Anti-Money Laundering Legal Framework in India

Anti-money laundering legal framework is the set of laws, rules, and regulations that are introduced to counter money laundering activities and terrorist financing. Prevention of Money Laundering Act, 2002 (PMLA) and the rules issued thereunder (PML Rules) act as the primary legal framework for AML India. Besides PMLA, several other acts contribute to the legal framework.

The infographic contains the complete list of acts and regulations that regulated entities must comply with to prevent money laundering and terrorist financing.

Non-compliance with these regulations can harm the company’s reputation. It can also lead to regulatory scrutiny and investigation, resulting in criminal charges and penalties on the people held responsible.

AML Compliance department can utilize the anti-money laundering legal framework to create and implement relevant AML/CFT policies and procedures. These policies and procedures safeguard regulatory entities from money laundering and terrorist financing and keep up the company’s positive identity and reputation.