{"id":227043,"date":"2025-09-05T15:16:40","date_gmt":"2025-09-05T09:46:40","guid":{"rendered":"https:\/\/www.oliveboard.in\/blog\/?p=227043"},"modified":"2025-09-26T09:51:23","modified_gmt":"2025-09-26T04:21:23","slug":"anti-money-laundering-laws","status":"publish","type":"post","link":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/","title":{"rendered":"Anti-Money Laundering (AML) Laws in India &#038; Global Framework"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_77 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#Why_Anti-Money_Laundering_AML_Laws_Are_Important_in_the_Banking_Sector\" >Why Anti-Money Laundering (AML) Laws Are Important in the Banking Sector?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#Key_Objectives_of_Anti-Money_Laundering_AML_Laws\" >Key Objectives of Anti-Money Laundering (AML) Laws<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#Major_Anti-Money_Laundering_Laws_in_India\" >Major Anti-Money Laundering Laws in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#International_AML_Laws_and_Frameworks\" >International AML Laws and Frameworks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#Implementation_of_International_AML_Laws_in_India\" >Implementation of International AML Laws in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#Stages_of_Money_Laundering\" >Stages of Money Laundering<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><strong>Anti-Money Laundering (AML) Laws<\/strong>: Money laundering is the process of converting illegal money into legal form. Criminals try to hide the source of money earned from activities like corruption, smuggling, drug trafficking, or tax evasion, and then inject it into the financial system.<\/p>\n\n\n\n<p>To stop this, India and other countries have framed strong Anti-Money Laundering (AML) laws. These laws not only safeguard the banking system but also help in maintaining transparency and financial stability. For bank exam aspirants, AML laws are important because they are directly linked to the functioning of banks and regulatory compliance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Anti-Money_Laundering_AML_Laws_Are_Important_in_the_Banking_Sector\"><\/span>Why Anti-Money Laundering (AML) Laws Are Important in the Banking Sector?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Banks and financial institutions are the main gateways through which money flows. If illegal money enters banks, it damages their credibility and can destabilize the entire financial system. AML laws make sure that banks verify customer identity, monitor transactions, and report suspicious activities.<\/p>\n\n\n\n<p>For example, by using KYC norms and customer due diligence, banks can identify high-risk customers and prevent misuse of accounts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Objectives_of_Anti-Money_Laundering_AML_Laws\"><\/span>Key Objectives of Anti-Money Laundering (AML) Laws<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong><a href=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-aml\/\" target=\"_blank\" rel=\"noreferrer noopener\">Anti-Money Laundering (AML)<\/a><\/strong> framework was designed with some clear objectives:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Prevent misuse of the financial system<\/strong> \u2013 Stop criminals from using banks and financial institutions for laundering black money.<\/li><li><strong>Ensure transparency<\/strong> \u2013 Make all transactions traceable and accountable.<\/li><li><strong>Detect suspicious activity<\/strong> \u2013 Monitor unusual deposits, large transactions, or foreign transfers.<\/li><li><strong>Protect the economy<\/strong> \u2013 Stop illegal money from entering trade, investments, and property markets.<\/li><li><strong>Follow international standards<\/strong> \u2013 Ensure India complies with FATF recommendations and global AML practices.<\/li><li><strong>Support financial inclusion<\/strong> \u2013 Build a system where genuine customers can use banks freely, while fraudsters are kept away.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Major_Anti-Money_Laundering_Laws_in_India\"><\/span>Major Anti-Money Laundering Laws in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>India has several laws and regulatory frameworks to fight money laundering. The most important ones are:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Law\/Regulation<\/strong><\/td><td><strong>Key Highlights<\/strong><\/td><\/tr><tr><td><strong>Prevention of Money Laundering Act (PMLA), 2002<\/strong><\/td><td>Main law against money laundering; came into force in 2005; enforced by Enforcement Directorate (ED). Provides punishment of 3\u20137 years (up to 10 years in drug cases) plus fine.<\/td><\/tr><tr><td><strong>Foreign Exchange Management Act (FEMA), 1999<\/strong><\/td><td>Regulates foreign exchange transactions, prevents illegal transfer of funds abroad.<\/td><\/tr><tr><td><strong>Benami Transactions (Prohibition) Act, 1988 (amended 2016)<\/strong><\/td><td>Prohibits holding property in someone else\u2019s name to hide illegal money.<\/td><\/tr><tr><td><strong>Narcotic Drugs and Psychotropic Substances Act, 1985<\/strong><\/td><td>Deals with drug-related money laundering and illegal profits from narcotics trade.