Money Laundering Offence Attracted By Mere Possession Of Crime Proceeds ; Projection As Untainted Property Not Required : SC Interprets "And" In Sec 3 PMLA As "Or"
2 years, 8 months ago

Money Laundering Offence Attracted By Mere Possession Of Crime Proceeds ; Projection As Untainted Property Not Required : SC Interprets "And" In Sec 3 PMLA As "Or"

Live Law  

By interpreting "and" in Section 3 of the Prevention of Money Laundering Act 2002 as "or", the Supreme Court held that mere possession or concealment of the proceeds of the crime is sufficient for the offence of money laundering and that it need not be projected as an untainted property. "Section 3 - 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 its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money-laundering." Definition of money-laundering in Section 3 has wider reach The Bench noted that even from a reading of the original provision it is clear that the expression "money laundering" includes within its ambit every process and activity in dealing with the proceeds of crime, directly or indirectly, and not limited to the happening of the final act of integration of tainted property in to the formal economy to constitute an act of money-laundering. The Explanation inserted in Section 3 by way of the 2019 Amendment is as under - Explanation.--For the removal of doubts, it is hereby clarified that,-- 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:-- concealment; or possession; or acquisition; or use; or projecting as untainted property; or claiming as untainted property, in any manner whatsoever; 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. Involvement in any one of the "process or activity" would attract offence of money laundering 'Process or activity' in Section 3 includes concealment, possession, acquisition or use, projecting or claiming it as untainted property and involvement in any one of these activities would constitute the offence of money-laundering.

Crime India Property Court Money Laundering Money Process Sec Bench Possession Activity Proceeds Laundering Pmla Offence Fatf Section 3 Projection Explanation Scheduled Offence Untainted Property Tainted Property Untainted Money Laundering Offence  sec  laundering  possession  property  money  required  offence  process  activity  moneylaundering  proceeds  crime  projection  pmla  sc  untainted  bench

History of this topic

PMLA | Money Laundering Offence Continues So Long As Proceeds Of Crime Are Concealed, Used Or Projected As Untainted : Supreme Court
2 weeks ago

PMLA | Money Laundering Offence Continues So Long As Proceeds Of Crime Are Concealed, Used Or Projected As Untainted : Supreme Court

Live Law  

Observing that the offence of money laundering is a continuing offence and not a one-time occurrence, the Supreme Court today refused to discharge Pradeep Sharma, a former Gujarat IAS officer in a case under the Prevention of Money Laundering Act. The argument that no offence of money laundering could be made out because the alleged predicate offence occurred before the …

Existence Of "Proceeds Of Crime" Is Pre-Condition For Money-Laundering: J&K High Court Quashes PMLA Complaints In Alleged ₹250 Cr Scam
2 months, 3 weeks ago

Existence Of "Proceeds Of Crime" Is Pre-Condition For Money-Laundering: J&K High Court Quashes PMLA Complaints In Alleged ₹250 Cr Scam

Live Law  

Underscoring the necessity of the existence of "proceeds of crime" for constituting an offence under the Prevention of Money-Laundering Act, 2002 the Jammu and Kashmir and Ladakh High Court has reiterated that in the absence of such proceeds, no money-laundering offence could arise. The petitioners, who served as Chairman and Secretary, respectively, of the River Jehlum Co-operative House Building Society …

Navigating Intersection Of Anti-Money Laundering And Recovery Laws: The Imperative For Collaboration And Cooperation
3 months, 3 weeks ago

Navigating Intersection Of Anti-Money Laundering And Recovery Laws: The Imperative For Collaboration And Cooperation

Live Law  

The legislative efforts to combat money laundering activities in the country and the legislative measures to deal with the recovery of nonperforming assets in the Banking sector without the intervention of courts of law coincided in the same year with the passage of two special Acts in the year 2002. An Act to regulate securitisation and reconstruction of financial assets …

FATF report praises India's anti-money laundering efforts, warns of Al-Qaeda threats in Jammu and Kashmir
6 months, 1 week ago

