Which of the following Acts aims to prevent money laundering in India?

Correct option is C

The correct answer is (C) PMLA

Explanation:

• PMLA (Prevention of Money Laundering Act), 2002 aims to prevent and control money laundering in India.
• Enforced by the Enforcement Directorate (ED).
• Provides for confiscation of property derived from illegal means.
• Offenses include acquiring, concealing, or using proceeds of crime.
• Aligns with international standards (FATF guidelines).

Information Booster:

• Enforced from 1 July 2005.
• Minimum punishment: 3 years, extendable up to 7 years (10 years in drug-related cases).
• Amendments (2009, 2012, 2019) broadened the scope and powers.
• Strong tool against terror financing, corruption, drug trafficking.
• Helps strengthen financial transparency and accountability.

Additional Knowledge:

SEBI:

• Full form: Securities and Exchange Board of India.
• Established: 1988 (statutory status in 1992).
•  Regulates stock markets, protects investors, and ensures fair trade practices.
  

FEMA :

• ​ Full form: Foreign Exchange Management Act, 1999.
•  Replaced FERA (1973).
•  Facilitates external trade and payments, promotes orderly forex market.

FCRA :

•  Full form: Foreign Contribution (Regulation) Act, 2010.
  
• Regulates acceptance and use of foreign funds by individuals, NGOs, associations.
• Aim: prevent misuse of foreign contributions for activities against national interest.