Companies Act, 2017 — section 453

453. Prevention of offences relating to fraud, money laundering and terrorist financing.___(1) Every officer of a company shall endeavor to prevent the commission of any fraud, offences of money laundering including predicated offences as provided in the Anti-Money Laundering Act, 2010 (VII of 2010) with respect to affairs of the company and shall take adequate measures for the purpose.

(2)Whosoever fails to comply with the provisions of this section shall be liable to punishment of imprisonment for a term which may extend to three years and with fine which may extend to one hundred million rupees: Provided that where any such officer has taken all reasonable measures available under the applicable laws within his capacity to prevent commission of such offence, shall not be liable under this section. Provided further that the punishment provided under this section shall be in addition to any punishment attracted due to active involvement of such officer in commission of an offence of money laundering under Anti- Money Laundering Act, 2010 (VII of 2010).