Section 3 of The Prevention of Money-Laundering Act, 2002 in hindi
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 1[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. 2[Explanation.--For the removal of doubts, it is hereby clarified that,--
- (i)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:--
- (a)concealment; or
- (b)possession; or
- (c)acquisition; or
- (d)use; or
- (e)projecting as untainted property; or
- (f)claiming as untainted property, in any manner whatsoever;
- (ii)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.]
Summary
- Anyone who directly or indirectly attempts to indulge in money-laundering is guilty of the offence.
- Knowingly assisting, being a party, or being actually involved in any process connected with proceeds of crime is an offence.
- The processes include concealment, possession, acquisition, or use of the proceeds of crime.
- Projecting or claiming the proceeds of crime as untainted property is also part of the offence.
- The process or activity connected with the proceeds of crime is a continuing activity.
- The offence continues as long as a person is directly or indirectly enjoying the proceeds of crime.
Practical examples
FAQ
1. Who can be held guilty of money-laundering under this law?
Anyone who directly or indirectly attempts to indulge, knowingly assists, is a party, or is actually involved in any activity connected with the proceeds of crime.
2. What activities make someone guilty of money-laundering?
The activities include concealment, possession, acquisition, use, projecting, or claiming the proceeds of crime as untainted property.
3. Is money-laundering considered a single event or a continuous act?
It is a continuing activity. It continues as long as a person is directly or indirectly enjoying the proceeds of crime in any manner.
4. Does a person have to successfully project the money as clean to be guilty?
No, even attempting to do so, possessing, or acquiring the property makes a person guilty under this section.
Test yourself
Q1.Under Section 3 of The Prevention of Money-Laundering Act, 2002, which of the following activities connected with proceeds of crime constitutes money-laundering?
Q2.Under Section 3 of The Prevention of Money-Laundering Act, 2002, what is the legal nature of the activity connected with the proceeds of crime?
Q3.Under Section 3 of The Prevention of Money-Laundering Act, 2002, what level of mental awareness or involvement is required to make a person guilty of money-laundering?
Q4.Under Section 3 of The Prevention of Money-Laundering Act, 2002, how is the offence of money-laundering defined if a person only claims the proceeds of crime to be untainted but does not hide it?