Crypto currency enables laundering through mixing, dark exchanges, OTC trades and weak KYC, demanding stronger AML measures.
The article explains that money laundering using virtual currencies leverages pseudonymous blockchain addresses and services like mixing, dark exchanges, OTC trades, gambling platforms, nested services and anonymizing mechanisms to convert and integrate Proceeds of Crime. It stresses that the PMLA criminalises concealment, possession, acquisition, use and projecting of proceeds as untainted property and argues for stringent AML/CFT measures-enforceable KYC, reporting obligations for reporting entities, stronger investigative capacity and international cooperation-to close regulatory gaps and curb crypto enabled laundering. (AI Summary)

Provisional attachment of proceeds of crime secures assets pending adjudication and enables cross border confiscation under PMLA.
PMLA provides a specialised, schedule based regime for prevention of money laundering with written reason provisional attachment powers (Section 5), time bound attachment subject to adjudication (Section 8), and an expanded definition of proceeds of crime allowing attachment of foreign assets or their domestic equivalents; across statutes the burden to prove lawful acquisition lies on the affected person, notice and hearing are required, and ultimate confiscation follows adjudicatory confirmation. (AI Summary)

Anti-money laundering obligations require rigorous KYC, risk-based controls and mandatory suspicious transaction reporting by regulated entities.
Regulated entities must implement anti-money laundering measures under the PMLA and RBI Master Directions, including Customer Acceptance and Identification Policies, Customer Due Diligence with risk-based customer categorisation and periodic KYC updation, enhanced procedures for PEPs and specified simplified norms, mandatory reporting of Cash and Suspicious Transaction Reports to the Financial Intelligence Unit, retention of transaction records, documented ML/TF risk assessments, Board approved Risk Based Approach controls, recognition of V CIP for identification, and prescribed penalties for non-compliance. (AI Summary)

PMLA overriding effect: special arrest, attachment and confiscation regime supersedes general criminal procedure where inconsistent.
PMLA is a special, self-contained statute whose provisions, notably Section 71, have an overriding effect over other laws; Section 65 makes Cr.P.C. applicable only where not inconsistent. Arrests are governed by Section 19 which requires specified officers to have material based reasons to believe (recorded in writing), inform detained persons of the grounds, forward material to the Adjudicating Authority confidentially and produce the arrested person before a magistrate within the prescribed period. PMLA also empowers provisional attachment and confiscation of proceeds of crime and, where necessary, attachment of alternative assets of equivalent value, with the onus on the objector to prove lack of taint. (AI Summary)