The Prevention of Money Laundering Act, 2002 was enacted with the primary objective of preventing and controlling money laundering and terrorist financing in India.

The Enforcement Directorate (ED) is the primary agency responsible for enforcing the provisions of the Prevention of Money Laundering Act, 2002.

Money laundering is defined as the process of converting illegally obtained money into legitimate funds, thereby concealing its illegal origin.

The three stages of money laundering are placement, layering, and integration.

Layering is the process of moving money through a series of complex transactions to conceal its origin.

Integration is the final stage of money laundering, where the illegally obtained money is used to purchase legitimate assets or investments.

Smurfing is the process of breaking down large sums of money into smaller amounts to avoid detection.

The maximum penalty for money laundering under the Prevention of Money Laundering Act, 2002 is 7 years imprisonment and a fine of up to Rs. 5 lakh.

Suspicious Transaction Reporting (STR) is the process of identifying and reporting suspicious transactions to the authorities.

The minimum threshold amount for reporting suspicious transactions under the Prevention of Money Laundering Act, 2002 is Rs. 10 lakh.

Know Your Customer (KYC) is the process of verifying the identity of customers and obtaining information about their financial transactions.

The purpose of the Customer Due Diligence (CDD) process is to prevent money laundering and terrorist financing, protect the interests of customers, and comply with regulatory requirements.

The three main elements of the Customer Due Diligence (CDD) process are customer identification, risk assessment, and ongoing monitoring.

Anti-Money Laundering (AML) is the process of training employees on how to identify and report suspicious transactions.