Offering help to launder money also punishable: Cobrapost

Moneycontrol Bureau

Media website Cobrapost has drawn attention to clauses in the Indian Penal Code (IPC) as well in as the Prevention of Money Laundering Act (PMLA) which go to say that offering to support an offence, even if that is not committed, is also punishable by law.

In March this year, after the money laundering expose on Axis Bank, HDFC Bank and ICICI Bank, Deputy RBI Governor KC Chakrabarty had been quoted as saying that "Allegations do not mean flouting norms," and that not a single transaction had taken place.

This is what Section 120 of The Indian Penal Code, 1860 says, as mentioned in the Cobrapost release: 

"Whoever, intending to facilitate or knowing it to be likely that he will thereby facilitate the commission of an offence punishable with imprisonment, voluntarily conceals, by any act or illegal omission, the existence of a design to commit such offence, or makes any representation which he knows to be false respecting such design, if offence be commited-if offence be not committed.

Shall, if the offence be committed, be punished with imprisonment of the description provided for the offence, for a term which may extend to one- fourth, and, if the offence be not committed, to one- eight, of the longest term of such imprisonment, or with such fine as is provided for the offence, or with both."
 
And this is what Section 3 of Prevention of Money Laundering Act 2002 says:

"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 proceeds of crime and projecting it as untainted property shall be guilty of offence of money laundering."

Also read: How banks, insurers help clients launder black money