The Prevention of Money Laundering Act, 2002 (PMLA) | Paper- 1 | MCQs

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1. Section 1 of PMLA 2002 deals with:

a. Definitions of money-laundering

b. Short title, extent and commencement

c. Offences and penalties

d. Appointment of Adjudicating Authority

2. The PMLA, 2002 was enacted:

a. To prevent money-laundering and provide for confiscation of property derived from or involved in money-laundering

b. Only to punish money-laundering offences

c. To regulate banking transactions only

d. Only for foreign assets

3. Section 1(1) provides that the Act may be called:

a. The Prevention of Corruption Act, 1988

b. The Prevention of Money-laundering Act, 2002

c. The Income Tax Act, 1961

d. The Reserve Bank of India Act, 1934

4. Section 1(2) states that the Act extends to:

a. Only Union territories

b. Whole of India

c. Only metropolitan cities

d. Only States opting for it

5. Section 1(3) mentions that the Act shall come into force:

a. Automatically from the date of enactment

b. Only after approval of Parliament

c. Only after approval of Supreme Court

d. On a date appointed by the Central Government by notification in the Official Gazette

6. Can different dates be appointed for different provisions under PMLA?

a. No, the Act comes into force on a single date only

b. Only for State-specific provisions

c. Yes, the Central Government may appoint different dates for different provisions

d. Only with judicial approval

7. References in any provision to the commencement of the Act shall be construed as:

a. A reference to the coming into force of that provision

b. A reference to date of enactment

c. A reference to parliamentary approval

d. A reference to judicial notification

8. The PMLA was enacted to implement:

a. United Nations Resolutions and Political Declarations on money-laundering

b. Recommendations of RBI only

c. Recommendations of Finance Ministry only

d. Only Supreme Court directives

9. Which UN session adopted the Political Declaration and Global Programme of Action mentioned in PMLA?

a. Seventeenth special session held on 23rd February 1990

b. Fifteenth regular session

c. Nineteenth special session

d. Tenth regular session

10. The UN Political Declaration of June 1998 called upon Member States to:

a. Only regulate banking sector

b. Enforce income tax laws strictly

c. Regulate foreign exchange only

d. Adopt national money-laundering legislation and programme

11. PMLA 2002 was enacted by:

a. Reserve Bank of India

b. Parliament of India in the Fifty-third Year of the Republic of India

c. Ministry of Finance only

d. Supreme Court of India

12. The Act is necessary for:

a. Controlling inflation

b. Implementing UN Resolutions and Declarations

c. Regulating political parties

d. Managing State finances

13. The PMLA applies to:

a. Individuals, companies, and entities involved in money-laundering

b. Only banks

c. Only government offices

d. Only foreign nationals

14. Section 1(3) gives power to the Central Government to:

a. Appoint commencement dates by notification

b. Enforce the law automatically

c. Amend the Act without Parliament

d. Delegate powers to State Governments

15. PMLA 2002 provides for:

a. Only punishment without confiscation

b. Only imprisonment

c. Only monetary fines

d. Confiscation of property derived from or involved in money-laundering

16. Section 1 ensures that different provisions may come into force:

a. Only simultaneously

b. On different dates

c. Only after judicial approval

d. Only in Union territories

17. The reference to “coming into force” in Section 1(3) refers to:

a. The entire Act automatically

b. Only Preamble

c. The specific provision being commenced

d. Only rules framed under the Act

18. The PMLA was enacted considering which international concern?

a. Inflation control

b. Foreign exchange regulation only

c. Money-laundering and related global financial crimes

d. Tax collection procedures

19. The Act was enacted to:

a. Regulate banking sector only

b. Control State finances

c. Provide legal framework to combat money-laundering

d. Regulate political donations

20. Section 1(1) confirms the PMLA 2002:

a. Only applicable to financial institutions

b. Only applicable to Delhi

c. Only applicable to State Governments

d. Is applicable nationwide

21. Section 1 acknowledges UN resolutions adopted in:

a. 2000 and 2002

b. 1988 and 1992

c. 1990 and 1998

d. 1995 and 1999

22. The Act aims to make provisions for matters:

a. Related only to banking operations

b. Related only to taxation

c. Only related to political parties

d. Connected with or incidental to money-laundering

23. Section 1(3) allows the Central Government to:

a. Notify different commencement dates for different provisions

b. Approve judicial appointments

c. Enforce State-specific rules

d. Amend international treaties

24. The PMLA 2002 comes into force by:

a. Judicial approval

b. State Government approval

c. Automatic enactment

d. Notification in the Official Gazette by Central Government

25. The need for PMLA 2002 was emphasized due to:

a. Global concern over money-laundering and UN Political Declarations

b. Only domestic banking irregularities

c. Only State-level corruption

d. Only RBI circulars

26. In PMLA, the term “Adjudicating Authority” refers to:

a. Central Government only

b. An authority appointed under sub-section (1) of section 6

c. Any police officer

d. Appellate Tribunal

27. “Appellate Tribunal” in PMLA refers to:

