Very concept of offence of money laundering in PMLA is very wide: SC

Very concept of offence of money laundering in PMLA is very wide: SC

According to the Supreme Court, the concept of the offense of money laundering under the Prevention of Money Laundering Act (PMLA) is very broad.

According to the Court, any activity connected with the proceeds of the offense shall be deemed to be an offense under Section 3 of the PMLA. It makes the use, concealment or possession of such income an offense.

It has been argued in the petition filed in the Court that Section 3 of this Act should be read in a different sense. Under this, mere use and holding of income earned from crime should not be equated to money laundering.

According to section 3 of the Act, any person shall directly or indirectly engage in any activity (including concealment, possession, acquisition or use) relating to the proceeds of the offense and present the same as immaculate property. He shall be guilty of the offense of money-laundering.

Collection of illegally earned income

  1. Placement /Entry: Entry of wrongly earned income into the financial system
  2. Planning/ layering: Exchange of money between banks located abroad and within the country
  3. Integration: purchase of luxury properties, financial investments, commercial/industrial investments

This law enables the authorities to confiscate property derived from illegal proceeds.

The Directorate of Enforcement, under the Ministry of Finance, is the body responsible for investigating crimes related to money laundering under the Act. Money laundering is the process of legalizing illegally earned income.

Source – The Hindu

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