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

The Central Government wishes to sign an agreement with the Government of a country outside India so that both sides can share information to prevent offences of money-laundering and investigate such cases. Under the Prevention of Money-Laundering Act, 2002, which provision empowers the Central Government to do this?

Section 56 empowers the Central Government to enter into agreements with foreign governments for enforcing the Act and for exchanging information to prevent or investigate money-laundering offences. Sections 3 and 4 deal with the offence and its punishment, and Section 29 is omitted.

  1. ASection 56, which allows agreements with foreign countries for enforcing the Act and exchanging informationCorrect
  2. BSection 3, which defines the offence of money-laundering
  3. CSection 4, which prescribes punishment for money-laundering
  4. DSection 29, which deals with the term of office of the authorities

Explanation

Section 56(1) lets the Central Government enter into an agreement with a foreign government for enforcing the Act and for exchanging information to prevent or investigate offences. Section 3 only defines the offence and Section 4 only prescribes punishment. Section 29 has been omitted and never dealt with agreements.

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