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

Which statement about the fine under Section 4 of the Prevention of Money-Laundering Act, 2002 is correct as the text now stands?

The offender is liable to fine in addition to rigorous imprisonment, and the earlier cap of five lakh rupees was omitted with effect from 15 February 2013. So the current Section 4 contains no fixed upper limit on the fine.

  1. AThe fine is limited to five lakh rupees
  2. BFine is the only punishment where proceeds are small
  3. CThe offender is liable to fine, and the five lakh rupee limit was omitted with effect from 15-2-2013Correct
  4. DThe offender is liable to fine only if imprisonment is less than five years

Explanation

Section 4 makes the offender liable to fine in addition to rigorous imprisonment. The words 'which may extend to five lakh rupees' were omitted w.e.f. 15-2-2013, so no such cap exists in the current text.

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