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

Mr. Raghav is convicted of money-laundering under the PMLA, 2002, and the proceeds of crime do not relate to any offence under paragraph 2 of Part A of the Schedule. What is the range of rigorous imprisonment prescribed under section 4?

The punishment is rigorous imprisonment for a minimum of three years, extendable to seven years, along with a liability to fine. The ten-year ceiling applies only when the proceeds of crime relate to an offence under paragraph 2 of Part A of the Schedule, which is excluded here.

  1. ANot less than three years but which may extend to seven yearsCorrect
  2. BNot less than three years but which may extend to ten years
  3. CNot less than five years but which may extend to seven years
  4. DNot less than one year but which may extend to seven years

Explanation

Section 4 prescribes rigorous imprisonment of not less than three years, extending up to seven years, plus fine. The ten-year maximum applies only through the proviso where the proceeds relate to an offence under paragraph 2 of Part A of the Schedule, which is not the case here.

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