3. Offence of money-laundering.—

Whosoever directly or indirectly attempts to indulge or  knowingly assists or knowingly is a party or is actually involved in any process or activity connected with  the 1[proceeds of crime including its concealment, possession, acquisition or use and projecting or  claiming] it as untainted property shall be guilty of offence of money-laundering. 

2[Explanation.—

For the removal of doubts, it is hereby clarified that,— 

(i) a person shall be guilty of offence of money-laundering if such person is found to have  directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually  involved in one or more of the following processes or activities connected with proceeds of crime,  namely:— 

(a) concealment; or 

(b) possession; or 

(c) acquisition; or 

(d) use; or 

(e) projecting as untainted property; or 

(f) claiming as untainted property, 

in any manner whatsoever; 

(ii) the process or activity connected with proceeds of crime is a continuing activity and continues  till such time a person is directly or indirectly enjoying the proceeds of crime by its concealment or  possession or acquisition or use or projecting it as untainted property or claiming it as untainted  property in any manner whatsoever.] 

1. Subs. by Act 2 of 2013, s. 3, for “proceeds of crime and projecting” (w.e.f. 15-2-2013).

2. Ins. by Act 23 of 2019, s. 193 (w.e.f. 1-8-2019).

4. Punishment for money-laundering.—

Whoever commits the offence of money-laundering shall  be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine 3***: 

Provided that where the proceeds of crime involved in money-laundering relates to any offence  specified under paragraph 2 of Part A of the Schedule, the provisions of this section shall have effect as if  for the words “which may extend to seven years”, the words “which may extend to ten years” had been  substituted. 

3. The words “which may extend to five lakh rupees” omitted by Act 2 of 2013, s. 4 (w.e.f. 15-2-2013).