<\/td><\/tr><tr><td><strong>Companies Act, 2013<\/strong><\/td><td>Contains provisions against shell companies and fraudulent financial reporting.<\/td><\/tr><tr><td><strong>Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015<\/strong><\/td><td>Targets undisclosed foreign income and assets held abroad.<\/td><\/tr><tr><td><strong>SEBI Regulations<\/strong><\/td><td>SEBI requires stock market intermediaries to comply with AML guidelines to prevent misuse of the securities market.<\/td><\/tr><tr><td><strong>Income Tax Act, 1961 (Amendments)<\/strong><\/td><td>Includes provisions to check undisclosed income and penalties on tax evasion.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Understand more about AML, check the IIBF AML KYC Online Coaching with Certification<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.oliveboard.in\/aml-kyc\/\" target=\"_blank\" rel=\"noreferrer noopener\">IIBF AML KYC Online Coaching in English &amp; Hinglish<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"International_AML_Laws_and_Frameworks\"><\/span>International AML Laws and Frameworks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since money laundering is a global crime, many international organizations have made rules and frameworks. India, being a member of these, follows their standards.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>International Law\/Body<\/strong><\/td><td><strong>Role and Relevance for India<\/strong><\/td><\/tr><tr><td><strong>Financial Action Task Force (FATF), 1989<\/strong><\/td><td>Inter-governmental body that sets global AML standards. India became a member in 2010.<\/td><\/tr><tr><td><strong>Basel Committee on Banking Supervision<\/strong><\/td><td>Issues guidelines for KYC, customer due diligence, and risk-based AML practices.<\/td><\/tr><tr><td><strong>United Nations Convention Against Illicit Traffic in Narcotic Drugs (Vienna Convention, 1988)<\/strong><\/td><td>First major global treaty to criminalize money laundering related to drug trafficking.<\/td><\/tr><tr><td><strong>United Nations Convention Against Transnational Organized Crime (Palermo Convention, 2000)<\/strong><\/td><td>Calls for international cooperation against organized crime and money laundering.<\/td><\/tr><tr><td><strong>United Nations Convention Against Corruption (2005)<\/strong><\/td><td>Focuses on preventing money laundering arising from corruption and bribery.<\/td><\/tr><tr><td><strong>Egmont Group of Financial Intelligence Units<\/strong><\/td><td>A global network of FIUs that share intelligence to fight money laundering. India\u2019s FIU-IND is a member.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Implementation_of_International_AML_Laws_in_India\"><\/span>Implementation of International AML Laws in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>India has adopted many international recommendations into its domestic framework:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>PMLA, 2002<\/strong> was framed in line with FATF recommendations.<\/li><li><strong>KYC guidelines<\/strong> issued by RBI are based on Basel Committee norms.<\/li><li><strong>Reporting obligations<\/strong> through the Financial Intelligence Unit-India (FIU-IND) are aligned with global FIU practices.<\/li><li>India cooperates with <strong>UN conventions<\/strong> and global treaties to exchange information on cross-border financial crimes.<\/li><\/ul>\n\n\n\n<p>This ensures that India\u2019s AML system is globally recognized and compliant.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.oliveboard.in\/test-series\/\" target=\"_blank\" rel=\"noreferrer noopener\">Take a free bank exam mock test<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stages_of_Money_Laundering\"><\/span>Stages of Money Laundering<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Money laundering usually happens in three stages:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Placement<\/strong> \u2013 Illegal money enters the financial system (e.g., depositing black money in banks).<\/li><li><strong>Layering<\/strong> \u2013 Complex transactions are done to hide the source (e.g., multiple bank transfers, shell companies).<\/li><li><strong>Integration<\/strong> \u2013 Money is reintroduced into the economy as legitimate wealth (e.g., buying property or investing in businesses).<\/li><\/ol>\n\n\n\n<p>For exams, remembering these three stages is important.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.oliveboard.in\/aml-kyc-exam-pattern\/\" target=\"_blank\" rel=\"noreferrer noopener\">Also check: AML KYC Exam pattern 2025<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1757064215491\"><strong class=\"schema-faq-question\">Q1. What is money laundering?<\/strong> <p class=\"schema-faq-answer\">Money laundering is the process of making illegally earned money appear legal by moving it through banks, businesses, or investments.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757064758525\"><strong class=\"schema-faq-question\">Q2. What is the main law against money laundering in India?<\/strong> <p class=\"schema-faq-answer\">The Prevention of Money Laundering Act (PMLA), 2002, effective from 2005, is the main law to prevent and control money laundering in India.