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CMA Final · Cost and Management Audit · Anti-Money Laundering

Mr. Rao is convicted of money-laundering under the PMLA, 2002. The proceeds of crime do not relate to any offence specified under paragraph 2 of Part A of the Schedule. What is the term of rigorous imprisonment prescribed under Section 4?

The punishment is rigorous imprisonment of at least three years, extendable to seven years, along with a liability to fine. The ten-year maximum applies only where the proceeds of crime relate to an offence under paragraph 2 of Part A of the Schedule, which does not apply here.

  1. ANot less than one year, extending to five years
  2. BNot less than three years, extending to seven yearsCorrect
  3. CNot less than three years, extending to ten years
  4. DNot less than five years, extending to ten years

Explanation

Section 4 prescribes rigorous imprisonment of not less than three years, extending to seven years, plus a liability to fine. The extension to ten years applies only where the proceeds relate to an offence under paragraph 2 of Part A of the Schedule, which is not the case here, so the ten-year option is wrong.

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