THE PREVENTION OF MONEY-LAUNDERING ACT, 2002
ACT NO. 15 OF 2003
1. The power of the Director under Section 12A(1) is—
a. Limited to suspicious transactions
b. Limited to banking companies
c. Broad and discretionary for purposes of the Act
d. Subject to prior court approval
2. Failure to furnish information under Section 12A may attract—
a. No consequence
b. Civil liability only
c. Consequences under the PMLA
d. Only departmental action
3. Section 12A applies in relation to—
a. Investigation stage only
b. Reporting entities’ obligations
c. Trial stage only
d. Appeal proceedings
4. Which section directly complements Section 12A?
a. Section 11A and Section 12
b. Section 3
c. Section 8
d. Section 19
5. The expression “save as otherwise provided” in Section 12A(3) indicates—
a. Absolute confidentiality
b. Conditional confidentiality
c. No confidentiality
d. Judicial confidentiality only
6. The Director’s power under Section 12A is exercised for—
a. Personal satisfaction
b. Banking supervision
c. Enforcement of the Act
d. Tax assessment
7. Section 12A primarily ensures—
a. Speedy trials
b. Access to necessary compliance data
c. Protection of accused
d. Judicial review
8. Section 12A was introduced to enhance—
a. Punishment provisions
b. Transparency and regulatory oversight
c. Appeal rights
d. Confiscation powers
9. Section 12AA of the PMLA, 2002 deals with—
a. Access to information
b. Maintenance of records
c. Enhanced due diligence by reporting entities
d. Attachment of property
10. Before commencement of each specified transaction, a reporting entity is required to—
a. Verify identity of the client
b. Report to Director
c. Confiscate property
d. File complaint in Special Court
11. Verification under Section 12AA(1)(a) may be carried out using—
a. Passport only
b. PAN card only
c. Voter ID only
d. Aadhaar authentication
12. If a client is not entitled to obtain an Aadhaar number, verification shall be—
a. Carried out by other prescribed process or mode
b. Not conducted
c. Deferred indefinitely
d. Done only by passport
13. Under Section 12AA(1)(b), reporting entities must examine—
a. Criminal record of client
b. Ownership and financial position, including sources of funds
c. Voting history
d. Bank’s internal audit only
14. Section 12AA(1)(c) requires recording—
a. PAN number only
b. Purpose behind the transaction and intended nature of relationship between parties
c. Date of transaction only
d. Identity documents only
15. If a client fails to fulfill the conditions under Section 12AA(1), the reporting entity shall—
a. Not allow the specified transaction to be carried out
b. Allow the transaction with caution
c. Allow the transaction
d. Refer the client to the Director
16. Section 12AA(3) requires reporting entities to increase monitoring when—
a. Client is new
b. Specified transaction is low value
c. Client provides Aadhaar
d. Transactions are suspicious or likely to involve proceeds of crime
17. Enhanced monitoring under Section 12AA(3) includes—
a. Greater scrutiny of future transactions
b. Immediate freezing of all accounts
c. Filing criminal complaint only
d. Ignoring low-value transactions
18. Information obtained under enhanced due diligence measures shall be maintained for—
a. Three years from date of transaction
b. Five years from date of transaction
c. Until client leaves the bank
d. Ten years
19. The term “specified transaction” includes—
a. Any transaction below prescribed limit
b. Withdrawal or deposit in cash exceeding prescribed amount
c. Only cheque transactions
d. Only credit card payments
