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Consider the following statements regarding Prevention of Money Laundering Act.
  1. The offence under this law is mainly the laundering of money made through crimes such as terrorism, drug-trafficking and corruption.
  2. The Enforcement Directorate under the PMLA Act is considered as “police” and hence follow the provisions of Code of Criminal Procedure (CrPC) for search, seizure, arrest, attachment of properties.
  3. The cases booked under the Prevention of Money Laundering Act are non-bailable.
How many of the above statements is/are correct?
  • a)
    Only one 
  • b)
    Only two 
  • c)
    All three 
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding Prevention of Money Launde...
Only statement 1 is correct.
  • The offence under this law is mainly the laundering of money made through a crime. It has a three-part schedule of offences (or ‘predicate offences’) listing the various crimes such as terrorism, drug-trafficking, corruption and cheating that give rise to tainted money.
  • The Supreme Court recently upheld the constitutional validity of the Prevention of Money Laundering Act, 2002.
  • The Court also upheld the “twin-conditions” for bail in Section 45 of the PMLA Act.
  • The Enforcement Directorate under the PMLA Act is not considered “police” and hence does not follow provisions of the CrPC for search, seizure, arrest, attachment of properties.
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Consider the following statements regarding Prevention of Money Laundering Act. The offence under this law is mainly the laundering of money made through crimes such as terrorism, drug-trafficking and corruption. The Enforcement Directorate under the PMLA Act is considered as “police” and hence follow the provisions of Code of Criminal Procedure (CrPC) for search, seizure, arrest, attachment of properties. The cases booked under the Prevention of Money Laundering Act are non-bailable.How many of the above statements is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?
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