After the 9/11 attacks, the attention of the world turned to terror financing. After establishing the Financial Action Task Force (FATF), India was under pressure to deal with terror financing issues.
Thus, the Prevention of Money Laundering Act (PMLA) was enacted to deal with money laundering.
The law was enacted to combat money laundering in India and has three main objectives :
To prevent and control money laundering.
To provide for confiscation and seizure of property obtained from laundered money.
To deal with any other issue connected with money-laundering in India.