20. “Specified transaction” also includes—
a. Foreign exchange transaction exceeding prescribed amount
b. Only domestic transactions
c. Any transaction below Rs. 10,000
d. Only loan repayments
21. “Specified transaction” further includes—
a. All low-value transactions
b. High-value imports or remittances
c. Only local remittances
d. Only recurring deposits
22. Other types of “specified transactions” may include—
a. Any transaction in the interest of revenue or where there is high risk of money-laundering or terrorist financing
b. Only cheque payments
c. Only small cash withdrawals
d. Only government transactions
23. The purpose of Section 12AA is primarily to—
a. Confiscate client property
b. Conduct trials
c. Issue summons
d. Monitor suspicious transactions and prevent money-laundering
24. Under Section 12AA(1), due diligence measures apply—
a. After completion of transaction
b. Prior to commencement of each specified transaction
c. Only at account opening
d. Only during investigation
25. Enhanced due diligence under Section 12AA ensures—
a. Client privacy is compromised
b. All transactions are automatically reported
c. Transactions above threshold are properly scrutinized
d. Only low-value transactions are monitored
26. The prescribed measures under Section 12AA may include—
a. Biometric authentication
b. Examining financial position and source of funds
c. Recording purpose and relationship of transaction parties
d. All of the above
27. Failure to follow enhanced due diligence under Section 12AA can result in—
a. Penalty under PMLA
b. Warning only
c. No consequence
d. Immediate imprisonment
28. Section 12AA complements—
a. Sections 11A, 12, 12A
b. Sections 3 and 4 only
c. Sections 9 and 10 only
d. Sections 5 and 6 only
29. Enhanced due diligence under Section 12AA ensures that—
a. Transactions are left unchecked
b. Money-laundering risks are mitigated
c. Only cash transactions are monitored
d. Only banking companies are monitored
30. Specified transaction under Section 12AA may be prescribed by—
a. Adjudicating Authority
b. Central Government
c. RBI
d. Director only
31. Section 12AA safeguards the financial system by—
a. Confiscating all transactions
b. Implementing pre-transaction verification and monitoring
c. Issuing penalties for minor errors only
d. Reducing reporting obligations
32. Reporting entities under Section 12AA must maintain due diligence information for—
a. Duration of the account only
b. Five years from date of transaction
c. Three years from date of account opening
d. One year only
33. The Explanation in Section 12AA defines “specified transaction” to include—
a. Small routine payments
b. Transactions under Rs. 10,000
c. High-risk transactions as may be prescribed
d. Only domestic transfers
34. Section 13 of the PMLA, 2002 deals with—
a. Attachment of property
b. Enhanced due diligence
c. Powers of Director to impose fine
d. Maintenance of records
35. Under Section 13(1), the Director may initiate an inquiry—
a. Only on court orders
b. Only on application by reporting entity
c. Only after Special Court approval
d. Either on his own motion or on an application by any authority, officer, or person
36. The inquiry under Section 13(1) relates to—
a. Criminal liability of clients
b. Confiscation of property
c. Appeals filed by reporting entity
d. Obligations of the reporting entity under the Chapter
37. Under Section 13(1A), the Director may direct the reporting entity to—
a. Close the account
b. Get its records audited by an accountant from a panel maintained by Central Government
