The Prevention of Money-Laundering Act, 2002

THE PREVENTION OF MONEY -LAUNDERING ACT, 2002

This Act may be called the Prevention of Money-laundering Act, 2002.

It extends to the whole of India and shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

The definitions under this Act are as follows:

• Adjudicating Authority: an Adjudicating Authority appointed under sub-section (1) of section 6


• Appellate Tribunal: the Appellate Tribunal referred to in section 25


• Assistant Director: an Assistant Director appointed under sub-section (1) of section 49


• Attachment: prohibition of transfer, conversion, disposition or movement of property by an order issued under Chapter III

The Act defines money-laundering as:

Directly or indirectly attempting to indulge or knowingly assisting or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime, including its concealment, possession, acquisition or use and projecting or claiming it as untainted property.

The punishment for money-laundering is punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and also liable to fine.

Attachment of property involved in money-laundering can be made by the Director or any other officer not below the rank of Deputy Director, who has reason to believe that any person is in possession of any proceeds of crime.