Section 4 of PMLA prescribes the Punishment for Money-Laundering as under:
Rigorous Imprisonment for a term
- which shall not be less than Three years, but
- which may extend to 7 years/10 years,
and
- shall also be liable to fine.
In certain cases, the offences under Narcotic Drugs and Psychotropic Substances Act, 1985 are punishable with rigorous imprisonment up to 10 years. The fine under PMLA is without any limit and the same may be commensurate to the nature and extent of offence committed and the money laundered.
Arrests
Under Section 19 of PMLA, the appropriate authority under the Act has the power to arrest any person provided that such authority on the basis of the material in his possession has reason to believe that such person has been guilty of any offence punishable under PMLA. After the arrest, the person arrested has to be informed about the grounds for his arrest. It is also required that the person so arrested shall, within 24 hours, be produced before the Judicial Magistrate or a Metropolitan Magistrate, as the case may be, having jurisdiction.
You may also refer to the following link for details on anti-money laundering (AML) laws in India: http://moneylaundering.legal .
*Vijay Pal Dalmia, Advocate & Partner Vaish Associates
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