Treatise and Commentary on the Prevention of Money Laundering Act, 2002 (2 Volumes)

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Description
The insidious nature of money laundering and its profound impact on societies and nations are universally recognised. Its tendrils extend into the corruption of economic sectors, the increase in crime financed by illicit gains, the erosion of government revenues, and the destabilisation of political institutions. The Prevention of Money-Laundering Act (PMLA), enacted and subsequently amended at various junctures, is India's robust response to these challenges. It is designed not only to address but also to actively counteract the diverse mechanisms through which money laundering inflicts damage on our nation's socio-economic and political fabric.
The enactment of the PMLA and its amendments reflects a dynamic legislative approach, responding to evolving criminal methodologies and aligning with international standards in financial regulation. Significant amendments over the years-especially those in 2012 and 2019-have broadened the definition of money laundering, enhanced provisions for asset confiscation, and reinforced the legal framework to ensure more effective enforcement.
This treatise thoroughly examines and integrates all amendments to the PMLA up to the most recent changes implemented by the Finance (No. 2) Act, 2019, effective from August 1, 2019, and the Aadhaar and Other Laws (Amendment) Act, 2019, which came into force on July 25, 2019.
Key reforms to the PMLA occurred notably in 2013 and 2019. The first significant series of amendments were enacted through the Prevention of Money-Laundering (Amendment) Act, 2012, effective from February 15, 2013. These amendments expanded the definition of money laundering offences to include activities such as concealment, acquisition, possession, and use of proceeds of crime. They also abolished the previous penalty cap of five lakh rupees and introduced provisions for the attachment and confiscation of proceeds of crime without the need for a conviction, provided that the involvement of the property in money laundering was established. Moreover, it introduced a presumption that such proceeds were involved in money laundering in any related proceedings, unless proven otherwise. Additionally, the 2012 amendment broadened the scope of the PMLA Schedule from paragraphs 1-4 to 1-28.
The 2018 amendments also warrant specific mention. On April 19, 2018, the Finance Act, 2018 introduced paragraph 29 into the Schedule to include offences of corporate fraud as per Section 447 of the Companies Act, 2013. Subsequently, paragraph 8 of the Schedule, which deals with offences under the Prevention of Corruption Act, 1988, was revised by the Prevention of Corruption (Amendment) Act, 2018, effective July 26, 2018.
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Contents
CHAPTER I PRELIMINARY
CHAPTER II - OFFENCE OF MONEY LAUNDERING
CHAPTER III ATTACHMENT, ADJUDICATION, AND CONFISCATION.
CHAPTER IV OBLIGATIONS OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES..
CHAPTER V SUMMONS, SEARCHES, AND SEIZURES, ETC
CHAPTER VI APPELLATE TRIBUNAL [25. Appellate Tribunal.
CHAPTER VII SPECIAL COURTS.
CHAPTER VIII AUTHORITIES
CHAPTER IX RECIPROCAL ARRANGEMENT FOR ASSISTANCE AND PROCEDURE FOR ATTACHMENT AND CONFISCATION OF PROPERTY
CHAPTER X MISCELLANEOUS
APPENDIX 1. THE PREVENTION OF MONEY-LAUNDERING (FORMS, SEARCH AND SEIZURE OR FREEZING AND THE MANNER OF FORWARDING THE REASONS AND MATERIAL TO THE ADJUDICATING AUTHORITY, IMPOUNDING AND CUSTODY OF RECORDS AND THE PERIOD OF RETENTION) RULES, 2005.
APPENDIX 2. THE PREVENTION OF MONEY-LAUNDERING (THE MANNER FORWARDING A COPY OF THE ORDER OF RETENTION OF SEIZED PROPERTY ALONG WITH THE MATERIAL TO THE ADJUDICATING AUTHORITY AND THE PERIOD OF ITS RETENTION) RULES, 2005
APPENDIX 3. PREVENTION OF MONEY-LAUNDERING (MAINTENANCE OF RECORDS) RULES, 2005..
APPENDIX 4. THE PREVENTION OF MONEY-LAUNDERING (RECEIPT AND MANAGEMENT OF CONFISCATED PROPERTIES) RULES, 2005. APPENDIX 5. THE PREVENTION OF MONEY-LAUNDERING (APPEAL) RULES, 2005.
APPENDIX 6. THE PREVENTION OF MONEY-LAUNDERING (THE FORMS AND THE MANNER OF FORWARDING A COPY OF ORDER OF ARREST OF A PERSON
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Author Details
Dr K K Khandelwal, is a former Indian civil servant, engineer, legal expert, author, and academician. He currently serves as the Chief National Commissioner of the Bharat Scouts and Guides in New Delhi. Prior to this, he held the position of Chairman of the Haryana Real Estate Regulatory Authority in Gurugram. Dr K K Khandelwal's contributions span across his roles in civil service, academia, and legal literature. His work, particularly in the field of real estate regulation and scout leadership, alongside his academic contributions, has been widely recognized. His interdisciplinary research and publications reflect his broad range of academic pursuits and professional engagements.