You can be prosecuted under PMLA, even if not part of original crime.

You can be prosecuted under PMLA, even if not part of original crime.

Under PMLA, there are three stages of money laundering like placement, layering and integration.?Suppose, someone is involved in placement and layering ?stages in an Scheduled Offence under the Act. In course of trial, that person is discharged and so there is no offence under the law and ?he is acquitted as per the decision of the Hon’ble Supreme Court of India in Vijay Madanlal Choudhary and others v. Union of India and others 2022 SCC OnLine SC 929.

But what will happen if a person say Mr X is involved in integration stage in the above offence and was not originally prosecuted ? The accused had lent his name for ?purchase of the property with the tainted money.

Citing the ratio of the Supreme Court in the above case, one can argue that the predicate offence is no longer valid, so the Mr X will be acquitted?

Reading the finer points in the above judgement, the Madras High Court has decided that acquittal in the predicate offence will not preclude the Enforcement Directorate from prosecuting a person for offence of money laundering under PMLA, merely because such person was not prosecuted for the Predicate offence. The accused voluntarily lent his name for the purchase of the property under the sale deed with the tainted money and thus participated in money laundering. Criminal Original Petition No.19880 of 2022 and Crl.M.P.Nos.13073 & 13076 of 2022 P.Rajendran S/o.Periyasamy .. Petitioner Vs. The Assistant Director, Directorate of Enforcement, 14-09-2022.

?In case of any legal issues/cases in PMLA, you may like to connect with us. Adv. Abhinarayan Mishra, FCA, FCS; 9910744992/[email protected]