Anti-Money Laundering(AML)/Combating Financing Terrorism(CFT) - India in the Global Context

Financial Intelligence Unit - the concept   The following diagram46 of the basic FIU concept shows that efficient FIUs provide assistance in exchanging information between financial institutions and law enforcement / prosecutorial authorities and between jurisdictions. Source:   UNODC The four basic FIU models recognized by the Egmont Group are Law Enforcement Model, Judicial Model, Administrative Model and Hybrid-Administrative Model.    Law Enforcement-type FIUs: Authorities that implement anti-money laundering measures alongside already existing law enforcement systems, supporting the efforts of multiple law enforcement agencies or judicial authorities with concurrent or sometimes competing jurisdictional authority to investigate money laundering.   Judicial or Prosecutorial-type FIUs : The judicial model is established within the judicial branch of government wherein “disclosures” of suspicious financial activity are received by the investigative ag...

  The following provisions provide further procedure under the PMLA:   • Section 43 : Special Courts • Section 44 : Offences triable by Special Courts • Section 45 : Offences to be cognizable and non-bailable • Section 46 : Application of Code of Criminal Procedure, 1973 to proceedings before Special Court • Section 65 : Code of Criminal Procedure, 1973 to apply • Section 71 : Act to have overriding effect   Adjudicating Authority[Section 6,7,8] Section 2 of PMLA defines Adjudicating Authority (AA) as an authority appointed under Section 6(1) of the said Act.   Section 6 (1) of the Act states that the Central Government shall appoint an Adjudicating Authority by notification for exercising jurisdiction, powers and authority conferred by or under this Act The Adjudicating Authority is a body appointed by the central government under the Prevention of Money Laundering Act (PMLA) of 2002 to exercise the powers and authority granted by the Act....