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CS Executive · Economic, Commercial and Intellectual Property Laws · Prevention of Money Laundering

A bank officer, Ravi, knowingly helps a customer layer funds from a scheduled offence through several accounts so they look clean. Ravi does not himself own the funds. Is Ravi guilty of money-laundering under Section 3 of the PMLA?

Ravi is guilty because Section 3 covers anyone who knowingly assists or is a party to any process or activity connected with proceeds of crime. It is not limited to owners of the funds, and receiving a share is not required.

  1. ANo, because only the owner of the proceeds can be guilty
  2. BNo, because assistance is punishable only by the bank and not the officer
  3. CYes, because knowingly assisting in any process connected with proceeds of crime is coveredCorrect
  4. DYes, but only if he received a share of the proceeds

Explanation

Section 3 covers whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party to or involved in a process connected with proceeds of crime. Ownership or a share is not required, so the first and last options are wrong.

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