A Comprehensive Guide to Offences under Money Laundering: Sections and Descriptions across Different Acts

In this comprehensive guide, we will explore the various sections and descriptions of offences under money laundering across different acts. We have organized this information in a tabular format for easy reference and understanding.

By the end of this guide, you will have a clear understanding of the legal framework surrounding money laundering offences, as well as a grasp of the Prevention of Money Laundering Act (PMLA), which plays a crucial role in regulating and punishing such activities.

Let’s dive in and take a closer look at the complex world of money laundering and its legal consequences.

Offences under The Indian Penal Code (45 of 1860):

The Indian Penal Code is a comprehensive criminal code that covers a wide range of offences, including money laundering.

In the context of money laundering, specific sections of the IPC relate to various offences that can be linked to the concealment, possession, acquisition, or use of proceeds of crime.

The following table provides a detailed breakdown of the relevant sections and their descriptions.

Section	Description of Offence
120 B	Criminal conspiracy.
121	Waging, or attempting to wage war or abetting waging of war, against the Government of India.
121A	Conspiracy to commit offences punishable by section 121 against the State
255	Counterfeiting Government stamp.
257	Making or selling instrument for counterfeiting Government stamp.
258	Sale of counterfeiting Government stamp.
259	Having possession of counterfeit Government stamp.
260	Using as genuine a Government stamp known to be counterfeit.
302	Murder
304	Punishment for culpable homicide not amounting to murder.
307	Attempt to murder.
308	Attempt to commit culpable homicide.
327	Voluntarily causing hurt to extort property, or to constrain to an illegal act.
329	Voluntarily causing grievous hurt to extort property, or to constrain to an illegal act.
364A	Kidnapping for ransom, etc.
384 to 389	Offences relating to extortion
392 to 402	Offences relating to robbery and dacoity.
411	Dishonestly receiving stolen property.
412	Dishonestly receiving property stolen in the commission of a dacoity.
413	Habitually dealing in stolen property.
414	Assisting in concealment of stolen property.
417	Punishment for cheating.
418	Cheating with knowledge that wrongful loss may ensure to person whose interest offender is bound to protect.
419	Punishment for cheating by personation.
420	Cheating and dishonesty inducing delivery of properties
421	Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors.
422	Dishonestly or fraudulently preventing debt being available for creditors.
423	Dishonest or fraudulent execution of deed of transfer containing false statement of consideration.
424	Dishonest or fraudulent removal or concealment of property.
467	Forgery of a valuable security, will, etc.
471	Using as genuine a forged document or electronic record.
472 and 473	Making or possessing counterfeit seal, etc. with intent to commit forgery.
475 and 476	Counterfeiting device or mark.
481	Using a false property mark.
481	Punishment for using false property mark.
483	Punishment for using false property mark.
484	Counterfeiting a mark used by a public servant.
485	Making or possession of any instrument for counterfeiting a property mark.
486	Selling goods marked with a counterfeit property mark.
487	Making a false mark upon any receptacle containing goods.
488	Punishment for making use of false mark.
489A	Counterfeiting currency notes or bank notes.
489B	Using as genuine, forged or counterfeit currency notes or bank notes

Offences under The Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985)

The Narcotic Drugs and Psychotropic Substances Act aims to control and regulate the production, possession, sale, and distribution of narcotic drugs and psychotropic substances.

Money laundering offences are closely related to the drug trade, as the proceeds from illegal drug activities are often laundered to disguise their origins.

The following table highlights the sections and descriptions of offences under the NDPS Act that are relevant to money laundering.

Section	Description of Offence
15	Contravention in relation to poppy straw.
16	Contravention in relation to coca plant and coca leaves.
17	Contravention in relation to prepared opium.
18	Contravention in relation to opium poppy and opium
19	Embezzlement of opium by cultivator
20	Contravention in relation to cannabis plant and cannabis.
21	Contravention in relation to manufactured drugs and preparations
22	Contravention in relation to psychotropic substances
23	Illegal import into India, export from India or transhipment of narcotic drugs and psychotropic substances.
24	External dealings in narcotic drugs and psychotropic substances in contravention of section 12 of the Narcotics Drugs and Psychotropic Substances Act, 1985.
25A	Contravention of orders made under section 9A of the Narcotic Drugs and Psychotropic Substances Act, 1985
27A	Financing illicit traffic and harbouring offenders.
29	Abetment and criminal conspiracy.

