Abstract

Money laundering is a significant global problem with negative consequences for society and the economy. The purpose of this paper is to look at the legal structure for preventing and combating the vice of money laundering. This paper will specifically examine the legislations in place aimed at preventing and punishing money laundering activities, such as, Prevention of Money Laundering Act (PMLA) of 2002, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, Benami Transactions (Prohibition) Act, and the Foreign Exchange Management Act, 1999. The paper will begin with a general overview of money laundering, including its process, techniques, and global economic effect. It will also look at the background of money laundering and how it became popular. The paper will examine the various organisations established to ensure PMLA compliance, such as the creation of the Financial Intelligence Unit (FIU) and financial institutions' participation in reporting suspicious transactions. Finally, the paper will conclude with a discussion of possible solutions to improve the effectiveness of the war on money laundering, including the need for increased international cooperation and the use of technology to better monitoring and detection. This paper aims to contribute to the ongoing debate on how to successfully combat money laundering and other financial crimes by analysing the legal and organisational framework.

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