Page 51 - Quick Insights Book 2022

11 Prevention of Money Laundering Act

PREVENTION OF MONEY LAUNDERING ACT, 2002
The Prevention of Money Laundering Act (PMLA) is a portion
of criminal legislation, where the presumption of guilt has
precedence and the burden of proof lies on the person accused
of a violation. And the Act prescribes that any person found
guilty of money-laundering shall be punishable with rigorous
imprisonment up to seven years and attachment of tainted
properties. Therefore it opens lot many opportunities to subject
matter experts.
Prevention of Money Laundering Act, 2002 and the Rules
notified thereunder came into force with effect from July 1,
2005. Director, Financial Intelligence Unit-IND (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 broader concept of
‘reporting entity’ was also introduced which includes a banking
company, financial institution, intermediary or a person carrying
on a designated business or profession.

Chartered Accountants with their inherent abilities sharpened
by the specialized knowledge of accounts, finance & law,
experience and attention to detail can provide the following
services to their clients, being reporting entities, law
enforcement agencies and others in relation to the Prevention
of Money Laundering Act, 2002

ANTI-MONEY LAUNDERING REGULATORS IN INDIA

Financial Intelligence Unit was set by the Government
of India, on 18 November 2004, as the central national
agency responsible for receiving, processing, analyzing,
and disseminating information relating to suspected financial
transactions. The Financial Intelligence Unit is also responsible
for coordinating and strengthening efforts of national and Prevention of
international intelligence, investigation, and enforcement
agencies in pursuing the global efforts against money
laundering and related crimes. FIU-IND is an independent body Money Laundering
reporting directly to the Economic Intelligence Council headed
by the Finance Minister. Act
RBI is one of such authorities which lay down anti-money
laundering guidelines for banks and other financial institutions
to adhere to. Similarly, SEBI has also prescribed certain
requirements relating to Know Your Customer (KYC) norms for
the financial intermediaries in the securities market to follow to
combat money laundering.

Further, there are law enforcement bodies like the Directorate
of Enforcement and the Central Bureau of Investigation –
Economic Offences Wing, dealing with the money laundering
issues. Further, the Income Tax Department, Government of
India under the Income Tax Act, is also authorized to take steps

38 Quick Insights on Professional Opportunities for Chartered Accountants