Skip to content

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

Meera, an accountant, knowingly helps her client route funds derived from a scheduled offence through a chain of accounts, though she does not own or hold the money herself. Which statement best reflects Section 3 of the PMLA, 2002?

Meera can be guilty. Section 3 reaches anyone who knowingly assists or is a party to, or is actually involved in, any process or activity connected with proceeds of crime. It does not require her to own or hold the money, and it states no monetary threshold.

  1. AShe can be guilty, because knowingly assisting or being a party to any process connected with proceeds of crime is coveredCorrect
  2. BShe cannot be guilty, because only the person holding the proceeds is covered
  3. CShe cannot be guilty unless the proceeds are first projected as untainted by her personally
  4. DShe can be guilty only if the amount exceeds a prescribed monetary threshold stated in Section 3

Explanation

Section 3 covers whoever directly or indirectly attempts to indulge, knowingly assists, knowingly is a party, or is actually involved in any process or activity connected with proceeds of crime. Ownership is not required, and Section 3 states no monetary threshold.

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