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

Under the Prevention of Money-Laundering Act, 2002, what is the general range of rigorous imprisonment for the offence of money-laundering, where the proceeds of crime do not relate to the offence specified under paragraph 2 of Part A of the Schedule?

The general punishment is rigorous imprisonment of not less than three years and up to seven years, along with liability to fine. The upper limit rises to ten years only when the proceeds relate to an offence under paragraph 2 of Part A of the Schedule.

  1. ANot less than one year but up to five years
  2. BNot less than three years but up to seven yearsCorrect
  3. CNot less than five years but up to ten years
  4. DNot less than seven years but up to ten years

Explanation

Section 4 prescribes rigorous imprisonment of at least three years, extending to seven years, plus a liability to fine. The ten-year upper limit applies only where the proceeds relate to an offence under paragraph 2 of Part A of the Schedule, so the five-to-ten-year option wrongly applies the enhanced limit and a wrong minimum.

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