Treatise on PMLA - Law and Practice

Volume 1

The Prevention of Money-Laundering Act, 2002

CHAPTER I

Preliminary

Section

1. Short title, extent and commencement

2. Definitions

CHAPTER II

Offence of Money-Laundering

3. Offence of money-laundering

4. Punishment for money-laundering

CHAPTER III

Attachment, Adjudication and Confiscation

5. Attachment of property involved in money-laundering

6. Adjudicating Authority, composition, powers, etc.

7. Staff of Adjudicating Authorities

8. Adjudication

9. Vesting of property in Central Government

10. Management of properties confiscated under this Chapter

11. Power regarding summons, production of documents and evidence, etc.

CHAPTER IV

Obligations of Banking Companies, 

Financial Institutions and Intermediaries

Section

11A. Verification of identity by reporting entity

12. Reporting entity to maintain records

12A. Access to information

12AA. Enhanced due diligence

13. Powers of Director to impose fine

14. No civil or criminal proceedings against reporting entity, its directors and employees in certain cases

15. Procedure and manner of furnishing information by reporting entities

CHAPTER V

Summons, Searches and Seizures, etc.

16. Power of survey

17. Search and seizure

18. Search of persons

19. Power to arrest

20. Retention of property

21. Retention of records

22. Presumption as to records or property in certain cases

23. Presumption in inter-connected transactions

24. Burden of proof

CHAPTER VI

Appellate Tribunal

25. Appellate Tribunal

26. Appeals to Appellate Tribunal

27. Composition, etc., of Appellate Tribunal

28. Qualifications for appointment

29. Term of office

30. Conditions of service

31. Vacancies

32. Resignation and removal

33. Member to act as Chairperson in certain circumstances

34. Staff of Appellate Tribunal

35. Procedure and powers of Appellate Tribunal

36. Distribution of business amongst Benches

37. Power of Chairperson to transfer cases

38. Decision to be by majority

39. Right of appellant to take assistance of authorised representative and of Government to appoint presenting officers

Section

40. Members, etc., to be public servants

41. Civil court not to have jurisdiction

42. Appeal to High Court

CHAPTER VII

Special Courts

43. Special Courts

44. Offences triable by Special Courts

45. Offences to be cognizable and non-bailable

46. Application of the Code of Criminal Procedure, 1973 to proceeding before Special Court

47. Appeal and revision

Volume 2

CHAPTER VIII

Authorities

48. Authorities under the Act

49. Appointment and powers of authorities and other officers

50. Powers of authorities regarding summons, production of documents and to give evidence, etc.

51. Jurisdiction of authorities

52. Power of Central Government to issue directions, etc.

53. Empowerment of certain officers

54. Certain officers to assist in inquiry, etc.

CHAPTER IX

Reciprocal arrangement for assistance in certain matters and 

procedure for attachment and confiscation of property

55. Definitions

56. Agreements with foreign countries

57. Letters of request to a contracting state in certain cases

58. Assistance to a contracting state in certain cases

58A. Special Court to release the property

58B. Letter of request of a Contracting State or authority for confiscation or release the property

59. Reciprocal arrangements for processes and assistance for transfer of accused persons

60. Attachment, seizure and confiscation, etc., of property in a contracting state or India

61. Procedure in respect of letter of request

CHAPTER X

Miscellaneous

Section

62. Punishment for vexatious search

63. Punishment for false information or failure to give information, etc.

64. Cognizance of offences

65. Code of Criminal Procedure, 1973 to apply

66. Disclosure of information

67. Bar of suits in civil courts

68. Notice, etc., not to be invalid on certain grounds

69. Recovery of fine or penalty

70. Offences by companies

71. Act to have overriding effect

72. Continuation of proceedings in the event of death or insolvency

72A. Inter-ministerial Co-ordination Committee

73. Power to make rules

74. Rules to be laid before Parliament

75. Power to remove difficulties

THE SCHEDULE

Appendices

Appendix 1 Prevention of Money-Laundering Act, 2002

Appendix 2 Prevention of Money-Laundering (Appeal) Rules, 2005

Appendix 3 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 4 Prevention of Money-Laundering (Maintenance of Records) Rules, 2005

Appendix 5 Prevention of Money Laundering (Manner of Receiving the Records Authenticated Outside India) Rules, 2005

Appendix 6 Prevention of Money-Laundering (Receipt and Management of Confiscated Properties) Rules, 2005

Appendix 7 Prevention of Money Laundering (The Forms and the Manner of Forwarding a Copy of Order of Arrest of a Person along with the Material to the Adjudicating Authority and its Period of Retention) Rules, 2005

Appendix 8 Prevention of Money-Laundering (The Manner of Forwarding a Copy of the Order of Provisional Attachment of Property along with the Material, and Copy of the Reasons along with the Material in Respect of Survey, to the Adjudicating Authority and its Period of Retention) Rules, 2005

