---
title: "PMLA 2002: India's Money Laundering Act | Model Diplomat"
description: "The Prevention of Money Laundering Act, 2002 is India's key anti-money-laundering law, empowering authorities to combat financial crimes effectively."
url: "https://modeldiplomat.com/learn/glossary/prevention-of-money-laundering-act-2002"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Prevention of Money Laundering Act, 2002 is India's principal anti-money-laundering statute, criminalising the concealment of proceeds of crime and empowering attachment, confiscation, and prosecution.
- What constitutes 'proceeds of crime' under the PMLA?
- Why is Section 45 of the PMLA so controversial?
- How does the PMLA differ from the Fugitive Economic Offenders Act, 2018?
- What is an ECIR and how does it differ from an FIR?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

The Prevention of Money Laundering Act, 2002 is India's principal anti-money-laundering statute, criminalising the concealment of proceeds of crime and empowering attachment, confiscation, and prosecution.

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## Timeline

1. 17 January 2003

   The Prevention of Money Laundering Act, 2002 (PMLA) is the statutory backbone of India's anti-money-laundering regime, enacted by Parliament on and brought…

2. 1 July 2005

   The Prevention of Money Laundering Act, 2002 (PMLA) is the statutory backbone of India's anti-money-laundering regime, enacted by Parliament on 17 January 20…

3. 27 July 2022

   Union of India () upheld the amended Section 45, the admissibility of Section 50 statements, the ECIR's non-disclosure, and the reverse burden of proof under…

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Example

In March 2024, the Directorate of Enforcement arrested Delhi Chief Minister Arvind Kejriwal under the PMLA in connection with the Delhi excise-policy case, invoking its Section 19 arrest powers.

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