Black Money to Jail Time: What the PMLA Law Means for You.

The PMLA was enacted to stop and punish money laundering—the process of converting black money (illegal money) into white (legal-looking) money. It helps track and punish those who earn money through crime, corruption, terrorism, or drug trade.

Key Highlights:

• Defines "money laundering" as handling money that comes from crime.
• The Enforcement Directorate (ED) investigates and takes action under PMLA.
• Allows seizure of property, bank accounts, and assets linked to illegal money.
• Those accused can be arrested, interrogated, and prosecuted.
• Individuals and companies involved in financial activities must report suspicious transactions.
• Special courts are set up for faster trials.
• Punishment can be 3–7 years in jail or up to 10 years for serious crimes (like drugs or terrorism).

Purpose:

To stop illegal money, fight organized crime, and maintain the financial health and security of India.

FAQs – Prevention of Money Laundering Act (PMLA), 2002

1. Q. What is money laundering?
   A. It means making illegally earned money look legal by hiding its criminal source.
2. Q. Why was the PMLA created?
   A. To track, prevent, and punish people or businesses involved in hiding black money.
3. Q. Who enforces the PMLA?
   A. The Enforcement Directorate (ED) investigates and takes action under PMLA.
4. Q. What crimes are covered under this law?
   A. Crimes like drug trade, terrorism funding, corruption, fraud, tax evasion, etc.
5. Q. What can the ED do under PMLA?
   A. It can seize property and bank accounts, arrest suspects, and file court cases.
6. Q. Is money laundering a serious offense?
   A. Yes, it is a non-bailable offense with jail up to 10 years.
7. Q. Can properties bought with illegal money be seized?
   A. Yes, properties can be frozen or confiscated if linked to black money.
8. Q. What are “proceeds of crime”?
   A. It means money or property earned through illegal activities.
9. Q. Can the ED arrest without permission?
   A. The ED can arrest if it has solid reasons but must report to the court.
10. Q. What is the punishment under PMLA?
    A. 3–7 years in jail, and up to 10 years for drug-related crimes.
11. Q. Are banks and financial institutions involved?
    A. Yes, they must report suspicious transactions and maintain proper records.
12. Q. Can ED question family members too?
    A. Yes, if they are linked to the crime or illegal money.
13. Q. Is ED only for politicians and celebrities?
    A. No, ED can act against anyone—businessman, government employee, or private citizen.
14. Q. What is an attachment order?
    A. It means temporary seizure of property so it can’t be sold or moved.
15. Q. Can ED summon people for questioning?
    A. Yes, and ignoring it can lead to legal action or arrest.
16. Q. What is the role of special PMLA courts?
    A. They handle money laundering trials and decide if someone is guilty.
17. Q. Is PMLA connected to international laws?
    A. Yes, India follows global anti-money laundering standards like FATF.
18. Q. Can innocent people get wrongly trapped?
    A. There have been concerns, but courts review ED's actions to ensure fairness.
19. Q. What is the difference between black money and money laundering?
    A. Black money is untaxed/illegal money; money laundering is hiding or cleaning that money.
20. Q. Can companies be punished under PMLA?
    A. Yes, firms, trusts, or companies can be investigated and fined or banned.