Anti-Money Laundering & PMLA Compliance

Overview

The Prevention of Money Laundering Act 2002 as amended — expanded most recently by the Finance Act 2023 to include virtual digital asset service providers and practitioners in specified professions — imposes a comprehensive AML compliance obligation on a growing universe of regulated entities. Banks, NBFCs, payment system operators, securities intermediaries, insurance companies, real estate agents, and now crypto exchanges must maintain documented KYC programmes, conduct transaction monitoring, file Suspicious Transaction Reports (STRs) with the Financial Intelligence Unit (FIU-IND), and maintain records for five years. Corpus Juris Legal designs and implements PMLA compliance programmes for reporting entities and advises on PMLA enforcement proceedings before the Enforcement Directorate. Our AML practice covers the design of risk-based KYC customer due diligence frameworks, Customer Risk Profiling systems, beneficial ownership identification protocols, Enhanced Due Diligence procedures for high-risk customers, and Politically Exposed Persons (PEP) screening. We advise on FIU-IND registration, STR and Cash Transaction Report filing obligations, and FIU inspection response. When PMLA enforcement proceedings are initiated by the Enforcement Directorate — attachment orders, summons, and prosecution complaints — we provide aggressive, specialised representation before the ED, Adjudicating Authority, PMLA Appellate Tribunal, and the High Court. Bail applications, challenge of attachment orders, and defence of prosecution complaints under PMLA are areas of significant depth in our practice. For scheduled offences that generate PMLA exposure — fraud, corruption, tax evasion — we advise on the intersection with the IPC, Prevention of Corruption Act, and Income Tax Act in crafting an integrated defence strategy.

Key Service Components

• ◆PMLA compliance programme design for banks, NBFCs, and securities intermediaries
• ◆KYC/CDD framework — risk-based customer due diligence system design
• ◆Beneficial ownership identification and verification under PMLA Rule 9
• ◆Suspicious Transaction Report (STR) and CTR filing advisory
• ◆FIU-IND registration and FIU inspection response
• ◆PEP screening and Enhanced Due Diligence protocol design
• ◆VDA service provider PMLA AML programme (post-Finance Act 2023)
• ◆Enforcement Directorate summons response and legal representation
• ◆PMLA attachment order challenge before Adjudicating Authority and PMLA Appellate Tribunal
• ◆PMLA prosecution defence — bail application and trial representation

Our Approach

Our PMLA practice operates on two tracks simultaneously: preventive compliance programme design that reduces the probability of ED attention, and aggressive enforcement defence when proceedings are initiated. We do not conflate the two — compliance counsel and defence counsel are different skill sets.

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