🌐 Introduction
The Prevention of Money Laundering Act (PMLA), 2002
aims to target not only direct offenders but also facilitators and
intermediaries involved in laundering proceeds of crime. Section 3 of
the Act is broad, covering direct and indirect involvement, as well as
attempts to launder property.
This case study illustrates how ownership,
attempted transactions, and facilitation can attract liability under PMLA,
providing clarity for law students, compliance officers, and legal
professionals.
📌 Scenario
- Mr. A owns a
property derived from proceeds of crime.
- He plans to sell it to Ms. B.
- Mr. C acts as an
intermediary, arranging the deal and charging a brokerage.
- Authorities intervene and seize the property before the
transaction is completed.
⚖️ Analysis Under PMLA
Relevant Provision – Section 3 of PMLA:
“Whoever directly or indirectly attempts to indulge,
knowingly assists, or is actually involved in any process connected with the
proceeds of crime—including concealment, possession, acquisition, use, or
projecting it as untainted property—shall be guilty of money laundering.”
🔑 Key Points
- Attempts and Assistance:
- Even if the transaction is not completed, attempting or
facilitating the deal is punishable.
- Knowledge is Critical:
- Authorities must establish that parties knowingly participated
in laundering.
👥 Application to the Scenario
|
Person
|
Involvement
|
Liability under PMLA
|
|
🏠 Mr. A
|
Owner of the tainted
property
|
Directly involved; can be
booked
|
|
🛒 Ms. B
|
Intended
buyer
|
Attempt to
acquire proceeds of crime; can be booked
|
|
🤝 Mr. C
|
Intermediary arranging sale
and receiving brokerage
|
Assisted in the
transaction; can be booked
|
Takeaways
- Section 3 of PMLA is broad and inclusive:
- Covers direct involvement (owners/users of proceeds of crime)
- Covers indirect involvement (facilitators, intermediaries)
- Includes attempts to launder property
- Ensures principal actors and accomplices are held accountable.
✅ Conclusion
All three parties – Mr. A, Ms. B, and Mr. C –
can be booked under PMLA, provided it is proven that they knowingly
participated in the money-laundering process.
