What Is ‘Prevention Of Money Laundering Act’, Why Was This Law Made? Know Everything Here
Prevention of Money Laundering Act: The petition of Karti Chidambaram...
Prevention of Money Laundering Act: The petition of Karti Chidambaram challenging the decision of the Prevention of Money Laundering Act is to be heard in the Supreme Court today. It is worth noting that this hearing will be held in an open court. On Wednesday, the court had accepted the application seeking permission to hear and hold oral arguments in open court in this case. Now the hearing on this is to be held on Thursday i.e. today. Let us know here that what is the Prevention of Money Laundering Act?
What is money laundering?
First of all let us understand what is money laundering after all? So let us tell you that converting black money earned by illegal means into the form of money earned by legal means i.e. making white money is called money laundering. In other words, money laundering is a way to hide illegally earned money. On the other hand, those who launder illegal money are called launderers. Many methods are adopted by the launderer for this manipulation. The Prevention of Money Laundering Act has been enacted to prevent this misappropriation of illegal money.
What is the Prevention of Money Laundering Act?
Significantly, the Prevention of Money Laundering Act has been enacted to prevent money laundering and confiscate the property involved. Under this, the government or public authority has been empowered to confiscate money and property acquired illegally. The Prevention of Money Laundering Act (PMLA) was passed in the year 2002. After that this act was implemented on 1 July 2005. The main objective of this act is to completely stop money laundering. Apart from this, other purposes of this Act are to prevent the use of black money in economic offences, confiscation of property involved in or obtained from money laundering and other offenses related to money laundering.
and why on PMLA action may be taken under
Significantly, those involved in the supply of illegal arms, drug trafficking and extortion who make money through them can also be convicted of the offense of money laundering. Explain that according to the amendment made in 2012, PMLA is also applicable to all financial institutions, banks, mutual funds, insurance companies and their financial intermediaries. In 2019 also changes were made in this law in the form of some amendments. According to this, action can also be taken by the ED against those people or institutions whose crime is not under PMLA.
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