abstract

Money laundering has become a significant concern worldwide, given its implications for the financial systems and socio-economic development of nations. The Prevention of Money Laundering Act (PMLA), 2002, was India’s response to addressing the increasing threat posed by money laundering and related socio-economic crimes. This paper undertakes a comparative analysis of anti-money laundering (AML) measures in India under the PMLA, 2002, and international standards set forth by organizations like the Financial Action Task Force (FATF). It examines the effectiveness of India’s AML regime in curbing socio-economic offences and evaluates its alignment with global standards. By exploring the legal framework, enforcement mechanisms, and their socio-economic impact, the paper offers insights into the challenges and opportunities for enhancing India's AML regime. The research methodology includes a comprehensive review of legal literature, case studies, and statistical analysis of enforcement data. The results underscore areas where India's AML system is robust and where it could benefit from reforms aligned with international best practices.