What constitutes as Money Laundering?

Money laundering is defined in the PML Act as direct or indirect attempts to indulge or knowingly assist or
knowingly become a party to or have actual involvement in the process or activity connected with the
proceeds of crime and projection of such property as untainted property. Under section 3 of the PML Act,
actions deemed to construe the offence of money laundering under the PML Act in India include:

 a direct or indirect attempt to indulge in any process or activity that is connected with the proceeds of
crime (including its concealment, possession, acquisition or use), with the intention of projecting or
claiming such proceeds of crime as untainted property;
 any direct or indirect assistance of any process or activity connected with the proceeds of crime
(including its concealment, possession, acquisition or use) and projecting or claiming such proceeds
of crime as untainted property, provided such assistance is knowingly given; and
 being, directly or indirectly, a knowing party to or being involved in any process or activity
connected with the proceeds of crime (including its concealment, possession, acquisition or use) and
projecting or claiming such proceeds of crime as untainted property.

Overview of FIU-IND: examines compliance of anti-money laundering requirements.

FIU-IND was set up by the Government of India vide O.M. dated 18th November as the central national
agency responsible for receiving, processing, analyzing and disseminating information relating to suspect
financial transactions. FIU-IND is also responsible for coordinating and strengthening efforts of national and
international intelligence, investigation and enforcement agencies in pursuing the global efforts against
money laundering and related crimes. FIU-IND is an independent body reporting directly to the Economic
Intelligence Council (EIC) headed by the Finance Minister.

What are the possible actions which can be taken against persons / properties involved in Money
Laundering?

Following actions can be taken against the persons involved in Money Laundering:-

a) Attachment of property under Section 5, seizure/ freezing of property and records under Section 17
or Section 18. Property also includes property of any kind used in the commission of an offence
under PMLA, 2002 or any of the scheduled offences.
b) Persons found guilty of an offence of Money Laundering are punishable with imprisonment for a
term which shall not be less than three years but may extend up to seven years and shall also be
liable to fine [Section 4].
c) When the scheduled offence committed is under the Narcotics and Psychotropic substances Act,
1985 the punishment shall be imprisonment for a term which shall not be less than three years but
which may extend up to ten years and shall also be liable to fine. (d) The prosecution or conviction
of any legal juridical person is not contingent on the prosecution or conviction of any individual.