The prevention of money-laundering act, 2002 (Bare Act)/ Universal Law Publishing

THE PREVENTION OF MONEY-LAUNDERING
ACT, 2002
The Prevention of Money-laundering (Amendment) Act, 2009 (21 of 2009)
Introduction
Sections
1. Short title, extent and commencement
2. Definitions ' . . .
CHAPTER n
OFFENCE OF MONEY-LAUNDERING
3. Offence of money-laundering
4. Punishment for money-laundering
CHAPTER III
ATTACHMENT, ADJUDICATION AND CONFISCATION 5. Attachment of property involved in money-laundering .
6. Adjudicating Authorities, composition, powers, etc. 7. Staff of Adjudicating Authorities
8. Adjudication 9. Vesting of property in Central Government 10. Management of properties confiscated under this Chapter 11. Power regarding summons, production of documents and evidence, etc.
CHAPTER IV
OBLIGATIONS OF BANKING COMPANIES, FINANCIAL
INSTITUTIONS AND INTERMEDIARIES
12. Bankirg companies, financial institutions and
intermediaries to maintain records
13. Powers of Director to impose fine
14. No civil proceedings against banking companies,
financial institutions, etc., in certain cases
15. Procedure and maimer of furnishing information by banking company, financial institution and intermediary. . • .
CHAPTER V
SUMMONS, SEARCHES AND SEIZURES, ETC.
16. Power of survey
17. Search and seizure
18. Search of persons
19. Power to arrest
20. Retention of property
21. Retention of records

Presumption as to records or property in certain cases Presumption in inter-connected transactions
Burden of Proof
CHAPTER VI
APPELLATE TRIBUNAL
Establishment of Appellate Tribunal Appeals to Appellate Tribunal Composition, etc., of Appellate Tribunal
Qualifications for appointment [Repealed]
Conditions of service
Vacancies Resignation and removal Member to act as Chairperson in certain circumstances Staff of Appellate Tribunal Procedure and powers of Appellate Tribunal Distribution of business amongst Benches Power of Chairperson to transfer cases Decision to be by majority Right of appellant to take assistance of authorised representative and of Government to appoint presenting officers Members, etc., to be public servants Civil court not to have jurisdiction Appeal to High Court CHAPTER VII
SPECIAL COURTS
Special Courts Offences triable by Special Courts Offences to be cognizable and non-bailable Application of the Code of Criminal Procedure, 1973 to proceedings before Special Court Appeal and revision ■ * CHAPTER VIII
AUTHORITIES
Authorities under the Act Appointment and powers of authorities and other officers Power of authorities regarding summons, production of documents and to give evidence, etc. Jurisdiction of authorities Power of Central Government to issue directions, etc. Empowerment of certain officers Certain officers to assist in inquiry, etc.

CHAPTER IX
RECIPROCAL ARRANGEMENT FOR ASSISTANCE IN CERTAIN
MATTERS AND PROCEDURE FOR ATTACHMENT AND
CONFISCATION OF PROPERTY
55. Definitions . . . 32
56. Agreements with foreign countries 32
57. Letter of request to a contracting State in certain cases . 33 58. Assistance to a contracting State in certain cases 33
59. Reciprocal arrangements for processes and assistance for transfer of accused persons 33 60. Attachment, seizure and confiscation, etc., of property in a contracting State or India 34 61. Procedure in respect of letter of request ' 35
CHAPTER X
MISCELLANEOUS
62. Punishment for vexatious search 35 63. Punishment for false information or failure to give information, etc. 36 64, Cognizance of offences 36 65. Code of Criminal Procedure, 1973 to apply . 36
66. Disclosure of information 37
67. Bar of suits in civil courts 37 68. Notice, etc., not to be invalid on certain grounds 37 69. Recovery of fines 37 70. Offences by companies 71. Act to have overriding effect 38 72. Continuation of proceedings in the event of death or insolvency 38
73. Power to make rules 38A
74. Rules to be laid before Parliament , 38B
75. Power to remove difficulties ; 38B SCHEDULE.—[Scheduled Offences—See section 2(y)] 38C
OFFENCES AND PENALTIES UNDER VARIOUS ENACTMENTS
REFERRED IN THE PREVENTION OF MONEY-LAUNDERING ACT, 2002 . . . 40
RELEVANT PROVISIONS OF STATUTES REFERRED IN THE PREVENTION OF MONEY-LAUNDERING ACT, 2002
• Banking Regulation Act, 1949 (10 of 1949) . . . , 50
• Chit Funds Act, 1982 (40 of 1982) . . . 50
• Code of Criminal Procedure, 1973 (2 of 1974) . . 51
• Deposit Insurance and Credit Guarantee ' Corporation Act, 1961 (47 of 1961) . . 60
• Foreign Exchange Management Act, 1999 (40 of 1999) . . ' . 60
• Indian Evidence Act, 1872 (1 of 1872) . . 61
Rules
~ 1.
Indian Penal Code (45 of 1860) Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985) National Housing Bank Act, 1987 (53 of 1987)
Reserve Bank of India Act, 1934 (2 of 1934) Securities and Exchange Board of India Act, 1992 (18 of 1992) Securities Contracts (Regulation) Act, 1956 (42 of 1956)
THE PREVENTION OF MONEY-LAUNDERING (THE MANNER OF FORWARDING A COPY OF THE ORDER OF PROVISIONAL AHACHMENT OF PROPERTY ALONG WITH THE MATERIAL, AND COPY OF THE REASONS ALONG WITH THE MATERIAL IN RESPECT OF SURVEY, TO THE ADJUDICATING AUTHORITY AND ITS PERIOD OF RETENTION) RULES, 2005

