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Prevention of Money Laundering Act (PMLA)

PYQs

8

Articles

1

Momentum

21

Phase IFoundation

Background

Overview

PMLA is a crucial law for combating financial crimes, black money, and terror financing. Its implementation by the ED often involves high-profile cases, raising questions about its scope, powers, and potential for misuse, as well as its interaction with other laws and agencies, making it highly relevant for GS2 (Governance, Judiciary) and GS3 (Economy, Internal Security).

The Prevention of Money Laundering Act (PMLA), 2002, is a comprehensive legislation enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, money laundering. It empowers the Directorate of Enforcement (ED) to investigate offenses, attach properties, and prosecute individuals involved in money laundering activities.

Phase IIStatic core

Facts & tables

Key facts

Enactment Year

2002 (with subsequent amendments)

Implementing Agency

Directorate of Enforcement (ED)

Scope

Deals with 'proceeds of crime' from scheduled offenses.

Key Powers

Provisional attachment of property, arrest, search, seizure.

Reference table

Static syllabus anchors

TypeReference
Conceptual areaAnti-Corruption Laws
Conceptual areaFinancial Crimes

Reference table

Institutions & roles

BodyRole
Directorate of Enforcement (ED)Implements
Principal Sessions CourtAdjudicates
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Multi-statement analysis

Prelims angle: Institutional roles and functions

Quick revision

  • PMLA, 2002, aims to prevent money laundering.
  • Directorate of Enforcement (ED) is the primary investigating agency.
  • Empowers ED to attach properties derived from crime.
  • Covers 'scheduled offenses' including those under PCA.
  • Crucial for combating financial crimes and terror financing.

Elimination traps

Constitutional vs statutory — ED is a statutory body, not a constitutional one.

Check if created by Constitution or by Parliament.

High-confidence PYQs

2026Factual recall, Institutional roles and functions

With reference to the organisations under the Government of India, consider the following details: | Sl. No. | Organisation | Function | Controlling Union M...

Indian PolityOpen question
2025Multi-statement analysis, Institutional roles and functions

With reference to the Government of India, consider the following information: | Organization | Some of its Functions | It Works Under | |--...

Indian PolityOpen question
2024Factual recall, Institutional roles and functions

The North Eastern Council (NEC) was established by the North Eastern Council Act, 1971. Subsequent to the amendment of NEC Act in 2002, the Council comprises...

Indian PolityOpen question
2022Statement-based questions, Institutional roles and functions

With reference to India, consider the following statements: 1. Government law officers and legal firms are recognised as advocates, but corporate lawyers an...

Indian PolityOpen question
2021Statement-based questions, Factual recall

Consider the following statements: 1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. 2. Certain provisions in the Co...

EconomyOpen question
2019Multi-statement analysis, Factual recall

Consider the following statements : 1. According to the Indian Patents Act, a biological process to create a seed can be patented in India. 2. In India, the...

Science & TechnologyOpen question
2018Multi-statement analysis, Institutional roles and functions

How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)? 1. The NGT has been established by an Act whereas the CPC...

Environment & EcologyOpen question

Consider the following statements 1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954. 2. The Food Safety and ...

Indian PolityOpen question
2018Multi-statement analysis, Institutional roles and functions

How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)? 1. The NGT has been established by an Act whereas the CPC...

Environment & EcologyOpen question

Consider the following statements 1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954. 2. The Food Safety and ...

Indian PolityOpen question

Topic timeline

Anti-Corruption LawsFinancial Crimes
Prelims 2018· Multi-statement analysis, Institutional roles and functions

How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)? 1. The NGT has been established by an Act whereas the CPC...

Open question

Consider the following statements 1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954. 2. The Food Safety and ...

Open question
Prelims 2018· Multi-statement analysis, Institutional roles and functions

How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)? 1. The NGT has been established by an Act whereas the CPC...

Open question

Consider the following statements 1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954. 2. The Food Safety and ...

Open question
Prelims 2019· Multi-statement analysis, Factual recall

Consider the following statements : 1. According to the Indian Patents Act, a biological process to create a seed can be patented in India. 2. In India, the...

Open question
Prelims 2021· Statement-based questions, Factual recall

Consider the following statements: 1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. 2. Certain provisions in the Co...

Open question
Prelims 2022· Statement-based questions, Institutional roles and functions

With reference to India, consider the following statements: 1. Government law officers and legal firms are recognised as advocates, but corporate lawyers an...

Open question
Prelims 2024· Factual recall, Institutional roles and functions

The North Eastern Council (NEC) was established by the North Eastern Council Act, 1971. Subsequent to the amendment of NEC Act in 2002, the Council comprises...

Open question
Prelims 2025· Multi-statement analysis, Institutional roles and functions

With reference to the Government of India, consider the following information: | Organization | Some of its Functions | It Works Under | |--...

Open question
Prelims 2026· Factual recall, Institutional roles and functions

With reference to the organisations under the Government of India, consider the following details: | Sl. No. | Organisation | Function | Controlling Union M...

Open question

ED files protest petition against DVAC’s attempt to close ₹27.90 crore bribery case against former Minister Vaithilingam

12 Jun 2026 · PMLA empowers the ED to combat money laundering by investigating scheduled offenses, attaching proceeds of crime, and prosecuting offenders, playing a vital role in India's financial integrity and anti-corruption efforts.

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Related topics

Current topic

Prevention of Money Laundering Act (PMLA)

Often confused with

Inter-Agency Coordination in Anti-Corruption Investigations

Open notes
Often confused with

Money Laundering

Coming soon
Often confused with

Enforcement Directorate (ED)

Open notes

Practice writing on this topic

UPSC has asked 8 linked questions on Prevention of Money Laundering Act (PMLA) in Mains. Write an answer to one — and get it evaluated.

See Mains PYQsEvaluate an answer
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