The Explosive Substances Act, 1908 (6 of 1908):

The Explosive Substances Act is a legal framework that regulates the manufacture, possession, use, sale, transport, import, and export of explosives. Money laundering offences can be linked to the illegal trade of explosives, as the proceeds from such activities may be laundered to conceal their source.

The following table presents the sections and descriptions of offences under the Explosive Substances Act that pertain to money laundering.

Section	Description of Offence
3	Causing explosion likely to endanger life or property.
4	Attempt to cause explosion, or for making or keeping explosives with intent to endanger life or property.
5	Making or possessing explosives under suspicious circumstances.

The Unlawful Activities (Prevention) Act, 1967 (37 of 1967):

This act aims to prevent unlawful activities, including money laundering, by targeting activities and organizations that support or finance terrorism.

The following table provides an overview of the relevant sections and descriptions of offences under this act.

Section	Description of Offence
10 read with section 3	Penalty for being member of an unlawful association, etc.
11 read with sections 3 and 7	Penalty for dealing with funds of an unlawful association
13 read with section 3	Punishment for unlawful activities.
16 read with section 15	Punishment for terrorist act
16A	Punishment for making demands of radioactive substances, nuclear devices, etc.
17	Punishment for raising fund for terrorist act.
18	Punishment for conspiracy, etc.
18A	Punishment for organising of terrorist camps.
18B	Punishment for recruiting of any person or persons for terrorist act
19	Punishment for harbouring, etc.
20	Punishment for being member of terrorist gang or organization.
21	Punishment for holding proceeds of terrorism.
38	Offence relating to membership of a terrorist organization.
39	Offence relating to support given to a terrorist organization
40	Offence for raising fund for a terrorist organization

The Arms Act, 1959:

The Arms Act deals with offences related to illegal arms and ammunition possession, manufacture, and trade. Money laundering can be connected to these offences as proceeds from illegal arms dealings are often laundered.

The table below presents the relevant sections and descriptions.

Section	Description of Offence
25	To manufacture, sell, transfer, convert, repair or test or prove or expose or offer for sale or transfer or have in his possession for sale, transfer, conversion, repair, test or proof, any arms or ammunition in contravention of section 5 of the Arms Act, 1959
	To acquire, have in possession or carry any prohibited arms or prohibited ammunition in contravention of section 7 of the Arms Act, 1959.
	Contravention of section 24A of the Arms Act, 1959 relating to prohibition as to possession of notified arms in disturbed areas, etc.
	Contravention of section 24B of the Arms Act, 1959 relating to prohibition as to carrying of notified arms in or through public places in disturbed areas.
	Other offences specified in section 25.
26	To do any act in contravention of any provisions of section 3, 4, 10 or 12 of the Arms Act, 1959 in such manner as specified in sub-section (1) of section 26 of the said Act etc.
	To do any act in contravention of any provisions of section 5, 6, 7 or section 11 of the Arms Act, 1959 in such manner as specified in sub-section (2) of section 26 of the said Act.
	Other offences specified in section 26.
27	Use of arms or ammunitions in contravention of section 5 or use of any arms or ammunition in contravention of section 7 of the Arms Act, 1959.
28	Use and possession of fire arms or imitation fire arms in certain cases.
29	Knowingly purchasing arms from unlicensed person or for delivering arms, etc., to person not entitled to possess the same.
30	Contravention of any condition of a licence or any provisions of the Arms Act, 1959 or any rule made thereunder.

The Wild Life (Protection) Act, 1972 (53 of 1972):

This act targets wildlife-related crimes, including poaching and illegal trade. Money laundering can be linked to these offences as criminals often launder proceeds from illegal wildlife trade.

The table below outlines the relevant sections and descriptions of offences under this act.