c. Confiscate property
d. Furnish monthly returns
38. Who bears the expenses of the audit under Section 13(1B)?
a. Reporting entity
b. Director personally
c. Central Government
d. Special Court
39. Under Section 13(2), if the Director finds non-compliance, he may—
a. Issue a warning
b. Give specific compliance instructions
c. Direct periodic reporting
d. Impose monetary penalty
e. All of the above
40. The minimum penalty under Section 13(2)(d) is—
a. ₹1,000
b. ₹5,000
c. ₹10,000
d. ₹50,000
41. The maximum penalty under Section 13(2)(d) is—
a. ₹50,000
b. ₹1,00,000
c. ₹5,00,000
d. ₹10,00,000
42. The monetary penalty under Section 13(2)(d) is applicable to—
a. Only reporting entity
b. Reporting entity, designated directors, or employees
c. Only clients
d. Only auditors
43. Under Section 13(3), a copy of the Director’s order shall be forwarded to—
a. Only reporting entity
b. Only the Special Court
c. RBI only
d. Every banking company, financial institution, intermediary, or person who is a party to the proceedings
44. The term “accountant” for the purpose of Section 13(1A) means—
a. Any finance officer
b. Chartered Accountant within the meaning of the Chartered Accountants Act, 1949
c. Auditor of the company
d. Director of finance only
45. The Director’s powers under Section 13 are—
a. Limited to issuing warnings
b. Limited to recommending penalties to courts
c. Broad, including warning, instructions, reporting directions, and imposing monetary penalty
d. Only advisory
46. Section 13 empowers the Director to act—
a. Independently or on application of any authority, officer, or person
b. Only after a Special Court order
c. Only on complaint of reporting entity
d. Only on RBI directions
47. The audit under Section 13(1A) is—
a. Optional for reporting entity
b. Mandatory if directed by the Director
c. Only for criminal cases
d. Limited to cash transactions
48. Section 13(2)(b) allows the Director to—
a. Direct reporting entity or its directors/employees to comply with specific instructions
b. Close accounts of clients
c. Confiscate property
d. File complaint in court
49. Section 13 ensures—
a. Strict punishment of clients
b. Compliance of reporting entities with PMLA obligations
c. Confiscation of high-value property
d. Investigation of special transactions only
50. Section 13(2)(c) empowers the Director to—
a. Direct submission of reports at prescribed intervals on measures taken
b. Suspend the reporting entity
c. Freeze client accounts
d. Initiate prosecution
51. Monetary penalties under Section 13(2)(d) are—
a. Only indicative
b. Unlimited
c. Only for directors
d. Not less than ₹10,000 and may extend to ₹1 lakh for each failure
52. Section 13(2) penalties are imposed—
a. Without prejudice to other action under the Act
b. Only after criminal conviction
c. Only after Special Court order
d. Only for repeated offenses
53. The purpose of Section 13 is to—
a. Punish clients for transactions
b. Ensure reporting entities comply with due diligence and reporting obligations
c. Confiscate property of clients
d. Authorize arrests
54. Expenses for audits under Section 13(1A) are—
a. Borne by reporting entity
b. Borne by Central Government
c. Borne by Director personally
d. Shared with Special Court
55. Section 13 empowers the Director to issue—
a. Only warnings
b. Only fines
c. Only advisory circulars
d. Warnings, instructions, reporting directions, and fines
56. Non-compliance found under Section 13 can relate to—
a. Obligations under Chapter on reporting entities
b. Tax payments
c. Criminal liability of clients
d. Bank lending only
57. Section 13 ensures that reporting entities—
a. Operate without oversight
b. Avoid any monitoring
c. Are accountable for adherence to PMLA obligations
d. Are immune from penalties
58. The Director may forward a copy of the order under Section 13(3) to—
a. Only Central Government
b. Every party to proceedings, including banking companies, financial institutions, intermediaries, or persons
