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CMA Final · Cost and Management Audit · Anti-Money Laundering

A person is charged with the offence of money-laundering under section 3 of the PMLA, 2002. In the proceedings relating to proceeds of crime, what is the position on the burden of proof under section 24?

For a person charged with money-laundering under section 3, the Authority or Court must presume the proceeds of crime are involved in money-laundering unless the accused proves otherwise. The discretionary 'may presume' standard applies only to persons other than the accused.

  1. AThe Authority or Court may presume the proceeds are involved in money-laundering, at its discretion
  2. BThe prosecution must prove the proceeds are involved, with no presumption available
  3. CThe Authority or Court shall presume the proceeds are involved in money-laundering unless the contrary is provedCorrect
  4. DThe presumption applies only to proceeds above a monetary threshold fixed by rules

Explanation

For a person charged under section 3, section 24(a) says the Authority or Court shall presume, unless the contrary is proved, that the proceeds are involved in money-laundering. The discretionary 'may presume' wording applies under clause (b) to any other person, so the first option confuses the two categories.

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