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757064775253\"><strong class=\"schema-faq-question\">Q3. Which agency enforces PMLA in India?<\/strong> <p class=\"schema-faq-answer\">The Enforcement Directorate (ED) is the main agency that investigates and enforces PMLA.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757064795126\"><strong class=\"schema-faq-question\">Q4. What are the stages of money laundering?<\/strong> <p class=\"schema-faq-answer\">The three stages are:<br\/>Placement \u2013 Introducing illegal money into the system.<br\/>Layering \u2013 Hiding the source through multiple transactions.<br\/>Integration \u2013 Bringing back the money as legal income.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757064823785\"><strong class=\"schema-faq-question\">Q5. What is the role of the Financial Intelligence Unit \u2013 India (FIU-IND)?<\/strong> <p class=\"schema-faq-answer\">FIU-IND collects, analyzes, and shares information about suspicious financial transactions to fight money laundering.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757064838130\"><strong class=\"schema-faq-question\">Q6. Which international body sets global AML standards?<\/strong> <p class=\"schema-faq-answer\">The Financial Action Task Force (FATF) sets global AML standards. India became a FATF member in 2010.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757064851727\"><strong class=\"schema-faq-question\">Q7. What is KYC and why is it important in AML?<\/strong> <p class=\"schema-faq-answer\">KYC (Know Your Customer) is a process where banks verify the identity of customers. It prevents criminals from using banks for money laundering.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757064869286\"><strong class=\"schema-faq-question\">Q8. Which other Indian laws support AML apart from PMLA? <\/strong> <p class=\"schema-faq-answer\">Important laws include: Foreign Exchange Management Act (FEMA), 1999, Benami, Transactions Act, 1988, Black Money Act, 2015, Companies Act, 2013, and NDPS Act, 1985.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757064950981\"><strong class=\"schema-faq-question\">Q9. What is the punishment under PMLA?<\/strong> <p class=\"schema-faq-answer\">Money laundering is punishable with 3\u20137 years of imprisonment (up to 10 years in drug-related cases) along with fines.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1757064969111\"><strong class=\"schema-faq-question\">Q10. Which UN conventions relate to AML?<\/strong> <p class=\"schema-faq-answer\">Key conventions include:<br\/>Vienna Convention (1988) \u2013 Drug-related money laundering<br\/>Palermo Convention (2000) \u2013 Organized crime<br\/>UNCAC (2005) \u2013 Corruption and money laundering<\/p> <\/div> <\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<ul class=\"wp-block-latest-posts__list is-grid columns-3 wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/union-bank-apprentice-salary\/\">Union Bank Apprentice Salary 2026, Stipend and Job Profile Details<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/union-bank-of-india-apprentice-syllabus\/\">Union Bank Apprentice Syllabus 2026 &amp; Exam Pattern<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/union-bank-of-india-apprentice-recruitment\/\">Union Bank Apprentice Recruitment 2026, Apply 1865 Posts<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/bank-merger-list\/\">Bank Mergers List in India, 1993 to 2026, Latest Updates<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/nicl-assistant-vs-ibps-po-mains\/\">NICL Assistant Mains vs IBPS PO Mains 2026: Detailed Comparison<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/banking-terms-for-ibps-po-interview\/\">IBPS PO Interview 2026: Download Important Banking Terms PDF<\/a><\/li>\n<\/ul>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Anti-Money Laundering (AML) Laws: Money laundering is the process of converting illegal money into legal form. Criminals try to hide<\/p>\n","protected":false},"author":60,"featured_media":229424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,31],"tags":[17943],"class_list":["post-227043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-bank-exams","tag-anti-money-laundering-aml-laws","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Anti-Money Laundering (AML) Laws in India &amp; Global Framework<\/title>\n<meta name=\"description\" content=\"Know key Anti-Money Laundering (AML) laws in India and abroad, objectives, agencies, and frameworks important for upcoming bank exams.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Anti-Money Laundering (AML) Laws in India &amp; Global Framework\" \/>\n<meta property=\"og:description\" content=\"Anti-Money Laundering (AML) Laws: Money laundering is the process of converting illegal money into legal form. Criminals try to hide the source of money\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/\" \/>\n<meta property=\"og:site_name\" content=\"Oliveboard\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Oliveboard\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-05T09:46:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-26T04:21:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/Anti-Money-Laundering-AML-Laws.