c. Only Special Court
d. Only the RBI
59. Section 14 of the PMLA, 2002 provides protection against—
a. Civil or criminal proceedings for reporting
b. Attachment of property
c. Enhanced due diligence
d. Freezing of accounts
60. Section 14 protection applies to—
a. Only clients
b. Only directors
c. Reporting entity, its directors, and employees
d. Only auditors
61. Protection under Section 14 is for furnishing information under—
a. Section 3
b. Section 12(1)(b)
c. Section 13
d. Section 11A
62. Section 14 states that reporting entities shall not be liable to—
a. Only civil proceedings
b. Only criminal proceedings
c. Both civil and criminal proceedings
d. Monetary penalties
63. Section 14 protection is—
a. Absolute, without exception
b. Subject to provisions of Section 13
c. Limited to reporting in writing to clients
d. Applicable only to banks
64. Section 14 ensures that employees of reporting entities—
a. Can be sued for non-compliance
b. Are protected from civil or criminal proceedings when furnishing information as required
c. Must pay penalties
d. Are exempt from all laws
65. Section 14 protection applies to actions taken—
a. Against reporting entity for not filing returns
b. In furnishing information to the Director as per Section 12(1)(b)
c. Only for criminal investigations against clients
d. Only in case of monetary penalties
66. Section 14 safeguards are intended to—
a. Discourage reporting
b. Encourage timely and accurate reporting by reporting entities
c. Remove the need for reporting
d. Only benefit clients
67. Section 14 does not protect against—
a. Civil proceedings under Section 12(1)(b)
b. Criminal proceedings under Section 12(1)(b)
c. Penalties under Section 13
d. Furnishing information to Director
68. The key objective of Section 14 is—
a. To penalize non-compliant reporting entities
b. To provide immunity to reporting entities for reporting obligations
c. To increase reporting burden
d. To regulate directors’ salaries
69. Section 14 ensures reporting entities are not—
a. Exposed to civil or criminal liability for furnishing information in good faith
b. Required to keep records
c. Required to perform audits
d. Obliged to submit periodic reports
70. Section 14 applies when reporting is—
a. Voluntary
b. Only for clients with Aadhaar
c. Only for transactions exceeding ₹1 crore
d. Mandatory as per Section 12(1)(b)
71. Directors of reporting entities are protected under Section 14 when—
a. They ignore reporting obligations
b. They ensure compliance with Section 12(1)(b)
c. They invest client funds personally
d. They perform audits only
72. Employees of reporting entities are immune under Section 14 for—
a. Following PMLA obligations in good faith
b. Filing false reports
c. Non-compliance with the Act
d. Criminal acts unrelated to reporting
73. Section 14 protection encourages—
a. Avoidance of reporting
b. Fear of civil liability
c. Honest and timely disclosure of information to authorities
d. Ignoring suspicious transactions
74. Section 14 does not override—
a. Section 12(1)(b)
b. Requirement to maintain records
c. Filing of reports with the Director
d. Provisions of Section 13 regarding penalties
75. Section 14 protection applies to information furnished—
a. Only verbally
b. In good faith under obligations of Section 12(1)(b)
c. Only in court proceedings
d. Only for audits
76. Section 14 is crucial for—
a. Reducing penalties on clients
b. Ensuring audit compliance only
c. Only for Special Court proceedings
d. Protecting reporting entities while combating money-laundering
77. Section 14 protection covers—
a. Only banks
b. Only government companies
c. Only private individuals
d. All reporting entities, their directors, and employees
78. Key takeaway of Section 14:—
a. Reporting entities are fully exempt from all PMLA provisions
b. Reporting entities, directors, and employees are protected from civil/criminal proceedings for furnishing information in good faith under Section 12(1)(b)
