PMLA DETAILED NOTES PART 1 | PPB MODULE A
This article covers the detailed provisions of PMLA DETAILED NOTES Prevention of Money-Laundering Act, 2002 to help in JAIIB Exam 2024.
Dear JAIIB Candidates, how are you doing?
Hopefully, all fine, energetic & magnetic!
Well, keep your energy intact because we are going to go through all the PMLA Act 2022 to get done with this one topic to effectively cover the Syllabus of Junior Associate of the Indian Institute of Bankers Exams 2024. We will be going through the act in parts. So, worry not if you find this article ending with a quick break in the topic. Keeping the text short & brief, we will go through the Principles & Practices of Banking Syllabus 2023 & successfully complete the upcoming JAIIB Attempts!
CLICK TO CLEAR JAIIB 2023 EXAM IN FIRST ATTEMPT
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Today, we will just take an overview of the sections & go through the introduction of PMLA i.e. why there was a need of PMLA & how the Act provides the solution & why as a banker, you need to understand the provisions of this Act.
This is the whole of the act contained in 75 sections & 1 schedule.
| THE PREVENTION OF MONEY-LAUNDERING ACT, 2002 |
| CHAPTER I |
| PRELIMINARY |
| Sections |
| Section – 1 contains the Short title, extent and commencement |
| Section – 2 contains the Definitions |
| CHAPTER II |
| OFFENCE OF MONEY-LAUNDERING |
| Section – 3 contains the Offence of money-laundering |
| Section – 4 contains the Punishment for money-laundering |
| CHAPTER III |
| ATTACHMENT, ADJUDICATION AND CONFISCATION |
| Section – 5 contains the Attachment of property involved in money-laundering |
| Section – 6 contains the Adjudicating Authorities, composition, powers, etc |
| Section – 7 contains the Staff of Adjudicating Authorities |
| Section – 8 contains the Adjudication |
| Section – 9 contains the Vesting of property in Central Government |
| Section – 10 contains the Management of properties confiscated under this Chapter |
| Section – 11 contains the Power regarding summons, production of documents and evidence, etc |
| Section – 11A contains the Verification of identity by reporting entity |
| CHAPTER IV |
| OBLIGATIONS OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES |
| Section – 12 contains the Reporting entity to maintain records |
| Section – 12A contains the Access to information |
| Section – 12AA contains the Enhanced due diligence |
| Section – 13 contains the Powers of Director to impose fine |
| Section – 14 contains the No civil or criminal proceedings against reporting entity, its directors and employees in certain cases |
| Section – 15 contains the Procedure and manner of furnishing information by reporting entities |
| CHAPTER V |
| SUMMONS, SEARCHES AND SEIZURES, ETC |
| Section – 16 contains the Power of survey |
| Section – 17 contains the Search and seizure |
| Section – 18 contains the Search of persons |
| Section – 19 contains the Power to arrest |
| Section – 20 contains the Retention of property |
| Section – 21 contains the Retention of records |
| Section – 22 contains the Presumption as to records or property in certain cases |
| Section – 23 contains the Presumption in inter-connected transactions |
| Section – 24 contains the Burden of proof |
| CHAPTER VI |
| APPELLATE TRIBUNAL |
| Section – 25 contains the Appellate Tribunal |
| Section – 26 contains the Appeal to Appellate Tribunal |
| Section: 27 to 34 have been omitted |
| Section – 35 contains the Procedure and powers of Appellate Tribunal |
| Section – 36 contains the Distribution of business amongst Benches |
| Section – 37 contains the Power of Chairperson to transfer cases |
| Section – 38 contains the Decision to be by majority |
| Section – 39 contains the Right of appellant to take assistance of authorised representative and of Government to appoint presenting officers |
| Section – 40 contains the Members, etc |
| Section – 41 contains the Civil court not to have jurisdiction |
| Section – 42 contains the Appeal to High Court |
| CHAPTER VII |
| SPECIAL COURTS |
| Section – 43 contains the Special Courts |
| Section – 44 contains the Offences triable by Special Courts |
| Section – 45 contains the Offences to be cognizable and non-bailable |
| Section – 46 contains the Application of Code of Criminal Procedure, 1973 to proceedings before Special Court |
| Section – 47 contains the Appeal and revision |
| CHAPTER VIII |
| AUTHORITIES |
| Section – 48 contains the Authorities under Act |
| Section – 49 contains the Appointment and powers of authorities and other officers |
| Section – 50 contains the Powers of authorities regarding summons, production of documents and to give evidence, etc |
| Section – 51 contains the Jurisdiction of authorities |
| Section – 52 contains the Power of Central Government to issue directions, etc |
| Section – 53 contains the Empowerment of certain officers |
| Section – 54 contains the Certain officers to assist in inquiry etc |
| CHAPTER IX |
| RECIPROCAL ARRANGEMENT FOR ASSISTANCE IN CERTAIN MATTERS AND PROCEDURE FOR |
| ATTACHMENT AND CONFISCATION OF PROPERTY |
| Section – 55 contains the Definitions |
| Section – 56 contains the Agreements with foreign countries |
| Section – 57 contains the Letter of request to a contracting State in certain cases |
| Section – 58 contains the Assistance to a contracting State in certain cases |
| Section – 58A contains the Special Court to release the property |
| Section – 58B contains the Letter of request of a contracting State or authority for confiscation or release the property |
| Section – 59 contains the Reciprocal arrangements for processes and assistance for transfer of accused persons |
| Section – 60 contains the Attachment, seizure and confiscation, etc |
| Section – 61 contains the Procedure in respect of letter of request |
| CHAPTER X |
| MISCELLANEOUS |
| Section – 62 contains the Punishment for vexatious search |
| Section – 63 contains the Punishment for false information or failure to give information, etc |
| Section – 64 contains the Cognizance of offences |
| Section – 65 contains the Code of Criminal Procedure, 1973 to apply |
| Section – 66 contains the Disclosure of information |
| Section – 67 contains the Bar of suits in civil courts |
| Section – 68 contains the Notice, etc |
| Section – 69 contains the Recovery of fine or penalty |
| Section – 70 contains the Offences by companies |
| Section – 71 contains the Act to have overriding effect |
| Section – 72 contains the Continuation of proceedings in the event of death or insolvency |
| Section – 72A contains the Inter-ministerial Co-ordination Committee |
| Section – 73 contains the Power to make rules |
| Section – 74 contains the Rules to be laid before Parliament |
| Section – 75 contains the Power to remove difficulties |
| THE SCHEDULE |
Now lets talk about why the Prevention of Money-Laundering Act, 2002 was enacted.
The PMLA is here to combat money laundering in India and has 3 main objectives:
- To prevent and control money laundering activities.
- To confiscate and seize the property obtained using laundered money; &
- To deal with any other issue connected with it in India.
And the above objectives are achieved by casting the following obligations on all Reporting Entities (duly defined, will discuss in the second part of the Act):
- verifying and maintaining records of the identity of all clients including beneficial owners
- maintaining record of all transactions and submit timely reports to prescribed authorities at prescribed intervals
- furnishing FIU-IND information
This is all you need to begin the PMLA 2023 preparation. Do let me know, if you have any query in regard to topic or study material.
