If you’re a banker, a CCP/JAIIB aspirant, or just someone curious about how India deals with money laundering and terror financing — this video is a goldmine! In today’s fast-paced banking environment, understanding laws like the PMLA (2002) and UAPA (1967) is not just beneficial… it’s absolutely essential.
In this session, we break down the entire legal framework of India’s AML-CFT mechanism in a simple and conversational Hindi-English mix. You’ll explore topics like:
- ✅ Definition & examples of money laundering
- ✅ Key provisions of PMLA 2002
- ✅ Role of FIU-IND, RBI, SEBI, IBA, etc.
- ✅ Stringent punishments for non-compliance
- ✅ FATF global standards and India’s alignment
- ✅ UAPA’s role in combating terrorism financing
- ✅ Real-life case studies: Vijay Mallya, Nirav Modi, etc.
📣 Whether you’re preparing for your banking promotion or just enhancing your professional knowledge – this session is for YOU.
👇 Don’t forget to hit play, drop your thoughts in the comments, and share it with your fellow bankers.
🎥 Watch the Complete Breakdown
👉 “Before we dive in, watch this video for a complete breakdown:”
🧠 Body (Based on Timestamps):
🧾 What is Money Laundering & Why India Takes It Seriously
Money laundering isn’t just about converting black money into white. Under PMLA 2002, even possessing, acquiring, concealing, or using the proceeds of crime makes you guilty.
💡 Did you know? Even if you unknowingly help someone hide illegal earnings, you could still face charges under this law.
🏛️ Legal Framework under PMLA 2002
India’s robust legal framework includes:
- FIU-IND (Financial Intelligence Unit – India)
- RBI, SEBI, IRDA, and other regulators
It covers sectors like banking, insurance, stock markets, and non-financial businesses like real estate and jewellery.
📜 Major Amendments in PMLA
- Removed ₹30 lakh threshold
- Added corporate & customs frauds, black money
- No upper limit on fine
- Mandatory beneficial ownership verification
📝 Reporting Obligations for Banks
All financial entities must:
- Maintain records for 5 years
- Report cash transactions above ₹10 lakhs
- Verify customer identity & beneficial ownership
🔍 Definition of Money Laundering – Section 3
Any act of concealment, possession, acquisition, use, or claiming proceeds of crime = money laundering.
🪙 Punishment for Money Laundering
- 3–7 years imprisonment (extendable to 10 years)
- No limit on fines
- Employees/Directors also liable
📋 Scheduled & Predicate Offences
Include: terrorism, economic frauds, tax evasion, insider trading, and organised crime.
🔒 Attachment, Confiscation & Special Courts
Authorities can attach, freeze, and confiscate assets via special courts.
🌍 FATF Compliance & Global Coordination
India complies with FATF standards and reports:
- Suspicious transactions
- Counterfeit currency (monthly)
- High-risk accounts & e-KYC
🚨 UAPA – Tackling Terrorist Financing
UAPA criminalizes fundraising, support, or involvement in terrorism, even indirectly.
Severe penalties: Death, Life Imprisonment, 14 years Jail
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🧾 Additional Laws Supporting AML/CFT
- Income Tax Act
- Benami Transactions Act
- Black Money Act
- NDPS, FEMA, CrPC, etc.
🏦 RBI & IBA Guidelines
RBI mandates:
- KYC rules
- Transaction monitoring
- High-risk customer due diligence
IBA supports training, best practices, and working groups for compliance.
🔍 Real-Life Cases
- ₹9800+ Cr attached under PMLA
- Cases: Vijay Mallya, Nirav Modi, etc.
- Over ₹19,000 Cr recovered
✅ Conclusion
India’s AML-CFT laws like PMLA and UAPA are crucial in safeguarding the nation’s financial and national security. As a banker, staying compliant is not optional – it’s your duty!
💬 Share your insights or questions in the comments below. Let’s grow together!
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📥 Download PDF Notes
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