Short title and commencement ' ' ' ^
2. Definitions • ' ' 3. Marmer of forwarding a copy of the order of provisional attachment of property along with the material under sub-section (2) of section 5 of the Act, to the Adjudicating Authority 4. Manner of forwarding a copy of the reasons along with the material in respect of survey under sub-section (2) of section 16 of the Act, to the Adjudicating Authority 5. Acknowledgement of receipt of a copy of the order of provisional attachment of property and the material and a copy of the reasons and the material in respect of survey by the Adjudicating Authority ■ ' ' 6. Period of retention of a copy of the order of f. property and the material and a copy of the reasons and the material respect of survey by the Adjudicating Authority • • • 7. Interpretation ' ' ' FORM I.—Acknowledgement Slip [See sub-rule (2) of rule 3] form II.-—Acknowledgement Slip [See sub-rule (2) of rule 4]. form III.—Acknowledgement Slip [See sub-rule (5) of rule 3 and sub-rule (5) of rule 4] • • '
THE PREVENTION OF MONEY-LAUNDERING (RECEIPT AND management of confiscated PROPERTIES) RULES, 2005 1. Short title and commencement • ' " 2. Definitions ' . 71 3. Receipt of confiscated property * ^2 4! Management of confiscated property
70
70
71
5. Assistance to the Administrator 6. Interpretation FORM I.— Management of Confiscated Property (Moveable) Register FORM II.—Management of Confiscated Property (Immoveable) Register
THE PREVENTION OF MONEY-LAUNDERING (MAINTENANCE OF RECORDS OF THE NATURE AND VALUE OF TRANSACTIONS, THE PROCEDURE AND MANNER OF MAINTAINING AND TIME FOR FURNISHING INFORMATION AND VERIFICATION AND MAINTENANCE OF RECORDS OF THE IDENTITY OF THE CLIENTS OF THE BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES) RULES, 2005
1. Short title and commencement
2. Definition 3. Maintenance of records of transactions (nature and value) -4. Records containing information 5. Procedure and manner of maintaining information
6. Retention of records of transactions 7. Procedure and manner of furnishing information 8. Furnishing of information to the Director 9. Verification of the records of the identity of clients 10. Maintenance of the records of the identity of clients 11. Interpretation
THE PREVENTION OF MONEY-LAUNDERING (FORMS, SEARCH AND SEIZURE AND THE MANNER OF FORWARDING THE REASONS AND MATERIAL TO THE ADJUDICATING AUTHORITY, IMPOUNDING AND CUSTODY OF RECORDS AND THE PERIOD OF RETENTION) RULES, 2005
1. Short title and commencement
2. Definitions 3. Procedure relating to search 4. Procedure relating to seizure 5. Applicability of the provisions of the Code of Criminal Procedure, 1973 • ■ : 6. Impounding of records • ■ • 7. Custody of records 8. Manner of forwarding of a copy of the reasons and the material* relating to search and seizure under sub-section (2) of section 17 of the Act and search of persons under sub-section (2) of section 18 of the Act to the Adjudicating Authority

