ROSECUTION (Penal Law)-Penal Action • Money Laundering Offence (Ch-II) • Investigation • Special Courts (Ch-VII) • Obligation of Reporting Entities (Ch-IV) ADJUDICATION (Regulatory Law)-Civil Action • Attachment Confiscation Possession Vesting (Ch-III) • Survey, Search, Seizure, Freezing, Arrest, Inquiry • Appellate Remedy (Ch-VI) • Appellate Tribunal • High Court Obligation of Reporting Entities (Ch-IV) AUTHORITIES (Ch-VIII) ummons earches & eizures, Etc. (Ch-V) Miscellaneous (Ch-X)
Investigation - S.2(1)(na) includes all roceedings under this Act conducted by authorities for ollection of vidence. Proceeds of Crime-S.2(1)(u) means any roperty derived/obtained (directly/indirectly) by any person as a result of criminal activity relating to scheduled offence or Value thereof or roperty equivalent in Value held within India/abroad (where such property is taken/ held outside India). Explanation includes roperty used in commission of offence under PMLA/Schedule Offence Section 2(1) PMLA, 2002
Suspicious Transaction - R.2(1)(g) means a transaction (made in Cash/otherwise) which to a person acting in good faith, • Gives rise to reasonable ground of suspicion that it involve roceeds of rime, • Appears to be made in circumstances of unusual/unjustified omplexity • Appears to have no conomic/Rational/ onafide purpose, • Gives rise to reasonable ground of suspicion that it may involve inancing errorism. Rule 2 PML (Maintenance of Records) Rules, 2005
oncealment/ossession/cquisition/Userojecting/laimingrocess ctivity connected with roceeds of ANY rocess ctivity connected with roceeds of
WhoeverDirectly/Indirectly with
in ANY
Attempts to Indulge/ oncealment/ and rojecting/ shall be guilty of Money aundering including its Knowingly KnowinglyAssists/Party/ActuallyInvolved in ANY rocess ctivity connected
Attempts to Indulge/ Knowingly KnowinglyAssists/Party/ActuallyInvolvedguilty of aunderingMoney
rime u/S.1(u) Attempts to Indulge/ Knowingly ActuallyKnowinglyAssists/Party/Involved
roceeds of rime u/S.1(u) ossession/cquisition/Use it UntaintedasPropertylaiming After 2013 Amendment Explanation For removal of doubt, it is clarified (i)
oncealment/ossession/cquisition/Userojecting/laimingand be be
To
guilty of Money aundering IndirectlyDirectly/ After Vijay MadanLal Chaudhary vs UOI[2022] 140 taxmann.com 610 (SC) Whoever In any whatsoevermanner it UntaintedasProperty
read as ‘or’ it UntaintedasProperty shall
PersonDirectly/Indirectly
rime u/S.1(u) in
Section 3 (Offence of Money Laundering)
Section 4 (Punishment) RI-3-10 yrs.Where roceeds rime offence specified in pa.2 of Part A-Sch. RI-3-7 yrs.Whoever commits ML offence unishable
Section 5 (Attachment of Property involved in ML) On basis of Material in possession MayrovisionalORDERAttachmentofproperty Where Authorised Officer has eason (Written) to elieve Person in ossession of roceeds rime roceeds f rime likely to be Concealed Transferred/Dealt in manner may result in Frustrating Confiscation Proceeding Unlessomplaint filed before Magistrate by Authorised Person for taking cognizancehargeheet is forwarded to Magistrate Provisional Attachment- 5(1) No Provisional Attachment- 1st Proviso Emergency Provisional Attachment- 2nd Proviso eason that mmediate Provisional Attachment is warranted with all conditions of S.5(1) Before harge heet & omplaint
Section 16 (Survey), Section 17 (Search & Seizure) On basis of Material in possession ENTER any place & REQUIRE inspection & checking facility & OBTAIN records. Where Authority has eason (Written) to elieve ML Offence u/S.3 has been committed Enter, Require & Obtain- S.16(1), (3) Seize- S.17 (3) Enter & Search- 17(1) Where Authorised Officer has eason (Written) to elieve Where Authority atisfied vidence likely to be oncealed, ampered ENTER , SEARCH & SEIZE evidence. Person committed an act constituting ML / In ossession of roceeds rime involved in ML/ In ossession of ecords relating to ML/ In ossession of roperty related to rime/ BREAKOPEN,ENTER,SEIZE,OBTAIN, INVENTORY, EXAMINEOn basis of Material in possession
Section 18 (Search of ersons) Where Authority has eason (Written) to elieve Person Search & Seize-18(1) has ecreted about his erson/ nything under his ossession, Ownership, ontrol, ecord, roceeds of rime relevant to proceedings under this Act SEARCH & SEIZE
Section 19 (Arrest) On basis of material in possession If Authorised Officer has eason (Written) to elieve Person Guilty ffence u/this Act Arrest- 19(1) ARREST
&
ail & Twin Condition of ail
Section 45 (Bail)
ail Notwithstanding CrPC, 1973 No ail to Accused unless Where
Public Prosecutor given opportunity to oppose Public Prosecutor opposes Court satisfied there is reasonable ground believing he is not guilty not likely to commit offence while on
• Transcends Time & Territory (TTT) • Inversion of Burden of Proof • Inversion of Presumption of Innocence • Sealed Cover Process (ECIR) • Self-Incrimination • Infringement of Federal Structure • Process becomes the Punishment • Absolute & unwavering Jurisdiction to ED • Govt. becoming Complainant, Intermediary, Investigator, Prosecutor • Power to grant Bail withdrawn from court • No true judicial oversight