a. Central Government committee

b. State Revenue Authority

c. Director of Enforcement

d. The Tribunal referred to in section 25

28. Who is an “Assistant Director” under PMLA?

a. An officer appointed under sub-section (1) of section 49

b. Any IRS officer

c. Any judicial officer

d. State police officer

29. “Attachment” under PMLA means:

a. Seizure of property only

b. Prohibition of transfer, conversion, disposition, or movement of property by order issued under Chapter III

c. Arrest of a person

d. Freezing of bank accounts automatically

30. “Authorised person” under PMLA is defined as:

a. Person as defined in clause (c) of section 2 of FEMA, 1999

b. Only bank officers

c. Any government servant

d. Adjudicating Authority

31. Which Act defines “authorised person” referred to in Section 2(da) of PMLA?

a. Banking Regulation Act, 1949

b. Chit Funds Act, 1982

c. Companies Act, 2013

d. Foreign Exchange Management Act, 1999

32. “Banking company” under PMLA includes:

a. A banking company or co-operative bank to which the Banking Regulation Act, 1949 applies

b. Only nationalised banks

c. Only private banks

d. Only foreign banks

33. “Bench” in PMLA refers to:

a. A Bench of the Appellate Tribunal

b. Director of Enforcement

c. Adjudicating Authority

d. High Court

34. “Beneficial owner” under PMLA means:

a. Only a shareholder

b. Any employee of a company

c. Individual who ultimately owns or controls a client of a reporting entity or person on whose behalf a transaction is conducted

d. Government officer

35. Does “beneficial owner” include a person exercising ultimate effective control over a juridical person?

a. Yes

b. No

c. Only if listed in company documents

d. Only in private companies

36. Who is the “Chairperson” under PMLA?

a. Chairperson of the Appellate Tribunal

b. Central Government Secretary

c. Adjudicating Authority

d. Director of Enforcement

37. “Chit fund company” means:

a. Only banking companies

b. Any cooperative society

c. Company managing, conducting, or supervising chits as foreman, agent, or in any other capacity

d. Stock exchange entity

38. The definition of “chit fund company” refers to which Act?

a. Chit Funds Act, 1982

b. Companies Act, 2013

c. Banking Regulation Act, 1949

d. FEMA, 1999

39. “Attachment” is issued under which Chapter of PMLA?

a. Chapter II

b. Chapter IV

c. Chapter III

d. Chapter V

40. An “Assistant Director” functions under:

a. Reserve Bank of India

b. Adjudicating Authority

c. Directorate of Enforcement

d. Appellate Tribunal

41. “Beneficial owner” can relate to:

a. Any government official

b. Client of a reporting entity

c. Only directors of companies

d. Shareholders listed in records only

42. “Authorised person” includes:

a. Person authorised under FEMA for foreign exchange transactions

b. Bank manager only

c. Central Government officers only

d. RBI only

43. “Banking company” under PMLA includes entities referred to in which section of Banking Regulation Act?

a. Section 45

b. Section 10

c. Section 2

d. Section 51

44. “Bench” can consist of:

a. Only Chairperson

b. Director only

c. Single or multiple members of Appellate Tribunal

d. Any officer of Enforcement Directorate

45. “Adjudicating Authority” is appointed under which section of PMLA?

a. Section 6

b. Section 25

c. Section 49

d. Section 2

46. “Appellate Tribunal” hears appeals against:

a. Orders of police

b. Income Tax assessments only

c. Orders of Adjudicating Authority

d. RBI circulars

47. The term “beneficial owner” is relevant for:

a. Reporting entities to trace ultimate ownership

b. Police investigations only

c. Only tax authorities

d. Only stock exchanges

48. “Chairperson” of Appellate Tribunal can:

a. Issue attachment orders directly

b. Preside over benches and hearings of appeals

c. Arrest offenders

d. Investigate cases

49. “Chit fund company” may act as:

a. Foreman, agent, or in any other supervisory capacity for chits

b. Only investor

c. Only government representative

d. Only banker

50. “Attachment” prevents:

a. Only seizure of property

b. Only freezing of bank account

c. Transfer, conversion, disposition, or movement of property

d. Arrest of owner

51. “Assistant Director” is linked to which law enforcement authority?

a. State Police

b. Enforcement Directorate

c. Income Tax Department

d. RBI

52. “Authorised person” is important for PMLA to:

a. Monitor tax compliance

b. Track cross-border money-laundering

c. Approve loans

d. Manage chit funds

53. “Beneficial owner” includes ultimate control over:

a. Juridical persons as well as transactions

b. Only personal assets

c. Only shares of a company

d. Government assets

54. “Banking company” also includes:

a. Only nationalised banks

b. Only private banks

c. Only foreign banks

d. Co-operative banks to which Banking Regulation Act applies

55. The definitions in Section 2 apply:

a. Unless the context otherwise requires

b. Only to enforcement authorities

c. Only to banks

d. Only to Adjudicating Authority

56. Who is a “client” under PMLA?

a. Only the person who conducts the transaction

b. Only the bank managing the transaction

c. A person engaged in a financial transaction or activity with a reporting entity, including the person on whose behalf the transaction is conducted

d. Government authorities

57. “Co-operative bank” under PMLA refers to:

a. Only co-operative societies

b. The meaning assigned in clause (dd) of section 2 of the DICGC Act, 1961

c. Only banking companies under RBI Act

d. Only nationalised banks

58. “Corresponding law” means:

a. Only Indian laws related to money-laundering

b. Only FEMA regulations

c. Only tax laws

d. Any law of any foreign country corresponding to provisions of this Act or dealing with offences corresponding to scheduled offences