Section	Description of Offence
51 read with section 9	Hunting of wild animals
51 read with section 17A	Contravention of provisions of section 17A relating to prohibition of picking, uprooting, etc., of specified plants.
51 read with section 39	Contravention of provisions of section 39 relating to wild animals, etc., to be Government property.
51 read with section 44	Contravention of provisions of section 44 relating to dealings in trophy and animal articles without licence prohibited.
51 read with section 48	Contravention of provisions of section 48 relating to purchase of animal, etc., by licensee
51 read with section 49B	49B Contravention of provisions of section 49B relating to prohibition of dealings in trophies, animal articles etc., derived from scheduled animals.

The Immoral Traffic (Prevention) Act, 1956 (104 of 1956):

This act focuses on preventing human trafficking and sexual exploitation. Money laundering concerns arise as criminals often launder proceeds from these illegal activities.

The table below offers a detailed breakdown of the relevant sections and their descriptions.

Section	Description of Offence
5	Procuring, inducing or taking person for the sake of prostitution.
6	Detaining a person in premises where prostitution is carried on.
8	Seducing or soliciting for purpose of prostitution.
9	Seduction of a person in custody.

The Prevention of Corruption Act, 1988 (49 of 1988):

This act addresses corruption in public offices and associated offences. Money laundering can be connected to corruption as proceeds from corrupt activities are often laundered. 

The table below provides a comprehensive overview of the relevant sections and descriptions of offences under this act.

Section	Description of Offence
7	Public servant taking gratification other than legal remuneration in respect of an official act.
8	Taking gratification, in order, by corrupt or illegal means, to influence public servant.
9	Taking gratification, for exercise of personal influence with public servant.
10	Abetment by public servant of offences defined in section 8 or section 9 of the Prevention of Corruption Act, 1988
13	Criminal misconduct by a public servant.;

The Explosives Act, 1884 :

The Explosives Act targets offences related to illegal manufacturing, possession, and use of explosives. Money laundering concerns arise from the laundering of proceeds from these illegal activities.

The table below outlines the relevant sections and descriptions of offences under this act.

Section	Description of Offence
9-B	Punishment for certain offences
9-C	Offences by Companies.
25 read with section 3	Contravention of export trade in antiquities and art treasure.
28	Offences by Companies.
25 read with section 3	Contravention of export trade in antiquities and art treasure

The Antiquities and Arts Treasures Act, 1972 (52 of 1972) :

This act aims to prevent illegal trade and smuggling of antiquities and art treasures. Money laundering can be linked to these offences as criminals often launder proceeds from the illegal trade of such items.

The table below provides an overview of the relevant sections and descriptions.

Section	Description of Offence
25 read with section 3	Contravention of export trade in antiquities and art treasure.
28	Offences by Companies.

The Securities and Exchange Board Of India Act, 1992 (15 of 1992) :

This act regulates the securities market in India and addresses offences related to market manipulation and insider trading. Money laundering concerns arise as proceeds from these illegal activities are often laundered.

The table below offers a detailed breakdown of the relevant sections and their descriptions.

Section	Description of Offence
12A read with section 24	Prohibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control.
24	Acquisition of Securities or Control.

The Customs Act, 1962 (52 of 1962) :

This act deals with offences related to the evasion of customs duties and the smuggling of goods. Money laundering is often connected to these offences as criminals launder proceeds from these illegal activities.

The table below provides an overview of the relevant sections and descriptions of offences under this act.

Section	Description of Offence
135	Evasion of duty or prohibitions

The Bonded Labour System (Abolition) Act, 1976 (19 of 1976) :

This act aims to prevent bonded labor and associated offences. Money laundering concerns arise as proceeds from bonded labor activities are often laundered.

The table below outlines the relevant sections and descriptions of offences under this act.

Section	Description of Offence
16	Punishment for enforcement of bonded labour.
18	Punishment for extracting bonded labour under the bonded labour system.
20	Abetment to be an offence.

The Child Labour (Prohibition and Regulation) Act, 1986 (61 of 1986) :

This act prohibits child labor and regulates working conditions for children. Money laundering can be linked to child labor-related offences as proceeds from these activities are often laundered.

The table below provides a comprehensive overview of the relevant sections and descriptions of offences under this act.

Section	Description of Offence
14	Punishment for employment of any child to work in contravention of the provisions of section 3.

The Transplantation Of Human Organs Act, 1994 (42 of 1994):

This act addresses offences related to the illegal transplantation and trade of human organs. Money laundering concerns arise as proceeds from these illegal activities are often laundered.

