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

Ms. Kavita, who is not charged with money-laundering, is a party to proceedings relating to proceeds of crime under the PMLA, 2002. Compared with an accused charged under section 3, which statement on the presumption under section 24 is correct?

For a person not charged under section 3, the Authority or Court may presume that the proceeds of crime are involved in money-laundering, which is discretionary. For a person charged, it shall presume this unless the contrary is proved, which is mandatory.

  1. AThe Court must presume proceeds are involved in money-laundering for her, unless the contrary is proved
  2. BThe Court may presume that such proceeds are involved in money-laundering, whereas for the person charged it shall presume this unless the contrary is provedCorrect
  3. CNo presumption of any kind can be drawn against her
  4. DThe Court may presume for the charged person but must presume for her

Explanation

Under section 24(a), for a person charged under section 3 the Authority or Court shall presume involvement unless the contrary is proved. Under section 24(b), for any other person it may presume. So the presumption is mandatory for the accused but discretionary for others. Option 4 reverses this.

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