59. The term “dealer” under PMLA refers to:

a. Meaning assigned in clause (b) of section 2 of the Central Sales Tax Act, 1956

b. Any person selling goods

c. Only stockbrokers

d. Any bank officer

60. “Deputy Director” means:

a. Any IRS officer

b. A bank manager

c. A Deputy Director appointed under sub-section (1) of section 49

d. Adjudicating Authority

61. Who are included under “Director”, “Additional Director” or “Joint Director”?

a. RBI officials only

b. Officers appointed under sub-section (1) of section 49

c. Police officers only

d. Income Tax officers only

62. “Financial institution” includes:

a. Only banks

b. Only RBI-regulated institutions

c. Only government-owned banks

d. Chit fund companies, housing finance institutions, authorised persons, payment system operators, non-banking financial companies, and Department of Posts

63. “Housing finance institution” is defined under:

a. Clause (d) of section 2 of the National Housing Bank Act, 1987

b. Banking Regulation Act, 1949

c. RBI Act, 1934

d. Companies Act, 2013

64. Which of the following is considered an “intermediary” under PMLA?

a. Only banks

b. Only RBI

c. Stock-broker, share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser

d. Only Income Tax Department

65. Which associations are included as “intermediaries”?

a. Association recognised or registered under Forward Contracts (Regulation) Act, 1952 or members thereof

b. Only stock exchanges

c. Only banks

d. Only government companies

66. PFRDA-registered intermediaries are considered:

a. Banks only

b. Chit fund companies

c. Insurance companies only

d. Intermediaries under PMLA

67. Recognised stock exchanges referred to in which Act are considered intermediaries?

a. Securities Contracts (Regulation) Act, 1956

b. Companies Act, 2013

c. RBI Act, 1934

d. Banking Regulation Act, 1949

68. “Investigation” under PMLA includes:

a. Only police investigation

b. Only banking audit

c. Only prosecution

d. All proceedings under this Act conducted by Director or an authority authorised by Central Government for collection of evidence

69. Who is a “Member” under PMLA?

a. Member of the Appellate Tribunal, including the Chairperson

b. Only the Chairperson of Appellate Tribunal

c. Director of Enforcement

d. Adjudicating Authority

70. “Money-laundering” is defined in:

a. Section 49 of PMLA

b. RBI Act, 1934

c. Section 3 of PMLA

d. Banking Regulation Act, 1949

71. “Non-banking financial company” is defined under:

a. National Housing Bank Act, 1987

b. Chit Funds Act, 1982

c. Clause (f) of section 45-I of Reserve Bank of India Act, 1934

d. Companies Act, 2013

72. “Notification” means:

a. Publication in the Official Gazette

b. Internal circular of a bank

c. Letter from Enforcement Directorate

d. RBI circular

73. “Financial institution” also includes:

a. Department of Posts in Government of India

b. Only commercial banks

c. Only co-operative banks

d. Only NBFCs

74. “Client” also includes:

a. Only the person conducting the transaction

b. Only banks

c. Only companies

d. Person on whose behalf the person engaging in transaction is acting

75. “Director”, “Additional Director”, and “Joint Director” are appointed under which section?

a. Section 49

b. Section 25

c. Section 3

d. Section 6

76. “Intermediary” under PMLA covers which sectors?

a. Only banking

b. Securities market, forward contracts, pension funds, recognised stock exchanges

c. Only housing finance

d. Only chit funds

77. Which term is used for all proceedings conducted by Director for collection of evidence?

a. Investigation

b. Adjudication

c. Attachment

d. Prosecution

78. “Co-operative bank” definition refers to which year of the DICGC Act?

a. 1949

b. 1961

c. 1982

d. 1992

79. “Housing finance institution” definition refers to which year of NHB Act?

