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CMA Final · Cost and Management Audit · Anti-Money Laundering

A person is found to have continuously enjoyed property derived from a crime by possessing it and projecting it as untainted, years after the original scheduled offence. Under the Explanation to section 3 of the PMLA, 2002, how is this activity treated?

The activity is a continuing one. It lasts until the person stops directly or indirectly enjoying the proceeds of crime through concealment, possession, acquisition, use, or projecting or claiming them as untainted property, so later possession and projection still constitute the offence.

  1. AThe process is a continuing activity that persists until the person is directly or indirectly enjoying the proceeds of crime through such meansCorrect
  2. BThe offence is complete once the proceeds are first acquired and cannot continue afterwards
  3. CThe offence arises only if the person concealed the property, and mere possession is excluded
  4. DThe offence ends when the scheduled offence is reported to a Magistrate

Explanation

Explanation (ii) to section 3 states that the process or activity connected with proceeds of crime is a continuing activity, lasting until the person directly or indirectly enjoys the proceeds by concealment, possession, acquisition, use, or projecting or claiming it as untainted. Possession and projecting are both listed processes, so the other options contradict the text.

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