What is meant by money laundering? State the punishment, which may be inflicted for committing the offence of money laundering, under the Prevention of Money Laundering Act (PMLA), 2002.

Money laundering is the processing of criminal proceeds to disguise its illegal origin. Fundamentally, money laundering or processing of criminal proceeds is intrinsically linked to the underlying criminal activity that generates it. According to Section 2(1)(p) of the Prevention of Money Laundering Act, 2002 "money-laundering" has the meaning assigned to it in section 3 of the Act. Section 3 of the Prevention of Money Laundering Act, 2002 states that whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it is an untainted property shall be guilty of offence of money laundering. Section 4 provides that any person who 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 also liable to fine. However, where the proceeds of crime involved in money laundering relates to any offence specified under the Narcotic Drugs and Psychotropic Substances Act, the punishment may extend to rigorous imprisonment for ten years.