THE PREVENTION OF MONEY – LAUNDERING ACT, 2002 - (15 OF 2003)
PREAMBLE:
An Act to prevent money laundering and to provide for confiscation of property derived from, or involved in, money – laundering and for matters connected therewith or incidental thereto.
BRIEF:
In India, public servants can be penalized for corruption under the Prevention of Corruption Act, 1988 and under the Indian Penal Code, 1860. Offenses of money laundering by public servants are also punishable under The Prevention of Money Laundering Act, 2002 and benami transactions are prohibited under The Benami Transactions (Prohibition) Act, 1988.
ORIGINAL JURISDICTION:
Session Judge with Special Jurisdiction [Session Judge/PC]
IMPORTANT PROVISIONS:
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 and projecting it as untainted property shall be guilty of offence of money-laundering.
Section 4. Punishment for money-laundering.—
Whoever commits the offence of money-laundering shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine which may extend to five lakh rupees: Provided that where the proceeds of crime involved in money-laundering relates to any offence specified under paragraph 2 of Part A of the Schedule, the provisions of this section shall have effect as if for the words “which may extend to seven years”, the words “which may extend to ten years” had been substituted.