Under Section 4 of the Prevention of Money Laundering Act, 2002, what is the prescribed punishment for the offence of money laundering where the proceeds of crime relate to an offence specified under Paragraph 2 of Part A of the Schedule (i.e., offences under the Narcotic Drugs and Psychotropic Substances Act)?

Solution

Explanation:
Section 4 of the PMLA, 2002 prescribes a  two-tier punishment structure : ​ ·         General rule:  Rigorous imprisonment for a term  not less than 3 years  but which may extend to  7 years , along with fine. ·         Special proviso (NDPS offences):  Where the proceeds of crime relate to any offence specified under  Paragraph 2 of Part A of the Schedule  (i.e., offences under the Narcotic Drugs and Psychotropic Substances Act, 1985), the maximum term is enhanced to  10 years as if the words "seven years" are substituted with "ten years."