Prevention of Money Laundering Act, 2002 : A Practitioner's Guide

The book delves deep into the intricacies of the Prevention of Money Laundering Act, 2002, providing a clear and concise, chapter-wise explanation of its provisions, as well as a step-by-step approach on compliance. The author's extensive knowledge in the field is evident, and shines through in his ability to demystify the complexities of anti-money laundering regulations and present them in a manner that is accessible to both seasoned professionals and those new to the subject. Furthermore, it explores emerging trends, technological advancements, the Act's relationship with other financial legislations, and efforts of international corporations that are shaping the future of anti-money laundering practices. This book covers risk assessment, due diligence procedures, suspicious transaction reporting, record-keeping obligations, and the role of regulators and enforcement agencies.

- B.R. Gavai, Judge, Supreme Court of India

The book covers not only the latest legislative changes to the Act but also the important judgment of the Supreme Court dealing with the PMLA, Vijay Madanlal Chaudhary. Having appeared in this case for the Union of India as the Solicitor General, I appreciate the effort undertaken by the author in dealing with each provision under the Act which stands altered after the pronouncement of this judgment. Jai's commentary reflects his deeper understanding of the subject. Jai has achieved a rare quality of being concise without compromising on the details which are relevant to each issue.

- Tushar Mehta, Solicitor General of India

Since its enactment in 2002, the Prevention of Money-Laundering Act has been the subject of much legal debate but has yet been without a coherent academic analysis outside of the courtroom. Mr Jai Dehadrai's book fills a significant void in legal scholarship. As Dehadrai correctly points out, the scholarly materials related to the crime of money-laundering and the various legal attempts to regulate and curtail it have been largely scattered. Dehadrai has done a wonderful job in this regard, and the book is a good starting point for Judges, lawyers, students and even lay public who wish to begin a study of this extremely important subject.

- K.K. Venugopal, Senior Advocate

This book is not just about theoretical aspects of the law of money-laundering but is also a practical toolbox for practitioners. Jai masterfully breaks down the nuances and complexities of PMLA (and there are many!), making its provisions clear and actionable (to the extent they could be made clear and actionable). In the book, Jai painstakingly connects the legal principles (which are "sometimes" not very straightforward) to the real-world challenges faced by practitioners and defence counsel. This guide blends essential overviews with up-to-date illuminating case studies, showing how the PMLA works in practice and the gaps in law filled in by judicial interpretation.

- Justice Gita Mittal, Former Acting CJ, Delhi High Court

Jai's approach to the PMLA Act is also valuable in its historical approach as he painstakingly sets out the evolution of several important sections through case law. The unfolding case law on the statute's provision serves to highlight the tussle for interpretation between the competing interests of the State and the defence. While he sets out the normative aspects of Section 24 (reverse burden of proof) and Section 45 (the stringent twin conditions for bail), he critiques the illiberal aspects of these provisions and advocates greater fairness to the accused on both these aspects. There is an instructive chapter on reciprocalarrangements and cross-border investigations and another on PMLA's relationship with financial legislations such as SARFAESI and the IBC. Citingexamples, Jai's insights into money-laundering through Cryptocurrency and Ponzi schemes also make for interesting reading.

- Mahesh Jethmalani, MP (Rajya Sabha), Senior Advocate

The work undertaken by the author, especially dealing with several aspects of money-laundering in the context of international financial institutions, fiscal credibility, and remittances from foreign jurisdictions, coupled with the legislative changes since its enactment, and dividing the entire book into different chapters, and reliance on appropriate references to the case law and other relevant materials, would surely turn out to be a great asset for every practitioner. The book is indeed a beautiful treatise which can systematically guide a person in practice, study and for undertaking a critical analysis of the Act.

- Atmaram N.S. Nadkarni, Senior Advocate

Jai's handbook is a one-stop resource for all. He deftly and effortlessly marries theory and practice to bring together the perfect guide to help any practitioner charter the choppy waters of this emerging, and if I may add, rather controversial jurisprudence.

- Sanjoy Ghose, Senior Advocate

Jai Dehadrai was one of my finest students at the University of Pennsylvania Law School and thereafter a valuable contributor to our law firm. Now a preeminent practitioner in India, this opus he's authored is a groundbreaking contribution to all at the bench and bar who must confront the complexities of India's statutory approach to money laundering. A must read!

- Shanin Specter, Co-Founding Partner, Kline & Specter, PCLecturer at Stanford Law School

Table of Contents

Table of Cases

1. An Introduction to Money-Laundering
2. Definitions
3. Authorities under the PMLA: Director, Adjudicating Authority, Appellate Tribunal and Special Court
4. Offence of Money-Laundering
5. Proceeds of Crime
6. Attachment, Adjudication and Search and Seizure under the PMLA
7. Summons and Arrest
8. Bail for the Offence of Money-Laundering
9. Reciprocal Arrangements, Cross-Border Investigations and Prosecution of the Offence of Money-Laundering
10. PMLA?s Relationship with Financial Legislations
11. Reporting and Maintenance of Records

APPENDICES

1. Prevention of Money-Laundering (Appeal) Rules, 2005
2. Prevention of Money-Laundering (Manner of Receiving the Records Authenticated Outside India) Rules, 2005
3. Prevention of Money-Laundering (the Manner of Forwarding a Copy of the Order of Provisional Attachment of Property along with the Material, and Copy of the Reasons along with the Material in Respect of Survey, to the Adjudicating Authority and Its Period of Retention) Rules, 2005
4. Prevention of Money-Laundering (Receipt and Management of Confiscated Properties) Rules, 2005
5. Prevention of Money-Laundering (Maintenance of Records) Rules, 2005
6. Prevention of Money-Laundering (Forms, Search and Seizure or Freezing and the Manner of Forwarding the Reasons and Material to the Adjudicating Authority, Impounding and Custody of Records and the Period of Retention) Rules, 2005
7. Prevention of Money-Laundering (the Forms and the Manner of Forwarding a Copy of Order of Arrest of a Person along with the Material to the Adjudicating Authority and Its Period of Retention) Rules, 2005
8. Prevention of Money-Laundering (the Manner of Forwarding a Copy of the Order of Retention of Seized Property along with the Material to the Adjudicating Authority and the Period of Its Retention) Rules, 2005
9. Prevention of Money-Laundering (Issuance of Provisional Attachment Order) Rules, 2013
10. Prevention of Money-Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013
11. Prevention of Money-Laundering (Restoration of [* * *] Property) Rules, 2016
12. Adjudicating Authority (Procedure) Regulations, 2013

Subject Index