a. 1934

b. 1949

c. 2002

d. 1987

80. “Corresponding law” allows cooperation with:

a. Foreign countries with similar money-laundering laws

b. Only Indian law enforcement

c. Only RBI rules

d. Only State Government laws

81. “Deputy Director” functions under:

a. Appellate Tribunal

b. RBI only

c. Enforcement Directorate

d. Courts

82. “Financial institution” under PMLA includes:

a. Only banks

b. Non-banking financial company, chit fund, housing finance institution, authorised person, payment system operator, Department of Posts

c. Only co-operative societies

d. Only government banks

83. “Dealer” refers to:

a. Only brokers

b. Central Sales Tax Act, 1956 definition

c. Only banks

d. Only companies

84. “Member” of Appellate Tribunal includes:

a. Only other members

b. Only Director of ED

c. Only Adjudicating Authority

d. Chairperson

85. PMLA’s definition of “notification” is essential for:

a. Commencement of provisions, rules, and orders

b. Bank circulars only

c. IRS circulars

d. RBI instructions

86. “Offence of cross border implications” means:

a. Any minor financial irregularity in India

b. Conduct outside India which constitutes an offence there and would be an offence under Part A, B, or C of the Schedule if committed in India, with proceeds transferred to India

c. Only tax evasion outside India

d. Only banking offences inside India

87. “Offence of cross border implications” also includes:

a. Only offences committed abroad

b. Only offences committed in India with no international transfer

c. Only tax-related offences

d. Offences in India where proceeds of crime are transferred outside India or attempts are made to transfer them

88. The 2009 Amendment of PMLA does what regarding cross-border offences?

a. It invalidates all prior cases

b. It does not affect any investigation, enquiry, trial, or proceeding before its commencement for offences in Part A or Part B

c. It restricts Indian authorities from investigating prior offences

d. It exempts all foreign transactions

89. A “payment system” under PMLA means:

a. A system enabling payment between a payer and a beneficiary, involving clearing, payment, or settlement services

b. Only bank transfers

c. Only cash payments

d. Only foreign remittance

90. Payment systems include which of the following operations?

a. Only credit card operations

b. Credit card, debit card, smart card, money transfer, or similar operations

c. Only money transfers

d. Only RBI transactions

91. Who is a “payment system operator”?

a. Only the bank manager

b. Only RBI officers

c. Only central government officials

d. A person who operates a payment system, including their overseas principal

92. “Overseas principal” in case of an individual means:

a. An individual residing outside India who owns, controls, or manages, directly or indirectly, the activities of a payment system in India

b. Any bank officer

c. Only a company director

d. Only a HUF member

93. “Overseas principal” in case of a Hindu undivided family means:

a. Any member of HUF

b. The Karta residing outside India who owns, controls, or manages, directly or indirectly, the activities of a payment system in India

c. Only RBI-authorised HUF

d. Only Indian-resident Karta

94. “Overseas principal” in case of a company or association means:

a. Any Indian company

b. Only banks

c. Only foreign individuals

d. A company, firm, association of persons, body of individuals, or artificial juridical person incorporated or registered outside India that owns, controls, or manages, directly or indirectly, the activities of a payment system in India

95. “Person” under PMLA includes:

a. Only individual

b. Individual, HUF, company, firm, association of persons, artificial juridical person, or any agency/office/branch controlled by these persons

c. Only companies

d. Only RBI-regulated entities

96. Does “person” include artificial juridical persons?

a. Yes

b. No

c. Only in India

d. Only government-owned

97. Does “person” include agencies, offices, or branches owned/controlled by persons listed?

a. Yes

b. No

c. Only banks

d. Only companies

98. Cross-border offence is relevant if proceeds of crime are transferred:

a. Only within India

b. Only to foreign banks

c. Only within bank accounts

d. To or from India

99. The term “payment system operator” includes which of the following?

a. Only Indian banks

b. Only RBI-licensed NBFCs

c. Individuals, HUF, companies, firms, associations, or juridical persons managing payment system activities

d. Only foreign remittance companies

100. “Payment system” may involve:

a. Clearing, payment, and settlement

b. Only money transfer

c. Only credit card operations

d. Only banks

101. Part A, B, or C of the Schedule are used to determine:

a. Banking regulations only

b. Only local Indian crimes

c. Offences with cross-border implications

d. Tax offences

102. An “overseas principal” can manage payment system activities:

a. Only directly

b. Only in India

c. Only in foreign banks

d. Directly or indirectly

103. Cross-border offences cover:

a. Both offences committed outside India with proceeds sent to India and offences in India with proceeds sent abroad

b. Only offences outside India

c. Only offences inside India

d. Only foreign tax evasion

104. “Person” includes:

a. Only natural persons

b. Only companies

c. All natural and juridical persons and entities controlled by them

d. Only banks

105. Cross-border offences under PMLA require:

a. Only domestic transaction

b. Transfer or attempted transfer of proceeds of crime

c. Only money remittance

d. Only tax reporting

106. “Payment system” includes operations like:

a. Only cheque payments

b. Only cash transfers

c. Only NEFT

d. Credit card, debit card, smart card, money transfer, or similar operations

107. “Director”, “Deputy Director” or “payment system operator” can investigate cross-border offences?

a. Yes, if authorised under PMLA

b. No, only RBI

c. No, only courts

d. No, only banks

108. A company registered outside India controlling a payment system in India is:

a. Domestic company

b. Overseas principal

c. RBI entity

d. Not relevant

109. Cross-border offence does not include:

a. Only domestic offences with no international transfer of proceeds

b. Offences committed abroad with proceeds sent to India

c. Offences committed in India with proceeds sent abroad

d. Attempted transfers abroad

110. “Person” includes which HUF member?

