Implementation Of The Prevention Of Money Laundering Act 2002: Challenges And Concerns

Ajai K Reji, Christ (Deemed to be University) Delhi NCR

ABSTRACT

The aim of this research paper is to examine India's Anti Money Laundering Law and its effectiveness in fighting the serious issue of Money Laundering within the country. Money Laundering has become a global concern, posing an important threat to the integrity of financial systems and the stability of economics. India as a developing and dynamic economy, has identified the need for robust AML measures to fight this menace. The paper evaluates the legal framework established by India’s AML law including the prevention of money laundering as well as the role of regulatory authorities such as financial intelligence Unit and the enforcement agencies involved in investigating and prosecuting money laundering crimes. This research also examines the challenges faced by India’s AML law on deterring and detecting money laundering along with effectiveness of punishments and enforcement mechanisms.

One of the major challenges faced in implementing the PMLA 2002 is the complexity of financial transactions and the continuous transformation of money laundering techniques. Criminals continuously adapt their methods to stay ahead of regulatory measures thereby posing a competition to law enforcement agencies. As a result ongoing efforts are required to be updated and implemented technological advancements and to have investigating to find out the suspicious financial activities.

Keywords: Money Laundering, Anti Money Laundering Law, Dynamic economy