Under Section 3 of the Prevention of Money Laundering Act, 2002, 'money laundering' means:

Section 3 of the Prevention of Money Laundering Act, 2002, defines money laundering as whosoever directly or indirectly attempts to indulge in, or knowingly assists or is a party to, or is actually involved in, any process or activity connected with the proceeds of crime, including its concealment, possession, acquisition or use, and projects or claims such property as untainted. The offence catches the process by which dirty money is presented as clean; mere cash possession, concealed income or receipt of gifts, without connection to the proceeds of a scheduled offence, does not by itself constitute the offence. In Vijay Madanlal Choudhary v Union of India (2022) the Supreme Court upheld the provision, holding that the offence is committed when proceeds of crime are involved in a process or activity and projected as untainted.