Under Section 23 of PMLA, if money-laundering involves

Solution

Section 23 of PMLA deals with presumption in inter-connected transactions. It provides that where money-laundering involves two or more inter-connected transactions and one or more such transactions is or are proved to be involved in money-laundering, then for the purposes of adjudication or confiscation under Section 8, it shall be presumed - unless otherwise proved to the satisfaction of the Adjudicating Authority - that the remaining transactions form part of such inter-connected transactions. This is a rebuttable presumption that shifts the evidentiary burden. It prevents the accused from isolating one transaction while keeping proceeds of others intact. Read with Section 24 (burden of proof on accused), Section 23 creates a powerful evidentiary arsenal for enforcement agencies in complex layering transactions.