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CS Executive · Economic, Commercial and Intellectual Property Laws · Prevention of Money Laundering

Which of the following is one of the processes or activities listed in the Explanation to Section 3 of the PMLA, 2002, in connection with proceeds of crime?

Claiming the proceeds as untainted property is one of the listed activities. The Explanation to Section 3 names concealment, possession, acquisition, use, projecting as untainted property and claiming as untainted property, and any of these, done knowingly, can make a person guilty of money-laundering.

  1. ADeclaring the proceeds in a tax return
  2. BSurrendering the proceeds to the Adjudicating Authority
  3. CClaiming the proceeds as untainted propertyCorrect
  4. DReporting the proceeds to a bank

Explanation

The Explanation lists concealment, possession, acquisition, use, projecting as untainted property and claiming as untainted property. The other options are not listed activities and do not amount to laundering processes.

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