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

Under Section 4 of the PMLA, a person is convicted of money-laundering and the proceeds of crime relate to an offence specified under paragraph 2 of Part A of the Schedule. What is the imprisonment range prescribed?

For proceeds of crime relating to an offence under paragraph 2 of Part A of the Schedule, Section 4 provides rigorous imprisonment of not less than three years, extendable to ten years, and the person is also liable to fine. The ordinary maximum of seven years is raised by the proviso.

  1. ARigorous imprisonment of not less than three years but which may extend to ten years, and fineCorrect
  2. BRigorous imprisonment of not less than three years but which may extend to seven years, and fine
  3. CRigorous imprisonment of not less than five years but which may extend to ten years, with fine up to five lakh rupees
  4. DRigorous imprisonment of not less than seven years but which may extend to ten years

Explanation

Section 4 sets three to seven years with fine, and its proviso raises the maximum to ten years for paragraph 2 of Part A offences. The minimum stays at three years. The five lakh fine cap was omitted in 2013.

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