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CMA Final · Corporate and Economic Laws · Laws and Regulations related to Anti-Money Laundering

Mr. Dev received tainted funds in 2019 and has since continued to use them and show them as legitimate income. Under the Explanation to section 3 of the PMLA, 2002, how is the process or activity connected with proceeds of crime viewed?

The activity connected with proceeds of crime is treated as continuing. It lasts until the person stops directly or indirectly enjoying the proceeds through concealment, possession, acquisition, use, or projecting or claiming them as untainted property, so first acquisition does not end it.

  1. AIt ends on the date the proceeds were first acquired
  2. BIt is a continuing activity until the person stops directly or indirectly enjoying the proceeds by concealment, possession, acquisition, use or projecting or claiming them as untaintedCorrect
  3. CIt ends once the scheduled offence is reported to a Magistrate
  4. DIt is complete as soon as the proceeds are projected as untainted for the first time

Explanation

The Explanation to section 3 states the process or activity is continuing and continues till a person is directly or indirectly enjoying the proceeds by concealment, possession, acquisition, use, or projecting or claiming them as untainted property. Hence the offence does not end at first acquisition.

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