Evolution And Enforcement Of Money Laundering Laws In India: A Comparative Analysis Of Indian And International Perspectives

Khushboo Chaudhary, LLM (Criminal Law), Amity Institute of Advanced Legal Studies, Amity University, Noida.

ABSTRACT

The integrity of financial systems around the world, including those in India, is seriously threatened by money laundering. An extensive summary of the development and application of money laundering regulations in India is given in this abstract. Ever since the 1980s, when the problem was first identified, India has been working to strengthen its legal system in order to successfully combat money laundering.

This essay looks at the major legislative turning points in India's fight against money laundering, such as the passage of the Prevention of Money Laundering Act (PMLA) in 2002, which created a strong legal framework for the offenses of money laundering detection, prevention, and prosecution. The PMLA has undergone subsequent changes that have reinforced its legal structure and broadened the reach of its enforcement measures, all in accordance with international norms and recommendations.

This article also examines the institutional framework put in place in India to enforce anti-money laundering legislation, including the creation of the Financial Intelligence Unit-India (FIU-IND), which serves as the primary national organization in charge of gathering, examining, and sharing data on questionable financial transactions. Furthermore, the functions and obligations of regulatory agencies like the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) in guaranteeing adherence to anti-money laundering laws scrutinized.

This essay also explores the potential and difficulties that come with upholding money laundering regulations in India. Notwithstanding notable advancements, obstacles such as the intricacy of monetary exchanges, the transnational aspect of money laundering operations, and the synchronization of various authorities endure. For overcoming these obstacles, a multifaceted strategy is needed, including increased collaboration between local and foreign partners, utilizing technology to improve surveillance and detection, and ongoing development of law enforcement agencies' capabilities.

In order to effectively combat money laundering in India, this essay emphasizes the significance of a strong legal framework, efficient enforcement procedures, and international collaboration. India can bolster its resistance against the dangers of money laundering and preserve the integrity of its financial system by keeping up with changing trends and taking proactive steps.

Global financial system integrity, security, and economic stability are all seriously threatened by financial crimes. This essay offers a thorough analysis of financial crimes in India as well as in the global setting. With a focus on the Indian legal system, special consideration is given to how financial regulations are changing and how well enforcement mechanisms work to address financial crimes such as money laundering, fraud, corruption, and financing of terrorism.

This study compares the enforcement tactics and regulatory frameworks used in India with those in other jurisdictions using a comparative lens. The purpose of the article is to identify the advantages, disadvantages, and potential areas of improvement in India's financial crime response by making comparisons and contrasts. It examines the difficulties presented by international financial crimes and the significance of information sharing and international cooperation in the fight against these kinds of illegal activity.