FATF report praises India's anti-money laundering efforts, warns of Al-Qaeda threats in Jammu and Kashmir

India TV News  

New Delhi: The Financial Action Task Force on Thursday its report on India's mutual evaluation on combating terror financing and anti-money laundering regime. The report, titled- "India's measures to combat money laundering and terrorist financing"- praised India's action and underscored New Delhi has implemented an anti-money laundering and combating terror financing system that is effective in many respects. The observation …

The Right To Bail Under Prevention Of Money Laundering Act: Balancing Justice And Liberty?
6 months, 3 weeks ago

The Right To Bail Under Prevention Of Money Laundering Act: Balancing Justice And Liberty?

Live Law  

In recent times, India's criminal law jurisprudence has witnessed an increasing emphasis on enacting stringent laws with an aim to curb economic offences, particularly the menace of money laundering. The Supreme Court held that while the nature of the offence under PMLA is indeed serious, the right to a speedy trial and the right to liberty cannot be ignored. The …

FATF 'Thumbs Up' Ensures India Will Be among Top Nations on Checks against Money Laundering, Terror Financing: Govt Sources to News18
9 months ago

FATF 'Thumbs Up' Ensures India Will Be among Top Nations on Checks against Money Laundering, Terror Financing: Govt Sources to News18

News 18  

India has achieved an “outstanding outcome” in the mutual evaluation conducted during 2023-24 by the Financial Action Task Force. The Financial Action Task Force is an intergovernmental organisation established in 1989 as the international watchdog to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system. According to top government sources, India’s performance …

FATF recognises India’s efforts to combat money laundering, terror financing
9 months ago

FATF recognises India’s efforts to combat money laundering, terror financing

Deccan Chronicle  

New Delhi: India has achieved an outstanding outcome in the Mutual Evaluation conducted during 2023-24 by Financial Action Task Force. India’s performance on the FATF Mutual Evaluation accrues significant advantages to our growing economy, as it demonstrates the overall stability and integrity of the financial system. This recognition from the FATF is a testament to the rigorous and effective measures …

Ahead of FATF review, Centre takes multiple measures to implement recommendations
1 year, 4 months ago

Ahead of FATF review, Centre takes multiple measures to implement recommendations

The Hindu  

Ahead of India’s mutual evaluations by the Financial Action Task Force, the Union government has taken several measures to implement the intergovernmental body’s recommendations, made following the 2010 review, which includes notification of practising Chartered Accountants, Company Secretaries, and Cost and Management Accountants as reporting entities. “On May 3 this year, the Finance Ministry had issued a notification designating the …

What is Financial Action Task Force and Why is Its Delegation Visiting India
1 year, 4 months ago

What is Financial Action Task Force and Why is Its Delegation Visiting India

News 18  

A delegation from the Financial Action Task Force, the global money-laundering and terrorist financing watchdog, is scheduled to visit India on Friday as part of the ongoing assessment. The Financial Action Task Force or FATF is an inter-governmental body responsible for setting global standards on anti-money laundering and combating the financing of terrorism. Pakistan, which was earlier in FATF’s grey …

India is weaponising FATF recommendations against civil society
1 year, 5 months ago

India is weaponising FATF recommendations against civil society

Al Jazeera  

The October 3 raids on the news website “NewsClick” and the arrest of its founder, Prabir Purkayastha and human resources head, Amit Chakravarty, are the latest attempts by the Indian government to decimate independent and critical media in the country. It targeted many media outlets and non-profits, including Amnesty International, which I represent, with these laws under the guise of …

Money Laundering : A Process Or A Punishment
1 year, 7 months ago

Money Laundering : A Process Or A Punishment

Live Law  

Money laundering is something as engaging “proceeds of crime” in any matter projecting as untainted money. The Supreme Court’s ruling upholding all the contentious provisions of the Prevention of Money Laundering Act tumbles short of judicial standards of reviewing legislative action. The provisions of the PMLA must stand the test of due process under Article 21;Section 50 of the PMLA …

