
  7. 22Presumption as to records or property in certain cases.
  8. 23Presumption in inter-connected transactions.
  9. 24Burden of proof.

Chapter VI APPELLATE TRIBUNAL →

  1. 25Appellate Tribunal.
  2. 26Appeal to Appellate Tribunal.
  3. 27[Omitted.].
  4. 28[Omitted.].
  5. 29[Omitted.].
  6. 30[Omitted.].
  7. 31[Omitted.].
  8. 32[Omitted.].
  9. 33[Omitted.].
  10. 34[Omitted.].
  11. 35Procedure and powers of Appellate Tribunal.
  12. 36Distribution of business amongst Benches.
  13. 37Power of Chairperson to transfer cases.
  14. 38Decision to be by majority.
  15. 39Right of appellant to take assistance of authorised representative and of Government to appoint presenting officers.
  16. 40Members, etc., to be public servants.
  17. 41Civil court not to have jurisdiction.
  18. 42Appeal to High Court.

Chapter VII SPECIAL COURTS →

  1. 43Special Courts.
  2. 44Offences triable by Special Courts.
  3. 45Offences to be cognizable and non-bailable.
  4. 46Application of Code of Criminal Procedure, 1973 to proceedings before Special Court.
  5. 47Appeal and revision.

Chapter VIII AUTHORITIES →

  1. 48Authorities under Act.
  2. 49Appointment and powers of authorities and other officers.
  3. 50Powers of authorities regarding summons, production of documents and to give evidence, etc.
  4. 51Jurisdiction of authorities.
  5. 52Power of Central Government to issue directions, etc.
  6. 53Empowerment of certain officers.
  7. 54Certain officers to assist in inquiry etc.

Chapter IX RECIPROCAL ARRANGEMENT FOR ASSISTANCE IN CERTAIN MATTERS AND PROCEDURE FOR ATTACHMENT AND CONFISCATION OF PROPERTY →

  1. 55Definitions.
  2. 56Agreements with foreign countries.
  3. 57Letter of request to a contracting State in certain cases.
  4. 58Assistance to a contracting State in certain cases.
  5. 58ASpecial Court to release the property.
  6. 58BLetter of request of a contracting State or authority for confiscation or release the property.
  7. 59Reciprocal arrangements for processes and assistance for transfer of accused persons.
  8. 60Attachment, seizure and confiscation, etc., of property in a contracting State or India.
  9. 61Procedure in respect of letter of request.

Chapter X MISCELLANEOUS →

  1. 62Punishment for vexatious search.
  2. 63Punishment for false information or failure to give information, etc.
  3. 64Cognizance of offences.
  4. 65Code of Criminal Procedure, 1973 to apply.
  5. 66Disclosure of information.
  6. 67Bar of suits in civil courts.
  7. 68Notice, etc., not to be invalid on certain grounds.
  8. 69Recovery of fine or penalty.
  9. 70Offences by companies.
  10. 71Act to have overriding effect.
  11. 72Continuation of proceedings in the event of death or insolvency.
  12. 72AInter-ministerial Co-ordination Committee.
  13. 73Power to make rules.
  14. 74Rules to be laid before Parliament.
  15. 75Power to remove difficulties.

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