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

Several linked transactions of a trading firm are examined. One transaction is proved to be involved in money-laundering, and the others are inter-connected with it. Under Section 23 of the PMLA, for adjudication or confiscation under section 8, what follows?

It is presumed that the remaining transactions form part of the inter-connected transactions involved in money-laundering, unless the person proves otherwise to the satisfaction of the Adjudicating Authority or Special Court. The presumption is rebuttable and applies to adjudication, confiscation and trial.

  1. AOnly the proved transaction can be considered; others need fresh proof
  2. BIt is presumed that the remaining transactions form part of the inter-connected transactions, unless proved otherwise to the satisfaction of the Adjudicating Authority or Special CourtCorrect
  3. CThe remaining transactions are conclusively treated as laundering and cannot be rebutted
  4. DThe presumption applies only to the trial and not to adjudication

Explanation

Section 23 creates a rebuttable presumption: where one or more inter-connected transactions are proved to involve money-laundering, the remaining ones are presumed to form part of them unless otherwise proved. It applies to adjudication or confiscation under section 8 as well as to trial, so conclusive and trial-only options are wrong.

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