Which of the following is/are included in the term 'person' as defined under the Prevention of Money Laundering Act, 2002?
1. An individual
2. A company
3. A Hindu undivided family
Select the correct answer using the code given below:

Correct option is D

The correct answer is (d) 1, 2 and 3.

Explanation

The definition of a "person" under the Prevention of Money Laundering Act (PMLA), 2002, is intentionally broad to ensure that no legal or natural entity involved in money laundering can escape the ambit of the law.

According to Section 2(1)(s) of the Act, the term "person" is an inclusive definition that specifically lists the following:

1. An individual (Statement 1)
2. A Hindu Undivided Family (HUF) (Statement 3)
3. A company (Statement 2)
4. A firm
5. An association of persons or a body of individuals, whether incorporated or not
6. Every artificial juridical person (not falling within any of the above)
7. Any agency, office, or branch owned or controlled by any of the above persons

Since all three entities mentioned in the question (Individual, Company, and HUF) are explicitly listed in Section 2(1)(s), they are all included in the term "person."

Information Booster:

The broad definition is a strategic tool for the Enforcement Directorate (ED). By including non-natural entities like HUFs and artificial juridical persons, the law prevents launderers from hiding "proceeds of crime" behind complex legal structures or family trusts.

Key Highlights of PMLA Definitions:

• Reporting Entity: Under Section 2(1)(wa), a "reporting entity" (like a bank or financial institution) has a duty to monitor the transactions of any "person" (as defined above).
• Beneficial Owner: The Act also focuses on the "Beneficial Owner"—the individual who ultimately owns or controls a client (which could be a company or HUF).