Skip to content

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

A forensic auditor is briefing a bank's board on anti-money-laundering governance. She says the Central Government may, by notification, constitute an Inter-ministerial Co-ordination Committee under Section 72A of the Prevention of Money-Laundering Act, 2002. What is the main purpose of this Committee?

The Inter-ministerial Co-ordination Committee exists for inter-departmental and inter-agency coordination on anti money-laundering and countering terrorist financing. It is not a trial court, audit body or registrar; it coordinates government, law enforcement, the Financial Intelligence Unit and regulators.

  1. ATo try offences of money-laundering and pass sentences
  2. BInter-departmental and inter-agency coordination on anti money-laundering and countering the financing of terrorism mattersCorrect
  3. CTo audit the financial statements of reporting entities
  4. DTo register companies carrying on financial services

Explanation

Section 72A empowers the Central Government to constitute the Committee for inter-departmental and inter-agency coordination, covering operational and policy co-operation and AML/CFT policy development. It has no adjudicating, auditing or registration function, so the other options describe functions of courts, auditors and the Registrar.

Did you get it right without looking?

One question tells you little. A timed set on Forensic Audit: Laws and Regulations shows your real accuracy, how long you take and where you lose marks.

Practise Forensic Audit: Laws and RegulationsFree diagnostic mock

More Forensic Audit: Laws and Regulations questions