Money laundering undermines the integrity of the financial system and threatens national security. Elaborate how effective has Prevention of Money Laundering Act, 2002 (PMLA) been in curbing the problem of money laundering in the country?

The Prevention of Money Laundering Act 2002 defined money laundering as initiatives involving effort to transulate proceeds from illegal activities into rightful money. It undermines the integrity of financial system (1) by safeguarding the system (2) by raising loss in banking system (3) Eq - Nirav Modi case. Threatens national security Money laundering is directly linked to organized crime such as drug trafficking, human trafficking, illegal arms trade.

Effectiveness of PMLA Act 2002 Though PMLA Act has caused diversion of money and money laundering, it has been very effective as:- (1) Low conviction rate (2) Some continued even after its implementation - Eq scam. (not gate scene) the recent amendment that made PMLA Act stronger, making bail in PMLA case difficult has been upheld by Supreme Court. At an help in curbing money laundering.