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

A forensic auditor is asked who prescribes the procedure and manner in which a reporting entity maintains and furnishes information under the PMLA. According to Section 15 of the Act, who does this?

Under Section 15 of the PMLA, the Central Government prescribes the procedure and manner of maintaining and furnishing information by reporting entities, and it does so in consultation with the Reserve Bank of India. The RBI does not prescribe it alone, and the NFRA has no role.

  1. AThe Central Government, in consultation with the Reserve Bank of IndiaCorrect
  2. BThe Reserve Bank of India alone, without consulting anyone
  3. CThe National Financial Reporting Authority, in consultation with SEBI
  4. DThe Appellate Tribunal, on payment of a prescribed fee

Explanation

Section 15 of the PMLA states that the Central Government may, in consultation with the Reserve Bank of India, prescribe the procedure and manner of maintaining and furnishing information by a reporting entity. The RBI acts only in consultation, not alone. The NFRA and the Appellate Tribunal have no role in this prescription.

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