PMLA in Consonance with Global Standards Set by Financial Action Task Force: Solicitor-General Tells Supreme Court
1 year, 11 months ago

PMLA in Consonance with Global Standards Set by Financial Action Task Force: Solicitor-General Tells Supreme Court

Live Law  

Provisions of the Prevention of Money Laundering Act, 2002 are in compliance with the global standard set by the Financial Action Task Force and a part of the intergovernmental response to organised crime, said Solicitor-General for India Tushar Mehta. On another day, senior counsel C Aryama Sundaram argued that he would read the judgement “as it stood” to support his …

Central agencies gear up for FATF mutual evaluations
2 years, 1 month ago

Central agencies gear up for FATF mutual evaluations

The Hindu  

Government agencies have expedited efforts to further strengthen the anti-money laundering and counter-terror financing frameworks in view of the coming Financial Action Task Force assessment of India in the fourth round of mutual evaluations expected later this year. The government has also organised a series of conferences focused on combating terror financing, including the United Nations Security Council Counter-Terrorism Committee …

SC upholds ED\'s powers under stringent PMLA
2 years, 8 months ago

SC upholds ED\'s powers under stringent PMLA

Deccan Chronicle  

New Delhi: The Supreme Court on Wednesday upheld the validity of various stringent provisions of the Prevention of Money Laundering Act empowering the Enforcement Directorate to arrest, provisionally attach properties suspected to be the proceeds of crime and is not bound to supply a copy of the ECIR at the time of detaining an accused in a money laundering case. …

Money laundering: SC upholds ED’s power to arrest under PMLA
2 years, 8 months ago

Money laundering: SC upholds ED’s power to arrest under PMLA

Live Mint  

The Supreme Court has upheld the power bestowed upon the Enforcement Directorate to arrest under the Prevention of Money Laundering Act. The Supreme Court announced on July 15 that its decision regarding the arguments against the Prevention of Money Laundering Act's provisions is "nearly ready." Mufti contested Section 50's constitutionality as well as any ancillary sections of the 2002 Prevention …

’Committed to fight money laundering, terror financing‘
2 years, 11 months ago

’Committed to fight money laundering, terror financing‘

Live Mint  

Finance minister Nirmala Sitharaman on Friday said India is committed to fighting money laundering and terrorist financing. Acknowledging the Financial Action Task Force’s work in safeguarding the global financial system, Sitharaman said that India is committed to providing the necessary resources and support to the Paris-based intergovernmental organization to combat money laundering, terrorist financing and funding of weapons of mass …

India committed to fighting money laundering, terror financing: Sitharaman
2 years, 11 months ago

India committed to fighting money laundering, terror financing: Sitharaman

Live Mint  

Bengaluru/New Delhi: Finance minister Nirmala Sitharaman on Friday reaffirmed India’s commitment to fighting money laundering and terrorist financing and appreciated the Financial Action Task Force's work in safeguarding the global financial system. “During the meeting, the Finance Minister reaffirmed India’s commitment to fighting Money Laundering, Terrorist Financing and Proliferation Financing and acknowledged and appreciated FATF on their work on Beneficial …

The lists of the FATF and Pakistan’s position
3 years ago

The lists of the FATF and Pakistan’s position

The Hindu  

The story so far: The global financial crime watchdog Financial Action Task Force in its latest plenary meeting, decided to retain Pakistan on its terror financing ‘grey list’, asking the neighbouring country to expeditiously address the remaining deficiencies in its financial system. For the countries that don't perform well on certain standards, the FATF and FSRBs draw up time-bound action …

Very concept of offence of money laundering in PMLA is very wide: SC
3 years, 1 month ago

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

The Hindu  

The Supreme Court on February 22 said the very concept of the offence of money-laundering in the Prevention of Money Laundering Act is “very wide” and any activity connected with the proceeds of crime is encompassed within the expression of Section 3 of the legislation. Section 3 of the PMLA says whosoever directly or indirectly attempts to indulge or knowingly …

