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

In a proceeding relating to proceeds of crime under the PMLA, 2002, the court is dealing with two persons: A, who is charged with the offence under section 3, and B, who is not so charged. Which statement correctly reflects section 24?

For a person charged with the offence under section 3, the Authority or Court shall presume the proceeds are involved in money-laundering unless the contrary is proved. For any other person the Authority or Court may presume, so the presumption is discretionary.

  1. AFor both A and B, the court must presume that proceeds are involved in money-laundering unless the contrary is proved
  2. BFor A the court shall presume unless the contrary is proved; for B the court may presumeCorrect
  3. CFor A the court may presume; for B the court shall presume unless the contrary is proved
  4. DFor neither A nor B is any presumption permitted until the prosecution proves involvement beyond doubt

Explanation

Section 24(a) makes the presumption mandatory (shall, unless the contrary is proved) for a person charged under section 3. Section 24(b) makes it discretionary (may) for any other person. Option A wrongly makes it mandatory for both.

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