c. Only clients are protected
d. Only monetary fines are waived
79. Section 15 of the PMLA, 2002 deals with—
a. Procedure and manner of furnishing information by reporting entities
b. Attachment of property
c. Powers of the Director
d. Immunity from civil or criminal proceedings
80. The authority empowered to prescribe the procedure under Section 15 is—
a. Reserve Bank of India alone
b. Central Government alone
c. Central Government in consultation with the Reserve Bank of India
d. Special Court
81. Section 15 applies to furnishing information under which sections of the PMLA?
a. Section 3 only
b. Section 11A, Section 12(1), and Section 12AA(1)
c. Section 13 and Section 14
d. Section 5 only
82. Section 15 ensures that reporting entities—
a. Can avoid furnishing information
b. Furnish information in a prescribed manner for implementing PMLA
c. Are exempt from due diligence
d. Can choose to report voluntarily only
83. The procedure under Section 15 is prescribed—
a. By the Central Government, in consultation with RBI
b. By the Director alone
c. By Special Court
d. By reporting entities
84. Section 15 helps to—
a. Standardize the manner of maintaining and furnishing information
b. Penalize clients
c. Confiscate property
d. Avoid compliance by reporting entities
85. The purpose of Section 15 is—
a. To allow reporting entities to ignore Section 12 obligations
b. To facilitate implementation of the provisions of the Act through proper reporting procedures
c. To provide immunity to clients
d. To regulate directors’ salaries
86. Under Section 15, the Central Government may consult—
a. Ministry of Finance
b. Reserve Bank of India
c. Special Court
d. State Government
87. Section 15 applies to the maintenance of records by reporting entities for—
a. Audits only
b. Section 11A, Section 12(1), and Section 12AA(1) purposes
c. Criminal cases only
d. Monetary transactions exceeding ₹1 crore only
88. Section 15 ensures reporting entities follow—
a. Arbitrary reporting methods
b. Standardized procedure and manner prescribed by law
c. Voluntary internal procedures only
d. Court-mandated procedures only
89. The main objective of Section 15 is—
a. Penalize non-compliant reporting entities
b. Freeze client accounts
c. Investigate clients’ criminal acts
d. Ensure uniformity in reporting and maintenance of records for implementing PMLA provisions
90. Section 15 enables reporting entities to—
a. Maintain and furnish information in a legally prescribed manner
b. Delay furnishing information
c. Avoid enhanced due diligence
d. Be immune from penalties
91. The prescribed procedure under Section 15 is necessary for—
a. Effective implementation of PMLA provisions
b. Punishment of clients
c. Exemption of banks from reporting
d. Conducting criminal trials
92. Section 15 applies to—
a. Clients only
b. Directors of reporting entities only
c. RBI only
d. All reporting entities subject to PMLA
93. Section 15 helps in—
a. Reducing the reporting burden on authorities
b. Standardizing reporting and record-keeping for PMLA compliance
c. Avoiding investigations
d. Confiscating property
94. Section 15 is linked with—
a. Section 3 only
b. Section 13 only
c. Sections 11A, 12(1), and 12AA(1)
d. Sections 5 and 6 only
95. Section 15 ensures that information furnished by reporting entities—
a. Can be in any arbitrary form
b. Must follow procedure prescribed by Central Government in consultation with RBI
c. Is optional
d. Can be confidential only
96. Section 15 empowers the Central Government to prescribe procedure for—
a. Maintenance and furnishing of information by reporting entities
b. Civil liabilities
c. Attachment of property
d. Monetary penalties only
97. Section 15 ensures compliance with PMLA provisions by—
a. Making reporting voluntary
b. Removing reporting obligations
c. Specifying procedure and manner of furnishing information
d. Limiting powers of Director
98. Section 15 is significant because—
a. It removes penalties for reporting entities
b. It provides clear legal framework for maintaining and furnishing information to Director and authorities
c. It authorizes confiscation of property
d. It regulates criminal prosecution of clients
99. Section 16 of the PMLA, 2002 deals with—
a. Attachment of property
b. Power of survey
c. Confiscation of property
d. Reporting obligations
100. The authority under Section 16 can exercise the power of survey when—
a. They have a mere suspicion
b. They receive a verbal complaint only
c. They are asked by a client
d. They have reason to believe that an offence under Section 3 has been committed, with reasons recorded in writing
101. Under Section 16, the authority can enter—
a. Any place without restriction
b. Only the place within the limits of the area assigned to him or authorized area
c. Only bank premises
d. Only clients’ homes
102. Section 16 empowers the authority to require the proprietor or employee to—
a. Pay fines
b. Close the business
c. Afford facilities to inspect records and verify proceeds of crime, and furnish useful information
d. Provide accounting services
103. The explanation under Section 16 states that “place” includes—
a. Only the office of the accused
b. Only warehouses
c. Only bank lockers
d. Any place where the act is carried on or where records/property related to such act are kept
104. After completion of a survey under Section 16, the authority must—
a. Forward a copy of the reasons recorded and material to the Adjudicating Authority in a sealed envelope
b. Submit a verbal report to the police
c. Confiscate all records immediately
d. File a criminal case directly
105. Section 16 allows the authority to—
a. Only observe records
b. Freeze bank accounts only
c. Issue fines directly
d. Place marks of identification on records, make extracts/copies, make inventory of property, and record statements of persons present
