Anti-Money Laundering Laws in India: Effectiveness, Challenges, and Future Policy Directions
This research paper examines India’s anti-money laundering framework, with a focus on the Prevention of Money Laundering Act and its implementation by key agencies, including the Enforcement Directorate and the Financial Intelligence Unit of India. The study assesses the effectiveness of these laws in preventing and prosecuting money laundering, while identifying key challenges such as regulatory gaps, delays in enforcement, misuse of provisions, and emerging threats through digital platforms. Case studies of major financial frauds are analysed to understand systemic weaknesses. The paper concludes that while India’s legal framework under the PMLA is robust, challenges in enforcement, inter-agency coordination, and adaptation to emerging financial technologies limit its effectiveness in combating money laundering.
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