| Syllabus: GS-III Subject: Internal Security Topic: Money Laundering and prevention Issue: PMLA |
Context: Arrest of a Chief Minister accused of money laundering.
Predicate Offense:
- The Prevention of Money Laundering Act (PMLA) criminalizes money laundering.
- Money laundering involves any process or activity related to proceeds of crime, including concealment, possession, acquisition, or use of such proceeds.
- “Proceeds of crime” refers to property derived from criminal activity related to scheduled offences.
- Scheduled offences, listed in the PMLA schedules, are also known as predicate offences.
- Accusations of money laundering require a connection to the scheduled offence.
| +1 advantage for mains(case laws)
● In the Vijay Madanlal Choudhary & Ors v Union of India case, the Supreme Court ruled that if an accused in the predicate offence is acquitted or discharged, they cannot be prosecuted under the PMLA. ● In the Pavana Dibbur v Enforcement Directorate case, the Supreme Court stated that an accused in a PMLA case, who assists in concealing or using proceeds of crime, need not be named in the scheduled offence. |
