Powers of Director to impose fine
Section 13 of the Prevention of Money-Laundering Act, 2002 deals with powers of Director to impose fine. The Director may, either of his own motion or on an application made by any authority, officer or person, [make such inquiry or cause such inquiry to be made, as he thinks fit to be necessary, with regard to the obligations of the reporting entity, under this Chapter.] [(1A) If at any stage of inqui The Act came into force on 01 Jul 2005.
(1) The Director may, either of his own motion or on an application made by any authority, officer or person, 1[make such inquiry or cause such inquiry to be made, as he thinks fit to be necessary, with regard to the obligations of the reporting entity, under this Chapter.]
2[(1A) If at any stage of inquiry or any other proceedings before him, the Director having regard to the nature and complexity of the case, is of the opinion that it is necessary to do so, he may direct the concerned reporting entity to get its records, as may be specified, audited by an accountant from amongst a panel of accountants, maintained by the Central Government for this purpose.
(1B) The expenses of, and incidental to, any audit under sub-section (1A) shall be borne by the Central Government.]
3[(2) If the Director, in the course of any inquiry, finds that a reporting entity or its designated director on the Board or any of its employees has failed to comply with the obligations under this Chapter, then, without prejudice to any other action that may be taken under any other provisions of this Act, he may--
(a) issue a warning in writing; or
(b) direct such reporting entity or its designated director on the Board or any of its employees, to comply with specific instructions; or
(c) direct such reporting entity or its designated director on the Board or any of its employees, to send reports at such interval as may be prescribed on the measures it is taking; or
(d) by an order, impose a monetary penalty on such reporting entity or its designated director on the Board or any of its employees, which shall not be less than ten thousand rupees but may extend to one lakh rupees for each failure.]
(3) The Director shall forward a copy of the order passed under sub-section (2) to every banking company, financial institution or intermediary or person who is a party to the proceedings under that sub-section.
4[Explanation.--For the purpose of this section, "accountant" shall mean a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949).]
Section 13, The Prevention of Money-Laundering Act, 2002 (Act 15 of 2003).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 5
- s. 14 No civil or criminal proceedings against reporting entity, its directors and employees in certain cases
- s. 26 Appeal to Appellate Tribunal
- s. 50 Powers of authorities regarding summons, production of documents and to give evidence, etc
- s. 69 Recovery of fine or penalty
- s. 73 Power to make rules
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… If a provision of law is misused and subjected to the abuse of the process of law, it is for the Legislature to amend, modify or repeal it, if deemed necessary. 55. Section 13 of the Prevention of Money-Laundering (Amendment) Act, 2009 (No.21 of 2009), has been called in question as ultra vires the Constitution having incorporated certain offences under the Indian Penal Code, in the Schedule of the PMLA. 56. ―Scheduled offence‖ is defined under Section 2(y) of the Act and reads as …
Made under this section, and citing it
5 instruments name this provision in its title or its text without being made under it.
- Adjudicating Auth (Procedure) Amendment Regulations dt 24-5-17Regulation 2017
- Adjudicating Authority (Procedure) Regulation dated 18-3-2013Regulation 2013
- The Prevention of Money-laundering (Appeal) Rules, 2005Rule 2005
- The Prevention of Money-laundering (Maintenance of Records) Rules, 2005Rule 2005
- The Prevention of Money-laundering (Manner of Receiving the Records Authenticated Outside India) Rules, 2005Rule 2005
Questions about Section 13
What does Section 13 of the Prevention of Money-Laundering Act deal with?
Section 13 of the Prevention of Money-Laundering Act is headed "Powers of Director to impose fine". The Director may, either of his own motion or on an application made by any authority, officer or person, [make such inquiry or cause such inquiry to be made, as he thinks fit to be necessary, with regard to the obligations of the reporting entity, under this Chapter.] [(1A) If at any stage of inqui
How do I find court cases under Section 13 of the Prevention of Money-Laundering Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Pmla 13, section 13 Pmla, section 13 of the Prevention of Money-Laundering Act. People searching for it also type section 13 pmla act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 13 of the Prevention of Money-Laundering Act, and has it changed?
5 other provisions in this corpus refer back to it. 5 instruments name it without being made under it, most recently Adjudicating Auth (Procedure) Amendment Regulations dt 24-5-17 (2017), then Adjudicating Authority (Procedure) Regulation dated 18-3-2013 (2013).
When did Section 13 of the Prevention of Money-Laundering Act come into force?
Section 13 of the Prevention of Money-Laundering Act, cited as Pmla 13, came into force on 01 Jul 2005, having been enacted on 17 Jan 2003. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1773 words
- 8. Adjudication975 words
- 6. Adjudicating Authorities, composition, powers, etc781 words
- 73. Power to make rules704 words
- 17. Search and seizure570 words
- 5. Attachment of property involved in money-laundering570 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.