Under the PMLA, the Director may impose a penalty on a reporting entity for failure to comply with which obligations?

Under Section 13 of the Prevention of Money Laundering Act, the Director may, on finding that a reporting entity or its officer has failed to comply with the obligations relating to maintenance of records, client due diligence, or furnishing of information, issue directions and impose a monetary penalty. The Director may also issue warnings or other directions. These supervisory and penal powers ensure that reporting entities comply with their anti-money-laundering obligations, strengthening the preventive aspect of the regime.