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

Which statement about the punishment under section 4 of the PMLA, 2002, as reproduced, is correct?

Section 4 provides rigorous imprisonment of at least three years and up to seven years, with fine. The maximum rises to ten years where the proceeds relate to an offence under paragraph 2 of Part A of the Schedule. The old five lakh rupee fine cap has been omitted.

  1. ARigorous imprisonment of not less than three years up to seven years, extendable to ten years where the proceeds relate to an offence under paragraph 2 of Part A of the Schedule, plus liability to fineCorrect
  2. BRigorous imprisonment up to seven years with fine capped at five lakh rupees
  3. CSimple imprisonment of one to five years, extendable to ten years for all scheduled offences
  4. DRigorous imprisonment of not less than five years up to ten years in every case

Explanation

Section 4 prescribes rigorous imprisonment of at least three and up to seven years, with the upper limit raised to ten years for proceeds relating to offences under paragraph 2 of Part A of the Schedule. The five lakh rupee fine cap was omitted from 15-2-2013, so option B is outdated.

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