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

Under Section 4 of the PMLA, 2002, what is the basic punishment for the offence of money-laundering where the proceeds of crime do not relate to an offence under paragraph 2 of Part A of the Schedule?

The basic punishment is rigorous imprisonment of at least three years, extendable to seven years, along with liability to fine. The ten-year maximum applies only where proceeds relate to offences under paragraph 2 of Part A of the Schedule, and the old fine cap no longer exists.

  1. ARigorous imprisonment of not less than three years, extendable to seven years, and liability to fineCorrect
  2. BRigorous imprisonment of not less than three years, extendable to ten years, and fine up to five lakh rupees
  3. CSimple imprisonment of up to seven years, with no fine
  4. DRigorous imprisonment of not less than one year, extendable to seven years, and liability to fine

Explanation

Section 4 prescribes rigorous imprisonment of at least three years extendable to seven years, plus liability to fine. The ten-year ceiling applies only to the paragraph 2 of Part A proviso, and the five lakh cap on fine was omitted in 2013.

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