Provision of PMLA Attracts on Offence Committed prior to June 1, 2009 as proceeds of Crime Continue...

The Calcutta High Court has held that the provisions of the Prevention of Money Laundering Act (PMLA) can be attracted for an offense that was committed even before a key amendment to the Act on June 1, 2009. The court reasoned that if the "proceeds of crime" from that original offense continued to exist or were used after the amendment came into force, then the PMLA can be applied. The court observed that the offense of money laundering is a continuing one. Therefore, even if the predicate (original) crime was committed before the amendment, the subsequent act of dealing with the tainted money would still fall under the ambit of the PMLA. This is a significant ruling that gives a wider and retrospective effect to the anti-money laundering law, allowing the ED to prosecute older cases.