PMLA & Recent Notifications Involving CA, CS & ICWA Etc. Under The Prevention Of Money Laundering Act, 2022

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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