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ARTICLE · 08 AUGUST 2023

FinTales Issue 32: Anti-money Laundering Laws, Data Bill & Fintechs

Ikigai Law
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The Prevention of Money Laundering Act (or, as its friends call it, the 'PMLA') is a long-arm law. It gives its enforcing agency, the Enforcement Directorate (or as its, umm.. acquaintances call it, the 'ED'), sweeping powers.

IndiaTechnology
Ikigai Law
Ikigai Law
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"Bribery, corruption, money laundering, millions and millions and millions of dollars..[.]...somebody has to sound the alarm."
- Meryl Streep, The Laundromat

The Prevention of Money Laundering Act (or, as its friends call it, the 'PMLA') is a long-arm law. It gives its enforcing agency, the Enforcement Directorate (or as its, umm.. acquaintances call it, the 'ED'), sweeping powers. In 2019, the ED used this power to cease three chimpanzees and four marmosets as 'proceeds of crime'. What are marmosets you ask? They are a kind of punk rock monkey. Google them.

Fast forward to the last month, the Delhi High Court used the long arm of the PMLA to classify PayPal as a 'reporting entity' under the PMLA. Reporting entities must follow several compliance and reporting obligations under the anti-money laundering law. PayPal fought hard to resist this classification. It claimed that since it isn't classified as a 'payment system' under the Payment and Settlement Systems

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