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

An internal auditor notes that the Central Government has notified a body under Section 72A of the PMLA, 2002 to strengthen anti-money-laundering coordination. Which purpose is expressly listed for this body?

Section 72A lets the Central Government constitute an Inter-ministerial Co-ordination Committee whose purposes include operational co-operation between the Government, law enforcement agencies, FIU-India and regulators or supervisors, plus policy coordination on anti money-laundering and countering terrorist financing. It does not try offences or audit companies.

  1. AOperational co-operation between the Government, law enforcement agencies, the Financial Intelligence Unit, India and regulators or supervisorsCorrect
  2. BConducting trials of money-laundering offences
  3. CAuditing the books of all companies annually
  4. DDeciding appeals against assessment orders under income tax law

Explanation

Section 72A allows the Central Government to constitute an Inter-ministerial Co-ordination Committee for inter-agency coordination, including operational co-operation among the Government, law enforcement agencies, FIU-India and regulators or supervisors, and policy co-operation and development of AML/CFT policies. It has no trial, audit or appellate functions.

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