Anti-money laundering—India—Q&A guide

The following Corporate Crime practice note provides comprehensive and up to date legal information covering:

  • Anti-money laundering—India—Q&A guide
  • 1. Identify your jurisdiction’s money laundering and anti-money laundering (AML) laws and regulations. Describe the main elements of these laws.
  • 2. Describe any specific powers to identify proceeds of crime or to require an explanation as to the source of funds.
  • 3. Which government entities enforce your jurisdiction’s money laundering laws?
  • 4. Can both natural and legal persons be prosecuted for money laundering?
  • 5. What constitutes money laundering?
  • 6. Is there any limitation on the types of assets or transactions that can form the basis of a money laundering offence?
  • 7. Generally, what constitute predicate offences?
  • 8. Are there any codified or common law defences to charges of money laundering?
  • 9. What is the range of outcomes in criminal money laundering cases?
  • More...

Anti-money laundering—India—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to anti-money laundering in India published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: AZB & Partners—Aditya Vikram Bhat; Prerak Ved

1. Identify your jurisdiction’s money laundering and anti-money laundering (AML) laws and regulations. Describe the main elements of these laws.

The Prevention of Money Laundering Act 2002 (the PML Act), together with the rules issued thereunder and the rules and regulations prescribed by regulators such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), set out the broad framework for the anti-money laundering laws in India. Some of the primary rules and guidelines regulating money laundering activities in India include:

  1. the Prevention of Money Laundering (Maintenance of Records) Rules 2005, as amended from time to time (the PML Rules), issued under the PML Act;

  2. the Master Circular on Guidelines on Anti-Money Laundering (AML) Standards/Combating Financing of Terrorism (CFT)/Obligations of Intermediaries under the Prevention of Money Laundering Act 2002 and the rules framed thereunder, issued by SEBI on 15 October 2019 (the SEBI AML Guidelines); and

  3. the Reserve Bank of India (Know Your Customer (KYC)) Directions 2016, issued by the RBI on 25 February 2016, as updated on 1 April 2021, which is the most up-to-date consolidation of the KYC

Popular documents