Who has been included in the purview of Money Laundering Act? Know since when this act came into force

Such money started being invested in benami properties. Cases of converting black money into white started increasing rapidly. Keeping these in mind, the scope of Money Laundering Act has been increased.

Current Affairs: There are questions on current affairs in almost all the examinations conducted for government jobs. Today in this section, we will learn about the Money Laundering Act. The Central Government has increased the scope of the Money Laundering Act. This step of the Center will help in preventing misuse in the finance sector. Let us know what new changes have been made in this.

Now this law will also apply to professionals like Chartered Accountant, Company Secretary. The government believes that many such professionals have been doing fund management for their clients in a wrong way.

What is the scope of Money Laundering Act?

Chartered accountants, company secretaries and other financial professionals have come under the ambit of this law by the central government. Establishment of the company, purchase and sale of property and other financial transactions are included, which have now come under the purview of the Money Laundering Act. From now on, any mistake done by them will be considered as a crime.

The Financial Intelligence Unit can take action against such erring professionals. In this, if needed, there can be arrest. Now all these professionals are held responsible for checking the identity, financial transactions and other financial status of the customers. The new law has cleared the way for taking action against them under the Prevention of Money Laundering Act if the law is violated in any way.

When did Money Laundering Act come into force?

The Prevention of Money Laundering Act (PMLA), 2002 was approved by the Central Government in the Parliament on 17 January 2003. From July 1, 2005, this act came into force in the country. The need for this law arose when the exchange of illegal money from India and abroad started coming to light. The government started getting information about the promotion of terrorist activities with this amount.

Such money started being invested in benami properties. Cases of converting black money into white started increasing rapidly. Since the implementation of this act till now several amendments have been made in it as per the requirement. The central government amended this act in the years 2009 and 2012.