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CMA Final · Corporate and Economic Laws · Laws and Regulations related to Anti-Money Laundering

Anil is charged with the offence of money-laundering under Section 3 of the PMLA, 2002, and proceedings relate to proceeds of crime. Under the burden of proof provision, what must the Authority or Court do?

For a person charged with money-laundering under Section 3, the Authority or Court shall presume, unless the contrary is proved, that the proceeds of crime are involved in money-laundering. The 'may presume' discretion applies only to other persons, not the accused.

  1. AIt must presume the proceeds are untainted until the prosecution proves otherwise
  2. BIt may presume the proceeds are involved in money-laundering, but is not bound to
  3. CIt shall, unless the contrary is proved, presume that such proceeds of crime are involved in money-launderingCorrect
  4. DIt must not draw any presumption until a conviction for the scheduled offence is recorded

Explanation

Section 24(a) states that for a person charged under Section 3, the Authority or Court shall presume, unless the contrary is proved, that the proceeds are involved in money-laundering. The discretionary 'may presume' applies only to any other person under Section 24(b), so the second option is wrong for an accused.

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