🔹 Introduction

The Prevention of Money Laundering Act, 2002 (PMLA) is India’s primary legislation to combat the menace of money laundering and safeguard the integrity of the financial system. While sections dealing with survey, search, seizure, adjudication, and trial are well-known, the Act also contains several supporting provisions that strengthen enforcement, enhance cooperation, and close legal loopholes.

Sections 56 to 71 of PMLA deal with international cooperation, penalties for false information, procedural safeguards, immunity for officers, corporate liability, and overriding effect of the Act. These provisions ensure not just effective investigation but also smooth functioning of cross-border enforcement, accountability of entities, and legal protection to officers discharging their duties.

This article explains these important provisions in a clear and structured manner, making it easier for law students, compliance professionals, and the general public to understand their significance.

🌐 Section 56 – International Cooperation

The Central Government has the authority to enter into agreements with foreign governments to:

• Enforce PMLA provisions across borders.
• Exchange financial and investigative information.

📌 Example: If a suspect launders money in India and invests in property abroad, India can collaborate with the foreign country to access records, freeze property, or secure evidence.

⚖️ Section 63 – False Information and Malicious Acts

• Anyone who knowingly provides false information, leading to wrongful arrest or search, may face:
• Imprisonment of up to 2 years,
• Fine up to ₹50,000, or both.
• Failure to answer questions, sign statements, or comply with summons attracts a fine of ₹500–₹10,000 per default.

📌 Example: If a person falsely denies ownership of assets or avoids producing documents despite summons, they can be penalised.

📜 Section 65 – Application of Bhartiya Nagrik Suraksha Sanhita, 2023

Proceedings such as arrest, search, seizure, attachment, confiscation, investigation, and prosecution under PMLA are to be guided by the Bhartiya Nagrik Suraksha Sanhita, 2023 (BNSS), except where inconsistent with PMLA.

📌 Example: Police officers executing a search under PMLA must follow BNSS guidelines for procedure, while also adhering to specific requirements of PMLA.

🛡️ Section 67 – Immunity for Officers and Government

• The Central Government and its officers cannot be prosecuted or sued for actions taken in good faith under PMLA.
• This ensures that officers can discharge their duties without fear of harassment.

📌 Example: If an officer lawfully seizes a property suspected to be tainted, they cannot be personally sued for damages.

📝 Section 68 – Minor Defects in Documents

• Technical or clerical errors in summons, notices, or orders do not invalidate proceedings if the intent and substance are correct.

📌 Example: A spelling error in a notice will not affect its validity, provided the concerned person and matter are clear.

💰 Section 69 – Recovery of Fine or Penalty

• Any unpaid fine or penalty under Sections 13 or 63 can be recovered as tax arrears under the Income Tax Act, 1961.

📌 Example: If a financial institution fails to pay a penalty within six months, the government can recover it like overdue taxes.

🏢 Section 70 – Offences by Companies

• If a company violates PMLA, those in charge (e.g., Directors, CEOs, Managing Partners) are deemed guilty and can be punished.

📌 Example: If a company launders money through its accounts, the CEO and directors can be held personally liable.

📌 Section 71 – Overriding Effect

• The provisions of PMLA override any conflicting law.
• This ensures that anti-money laundering enforcement is not diluted by inconsistencies in other legislations.

📌 Example: If another law conflicts with PMLA in matters of confiscation, the PMLA provisions will prevail.

📊 Summary Table: Other Important Provisions of PMLA, 2002

✅ Key Takeaways

• 🌍 International reach: PMLA facilitates global cooperation to curb cross-border laundering.
• ⚖️ Strict accountability: False information and non-compliance are punishable.
• 📜 Procedural clarity: BNSS rules apply unless in conflict with PMLA.
• 🛡️ Protection for officers: Immunity ensures effective enforcement.
• 🏢 Corporate liability: Companies and key officials can be prosecuted.
• 📌 Overriding effect: PMLA prevails over any other conflicting legislation.

🔚 Conclusion

The other provisions of PMLA, 2002 may seem technical, but they form the backbone of effective enforcement. By enabling international cooperation, ensuring accountability, protecting officers, holding companies liable, and overriding conflicting laws, these sections strengthen India’s fight against money laundering.

Together, they ensure that offenders cannot exploit loopholes, enforcement remains strong, and India’s financial system is shielded from the threats of illicit money.