106. The purpose of survey under Section 16 is—
a. To penalize clients
b. To collect material useful for proceedings under the Act
c. To report directors only
d. To exempt reporting entities
107. Section 16 survey powers are exercised—
a. With prior court approval only
b. Without restriction, wherever the authority wishes
c. Based on recorded reason to believe an offence under Section 3 is committed
d. Only after attachment under Section 5
108. Section 16 allows the authority to require which of the following from persons present?
a. Only monetary contributions
b. To vacate the premises
c. Statements useful or relevant to any proceeding under the Act
d. To file complaints against clients
109. The authority under Section 16 can check—
a. Proceeds of crime or any transaction related to proceeds of crime
b. Only bank transactions
c. Only property outside India
d. Only assets of directors
110. Section 16 survey can be conducted in—
a. Only commercial offices
b. Any place where records or property relating to the offence are kept, even if no activity is carried on
c. Only residential homes
d. Only government offices
111. Records obtained or inspected during a survey under Section 16—
a. Cannot be copied
b. May have marks of identification placed and copies or extracts made
c. Must be destroyed immediately
d. Cannot be recorded in inventory
112. Statements recorded during a survey under Section 16—
a. Are optional
b. Are legally inadmissible
c. Must be recorded if useful or relevant to proceedings under the Act
d. Are confidential only to the client
113. Section 16 survey powers override—
a. Any other provision of the Act regarding entry and inspection
b. Section 12 reporting obligations
c. Section 14 protection
d. Section 5 attachment powers
114. The inventory under Section 16 includes—
a. Only cash
b. Any property checked or verified by the authority
c. Only documents
d. Only bank statements
115. Section 16 requires the authority to record—
a. Only transactions above ₹1 crore
b. Reasons for believing an offence under Section 3 has been committed
c. Only criminal complaints
d. Only bank account details
116. Section 16 ensures that survey results are—
a. Forwarded to Adjudicating Authority for record keeping
b. Destroyed after inspection
c. Shared with clients
d. Ignored in proceedings
117. Section 16 allows the authority to inspect—
a. Only financial statements
b. Records, property, and transactions related to proceeds of crime
c. Only Aadhaar records
d. Only bank accounts
118. Section 16 survey is primarily aimed at—
a. Freezing client accounts
b. Penalizing reporting entities
c. Collecting evidence to facilitate proceedings under PMLA
d. Regulating banks’ internal audits
119. Section 17 of the PMLA, 2002 deals with—
a. Search and seizure
b. Attachment of property
c. Power of survey
d. Adjudicating Authority powers
120. Who can exercise the powers under Section 17?
a. Any police officer
b. Any reporting entity
c. Clients themselves
d. The Director or an officer not below the rank of Deputy Director authorised by the Director
121. Section 17 powers can be exercised when the officer has—
a. Reason to believe, recorded in writing, that a person has committed money-laundering, possesses proceeds of crime, records, or related property
b. Mere suspicion
c. Verbal information only
d. Permission from client
122. Under Section 17, the officer may authorise a subordinate to—
a. Issue fines
b. Only inspect records without seizure
c. Enter and search any building, place, vessel, vehicle, or aircraft suspected to contain records or proceeds of crime
d. Only interrogate directors
123. Section 17 allows breaking open—
a. Doors, boxes, lockers, safes, almirahs, or other receptacles if keys are not available
b. Only doors of commercial buildings
c. Only vehicles
d. Only bank lockers
124. During search and seizure under Section 17, the officer can—
a. Seize records or property found
b. Place marks of identification on records or property and make extracts/copies
c. Make inventory of records or property
d. Examine on oath any person in possession or control of records or property
e. All of the above
125. If it is not practicable to seize records or property, Section 17(1A) allows the officer to—
a. Ignore them
b. Freeze such property, preventing transfer or dealing without prior permission
c. Confiscate without notice
d. Destroy the property
126. A frozen property under Section 17(1A) can be—
a. Seized later if it becomes practicable, before confiscation
b. Destroyed immediately
c. Transferred by the person freely
d. Exempt from confiscation
