Section 13 of PMLA : Section 13: Powers Of Director To Impose Fine

Explanation using Example

Imagine a situation where a bank, which is a reporting entity under The Prevention of Money-Laundering Act, 2002, is suspected of not properly implementing anti-money laundering checks on its customers. The Director of the Financial Intelligence Unit (FIU) receives a tip from an anonymous source that the bank may be inadvertently facilitating money laundering by not conducting due diligence.

Acting on this information, the Director initiates an inquiry into the bank's compliance with its obligations under the Act. During the inquiry, it is discovered that the bank has indeed been lax in verifying the identity of its customers and monitoring suspicious transactions....

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.