The table below offers a detailed breakdown of the relevant sections and their descriptions.

Section	Description of Offence
18	Punishment for removal of human organ without authority.
19	Punishment for commercial dealings in human organs.
20	Punishment for contravention of any other provision of this Act.

The Juvenile Justice (Care and Protection Of Children) Act, 2000 (56 of 2000) :

This act focuses on the care and protection of children and addresses offences related to child abuse and exploitation. Money laundering can be connected to these offences as proceeds from these activities are often laundered.

The table below outlines the relevant sections and descriptions of offences under this act.

Section	Description of Offence
23	Punishment of cruelty to juvenile or child.
24	Employment of juvenile or child for begging.
25	Penalty for giving intoxicating liquor or narcotic drug or psychotropic substance to juvenile or child.
26	Exploitation of juvenile or child employee.

The Emigration Act, 1983 (31 of 1983) :

This act regulates emigration and addresses offences related to illegal emigration and human smuggling. Money laundering concerns arise from the laundering of proceeds from these illegal activities.

The table below provides an overview of the relevant sections and descriptions of offences under this act.

Section	Description of Offence
24	Offences and penalties.

The Passport Act, 1967 (15 of 1967) :

This act deals with offences related to the misuse and forgery of passports. Money laundering can be linked to these offences as proceeds from these illegal activities are often laundered.

The table below offers a detailed breakdown of the relevant sections and their descriptions.

Section	Description of Offence
24	Offences and penalties.

The Foreigners Act, 1946 (31 of 1946) :

This act regulates the entry, stay, and exit of foreigners in India and addresses offences related to illegal immigration and human smuggling. Money laundering concerns arise as proceeds from these activities are often laundered.

The table below outlines the relevant sections and descriptions of offences under this act.

Section	Description of Offence
12	Offences and penalties.

The Copyright Act, 1957 (14 of 1957) :

This act protects the rights of creators and addresses offences related to copyright infringement. Money laundering can be connected to these offences as proceeds from these illegal activities are often laundered.

The table below provides a comprehensive overview of the relevant sections and descriptions of offences under this act.

Section	Description of Offence
14	Penalty for contravention of provisions of the Act, etc.
14B	Penalty for using forged passport.
14C	Penalty for abetment

The Trade Marks Act, 1999 (47 of 1999) :

This act deals with the protection of trademarks and addresses offences related to trademark infringement. Money laundering concerns arise as proceeds from these illegal activities are often laundered.

The table below offers a detailed breakdown of the relevant sections and their descriptions.

Section	Description of Offence
63	Offence of infringement of copyright or other rights conferred by this Act.
63A	Enhanced penalty on second and subsequent convictions.
63B	Knowing use of infringing copy of computer programme.
68A	Penalty for contravention of section 52A.

The Information Technology Act, 2000 (21 of 2000) :

This act addresses offences related to cybercrime, including hacking, data theft, and online fraud. Money laundering can be linked to these offences as proceeds from these illegal activities are often laundered.

The table below outlines the relevant sections and descriptions of offences under this act.

Section	Description of Offence
103	Penalty for applying false trade marks, trade description, etc.
104	Penalty for selling goods or providing services to which false trademark or false trade description is applied.
105	Enhanced penalty on second or subsequent conviction.
107	Penalty for falsely representing a trade mark as registered.
120	Punishment of abetment in India of acts done out of India.

The Biological Diversity Act, 2002 (18 of 2003) :

This act aims to protect biological diversity and addresses offences related to the illegal trade and exploitation of biological resources. Money laundering concerns arise as proceeds from these activities are often laundered.

The table below provides an overview of the relevant sections and descriptions of offences under this act.

Section	Description of Offence
55 read with 6	Penalties for contravention of section 6, etc.

The Protection Of Plant Varieties and Farmers’ Rights Act, 2001 (53 of 2001) :

This act deals with the protection of plant varieties and farmers’ rights and addresses offences related to the illegal exploitation of plant resources. Money laundering can be connected to these offences as proceeds from these illegal activities are often laundered.

The table below offers a detailed breakdown of the relevant sections and their descriptions.