EXPLAINER -PMLA
3 years, 1 month ago

EXPLAINER -PMLA

The Hindu  

The story so far: The draconian Prevention of Money Laundering Act of 2002 has evolved as the Government’s “hatchet” law in recent years, considering the series of raids and arrests of politicians, their relatives, and activists. The statement of objects and reasons of the PMLA Bill of 1999 refers to various international conventions and instruments dealing primarily with money laundering …

Transitioning Of The Law On Money Laundering In India
3 years, 2 months ago

Transitioning Of The Law On Money Laundering In India

Live Law  

Prior to the year 2005, the casting of money laundering had been difficult. Scheduled Offences The Prevention of Money Laundering Act, 2002, the scheduled offences had provisions from six different legislations, including the Indian Penal Code 1860, NDPS Act, 1985; Arms Act, 1959, Wildlife Protection Act, 1972, Immoral Traffic Act, 1956 and Prevention of Corruption Act, 1988. Nikesh Tarachand Shah …

Supreme Court Adjourns Pleas Challenging Provisions Of PMLA For January 25
3 years, 2 months ago

Supreme Court Adjourns Pleas Challenging Provisions Of PMLA For January 25

Live Law  

The Supreme Court today adjourned the batch of petitions concerned with the interpretation of the Prevention of Money Laundering Act for January 25, 2022.Since the batch of pleas were listed for January 11, 2022 Senior Advocate Kapil Sibal today mentioned the matter before the bench headed by Justice AM Khanwilkar for adjourning the matter for 4-6 weeks. The Supreme Court …

Powers Of Attachment Of The Directorate Of Enforcement Under The Prevention Of Money Laundering Act, 2002
3 years, 11 months ago

Powers Of Attachment Of The Directorate Of Enforcement Under The Prevention Of Money Laundering Act, 2002

Live Law  

The commission of offences dealing with the crime of money laundering, in India, has increased considerably in the last decade or so with huge scandals being uncovered on a regular basis. Thereafter, vide the amendment carried out in 2015 the definition of "proceeds of crime" read as follows: "any property derived or obtained, directly or indirectly, by any person as …

Powers Of Attachment Of The Directorate Of Enforcement Under The Prevention Of Money Laundering Act, 2002
4 years ago

Powers Of Attachment Of The Directorate Of Enforcement Under The Prevention Of Money Laundering Act, 2002

Live Law  

The commission of offences dealing with the crime of money laundering, in India, has increased considerably in the last decade or so with huge scandals being uncovered on a regular basis. Thereafter, vide the amendment carried out in 2015 the definition of "proceeds of crime" read as follows: "any property derived or obtained, directly or indirectly, by any person as …

Money Laundering An Act Of Financial Terrorism, Poses Threat To Sovereignty, Integrity Of Nation: Orissa HC [Read Order]
4 years, 8 months ago

Money Laundering An Act Of Financial Terrorism, Poses Threat To Sovereignty, Integrity Of Nation: Orissa HC [Read Order]

Live Law  

"The offence of Money Laundering is nothing but an act of financial terrorism that poses a serious threat not only to the financial system of the country but also to the integrity and sovereignty of a nation", observed the Orissa High Court on Monday. Justice S. K. Panigrahi was hearing a bail plea of a director of a company, accused …

Are Lawmakers Justified In Amending Section 45 Of Prevention Of Money Laundering Act, 2002?
4 years, 9 months ago

Are Lawmakers Justified In Amending Section 45 Of Prevention Of Money Laundering Act, 2002?

Live Law  

The Prevention of Money Laundering Act is synonymous with white collar crimes. When the Prevention of Money Laundering Bill was tabled before Parliament, Clause 44 provided that several offences punishable under the Act were to be cognizable, and the twin conditions for release on bail would apply only insofar as the offences under the Act itself were concerned. A bare …

Prevention Of Money Laundering Act, 2002: An Inherently Flawed Legislation?
4 years, 11 months ago

Prevention Of Money Laundering Act, 2002: An Inherently Flawed Legislation?

