MONEY

LAUNDERING
What is Money Laundering?
Money laundering is the illegal process of
making large amounts of money generated by a
criminal activity that appear to have come from a
legitimate source. The money from the criminal
activity is considered dirty, and the process
"launders" it to make it look clean.
“Corruption is used to hide corruption”
Common Forms of Money Laundering
________________________________________________

✔ Structuring

✔ Bulk Cash Smuggling

✔ Cash-Intensive Businesses

✔ Investments in Commodities
Common Forms of Money Laundering
________________________________________________

✔ Black Salaries

✔ Cyber – Laundering

✔ Bank Capture

✔ Shell companies and trusts

Prevention of
Money
laundering Act
2002
Scope of PMLA 2002
► Whosoever directly or indirectly
attempts to indulge or assist other
person or actually involved in any activity
connected with the proceeds of crime
and projecting it as untainted property
► Mere earning of money or income or
deriving any property by committing a
crime does not amount to money
laundering, though it may amount to
siphoning of funds. Deriving or obtaining
any property by committing a crime
which amounts to a Scheduled offence,
and then projecting such property
untainted property amounts to money
laundering.
ADJUDICATION SYSTEM
ATTACHMENT/SEIZURE/FREEZING OF PROPERTY

CONFIRMATION BY ADJUDICATION AUTHORITY

CONFISCATION ORDER BY SPECIAL COURT

HEIRARCHY UNDER PMLA
ACT
HIGH COURT

SPECIAL COURT

APPEALLATE TRIBUNAL

ADJUDICATION
AUTHORITY
 RECIPROCAL
ARRANGEMENTS
Role of Banking Company

.,
Promoting
Cash less
Economy
International
Co-operation
Taxation
of Digital Assets
 Mandatory use of

Anti-Money laundering Software

by all kinds of Financial Institution

Monitoring Currency Transaction Customer Identity Compliance

Systems Reporting (CTR) Systems Management Systems Management Software
ANY QUESTIONS?
_____________________
Thank you!