✨ Introduction

💰 Money laundering is not just a financial irregularity—it fuels organized crime, corruption, and illegal trade, including narcotics. The Prevention of Money Laundering Act, 2002 (PMLA) equips authorities with robust tools to punish offenders and secure illegal assets.

Two critical aspects of enforcement are:

1. Punishment for those found guilty of money laundering
2. Burden of Proof on the accused to prove legitimacy of assets

By combining stringent penalties with legal presumptions, PMLA ensures that criminal proceeds do not remain beyond the reach of the law.

🛡 Punishment for Money Laundering

Money laundering is a serious financial offence with strict penalties under the Prevention of Money Laundering Act, 2002 (PMLA). The Act ensures that offenders are appropriately punished to deter illegal financial activities.

• ⚖️ Rigorous Imprisonment:
  
• Minimum: 3 years
• Maximum: 7 years
• 💰 Fine: Applicable in addition to imprisonment.
• 🚨 Enhanced Punishment for NDPS-related Cases:
  
• If the money laundering is connected to offences under the Narcotic Drugs and Psychotropic Substances Act (NDPS), 1985, the imprisonment may extend up to 10 years.
  

💡 Key Point: PMLA does not prescribe a time limit for initiating proceedings against a person accused of money laundering. This allows authorities to pursue cases even if significant time has passed since the offence.

⚖️ Section 24 – Burden of Proof and Presumption

PMLA introduces a shift in burden of proof to make enforcement more effective.

• 🏛 Presumption:
  
• If a person is charged under Section 3 (offence of money laundering), the Adjudicating Authority or Court may presume that the assets involved are proceeds of crime.
• The accused then has the responsibility to prove that the assets are legitimate.

💡 Example:

   If a person deposits ₹5 crore into a bank account, and the transaction is linked to a narcotics case, the Court may presume it is illegal money unless the person provides evidence to prove otherwise.

This presumption strengthens the enforcement framework, as it prevents offenders from easily evading investigation by claiming ignorance or innocence.

Conclusion

🔒 Under PMLA, offenders face severe imprisonment and fines, especially if money laundering is linked to serious crimes like narcotics trafficking.

⚖️ The shift in burden of proof under Section 24 acts as a powerful deterrent, compelling the accused to demonstrate the legality of their assets.

🏛 In essence, PMLA balances strict punishment with preventive measures, ensuring that crime does not pay and financial investigations maintain integrity.