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

Under section 56(2) of the PMLA, what may the Central Government do regarding a contracting State with which reciprocal arrangements have been made?

The Central Government may, by notification in the Official Gazette, direct that the application of the Chapter in relation to a contracting State with reciprocal arrangements is subject to specified conditions, exceptions or qualifications. It cannot alter punishment or exempt offenders without notification.

  1. ADirect by notification that the application of the relevant Chapter in relation to that State is subject to specified conditions, exceptions or qualificationsCorrect
  2. BAmend section 4 by executive order to change the punishment
  3. CExtend the term of office of authorities under the omitted section 29
  4. DExempt the State's citizens from the offence defined in section 3 without any notification

Explanation

Section 56(2) allows the Central Government, by notification in the Official Gazette, to direct that the application of the Chapter in relation to a contracting State with reciprocal arrangements is subject to specified conditions, exceptions or qualifications. It confers no power to change punishment or exempt persons from the offence without notification.

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