9. Acknowledgement of receipt of a copy of the reasons and the material relating to search and seizure and search of person by the Adjudicating Authority . . ^ 85 10. Period of retention of copy of the reasons and the material relating to search and seizure and search of persons by the Adjudicating Authority . . . 86
11. Forms of records . . ". 86 12. Interpretation . . 86
FORM I.—^Authorisahon for Search and Seizure under sub-section (1) of section 17 of the Act . . . 86 FORM U.—^Seizure Memo (Inventory of Items) . . . 87 FORM in.—^Acknowledgement Slip [See sub-rule (2) of rule 8] . 88 FORM rV.—^Acknowledgement Slip . . .■ 88 FORM V.—Form for Summons . . . .i 89
THE PREVENTION OF MONEY-LAUNDERING (THE FORMS AND THE MANNER OF FORWARDING A COPY OF ORDER OF ARREST OF A PERSON ALONG WITH THE MATERIAL TO THE ADJUDICATING AUTHORITY AND ITS PERIOD OF RETENTION) RULES, 2005 1. Short title and commencement 2. Definitions 3. Manner of forwarding a copy of the order of arrest and the material to the Adjudicating Authority • • • . 4. Acknowledgement of receipt of the copy of the order of arrest and the material by the Adjudicating Authority . . . 91 5. Period of retention of a copy of the order of arrest and the material by the Adjudicating Authority 6. Forms of records . . . 7. Interpretation . . . FORM I.—Acknowledgement Slip [See sub-rule (2) of rule 3] . . . 92 FORM II.—Acknowledgement Slip [See sub-rule (5) of rule 8]. . 93 FORM III.—^Arrest Order . . . 93 THE PREVENTION OF MONEY-LAUNDERING (THE MANNER OF FORWARDING A COPY OF THE ORDER OF RETENTION OF SEIZED PROPERTY ALONG WITH THE MATERIAL TO THE ADJUDICATING AUTHORITY AND THE PERIOD OF ITS RETENTION) RULES, 2005 1. Short title and commencement . • . . 2. Definitions • • ' , 92 92 92
3. Manner of forwarding the copy of the order of retention of seized property along with the material to the Adjudicating Authority 4. Acknowledgement of receipt of the copy of the order of retention of seized property and the material by the Adjudicating Authority 5. Period of keeping the copy of the order of retention and the material by the Adjudicating Authority 6. Inte^retation . . . FORM I.—Acknowledgement Slip [See sub-rule (2) of rule 3] . FORM n.—^Acknowledgement Slip [See sub-rule (5) of rule 3].
THE PREVENTION OF MONEY-LAUNDERING (MANNER OF
RECEIVING THE RECORDS AUTHENTICATED OUTSIDE INDIA) RULES, 2005
1. Short title and commencement
2. Definitions
3. Manner of authentication of records received from
- outside India . . . 4. Interpretation

THE PREVENTION OF MONEY-LAUNDERING (APPEAL) RULES, 2005
Short title and commencement
2. Definitions 3. Form of Appeal 4. Order of the Appellate Tribunal 5. Service of notice, requisitions or orders 6. Interpretation I^ORM.—[Appeal against the order of the Adjudcating Authority or the Director—See sub-rule (1) of rule 3]
1. 99

THE ADJUDICATING AUTHORITY REGULATIONS, 2006
CHAPTER I
PRELIMINARY
Regulations
1. Short title . . . 102
2. Commencement . . . 102
CHAPTER 11
3. Definitions . . 102
CHAPTER m
4. Filing of applications and complaints . . . 102 5. Date ^d Signature . . . 102
6. Attestation
7. Receipt of papers
8. Date of stamping of papers and maintenance of Inward ' Register in the following manner
CHAPTER IV
PRESENTATION, REGISTRATION NUMBER AND POSTING
FOR ORDERS 9. Duty of the official appointed to receive application 10. Registration and Numbering
11. . . .
CHAPTER V
SERVICE OF SUMMONS/NOTICES
12. Issue of Summons/Notices 13. Steps for fresh Summons/Notices
14. Form of Summons/Notices 15. Filing of reply to the Notice 16. Inspection of Records 17. Maintenance of Application of Inspection
CHAPTER VI
18. Examination of witness and the issue of Commissions
19. Recording of deposition 20. Numbering of witness 21. Witness expenses payable 22. Marking of documents
CHAPTER VII
ORDERS
23. Judgment and Issue of Order
24. 25. Indexing of case files
CHAPTER VIII
GRANT OF CERTIFIED COPIES
26.
27.
28. Endorsement of a copy form 1.—^Notice to show cause
form 2.—Order-sheet form 3.—Daily Cause List form 4.—Application for Inspection of Records form 5'—^Statement of Witness form 6.—Receipt Slip FORM 7.—Certificate of Attendance form 8.—General-Index

FORM 9.—List of records transmitted to the record room FORM 10.—Application for copy of record
NOTIFICATIONS
Effective Date Notification [Vide G.S.R. 436(E), dated 1st July, 2005] Notification Appointing the Adjudicating Authority [Vide G.S.R. 437(E), dated 1st July, 2005] Notification Specifying the New Delhi Bench [Vide G.S.R. 438(E), dated 1st July, 2005]
Notification Establishing an Appellate Tribunal [Vide G.S.R. 439(E), dated 1st July, 2005] Notification appointing the Director, Financial Intelligence Unit [Vide G.S.R. 440(E), dated 1st July, 2005]
Notification Appointing Director of Enforcement [Vide G.S.R. 441(E), dated 1st July, 2005] Notification Designating Courts of Sessions as Special Courts [Vide S.O. 841(E), dated 1st June, 2006] Notification Designating Courts of Sessions as Special Courts [Vide S.O. 1901(E), dated 3rd November, 2006] Notification Designating Courts of Sessions as Special Courts [Vide S.O. 309(E), dated 2nd March, 2007]