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      Question

      Under the PMLA, the offence of money laundering is

      independent of, but connected to, which other offence?
      A The scheduled (predicate) offence Correct Answer Incorrect Answer
      B A subsequent offence Correct Answer Incorrect Answer
      C A future offence Correct Answer Incorrect Answer
      D An unrelated offence Correct Answer Incorrect Answer
      E No other offence Correct Answer Incorrect Answer

      Solution

      Under the Prevention of Money Laundering Act, the offence of money laundering is a distinct offence, but it is connected to and predicated upon the commission of a scheduled offence that generates proceeds of crime. While the money laundering offence is tried separately, often by the same Special Court, its existence depends on the proceeds of crime arising from a scheduled offence. The relationship between the predicate offence and the laundering offence is fundamental to the structure of the Act.

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