What did the Money Laundering Control Act do?
The purpose of the Money Laundering Control Act of 1986 was to make the hiding and reinvestment of illegal profit made from a criminal enterprise into a new federal offense. The act targets conduct that occurs after the underlying crime.
Who controls money laundering in India year?
4. Which Authorities Regulate the Prevention of Money Laundering Act? Ministry of Finance, The Directorate of Enforcement in the Department of Revenue is responsible for investigating offences of money laundering.
Who controls money laundering in India PMLA?
The Enforcement Directorate in the Department of Revenue, Ministry of Finance, the Government of India is responsible for investigating the offences of money laundering under the PMLA.
What are the three types of money laundering?
Although money laundering is a diverse and often complex process, it generally involves three stages: placement, layering, and/or integration. Money laundering is defined as the criminal practice of making funds from illegal activity appear legitimate.
Who controls PMLA?
Under Section 19 of PMLA, the Director, Deputy Director, Assistant Director or any other officer authorized in this behalf by the Central Government by general or special order, has the power to arrest a person.
What is punishment for money laundering?
—Whoever commits the offence of money-laundering shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine which may extend to five lakh rupees: Provided that where the proceeds of crime involved in money- …
What are the 3 steps in money laundering?
Money laundering is the process of making illegally-gained proceeds (i.e. “dirty money”) appear legal (i.e. “clean”). Typically, it involves three steps: placement, layering and integration.
What is KYC in money laundering?
What is KYC? Know Your Customer (KYC) procedures are a critical function to assess customer risk and a legal requirement to comply with Anti-Money Laundering (AML) laws. Effective KYC involves knowing a customer’s identity, their financial activities and the risk they pose.
Who is a PEP in India?
A Politically Exposed Person (PEP) is an individual with a prominent public post or a public function. Members of Parliament, State Assemblies, Judges, Governors and senior government officers would come within the PEP category along with their close relatives (people in direct contact).