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CS Professional · Internal and Forensic Audit · Forensic Audit: Laws and Regulations

A forensic auditor is asked about the ordinary punishment for the offence of money-laundering under the Prevention of Money-Laundering Act, 2002, where the predicate offence is not one specified under paragraph 2 of Part A of the Schedule. What is the punishment?

The punishment is rigorous imprisonment of not less than three years and up to seven years, together with liability to fine. Section 4 raises the maximum to ten years only where the proceeds relate to an offence under paragraph 2 of Part A of the Schedule.

  1. ARigorous imprisonment of at least three years, extendable to seven years, and fineCorrect
  2. BRigorous imprisonment of at least one year, extendable to three years, and fine
  3. CRigorous imprisonment of at least seven years, extendable to ten years, and fine
  4. DFine only, with no imprisonment

Explanation

Section 4 provides rigorous imprisonment not less than three years, extendable to seven years, plus liability to fine. The ten-year ceiling applies only under the proviso for offences specified under paragraph 2 of Part A of the Schedule.

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