Skip to content

CS Executive · Economic, Commercial and Intellectual Property Laws · Prevention of Money Laundering

Meera is found guilty of money-laundering where the proceeds of crime relate to an offence specified under paragraph 2 of Part A of the Schedule. What is the maximum term of rigorous imprisonment under Section 4?

The maximum is ten years of rigorous imprisonment. The proviso to Section 4 raises the upper limit from seven to ten years when the proceeds of crime relate to an offence under paragraph 2 of Part A of the Schedule, while the minimum stays at three years.

  1. AFive years
  2. BSeven years
  3. CTen yearsCorrect
  4. DFourteen years

Explanation

The proviso to Section 4 substitutes the words 'which may extend to ten years' for 'which may extend to seven years' where proceeds relate to a paragraph 2 of Part A offence. The minimum remains three years. Seven years is the general maximum and so is wrong here.

Did you get it right without looking?

One question tells you little. A timed set on Prevention of Money Laundering shows your real accuracy, how long you take and where you lose marks.

Practise Prevention of Money LaunderingFree diagnostic mock

More Prevention of Money Laundering questions