Expanding The Definition Of Money Laundering: A Study Of Substantive Vs. Clarificatory Amendments In The PMLA
- IJLLR Journal
- Sep 8
- 1 min read
Saksham Sharma, Vivekananda Institute of Professional Studies (VIPS-TC), Pitampura, New Delhi
ABSTRACT
This research paper examines the constitutional bar against retrospective application of penal laws, with a focus on Section 3 of the Prevention of Money Laundering Act, 2002 (PMLA). The amendments of 2013 and 2019 significantly expanded the scope of money laundering by incorporating additional activities and explanations into the definition of the offence. These legislative developments have given rise to questions of retrospectivity and their interplay with Article 20(1) of the Constitution, which prohibits ex post facto criminal liability. Through an analysis of statutory interpretation principles, constitutional safeguards, and judicial precedents, this paper explores whether the enlarged definition of money laundering under Section 3 can be applied to acts committed prior to these amendments. The study highlights the doctrinal distinction between substantive and procedural changes, the presumption against retrospective operation of penal statutes, and the Supreme Court’s evolving approach in treating money laundering as a continuing offence. It concludes by underlining the constitutional limits of retrospective criminalization while situating the PMLA amendments within this legal framework.
