11-12-2012, 02:45 PM
Legal regime for AML (Anti Money Laundering) in India
Legal regime for AML.ppt (Size: 343.5 KB / Downloads: 171)
Issues for Discussion
Anti Money Laundering Legislation in India
Implications of AML/CFT Measures on the Financial Sector
International Scenario
Key Issues
Anti-Money Laundering Legislation in India
The Prevention of Money Laundering Act, 2002 (PMLA) enacted to prevent money laundering and provide for confiscation of property derived from, or involved in, money laundering
Enacted on 17th Jan, 2003
Brought into force from 1st July, 2005
Administered by:
Financial Intelligence Unit for verification of identity of clients, maintenance of records and reporting
Enforcement Directorate for investigation of and prosecution for money-laundering offences
Subordinate legislations: Rules under PMLA
Various Rules came into effect from July 2005
Rules detailing Powers of Director FIU & ED
Rules detailing the method of attachment of property, period of retention etc.
Rules detailing the receipt & management of confiscated assets
Rules relating to legal obligations of reporting entities
Reporting entities under PMLA
“Banking Company” under PMLA includes:
All nationalized banks, private Indian banks and private foreign banks
All co-operative banks viz. primary co-operative banks, state co-operative banks and central (district level) co-operative banks
State Bank of India and its associates and subsidiaries
Regional Rural Banks
“Financial Institution” under PMLA includes:
Financial Institutions as defined in Section 45-I of the RBI Act namely EXIM Bank, NABARD, NHB, SIDBI, IFCI Ltd., IDFC Ltd., IIBI Ltd. and TFCI Ltd.
Insurance companies
Hire Purchase companies
Chit fund companies as defined in the Chit Funds Act.
Reporting entities under PMLA
Co-operative banks.
Housing finance institutions as defined in the National Housing Bank Act such as HDFC.
Non-banking financial companies as defined in section 45-I of the RBI Act such as private finance companies - motor and general finance companies, leasing companies, investment companies etc.