Appendix 9 Prevention of Money Laundering (The Manner of 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 10 Prevention of Money-Laundering (Appointment and Conditions of Service of Chairperson and Members of Adjudicating Authorities) Rules, 2007

Appendix 11 Adjudicating Authority (Procedure) Regulations, 2013

Appendix 12 Prevention of Money-Laundering (Issuance of Provisional Attachment Order) Rules, 2013

Appendix 13 Prevention of Money-Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013

Appendix 14 Prevention of Money-Laundering (Restoration of Property) Rules, 2016

Appendix 15 (1) Notification No. GSR 436(E), dated 1-7-2005 as Amended by Notification No. GSR 582(E), dated 19-8-2009

(2) Notification No. GSR 437(E), dated 1-7-2005

(3) Notification No. GSR 438(E), dated 1-7-2005

(4) Notification No. GSR 439(E), dated 1-7-2005

(5) Notification No. GSR 440(E), dated 1-7-2005

(6) Notification No. GSR 441(E), dated 1-7-2005

(7) Notification No. GSR 381(E), dated 27-6-2006

(8) Notification No. GSR 382(E), dated 27-6-2006

(9) Order No. SO. 1900(E), dated 3-11-2006

(10) Notification No. 2/2008-Ad.ED, SO 83(E), 

dated 14-1-2008

(11) Notification No. SO 2987(E), dated 30-12-2008

(12) Notification No. SO. 1388(E), dated 1-6-2009

(13) Notification No. SO 906(E), dated 21-4-2010

(14) Notification No. SO 1159(E), dated 23-5-2012

(15) Notification No. SO 1459(E), dated 4-7-2012

(16) Notification No. SO 1718(E), dated 27-7-2012

(17) Notification No. SO 2127(E), dated 10-8-2012

(18) Notification No. SO 2618(E), dated 30-10-2012

(19) Notification No. SO 35(E), dated 3-1-2013

(20) Notification No. SO 343(E), dated 8-2-2013

(21) Notification No. SO 1170(E), dated 8-5-2013

(22) Notification No. 8/2013/SO 2309(E), dated 26-7-2013

(23) Notification No. GSR 684(E), dated 24-9-2014

(24) Notification No. SO 3004 (E), dated 27-11-2014

(25) Notification No. GSR 287(E), dated 15-4-2015

(26) Notification No. GSR 299(E), dated 17-4-2015

(27) Notification No. SO 3183(E), dated 26-11-2015

(28) Notification No. SO 372(E), dated 5-2-2016

(29) Notification No. SO 447(E), dated 11-2-2016

(30) Notification No. GSR 1223(E), dated 6-10-2017

(31) Notification No. GSR 1509(E), 13-12-2017

(32) Notification No. 10/2017, dated 13-12-2017

(33) Notification No. GSR 314(E), dated 31-3-2018

(34) Notification No. GSR 424(E), dated 4-5-2018

(35) Notification No. SO 3870(E), dated 6-8-2018

(36) Notification No. SO 2194(E), dated 15-5-2019

(37) Notification No. GSR 762(E), dated 7-10-2019

(38) Notification No. GSR 882(E), dated 28-11-2019

(39) Notification No. GSR 261(E), dated 22-4-2020

(40) Notification No. GSR 262(E), dated 23-4-2020

(41) Notification No. GSR 465(E), dated 24-7-2020

(42) Notification No. GSR 516(E), dated 20-8-2020

(43) Notification No. GSR 784(E), dated 22-12-2020

(44) Notification No. GSR 798(E), dated 28-12-2020

(45) Notification No. GSR 799(E), dated 28-12-2020

(46) Notification No. GSR 59(E), dated 28-1-2021

(47) Notification No. GSR 461(E), dated 30-6-2021

(48) Notification No. GSR 650(E), dated 22-9-2021

(49) Notification No. GSR 651(E), dated 22-9-2021

(50) Notification No. SO 4603(E), dated 3-11-2021

(51) Notification No. GSR 37(E), dated 4-1-2022

(52) Notification No. SO 1702(E), dated 8-4-2022

(53) Notification No. SO 2543(E), dated 2-6-2022

(54) Notification No. SO 4716(E), dated 4-10-2022

(55) Notification No. SO 4827(E), dated 7-10-2022

(56) Notification No. GSR 832(E), dated the 22-11-2022

(57) Notification No. SO 5433(E), 22-11-2022

(58) Notification No. SO 5475 (E), dated the 24-11-2022

(59) Notification No. GSR 854(E), dated the 29-11-2022

(60) Notification No. GSR 855(E), dated the 29-11-2022

(61) Notification No. SO 5778(E), dated the 12-12-2022

(62) Notification No. SO 446(E), dated the 30-1-2023

(63) Notification No. SO 1072(E), dated the 7-3-2023

(64) Notification No. SO 2036(E), dated 3-5-2023

(65) Notification No. SO 2119(E), dated 4-5-2023

(66) Notification No. SO 2135(E), dated 9-5-2023

Appendix 16 Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016

Appendix 17 Black Money (Undisclosed Foreign Income and Assets) 

and Imposition of Tax Act, 2015

Appendix 18 Narcotic Drugs and Psychotropic Substances Act, 1985

Appendix 19 Prohibition of Benami Property Transactions Act, 1988

Appendix 20 RBI's Master Direction - Know Your Customer (KYC) 

