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Prevention of Money Laundering Act, 2002

Prevents money laundering and provides for confiscation of property derived from laundering, with reporting obligations on financial entities.

Versions and amendment history

Original Act, amendments and notices

  1. Original ActVersion 1Current versionLegacy – pending validationIn force · In force from the start · Published 13 Nov 2026

Official text

Verbatim from the Gazette

  1. S. 3 Offence of money laundering

    Whosoever directly or indirectly attempts to indulge in or knowingly assists in any process connected with proceeds of crime commits money laundering.

    Obligations under this section

    • Covers concealment, possession, acquisition and use.
    • Projecting proceeds as untainted property.
    • Continuing offence until enjoyment of proceeds ceases.

  2. S. 12 Obligations of reporting entities

    Reporting entities must maintain records of transactions, verify client identity and furnish information to the Director.

    Obligations under this section

    • Maintain records for 5 years.
    • Conduct KYC and client due diligence.
    • File Suspicious Transaction Reports (STRs).

  3. S. 4 Punishment for money laundering

    Money laundering is punishable with rigorous imprisonment and fine.

    Obligations under this section

    • Imprisonment 3 to 7 years.
    • Up to 10 years where NDPS offence involved.
    • Fine as determined by the court.

Compliance Rules

0 rules
No compliance rules mapped for this Act yet.

Consumable API

JSON endpoints. Read access is open; no key is needed.

# Fetch the full law as JSON
curl http://backend.laac-dev.local:8000/laac-api/v1/laws/pmla-2002

# Just the penalty schedule
curl http://backend.laac-dev.local:8000/laac-api/v1/laws/pmla-2002/penalties

# A specific provision
curl http://backend.laac-dev.local:8000/laac-api/v1/laws/pmla-2002/provisions/s3