Business Ethics and Corporate Governance, Second Edition

MEASURES AGAINST BANK FRAUDS

Prevention of Money Laundering Act 2002

For a long time, especially after the adoption of the licensing policy, restrictive imports and import substitution, rationing of foreign exchange and the severely punitive Foreign Exchange Regulation Act (FERA), there was a large degree of smuggling and money laundering in the country. Half-hearted attempts by the government at different times did not yield any tangible result in curbing this menace, and this caused huge losses to the exchequer. Prevention of Money Laundering Act 2002 is a comprehensive legislation to curb the evil of money laundering.

Reporting of Cash and Suspicious Transactions   Section 12 of the Prevention of Money Laundering Act (PMLA) casts certain obligations ...