Note4Students
From UPSC perspective, the following things are important :
Prelims level: Prevention of Money Laundering Act (PMLA), 2002
Mains level: NA
Why in the news?
- The Supreme Court has rejected review petitions challenging its ruling on the initiation of proceedings under the Prevention of Money Laundering Act (PMLA).
- The judgment clarified that Section 120B of the Indian Penal Code cannot be invoked for PMLA proceedings unless the alleged conspiracy pertains to a scheduled offence.
Prevention of Money Laundering Act (PMLA), 2002
Penalties under PMLA:
Authorities for investigation under PMLA:
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What is Article 120 of Indian Penal Code (IPC)?
- Section 120 of the Indian Penal Code (IPC) deals with the concept of “Conspiracy to commit an offense”.
- It states that when two or more persons agree to do, or cause to be done, an illegal act, or an act which is not illegal by illegal means, such an agreement is designated a criminal conspiracy.
- Section 120A defines “criminal conspiracy” as when two or more persons agree to do, or cause to be done, an illegal act or an act which is not illegal by illegal means.
- Section 120B prescribes the punishment for criminal conspiracy, with death, imprisonment for life, or rigorous imprisonment for a term of two years or upwards, shall be punished in the same manner as if he had abetted such offense.
Punishment for Criminal Conspiracy
- Nature of Conspiracy: IPC 120B categorizes conspiracy based on the gravity of the offense and prescribes punishments accordingly.
- Serious Offenses: Conspiracy to commit serious crimes punishable by death, life imprisonment, or rigorous imprisonment for 2 years or more warrants severe punishment equivalent to the offense committed.
- Other Offenses: Conspiracy for illegal acts not falling under the serious category incurs imprisonment for up to six months, a fine, or both, as per Section 120B.
Practice MCQ:Which of the following statements are correct regarding ‘Prevention of Money Laundering Act 2002 (PMLA)’? 1. Enforcement Directorate (ED) is responsible for investigating offences under the PMLA 2. The Act enables government authorities to confiscate property earned through money laundering. Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
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