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"

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.