What are scheduled offences in PMLA?

Scheduled offences under PMLA-

Scheduled offences in the Prevention of Money Laundering Act (PMLA) are the acts listed in the Act’s schedule that serve as the foundation for money laundering charges. These offences are essentially criminal activities that generate profits that someone then tries to hide or legitimize.

The PMLA schedule lists offences from various other Indian laws. They can be serious offences, such as terrorism financing, or they can be lesser offences, like copyright infringement. There are three parts to the PMLA schedule:

Also read – SC decision on invoking the PMLA on non scheduled offences 

• Part A: Covers serious offences like terrorism financing, waging war against the government, and drug trafficking.
• Part B: Includes corruption offences like bribery and cheating by public officials.
• Part C: Lists other offences such as theft, tax evasion and forgery.

Legislative intend behind the provision-

The legislative intent behind predicate offences under the Prevention of Money Laundering Act (PMLA) is rooted in the objective of not only addressing illicitly acquired wealth but also income that is legally obtained yet concealed from public authorities. This approach was articulated in a White Paper published by the Ministry of Finance of the Government of India in May 2012. The paper highlighted that money laundering extends beyond the proceeds of criminal activities; it encompasses income concealed for various reasons:

1. Evading Statutory Contributions: Some individuals conceal income to avoid statutory contributions, thereby undermining mechanisms established for the welfare of society.
2. Tax Evasion: Concealing income from tax authorities, including income tax, excise duty, sales tax, stamp duty, and other levies, is another significant aspect of money laundering.
3. Bypassing Industrial Laws: Certain entities hide income to evade compliance with essential industrial laws such as the Industrial Dispute Act, Minimum Wages Act, Payment of Bonus Act, Factories Act, and Contract Labour Act.
4. Evading Compliance: Concealing income may also be used to circumvent various laws and administrative procedures, creating a complex structure of subversion.

The inclusion of these legalizations within the scope of the PMLA underscores the comprehensive approach of the legislation to address not only traditional illegal gains but also concealed legal income that disrupts the socio-economic equilibrium.