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"730\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Tripti Mishra\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Oliveboard\" \/>\n<meta name=\"twitter:site\" content=\"@Oliveboard\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tripti Mishra\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/\"},\"author\":{\"name\":\"Tripti Mishra\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/d85e63b0781e1a55771b9894184814a5\"},\"headline\":\"Anti-Money Laundering (AML) Laws in India &#038; 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What is money laundering?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Money laundering is the process of making illegally earned money appear legal by moving it through banks, businesses, or investments.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064758525","position":2,"url":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064758525","name":"Q2. What is the main law against money laundering in India?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The Prevention of Money Laundering Act (PMLA), 2002, effective from 2005, is the main law to prevent and control money laundering in India.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064775253","position":3,"url":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064775253","name":"Q3. Which agency enforces PMLA in India?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The Enforcement Directorate (ED) is the main agency that investigates and enforces PMLA.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064795126","position":4,"url":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064795126","name":"Q4. What are the stages of money laundering?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The three stages are:<br\/>Placement \u2013 Introducing illegal money into the system.<br\/>Layering \u2013 Hiding the source through multiple transactions.<br\/>Integration \u2013 Bringing back the money as legal income.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064823785","position":5,"url":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064823785","name":"Q5. What is the role of the Financial Intelligence Unit \u2013 India (FIU-IND)?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"FIU-IND collects, analyzes, and shares information about suspicious financial transactions to fight money laundering.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064838130","position":6,"url":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064838130","name":"Q6. Which international body sets global AML standards?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The Financial Action Task Force (FATF) sets global AML standards. India became a FATF member in 2010.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064851727","position":7,"url":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064851727","name":"Q7. What is KYC and why is it important in AML?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"KYC (Know Your Customer) is a process where banks verify the identity of customers. It prevents criminals from using banks for money laundering.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064869286","position":8,"url":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064869286","name":"Q8. Which other Indian laws support AML apart from PMLA?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Important laws include: Foreign Exchange Management Act (FEMA), 1999, Benami, Transactions Act, 1988, Black Money Act, 2015, Companies Act, 2013, and NDPS Act, 1985.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064950981","position":9,"url":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064950981","name":"Q9. What is the punishment under PMLA?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Money laundering is punishable with 3\u20137 years of imprisonment (up to 10 years in drug-related cases) along with fines.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064969111","position":10,"url":"https:\/\/www.oliveboard.in\/blog\/anti-money-laundering-laws\/#faq-question-1757064969111","name":"Q10. Which UN conventions relate to AML?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Key conventions include:<br\/>Vienna Convention (1988) \u2013 Drug-related money laundering<br\/>Palermo Convention (2000) \u2013 Organized crime<br\/>UNCAC (2005) \u2013 Corruption and money laundering","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/227043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/users\/60"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/comments?post=227043"}],"version-history":[{"count":3,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/227043\/revisions"}],"predecessor-version":[{"id":227056,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/227043\/revisions\/227056"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/media\/229424"}],"wp:attachment":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/media?parent=227043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/categories?post=227043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/tags?post=227043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}