Relevant to case : predicate offense, proceed of crime.

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.

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