a. Any member

b. Only daughters

c. Karta

d. Only sons

111. “Payment system operator” includes overseas principal in which cases?

a. Only Indian banks

b. Only RBI-approved companies

c. Individual, HUF, company, firm, association, or juridical person

d. Only individuals in India

112. The explanation to “offence of cross border implications” ensures:

a. Prior investigations under Part A/B before 2009 Amendment are not affected

b. Only new offences are counted

c. Domestic cases are excluded

d. Only RBI-authorised cases are valid

113. Does “person” include firms and associations whether incorporated or not?

a. Yes

b. No

c. Only incorporated firms

d. Only associations

114. “Overseas principal” manages payment system:

a. Only directly in India

b. Only through RBI

c. Directly or indirectly from outside India

d. Only through banks

115. Cross-border offences require proving:

a. Only the conduct abroad

b. Only domestic crime

c. Only tax offences

d. Conduct abroad corresponding to offences in PMLA and transfer/attempted transfer of proceeds

116. Who is a “person carrying on designated business or profession”?

a. A person carrying on activities for playing games of chance for cash or kind, including casinos

b. Only bank employees

c. Only government officers

d. Only stock brokers

117. Which official is included as a person carrying on designated business?

a. Any RBI officer

b. Inspector-General of Registration appointed under section 3 of the Registration Act, 1908, as notified by the Central Government

c. Only Indian Police Service officers

d. Only Directors of companies

118. Which of the following is considered a person carrying on designated business?

a. Real estate agents notified by the Central Government

b. Any individual investor

c. Only banks

d. Only insurance companies

119. Dealers in which items can be designated as “persons carrying on designated business”?

a. Only coins

b. Only cash

c. Only immovable property

d. Precious metals, precious stones, and other high-value goods as notified by the Central Government

120. “Person carrying on designated business” also includes:

a. Only government officers

b. Only banks

c. Persons engaged in safekeeping and administration of cash and liquid securities on behalf of others, as notified by the Central Government

d. Only RBI

121. Who may be designated by the Central Government as a person carrying on other activities?

a. Only banks

b. Any person carrying on such other activities as notified from time to time

c. Only stock exchanges

d. Only insurance companies

122. “Precious metal” includes:

a. Only gold and silver

b. Only coins

c. Only foreign currency

d. Gold, silver, platinum, palladium, rhodium, or any other metal notified by the Central Government

123. “Precious stone” includes:

a. Diamond, emerald, ruby, sapphire, or any other stone notified by the Central Government

b. Only diamonds

c. Only emeralds

d. Only jewellery

124. “Prescribed” means:

a. Any general government notification

b. Prescribed by rules made under this Act

c. Only RBI regulations

d. Only court orders

125. “Proceeds of crime” means:

a. Only cash

b. Only immovable property

c. Only bank deposits

d. Any property derived or obtained directly or indirectly by any person as a result of criminal activity relating to a scheduled offence

126. Do “proceeds of crime” include property indirectly obtained from a scheduled offence?

a. Yes

b. No

c. Only if it is cash

d. Only if immovable property

127. “Property” includes:

a. Only cash

b. Only jewellery

c. Any property or assets of every description, corporeal or incorporeal, movable or immovable, tangible or intangible

d. Only land

128. Does “property” include deeds and instruments evidencing title?

a. No

b. Only in India

c. Only with banks

d. Yes, wherever located

129. Does “property” include property used in the commission of a scheduled offence?

a. Yes

b. No

c. Only cash

d. Only movable assets

130. “Real estate agent” is defined under which Act?

a. Companies Act, 2013

b. Clause (88) of section 65 of the Finance Act, 1994

c. Registration Act, 1908

d. RBI Act, 1934

131. “Records” under PMLA include:

a. Only paper records

b. Only digital records

c. Only bank records

d. Records maintained in books, stored in computers, or in any other form as prescribed

132. “Reporting entity” includes:

a. Only banks

b. Banking company, financial institution, intermediary, or person carrying on designated business or profession

c. Only RBI-regulated entities

d. Only stock exchanges

133. “Scheduled offence” includes offences under:

a. Part A of the Schedule

b. Part B if value involved is one crore rupees or more

c. Part C of the Schedule

d. All of the above

134. “Special Court” means:

a. A Court of Session designated as Special Court under section 43(1)

b. Any Magistrate Court

c. Only Supreme Court

d. Only High Court

135. “Transfer” includes:

a. Sale, purchase, mortgage, pledge, gift, loan, or any form of transfer of right, title, possession, or lien

b. Only sale and purchase

c. Only pledge

d. Only loans

136. “Value” under PMLA means:

a. Only purchase price

b. Fair market value on the date of acquisition or possession if acquisition date unknown

c. Only book value

d. Only assessed tax value

137. References in PMLA to an enactment not in force in an area are:

a. Ignored

b. Only considered by courts

c. Construed as reference to the corresponding law or provisions in force in that area

d. Only applicable for banks

138. Does “person carrying on designated business” include casino operators?

a. Yes

b. No

c. Only gaming companies

d. Only banks

139. Does “precious metal” include metals notified by the Central Government apart from gold, silver, platinum, palladium, rhodium?