Section	Description of Offence
70 read with section 68	Penalty for applying false denomination, etc.
71 read with section 68	Penalty for selling varieties to which false denomination is applied.
72 read with section 68	Penalty for falsely representing a variety as registered.
73 read with section 68	Penalty for subsequent offence.

The Environment Protection Act, 1986 (29 of 1986) :

This act focuses on environmental protection and addresses offences related to pollution and environmental degradation. Money laundering concerns arise as proceeds from these activities are often laundered.

The table below outlines the relevant sections and descriptions of offences under this act.

Section	Description of Offence
15 read with section 7	Penalty for discharging environmental pollutants.
15 read with section 8	Penalty for handling hazardous substance.

The Water (Prevention and Control Of Pollution) Act, 1974 (6 of 1974) :

This act aims to prevent and control water pollution and addresses offences related to the contamination of water resources. Money laundering can be linked to these offences as proceeds from these illegal activities are often laundered.

The table below provides a comprehensive overview of the relevant sections and descriptions of offences under this act.

Section	Description of Offence
41(2)	Penalty for pollution of stream or well.
43	Penalty for contravention of provisions of section 24.

The Air (Prevention And Control Of Pollution) Act, 1981 (14 of 1981) :

This act deals with the prevention and control of air pollution and addresses offences related to the release of harmful pollutants into the atmosphere. Money laundering concerns arise as proceeds from these illegal activities are often laundered.

The table below offers a detailed breakdown of the relevant sections and their descriptions.

Section	Description of Offence
37	Failure to comply with the provisions for operating industrial plant.

The Suppression of Unlawful Acts Against Safety Of Maritime Navigation and Fixed Platforms on Continental Shelf Act, 2002 (69 of 2002) :

This act addresses offences related to maritime safety and the protection of fixed platforms on the continental shelf. Money laundering can be connected to these offences as proceeds from these illegal activities are often laundered.

The table below outlines the relevant sections and descriptions of offences under this act.

Section	Description of Offence
3	Offences against ship, fixed platform, cargo of a ship, maritime navigational facilities, etc.

Offence under the Companies Act, 2013:

This act governs the incorporation, management, and dissolution of companies in India. It addresses offences related to corporate fraud, insider trading, and financial mismanagement. Money laundering concerns arise as proceeds from these illegal activities are often laundered.

The table below provides an overview of the relevant sections and descriptions of offences under this act.

Section	Description of Offence
447	Punishment for fraud

Offence Under the Customs Act, 1962:

This act deals with offences related to the evasion of customs duties and the smuggling of goods across borders. Money laundering can be connected to these offences as proceeds from these illegal activities are often laundered.

The table below offers a detailed breakdown of the relevant sections and their descriptions.

Section	Description of Offence
132	False declaration, false documents, etc.

Conclusion:

In conclusion, understanding the legal framework surrounding money laundering offences is crucial for law enforcement agencies, regulatory bodies, and financial institutions.

This comprehensive guide has offered a detailed overview of the diverse sections and descriptions of offences under different acts that pertain to money laundering.

By familiarizing yourself with these provisions, you can gain a deeper understanding of the scope of money laundering offences and the measures taken to combat this widespread criminal activity.

Remember to always stay vigilant and informed in order to effectively identify, prevent, and report potential money laundering activities.

FAQ:

Q: What are the three main components of a money laundering offence?

A: The three main components are the generation of proceeds of crime, involvement in the money laundering process with the knowledge that the proceeds are from criminal activities, and the intention to conceal, transfer, or deal with the proceeds to portray them as untainted money.

Q: Which section of the Prevention of Money Laundering Act (PMLA) defines the offence of money laundering?

 A: Section 3 of the PMLA defines the offence of money laundering.

Q: Is money laundering considered a standalone offence?

A: Yes, money laundering is considered a standalone offence as per Section 3 of the PMLA.

Q: What is the significance of the explanation added to Section 3 of the PMLA?

A: The explanation added to Section 3 of the PMLA clarifies that a person can be guilty of money laundering if they are involved in specific processes or activities connected with the proceeds of crime, such as concealment, possession, acquisition, use, and projecting or claiming it as untainted property.

Q: Are all predicate offences covered under the Prevention of Money Laundering Act (PMLA)?

A: No, only specific predicate offences or scheduled offences are covered under the PMLA.