• indulge or
• knowingly assists or
• knowingly is a party or
• is actually involved
• Concealment,
• Possession,
• Acquisition or
• Use and Projecting or
• Claiming it as Untainted Property
shall be Guilty of Offence of Money-Laundering.
(i) A Person who indulge or knowingly assist 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 of – Proceeds of Crime
(b) Possession of – Proceeds of Crime
(c) Acquisition of – Proceeds of Crime
(d) Use of – Proceeds of Crime
(e) Projecting as untainted property
(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.
Other Notable Inclusions
• Property derived indirectly or from further transactions carried out on the Proceeds of Crime
• Giving the Bribe
• Fees of Non-Bona Fide Professionals For rendering their Services
• Non-Bona Fide mortgage of Property to the Bank
• Possession of Unaccounted Money
• Fees of Bona Fide Professionals For rendering their Services
• Bona Fide mortgage of Property to the Bank
• Activities not Connected with Proceeds of Crime
Other Normal Transactions such as:
Salary Payments:
Example: An individual receives a monthly salary from their employer through a direct bank transfer. This is a legitimate
transaction under Indian law, as long as the employment and income are legal.
Bank Deposits:
Example: A business owner deposits the earnings from their legal business activities into a bank account. As long as the
business operations comply with Indian laws, this is a lawful transaction.
Loan Repayments:
Example: A person makes regular payments on their home loan from a legitimate financial institution. This is a legal
transaction, and the repayment is governed by the terms of the loan agreement.
Purchase of Goods and Services:
Example: An individual buys groceries using funds from their legal income. This routine transaction is lawful and falls
within the scope of normal financial activities.
Investment Transactions:
Example: An investor in India buys shares of a company through a stock exchange using legally obtained funds. This is a legitimate investment activity.
Gittis and Inheritances:
Example: A person inherits money from a deceased relative and uses the funds in accordance with Indian inheritance
laws. This is a legal transaction, and the inheritance may be subject to applicable taxes.
Charitable Donations:
Example: An individual donates money to a registered charitable organization in India. As long as the donation is made in
compliance with Indian tax and charity laws, it is a legal and legitimate transaction.
Real Estate Transactions:
Example: A person purchases a property with funds obtained through legal means and completes the necessary legal
procedures for property acquisition in India. This is a lawful real estate transaction.
Imprisonment:
Not less than 3 years, extending up to 7 years.
For specified offenses, imprisonment can extend up to 10 years.
Monetary Penalty:
In addition to imprisonment, a Penalty of Rs 5 lakhs can be imposed.
It may vary depending on the Nature and Severity of the offense.
Non-Bailable Offence:
A Person arrested for money laundering is Not entitled to Bail as a mater of right and may have to apply for bail before
a court.
Arrest without Warrant:
In certain circumstances, an arrest can be made without a warrant under the PMLA.
This allows law enforcement agencies to take immediate action and prevent the potential destruction of evidence or
flight of the accused.
Disqualification from Elections:
For Eight years, starting from the date of conviction.