a. Yes

b. No

c. Only if used in jewellery

d. Only if exported

140. Are “precious stones” limited to diamond, emerald, ruby, sapphire?

a. Yes, only those four

b. No, also any stone notified by the Central Government

c. Only rubies

d. Only diamonds

141. Does “proceeds of crime” include equivalent property held abroad?

a. Yes

b. No

c. Only if in cash

d. Only if immovable

142. Can “records” be stored in digital form under PMLA?

a. No

b. Only paper records

c. Yes

d. Only physical forms

143. Does the definition of “reporting entity” include financial intermediaries?

a. Yes

b. No

c. Only banks

d. Only NBFCs

144. Scheduled offences under Part B are included if:

a. Any value

b. Only cash offences

c. Total value involved is one crore rupees or more

d. Only property offences

145. “Transfer” under PMLA is limited to:

a. Only sale

b. Only mortgage

c. Only pledge

d. No, it covers any sale, purchase, mortgage, pledge, gift, loan, or other form of transfer

146. Who can be held guilty of money-laundering under Section 3?

a. Only the person who directly acquires proceeds of crime

b. Only bank officials handling illegal funds

c. Whosoever directly or indirectly attempts, knowingly assists, is a party, or is involved in processes connected with proceeds of crime

d. Only government officials

147. Which of the following is included as a process connected with proceeds of crime?

a. Concealment

b. Acquisition

c. Use

d. All of the above

148. Projecting proceeds of crime as untainted property:

a. Is not punishable

b. Is punishable only if the amount exceeds ₹1 crore

c. Is punishable under Section 3

d. Is exempt if deposited in a bank

149. Claiming proceeds of crime as untainted property:

a. Requires physical possession of the property

b. Is punishable even without possession if done knowingly

c. Is only punishable for government officials

d. Is only punishable for amounts above ₹50 lakh

150. Which of the following is not covered under money-laundering?

a. Concealment of crime proceeds

b. Use of crime proceeds

c. Legal investment of own money

d. Acquisition of proceeds from scheduled offences

151. The offence of money-laundering continues until:

a. Proceeds are physically destroyed

b. Proceeds are legally invested

c. The person directly or indirectly enjoys proceeds through concealment, possession, acquisition, use, projecting, or claiming as untainted

d. Proceedings are filed by authorities

152. Which of the following statements is correct?

a. Only direct involvement in proceeds of crime is punishable

b. Only indirect assistance is punishable

c. Both direct and indirect involvement or assistance are punishable

d. Only ownership of proceeds is punishable

153. Which of the following is necessary to constitute money-laundering?

a. Knowledge of the illicit origin of property

b. Physical possession of proceeds

c. Direct acquisition only

d. Government approval

154. Money-laundering includes which of the following activities?

a. Concealment

b. Use

c. Acquisition and possession

d. All of the above

155. A person who indirectly enjoys proceeds of crime through a third party:

a. Cannot be punished

b. Is punishable under Section 3

c. Is only punishable if they are a public servant

d. Is punishable only for amounts above ₹1 crore

156. Which of the following is true regarding an attempt to launder money?

a. Punishable only if successful

b. Punishable even if unsuccessful

c. Only applies to corporate entities

d. Only applies to government employees

157. Which of the following statements is correct about “use” of proceeds of crime?

a. Includes any utilisation for personal benefit

b. Includes only cash transactions

c. Only includes immovable property

d. Only includes foreign transfers

158. Which of the following is not a mode of money-laundering under Section 3?

a. Concealment

b. Acquisition

c. Legal investment of own funds

d. Claiming proceeds as untainted

159. Section 3 punishes:

a. Only those who directly handle crime proceeds

b. Anyone who knowingly assists, indulges, is a party, or is involved directly or indirectly

c. Only corporate bodies

d. Only persons who conceal proceeds abroad

160. Which of the following is mandatory for liability under Section 3?

a. Knowledge or awareness of the illegal nature of property

b. Physical possession of proceeds

c. Government sanction

d. Ownership of the property

161. The term “projecting proceeds as untainted” includes:

a. Representing crime proceeds as lawful property

b. Concealing money in banks

c. Using money in daily transactions only

d. Only transferring funds abroad

162. Which of the following is true about indirect involvement?

a. Not punishable

b. Punishable under Section 3

c. Only punishable if proceeds exceed ₹1 crore

d. Only applies to public servants

163. Money-laundering under Section 3 includes:

a. Concealment, possession, acquisition, use

b. Projecting and claiming as untainted property

c. Both a and b

d. Only acquisition and use

164. If a person knowingly acts as a conduit for crime proceeds:

a. Not punishable

b. Punishable only if directly handling the proceeds

c. Exempt if acting on instructions

d. Punishable under Section 3

165. Money-laundering continues until:

a. The proceeds are disposed of legally

b. The person enjoys proceeds by concealment, possession, acquisition, use, projecting, or claiming as untainted

