Money Laundering Act in India

The Money Laundering Act in India was introduced in the year 2002, the Act was named as Prevention of Money Laundering Act, 2002 approved by the NDA government. This Act was composed to get rid of money laundering, and criminal activities like legalizing the black money that is incoming or getting money from an illegal source. This money laundering Act of India also enables the department allotted for this can seize the property of someone if it is illegally obtained or achieved from money laundering. The rules or laws that were under the Money-laundering Act, 2002 came into force on 11th July in the year 2005. 

Features of Prevention of Money Laundering Act, 2002.

Adjudicating Authority 

Under the Prevention of Money Laundering Act, 2002, there is adjudicating authority, a type of authority that is nominated by the government in central. This authority has duties to make decisions on whether property or something is illegally achieved or is involved in money laundering. By the Code of Civil Procedure of the year 1908, the adjudicating authority should not be bound but must be walking in the path shown by the natural justice and the facilities or guided by rules under the Prevention of Money Laundering Act, 2002.

Burden of Proof 

The person, who is blamed for committing money laundering, has to prove in favor of him to get rid of being called a criminal of money laundering.

Special Court 

The case of money laundering is naturally dealt with in a special court. The central Government consulted with the High Court’s Chief Justice, under section 43 of the Money Laundering Act of India which is the Prevention of Money Laundering Act, 2002. 

Money Laundering – Punishment

According to the Prevention of Money Laundering Act, 2002; if a person is faulty or guilty he or she should be punished with meticulous imprisonment from 3 years to 7 years which maximum rises to 10 years.

Appellate Tribunal 

It is the body appointed by the Government of India and has the power to hear appeals against the orders of the Adjudicating Authority under the prevention of Money Laundering Act, 2002 which is a Money Laundering Act in India. Orders can be appealed in the High Court and finally to the Supreme Court.

Tainted property’s powers of attachment.

The rank of deputy director with given authority, if made a provisional attached property will be granted as a crime for 180 days.

The presumption in inter-connected transaction

It is a fact that in a transaction process one of the transactions is involved in money laundering for Adjudication or seizing of, it should be imagined that the leftover transaction from part of such interconnected transactions.

FIU-IND

It is also known as Central National Agency responsible for receiving, processing, analyzing, and discriminating information relating to financial transactions. FIU-IND is also responsible for the perusing the Global efforts against Money Laundering and related crimes. It is an independent body reporting directly to EIC that is headed by the finance minister.

Objectives of Money Laundering Act, 2002

According to the act the main objectives are-

i). To deal with another issue regarding the money laundering act 

ii). To see the company obtained from laundered money 

iii).  To control and prevent money laundering

The 3 steps in money laundering –

3 steps in money laundering

i) When the crime is enacted into the system called formal financial system, the first step of money laundering is placement.

ii) The second step is ‘layering’ after the introduction of crime. In the first step it is spread over various transactions to clear the tainted origin of the money. 

iii) The final step of proceedings integration is that the money enters the financial system and settles with the money that can be used by the offender or a person receiving it as clean money.

Conclusion

It is concluded that the Money Laundering Act, of 2002 was introduced by the NDA government. Features of Prevention of Money Laundering Act, 2002 include Adjudicating Authority, Burden of Proof, Special Court, Appellate Tribunal, Money Laundering – Punishment, Tainted property’s powers of attachment, Presumption in the inter-connected transaction, and FIU-IND.