Article by Vijay Pal Dalmia, Advocate
Supreme Court of India & Delhi High Court
Senior Partner Vaish Associates Advocates
Email id: vpdalmia@vaishlaw.com
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Section 3 of PMLA: Offence of MONEY LAUNDERING

  • Whosoever
    • directly or
    • indirectly
      • attempts to indulge or
      • knowingly assists or
      • knowingly is a party or
      • is actually involved in any process or
      • activity connected
    • with the proceeds of crime including
      1. its concealment,
      2. possession,
      3. acquisition or
      4. use and
        1. projecting or
        2. claiming it as untainted property
  • shall be guilty of offence of money laundering.

Explanation to offence of Money Laundering

  • For the removal of doubts, it is hereby clarified that
    1. a person shall be guilty of offence of money laundering if such person is found to have
      • directly or indirectly attempted to indulge or
      • knowingly assisted or
      • knowingly is a party or
      • is actually involved in one or more of the following processes or activities
      • connected with proceeds of crime, namely:--
        1. concealment; or
        2. possession; or
        3. acquisition; or
        4. use; or
        5. projecting as untainted property; or
        6. claiming as untainted property, in any manner whatsoever;
    2. the process or activity connected with proceeds of crime is a
      • continuing activity and
      • continues till such time a person is
        • directly or
        • indirectly
      • enjoying the proceeds of crime by its
        • concealment or
        • possession or
        • acquisition or
        • use or
        • projecting it as untainted property or
        • claiming it as untainted property in any manner whatsoever.
  • The expression "money laundering ", ordinarily, means
  • the process or activity of
    • placement,
    • layering and
    • finally integrating
  • the tainted property in the formal economy of the country.
  • Money Laundering is not limited to the happening of the final act of integration of tainted property in the formal economy to constitute an act of money laundering.

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