c. Investigation starts

d. Only when property is frozen by authorities

166. Which of the following is true about claiming proceeds as untainted?

a. Requires direct possession

b. Requires knowledge of illegal origin

c. Punishable even without possession if claimed knowingly

d. Only applies to movable property

167. A person who indirectly helps in laundering proceeds abroad:

a. Cannot be punished

b. Is punishable under Section 3

c. Only punishable if public servant

d. Only punishable if proceeds exceed ₹1 crore

168. “Proceeds of crime” under Section 3 includes:

a. Property derived directly or indirectly from scheduled offences

b. Only cash or movable property

c. Only immovable property above ₹50 lakh

d. Only foreign-held property

169. Which of the following statements is correct?

a. Money-laundering requires both direct possession and knowledge

b. Money-laundering includes direct or indirect involvement in concealment, acquisition, use, projecting, or claiming

c. Only direct involvement is punishable

d. Only indirect involvement is punishable

170. Which of the following activities alone is sufficient for liability under Section 3?

a. Concealment

b. Possession

c. Projecting as untainted

d. Any of the above, if done knowingly

171. Does Section 3 cover indirect enjoyment through a third party?

a. No, only direct enjoyment

b. Yes, indirect enjoyment is punishable

c. Only if proceeds are cash

d. Only if proceeds are movable

172. Which of the following statements is false?

a. Attempting to launder money is punishable

b. Concealment, acquisition, use, projecting, claiming are all punishable activities

c. Money-laundering is only punishable for corporate entities

d. Indirect involvement is punishable

173. The term “use” of proceeds includes:

a. Any personal utilization

b. Only banking operations

c. Only foreign transfers

d. Only real estate transactions

174. Which of the following is true?

a. Section 3 applies only to movable property

b. Section 3 applies to both movable and immovable property derived from crime

c. Section 3 applies only to bank accounts

d. Section 3 applies only to amounts above ₹1 crore

175. Which of the following is not required to constitute an offence under Section 3?

a. Knowledge of illegal origin

b. Direct involvement

c. Ownership of property

d. Attempt or indirect assistance

176. Section 4 of the PMLA, 2002 deals with—

a. Attachment of property

b. Confiscation of proceeds of crime

c. Punishment for money-laundering

d. Powers of arrest

177. Under Section 4, punishment is imposed on—

a. Only public servants

b. Only companies

c. Only persons convicted of scheduled offences

d. Whoever commits the offence of money-laundering

178. The imprisonment prescribed under Section 4 is—

a. Simple imprisonment

b. Rigorous imprisonment

c. Preventive detention

d. Civil imprisonment

179. What is the minimum term of imprisonment under Section 4?

a. One year

b. Two years

c. Three years

d. Five years

180. The words “shall not be less than three years” signify—

a. Discretionary punishment

b. Mandatory minimum sentence

c. Probation applicability

d. Optional imprisonment

181. In ordinary cases, the maximum term of imprisonment under Section 4 may extend to—

a. Five years

b. Seven years

c. Eight years

d. Ten years

182. In addition to imprisonment, the offender under Section 4 is also—

a. Liable to confiscation only

b. Liable to civil damages

c. Disqualified from public office

d. Liable to fine

183. The nature of fine under Section 4 is—

a. Optional and fixed

b. Mandatory and fixed

c. Mandatory but amount not specified

d. Optional and unlimited

184. The proviso to Section 4 applies when—

a. Any scheduled offence is involved

b. Proceeds of crime relate to Part B of the Schedule

c. Proceeds of crime relate to offences under Paragraph 2 of Part A of the Schedule

d. Accused is a repeat offender

185. When the proviso to Section 4 applies, the maximum imprisonment may extend to—

a. Seven years

b. Eight years

c. Ten years

d. Life imprisonment

186. The proviso to Section 4 enhances—

a. The minimum punishment

b. The nature of fine

c. The maximum punishment

d. The definition of offence

187. The proviso substitutes which words in Section 4?

a. “Rigorous imprisonment”

b. “Shall not be less than three years”

c. “Which may extend to seven years”

d. “Shall also be liable to fine”

188. The substituted words under the proviso are—

a. “Which may extend to eight years”

b. “Which may extend to ten years”

c. “Which shall extend to ten years”

d. “Which may extend to life”

