Prevention of Money Laundering Act

The Prevention of Money Laundering Act, 2002 is an Act of the Parliament of India enacted by the Indian Government to prevent money laundering and to provide for confiscation of property derived from money laundering. PMLA and the Rules notified thereunder came into force on 1 July 2005. The Act and Rules notified thereunder impose obligation on banking companies, financial institutions and intermediaries to verify the identity of clients, maintain records and furnish information in prescribed form to Financial Intelligence Unit – India (FIU-IND).