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

A broker's client acquired proceeds of crime in 2019 and still enjoys them by holding them and claiming them as clean. The broker argues the offence ended on the day of acquisition. According to the Explanation to Section 3, what is the position?

The activity is a continuing one. Under the Explanation to Section 3, it continues until the person stops directly or indirectly enjoying the proceeds through concealment, possession, acquisition, use, or projecting or claiming them as untainted property.

  1. AThe offence is complete only at the time of acquisition
  2. BThe activity is continuing and lasts until the person stops directly or indirectly enjoying the proceedsCorrect
  3. CThe offence ends after three years from acquisition
  4. DThe offence ends once the funds are deposited in a bank

Explanation

The Explanation states the process or activity connected with proceeds of crime is a continuing activity that continues until the person is directly or indirectly enjoying the proceeds by concealment, possession, acquisition, use, or projecting or claiming them as untainted. The acquisition-date view is therefore wrong.

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