Prevention of Money Laundering Act (PMLA): Key Aspects 

Syllabus: GS 3/Challenges to Internal Security 

In News

• The Punjab and Haryana high court has made it clear that courts can order release of an accused of money laundering under police custody without fulfilling twin conditions as mandated under the Prevention of Money Laundering Act (PMLA), 2002.

About the Act 

• PMLA forms the core of the legal framework put in place by India to combat money laundering. 
• PMLA and the Rules notified there under came into force with effect from July 1, 2005 .
  • The PMLA was enacted by India’s Parliament under Article 253 which empowers it to make laws for implementing the international conventions.
• The Act seeks to combat money laundering in India and has three main objectives:
  • to prevent and control money laundering
  • to confiscate and seize the property obtained from the laundered money
  • to deal with any other issue connected with money laundering in India.
• Director, FIU-IND and Director (Enforcement) have been conferred with exclusive and concurrent powers under relevant sections of the Act to implement the provisions of the Act.
• The Act was amended by the Prevention of Money Laundering (Amendment) Act, 2009 and by the Prevention of Money Laundering (Amendment) Act, 2012.