The Prevention of Money Laundering Act, 2002 – Test 1

Objectives of the Prevention of Money Laundering Act, 2002 is to:

Money Laundering is a-

The process of money laundering involves three stages. Choose the correct answer as to sequence of the stages generally occurs:

The process of money laundering involves three stages, placement, layering and integration. Which of the following activity forms part of placement stage?

The process of money laundering involves three stages, placement, layering and integration. Which of the following activity forms part of layering stage?

The process of money laundering involves three stages, placement, layering and integration. Which of the following activity forms part of Integration stage?

In which stage of Money Laundering, several transactions are done to remove the trace of money?

In which stage, illegitimate money comes back to the mainstream economy as a legitimate money?

Under the Provisions of Prevention of Money Laundering Act, 2002, the offences specified under Part B of the Schedule will be considered as scheduled offence, if the total value involved in such offences is-

As per Sec. 4 of the Prevention of Money Laundering Act, 2002, whoever commits the offence of money-laundering, where the proceeds of crime involved in money-laundering relates to any offence specified under paragraph 2 of Part A of the Schedule, shall be punishable with

Z, a known smuggler was caught in transfer of funds illegally exporting narcotic drugs from India to some countries in Africa. State the maximum punishment that can be awarded ti him under Prevention of Money Laundering Act, 2002.

Sohan Lal, a farmer, was found involved in embezzlement of opium cultivated by him. State the punishment that can be awarded to him under the Prevention of Money Laundering Act, 2002.

Mr. Honest, a notorious, was caught in possession of Counterfeit Currency Notes, an offence specified under Part A – Paragraph 1 of the schedule of the Prevention of Money Laundering Act, 2002. State the punishment that can be awarded ti him under the above Act.

Ali was asigned by Mr. X to deliver counterfeit currency-notes to one of his close friends to Hongkong for which hefty commission was fixed by the Mr. X. Advise, whether the said act can be considered as money laundering. Who shall be liable for the Commission of the money Laundering under the provisions of Prevention of Money Laundering Act, 2002?

As per the provisions of which act all financial institutions have to maintain a record for all form of transactions?

As per provisions of Sec. 12 of Prevention of Money Laundering Act, 2002, every reporting entity shall maintain a record of ll transactions, in such manner as to enable it to reconstruct individual transactions. Such records shall be maintained for a period of ________.

As per Sec. 12 of the provisions of Prevention of Money Laundering Act, 2002, every reporting entity shall maintain record of documents evidencing identity of its clients and beneficial owners as well as account files and business correspondence relating to its clients. Such records shall be maintained for a period of _________.

“Manav Kalyan”‘ a charitable organization, opened a current account with M/s ABZ Bank on 1st July, 2014. This account was closed on 30th June, 2018. Referring to the obligation of banking companies under the Prevention of Money Laundering Act, 2002, specify the period upto which the said bank has to maintain records relating to the account of Manav Kalyan”.

As per Sec. 12 of the provisions of Prevention of Money Laundering Act, 2002, if at any stage of inquiry or any other proceedings before him, the Director having regard to the nature and complexity of the case, is of the opinion that it is necessary to do so, he may direct the concerned reporting entity to get its records, as may be specified, audited by

As per Section 13 of the provisions of Prevention of Money Laundering Act, 2002, if the Director, in the course of any inquiry, finds that a reporting entity or its designated director on the Board or any of its employees has failed to comply with the obligations, then, without prejudice to any other action that may be taken under any other provisions of this Act, he may

The Appellate Tribunal foe hearing appeals against the orders of the Adjudicating Authority and the other authorities under Prevention of Money Laundering Act, 2002 shall be:

Every appeal under the provisions of Prevention of Money Laundering Act, 2002 shall be filed within a period of ______ from the date on which a copy of the order made by the Adjudicating Authority or Director is received and it shall be in such form and be accompanied by such fee as may be prescribed.

The appeal filed before the Appellate Tribunal under the provisions of Prevention of Money Laundering Act, 2002 shall be dealt with by it as expeditiously as possible and endeavor shall be made by it to dispose of the appeal finally within _______ from the date of filing of the appeal.

An Appellate Tribunal consisting of two members was formed to hear the appeal preferred by Mr. Hari, being aggrieved by an order made by the Adjudicating Authority under the Prevention of Money Laundering Act, 2002. Two members of the Bench differ in their opinion on a particular point referred in the appeal. The next course of action to be followed by the Bench members will be-

Special Court constituted under the provisions of Prevention of Money Laundering Act, 2002 can direct the release of _______ on bail.

Special Court constituted under the provisions of Prevention of Money Laundering Act, 2002 can direct the release of a person on bail who is accused either on his own or along with other co-accused of money-laundering a sum of ______.

Any authority or officer exercising powers under the provisions of Prevention of Money Laundering act, 2002 or any rules made there under, who, without reasons recorded in writing (a) searches or causes to be searched any building or place; or (b) detains or searched or arrests any person, shall for every such offence be liable on conviction

Any person will fully and maliciously give false information and so causing an arrest or a search to be made under the provisions of Prevention of Money Laundering Act, 2002 shall on conviction be liable

If any person, being legally bound to state the truth of any matter relating to an offence u/s 3 of the Prevention of money Laundering Act, 2002, refuses to answer any question put to him by an authority in the exercise of its powers under this Act, he shall

Where any fine or penalty imposed on any person u/s 13 or 63 of the Prevention of Money Laundering Act, 2002 is not paid within _______ from the day of imposition of fine or penalty, the Director or any other officer authorized by him in this behalf may proceed to recover the amount from the said person in the same manner as prescribed in _______.