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

Under the Prevention of Money-Laundering Act, 2002, the Central Government may constitute an Inter-ministerial Co-ordination Committee. Which of the following is a stated purpose of this Committee?

The Inter-ministerial Co-ordination Committee under Section 72A exists for inter-agency coordination, including policy co-operation and co-ordination across all relevant or competent authorities. It does not adjudicate appeals, prosecute offenders or audit reporting entities; those functions belong to other bodies under the Act.

  1. AAdjudicating appeals against orders of attachment of property
  2. BPolicy co-operation and co-ordination across all relevant or competent authoritiesCorrect
  3. CProsecuting persons charged with the offence of money-laundering
  4. DDirectly auditing the books of reporting entities

Explanation

Section 72A lists the purposes of the Committee: operational co-operation among Government, law enforcement agencies, FIU-India and regulators; policy co-operation and co-ordination across authorities; consultation with the financial and other sectors; and developing and implementing AML/CFT policies. It has no adjudicatory, prosecuting or auditing role, so the other options are wrong.

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