---
title: "Prevention of Money Laundering Act (PMLA), 2002"
description: "The Prevention of Money Laundering Act, 2002 (PMLA) empowers Indian authorities to combat money laundering, crucial for maintaining financial integrity."
url: "https://modeldiplomat.com/learn/glossary/prevention-of-money-laundering-act"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Prevention of Money Laundering Act, 2002 is an Indian statute that criminalizes laundering proceeds of crime and empowers authorities to attach and confiscate such property.
- Which agency investigates offences under the PMLA?
- What is a 'scheduled offence' and why does it matter?
- Why are bail conditions under the PMLA considered stringent?
- How does the PMLA differ from FEMA?

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

The Prevention of Money Laundering Act, 2002 is an Indian statute that criminalizes laundering proceeds of crime and empowers authorities to attach and confiscate such property.

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## Timeline

1. 17 January 2003

   It received presidential assent on and was brought into force on 1 July 2005.

2. 1 July 2005

   It received presidential assent on 17 January 2003 and was brought into force on .

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Example

In 2022 India's Directorate of Enforcement attached and pursued PMLA proceedings against Yes Bank fraud accused, citing proceeds of crime, after the Supreme Court upheld the Act's core provisions in Vijay Madanlal Choudhary v. Union of India.

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