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

Mr. Rao is charged with the offence of money-laundering under Section 3 of the PMLA. In the proceeding relating to proceeds of crime, what does Section 24 provide regarding him?

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 discretionary presumption applies only to other persons.

  1. AThe Court may presume proceeds of crime are involved in money-laundering, at its discretion
  2. BThe Court must presume the proceeds are untainted unless the prosecution proves otherwise
  3. CThe Court shall, unless the contrary is proved, presume that such proceeds of crime are involved in money-launderingCorrect
  4. DNo presumption arises against any person until conviction

Explanation

Under Section 24(a), for a person charged under Section 3 the Authority or Court shall presume involvement in money-laundering unless the contrary is proved. The discretionary 'may presume' applies only to other persons under clause (b).

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