189. Section 4 punishment is attracted upon—

a. Registration of FIR

b. Attachment of property

c. Commission of offence of money-laundering

d. Conviction for scheduled offence alone

190. The enhancement of punishment under Section 4 depends on—

a. Amount of money involved

b. Status of the accused

c. Nature of offence mentioned in the Schedule

d. Stage of trial

191. Section 4 prescribes punishment for—

a. Scheduled offence

b. Predicate offence

c. Money-laundering offence

d. Economic offences generally

192. The term “proceeds of crime” in the proviso is relevant for—

a. Determining jurisdiction

b. Enhancing punishment

c. Grant of bail

d. Compounding of offence

193. Can imprisonment under Section 4 be less than three years?

a. Yes, at court’s discretion

b. Yes, on payment of fine

c. No, minimum is mandatory

d. Yes, for first-time offenders

194. Section 4 provides punishment which is—

a. Only civil in nature

b. Only monetary

c. Both imprisonment and fine

d. Preventive in nature

195. Which part of the Schedule is specifically referred to in the proviso to Section 4?

a. Part A, Paragraph 1

b. Part A, Paragraph 2

c. Part B

d. Part C

196. Section 4 is classified as—

a. Procedural provision

b. Investigative provision

c. Substantive penal provision

d. Administrative provision

197. The maximum punishment of ten years under Section 4 applies—

a. In all money-laundering cases

b. Only when fine is imposed

c. Only in cases covered by the proviso

d. When court records special reasons

198. Section 4 aims primarily to—

a. Regulate financial institutions

b. Deter money-laundering through strict punishment

c. Punish scheduled offences

d. Provide compensation to victims

199. Which statement is legally correct regarding Section 4?

a. It prescribes simple imprisonment

b. It allows probation

c. It prescribes mandatory minimum imprisonment

d. It provides life imprisonment

200. The punishment under Section 4 becomes more severe when—

a. Accused absconds

b. Proceeds of crime relate to serious scheduled offences

c. Investigation is delayed

d. Property is attached

201. Section 5 of the Prevention of Money-Laundering Act, 2002 deals with—

a. Confiscation of property

b. Search and seizure

c. Arrest of accused

d. Provisional attachment of property

202. Under Section 5(1), who is competent to order provisional attachment of property?

a. Any police officer

b. Magistrate

c. Director or officer not below the rank of Deputy Director authorised by him

d. Adjudicating Authority

203. Before ordering attachment under Section 5(1), the authorised officer must have—

a. Written permission of court

b. Reason to believe recorded in writing

c. Approval of Central Government

d. Confession of accused

204. The “reason to believe” under Section 5(1) must be based on—

a. Oral information

b. Suspicion alone

c. Material in possession of the officer

d. Police diary

205. One of the conditions for attachment under Section 5(1) is that—

a. Any offence has been committed

b. Property is immovable

c. Accused is absconding

d. Any person is in possession of proceeds of crime

206. Another mandatory condition under Section 5(1) is that the proceeds of crime are likely to—

a. Be sold at auction

b. Be concealed, transferred or dealt with to frustrate confiscation proceedings

c. Lose market value

d. Be mortgaged

207. Provisional attachment under Section 5(1) can be ordered for a maximum period of—

a. One hundred twenty days

b. Ninety days

c. One hundred eighty days

d. One year

208. The period of one hundred eighty days under Section 5(1) is to be counted from—

a. Date of registration of FIR

b. Date of attachment order

c. Date of scheduled offence

d. Date of filing complaint

209. As per the first proviso to Section 5(1), no attachment shall be made unless—

a. Cognizance has been taken by court

b. Charge is framed

c. Accused is arrested

d. A report under Section 173 CrPC or a complaint has been filed

210. The report referred to in the first proviso to Section 5(1) is forwarded under—

a. Section 154 CrPC

b. Section 161 CrPC

c. Section 173 CrPC

d. Section 190 CrPC

211. The first proviso to Section 5(1) also recognises reports or complaints filed—

a. Only under Indian law

b. Only under CrPC

c. Under corresponding law of any other country

d. Only under special statutes

212. The second proviso to Section 5(1) permits attachment even without fulfilling the first proviso when—

a. Property value exceeds one crore

b. Accused is a foreign national

c. Property is movable

d. Immediate attachment is necessary to prevent frustration of proceedings

213. For invoking the second proviso to Section 5(1), the officer must—

a. Obtain court permission

b. Record reasons in writing

c. Give prior hearing

d. Publish notice

214. The third proviso to Section 5(1) relates to—

a. Computation of attachment period

b. Release of property

c. Sale of attached property

d. Enjoyment of property

215. While computing 180 days, which period shall be excluded?

a. Period of investigation

b. Period of trial

c. Period of appeal

d. Period during which proceedings are stayed by High Court

216. After vacation of stay by the High Court, an additional period not exceeding how many days is allowed?

a. Fifteen days

b. Thirty days

c. Forty-five days

d. Sixty days

217. Under Section 5(2), after attachment, the Director shall forward the attachment order—

a. To the Adjudicating Authority

b. To the Magistrate

c. To the Central Government

d. To the Special Court

218. The order and material under Section 5(2) shall be forwarded—

a. By ordinary post

b. Electronically

c. Through police

d. In sealed envelope

219. Under Section 5(3), an attachment order shall cease to have effect—

a. On filing of complaint

b. After confirmation by Adjudicating Authority

c. After expiry of 180 days or order under Section 8(3), whichever is earlier

d. Only after acquittal

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