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CS Professional · Internal and Forensic Audit · Forensic Audit: Laws and Regulations

The Central Government wants the Inter-ministerial Co-ordination Committee to handle a coordination subject not listed in clauses (a) to (d) of Section 72A of the PMLA. What is the legal position?

The Central Government can assign the Committee additional matters by notification under clause (e) of Section 72A. The list of purposes is therefore not exhaustive, and neither FIU consent nor a fresh Parliamentary amendment is needed.

  1. AIt cannot, because the listed purposes are exhaustive
  2. BIt can, if the Central Government specifies that matter by notificationCorrect
  3. CIt can, but only with the consent of the Financial Intelligence Unit, India
  4. DIt can, but only after Parliament amends the Act each time

Explanation

Clause (e) allows 'any other matter as the Central Government may, by notification, specify'. So the list is not exhaustive and no FIU consent or fresh amendment is required. The exhaustive-list view ignores clause (e).

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