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

Under Section 24 of the PMLA, in a proceeding relating to proceeds of crime, what is the position regarding a person who is charged with the offence of money-laundering under Section 3?

For a person charged with money-laundering under Section 3, Section 24(a) requires the Authority or Court to presume that the proceeds of crime are involved in money-laundering unless the contrary is proved. The discretionary 'may presume' applies only to other persons not charged.

  1. AThe Authority or Court may presume the proceeds are involved in money-laundering, at its discretion
  2. BThe Authority or Court shall presume that the proceeds are involved in money-laundering, unless the contrary is provedCorrect
  3. CNo presumption can be drawn until the scheduled offence is proved by conviction
  4. DThe Authority or Court must presume the proceeds are untainted unless the prosecution proves otherwise

Explanation

Section 24(a) says that for a person charged under Section 3, the Authority or Court shall presume involvement in money-laundering unless the contrary is proved. The discretionary 'may presume' wording applies only under clause (b) to any other person.

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