Money laundering is the process of bringing illegal money into an economy by hiding its illegal origin so that it appears to be legally acquired.
The Government of India launched the Prevention of Money Laundering Act (PMLA) ,2002 to rein in money-laundering activities.
Money laundering as an offense which is punishable by rigorous imprisonment from 3 to 7 years and fine up to Rs. 5 lakhs.
Anti Money Laundering Policies - Appointment of a principal compliance officer,Training of agents on AML measures,Internal audit/control etc
Know Your Customer (KYC) - objective is to prevent financial institutions from being used by criminal elements for money laundering activities. KYC documents like address proof, PAN card and photographs etc. need to be collected as a part of the KYC procedure.
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