Live Law  

Money laundering is a process of projection of tainted money as an untainted one. Director of enforcement, Delhi high court held that after the acquittal of a person from a scheduled offence, his trial for an offence under section 3 of PMLA would not survive while observing that it was hard to imagine as to how a trial for an …

Global money-laundering task force wants countries to monitor cryptocurrencies
5 years, 9 months ago

Global money-laundering task force wants countries to monitor cryptocurrencies

Firstpost  

Financial Action Task Force that tackles money laundering has told countries to tighten oversight of cryptocurrency exchanges Cryptocurrency firms will be subjected to rules to prevent the abuse of digital coins such as bitcoin for money laundering, a global watchdog said on Friday, the first worldwide regulatory attempt to constrain the rapidly growing sector. Financial Action Task Force, set up …

FATF asks Pakistan to 'do more' against money laundering
6 years, 5 months ago

FATF asks Pakistan to 'do more' against money laundering

The Quint  

Islamabad, Oct 19 The Financial Action Task Force, an inter-governmental body which combats money laundering and terror financing among other things, has demanded more action from Pakistan to put an end to money laundering and financial assistance to terrorists, the media reported on Friday. Pakistan and FATF's Asia Pacific delegation held talks for a week and a half in the …

Pakistan pushes law ahead of Financial Action Task Force meeting
6 years, 9 months ago

Pakistan pushes law ahead of Financial Action Task Force meeting

The Hindu  

Facing grey-listing by the Financial Action Task Force during its crucial six-day Paris meeting starting on Monday, Pakistan has notified the Anti-Money Laundering and Countering Financing of Terrorism Regulations- 2018, which it claims is fully compliant with the global watchdog’s guidelines. The development comes amid a strong push by the United States, backed by the United Kingdom, Germany and France, …

Money laundering crackdown will send ‘clear message’ to offenders
8 years, 11 months ago

Money laundering crackdown will send ‘clear message’ to offenders

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. “This action plan sends a clear message that we will not tolerate this type of …

Operation begins to curb money laundering, terror funding
9 years, 2 months ago

Operation begins to curb money laundering, terror funding

The Hindu  

Government agencies have launched a massive National Risk Assessment exercise to identify the sectors that are susceptible to money laundering and terror funding, and plug the loopholes. FATF is an inter-government body that sets the standards for measures to counter terror financing, money laundering and other threats to international financial system. It focusses on all vital aspects of money laundering, …

President describes money laundering as a global menace
10 years, 10 months ago

President describes money laundering as a global menace

India TV News  

New Delhi: President Pranab Mukherjee today asked Enforcement Directorate to achieve greater efficiency and cooperate with concerned international agencies to expedite steps to bring back “stolen assets spirited abroad”. Mukherjee made this veiled reference to blackmoney during the second ‘Enforcement Day' function organised by the Enforcement Directorate.The function was attended by President of the Financial Action Task Force Vladimir Nechaev …

Anti-Money Laundering Policy Critical To C-Suite Execs
11 years, 4 months ago

Anti-Money Laundering Policy Critical To C-Suite Execs

Firstpost  

As government regulations and international concerns begin aggressive enforcement of AML requirements, C-suite executives need to take charge and lead the way in critical IT policy. In India, the Income Tax Act, FEMA, RBI regulations, KYC norms, Banking Act, Financial Action Task Force standards, Prevention of Money Laundering Act 2002, and the Rules of 2009 serve to monitor and enforce …

Laws To Be Amended To Check Money Laundering, Says Pranab
13 years, 8 months ago

Laws To Be Amended To Check Money Laundering, Says Pranab

India TV News  

Kochi, Jul 19: Committed to the full implementation of international standards to combat money laundering and terror financing, India today said it was making suitable amendments to converge the country's existing laws with the recommendations of the global Financial Action Task Force. In order to make the Prevention of Money Laundering and Unlawful Activities Acts more effective, India was in …

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