Anti Money Laundering is the main thing that is related to the field of fiscal and legal industries. This AML was started with the Act of The Prevention of Money Laundering in 2002 by the Department of Revenue, the Government of India. According to this Act, every financial institution and banking sector should maintain the records of all the consumer’s transactions. People doubting that what is mean by money laundering and To disguise the fiscal assets which make an easy option without detecting the illegal activity in their accounts? The launderers were transformed the fiscal profits derived from the fraudulent actions into their funds with actually legal source by the process of money laundering. Every intermediary must recognize the exact nature of their business and the approach like a consumer-centric or proactive approach. But the worldwide initiatives taken to conflict drug trafficking, crimes and terrorism have accomplished those fiscal institutions comprising the securities and marketing. There are some other procedures to follow the Anti Money Laundering. Every intermediary who was registered that should accept the procedures which is in the written format to imply this Anti Money Laundering envisioned beneath the Prevention of Money Laundering Act in the year of 2002.
Procedures for AML in banking/ investment institutions:
There are three specific procedures to follow for this Anti Money Laundering to the overall related Client Unpaid Diligence procedure: procedure for recognizing or identifying the customer/ clients, Policy for approval of the consumers, Reporting the STR which means the Suspicious Transactions Reporting. In this Anti Money Laundering process there is an opportunity to an offense which is known as the Money Laundering Offence. That is nothing but whoever attempted to spoil indirectly or directly, knowing to assist or recognizing it’s a party or engaged in any process with the shape of crime and exhibiting it as uncontaminated source or property should be guilt of offense for the money laundering process. The persons who would be included in this list are a company or institution or office or agency, an individual, any judicial person, and firm. But now, there is no particular law for the helpful lawyer to report the Money Laundering offense and now there is nothing current compulsion for consumer identification and also for the verification. Basically, in India, the lawyers are usually doing so but there are nothing obligations for that. According to section 12 of PMLA in the year 2002, needs every bank or company, intermediary or fiscal institutions to clarify and maintain the details of record of all the clients which was also prescribed in the rule book number 9. The Act became the initial step for the legislation which is aimed to prevent the Money Laundering and it was placed in the country, India which has an equal grip while comparing to the international or worldwide counterparts. The other best thing is it was also included with all the banks of India. The origin of the transaction of Money in India was also spread over all the countries. All this makes sure a government beneath that Money Laundering would interpret to be a somber crime and its practice would lead to somber consequences.