Direction, 2016

Appendix 21 SEBI Guidelines on Anti-Money-Laundering (AML) Standards and Combating the Financing of Terrorism (CFT)/ Obligations of Securities Market Intermediaries under the Prevention of Money-Laundering Act, 2002 and Rules framed thereunder

Appendix 22 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988

Appendix 23 FATF Mutual Evaluation Report Executive Summary Mutual Evaluation of the Federative Republic of India

Appendix 24 FATF Recommendations International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation

Appendix 25 Provisions of Offences under the Indian Penal Code, 1860 (45 of 1860)

Appendix 26 Provisions of Offences under the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985)

Appendix 27 Provisions of Offences under the Explosive Substances Act, 1908 (6 of 1908)

Appendix 28 Provisions of Offences under the Unlawful Activities (Prevention) Act, 1967 (37 of 1967)

Appendix 29 Provisions of Offences under the Arms Act, 1959 (54 of 1959)

Appendix 30 Provisions of Offences under the Wild Life (Protection) Act, 1972 (53 of 1972)

Appendix 31 Provisions of Offences under the Immoral Traffic (Prevention) Act, 1956 (104 of 1956)

Appendix 32 Provisions of Offences under the Prevention of Corruption Act, 1988 (49 of 1988)

Appendix 33 Provisions of Offences under the Explosives Act, 1884 

(4 of 1884)

Appendix 34 Provisions of Offences under the Antiquities and Arts Treasures Act, 1972 (52 of 1972)

Appendix 35 Provisions of Offences under the Securities and Exchange Board of India Act, 1992 (15 of 1992)

Appendix 36 Provisions of Offences under the Customs Act, 1962 (52 of 1962)

Appendix 37 Provisions of Offences under the Bonded Labour System (Abolition) Act, 1976 (19 of 1976)

Appendix 38 Provisions of Offences under the Child Labour (Prohibition and Regulation) Act, 1986 (61 of 1986)

Appendix 39 Provisions of Offences under the Transplantation of Human Organs Act, 1994 (42 of 1994)

Appendix 40 Provisions of Offences under the Juvenile Justice (Care and Protection of Children) Act, 2000 (56 of 2000)

Appendix 41 Provisions of Offences under the Emigration Act, 1983 

(31 of 1983)

Appendix 42 Provisions of Offences under the Passports Act, 1967 (15 of 1967)

Appendix 43 Provisions of Offences under the Foreigners Act, 1946 

(31 of 1946)

Appendix 44 Provisions of Offences under the Copyright Act, 1957

(14 of 1957)

Appendix 45 Provisions of Offences under the Trade Marks Act, 1999

(47 of 1999)

Appendix 46 Provisions of Offences under the Information Technology Act, 2000 (21 of 2000)

Appendix 47 Provisions of Offences under the Biological Diversity Act, 2002 (18 of 2003)

Appendix 48 Provisions of Offences under the Protection of Plant Varieties and Farmers Rights Act, 2001 (53 of 2001)

Appendix 49 Provisions of Offences under the Environment Protection Act, 1986 (29 of 1986)

Appendix 50 Provisions of Offences under the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974)

Appendix 51 Provisions of Offence under the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981)

Appendix 52 Provisions of Offence under the Suppression of Unlawful, Acts against Safety of Maritime Navigation and Fixed Platforms on Continental Shelf Act, 2002 (69 of 2002)

Appendix 53 Provisions of Offence under the Companies Act, 2013 (18 of 2013)

Appendix 54 Provisions of Offence under the Customs Act, 1962 (52 of 1962)

Appendix 55 Provisions of Offences of Cross Border Implications

Appendix 56 Prevention of Money-Laundering (Amendment) Act, 2005

Appendix 57 Prevention of Money-Laundering (Amendment) Act, 2009 (Act No. 21 of 2009)

Appendix 58 Prevention of Money-Laundering (Amendment) Act, 2012 (Act No. 2 of 2013)

Appendix 59 Other Amending Acts

Appendix 60 Twelfth Report Standing Committee on Finance (1998-99)

Appendix 61 Report of the Select Committee on the Prevention of Money-Laundering Bill, 1999

Appendix 62 Standing Committee Reports on Prevention of Money-Laundering (Amendment) Bill, 2008

Appendix 63 Frequently Asked Questions — FIU

Appendix 64 Frequently Asked Questions — Enforcement Directorate