Question
A person receives Rs. 50 lakhs through a bank transfer from an undisclosed source. Investigation reveals that the source had committed a forgery (Section 463 IP
- C . The person intends to use this money to purchase immovable property. Under the PMLA, 2002, which statements are correct? Statement 1: Money cannot be termed proceeds of crime because forgery is not listed in the Schedule to PMLA. Statement 2: If this money is being used to invest in real estate, the property would be liable for attachment under Section 5 of PMLA. Statement 3: The Enforcement Directorate can initiate action only if a First Information Report is filed for forgery by a police officer. Statement 4: The person's possession of such money itself constitutes an offence under Section 3 of PMLA if they know it is proceeds of crime from a scheduled offence. Which statements are correct?
Solution
Statement 1 is incorrect because forgery-related offences are covered under scheduled offences in PMLA. Statement 2 is correct—Section 5 permits attachment of property representing proceeds of crime. Statement 3 is correct—Section 2(1)(y) defines scheduled offences as those listed in the Schedule, and ED action requires a scheduled offence registered by law enforcement. Statement 4 is correct—Section 3 of PMLA penalizes possession of proceeds of crime knowing it to be such. Statements 2, 3, and 4 are correct.
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