127. After search, seizure, or freezing under Section 17, the authority must—
a. Keep records for personal reference only
b. Publish a public notice
c. Forward a copy of reasons recorded along with material to the Adjudicating Authority in a sealed envelope
d. Only inform police
128. Section 17(3) allows search and seizure without authorisation if—
a. It is a bank
b. Client consents
c. Evidence is obtained from survey under Section 16 and likely to be concealed or tampered with
d. Freezing order is issued
129. Section 17(4) requires that an application for retention of seized or frozen property be filed—
a. Within 10 days
b. Within 30 days before the Adjudicating Authority
c. Within 6 months
d. No application is required
130. The purpose of Section 17 is—
a. To punish reporting entities
b. To seize or freeze records, property, and proceeds of crime relevant for investigation under PMLA
c. To report directors’ salaries
d. To allow clients to contest attachments
131. Examination on oath under Section 17 is applicable to—
a. Only directors
b. Only clients
c. Any person in possession or control of records or property
d. Only officers of banks
132. Section 17 inventory includes—
a. Only documents
b. Only cash
c. Any record or property seized or frozen
d. Only financial statements
133. Marks of identification on records under Section 17—
a. Cannot be made
b. Must be removed immediately
c. Can be placed by the officer if required, along with extracts or copies
d. Are optional for clients
134. Section 17 powers are exercised—
a. Only in banks
b. On the basis of reason recorded in writing that money-laundering offence or related records/property exist
c. Arbitrarily anywhere
d. Only after Adjudicating Authority order
135. The “reason to believe” in Section 17 must be—
a. Oral
b. Verbal confirmation from client
c. Not necessary
d. Recorded in writing
136. Freezing orders under Section 17(1A) are—
a. Permanent
b. Effective until prior permission of the officer, or until seizure/confiscation
c. Exempt from confiscation
d. Optional for the client
137. Section 17 ensures that seized or frozen property—
a. Can be retained for investigation and adjudication under PMLA
b. Must be returned immediately
c. Can be transferred freely
d. Can be destroyed
138. Section 17 search and seizure powers are—
a. Subordinate to Section 12 reporting powers
b. Essential for investigation and collecting evidence related to money-laundering offences
c. Only applicable to banks
d. Optional for Directors
139. Section 18 of PMLA, 2002 primarily deals with—
a. Attachment of property
b. Search of persons
c. Powers of survey
d. Adjudication
140. Who can exercise powers under Section 18?
a. Any police officer
b. Any reporting entity
c. An authority authorised by the Central Government by general or special order
d. Clients themselves
141. Powers under Section 18 can be exercised when the officer has—
a. Mere suspicion
b. Reason to believe, recorded in writing, that a person has secreted records or proceeds of crime relevant to PMLA proceedings
c. Permission from client
d. Verbal information only
142. What can the authorised officer do under Section 18(1)?
a. Detain the person indefinitely
b. Search the person and seize any record or proceeds of crime useful for proceedings under this Act
c. Only inspect documents
d. Only record statements
143. Section 18 requires that after search and seizure, the authority—
a. Keep the record for personal reference
b. Publish a public notice
c. Forward a copy of the reasons recorded along with material to the Adjudicating Authority in a sealed envelope
d. Only inform police
144. If a person requests under Section 18(3), they must be taken within 24 hours to—
a. Any police officer
b. The Adjudicating Authority
c. The nearest Gazetted Officer superior in rank or a Magistrate
d. Reporting entity
145. The 24-hour period under Section 18(3) excludes—
a. Time for preparing lists of records
b. Time necessary for the journey to the Gazetted Officer or Magistrate
c. Time for detention
d. Time for recording statements
146. Section 18(4) limits detention before being taken to the Gazetted Officer or Magistrate to—
a. 12 hours
b. 24 hours excluding journey time
c. 48 hours
d. No limit
147. What happens if the Gazetted Officer or Magistrate sees no reasonable ground for search?
a. Person is detained indefinitely
b. Search is directed anyway
c. Person is forthwith discharged
d. Confiscation of property is initiated
148. Before conducting the search, the authority must—
a. Take prior permission from the client
b. Issue a public notice
c. Obtain Adjudicating Authority approval
d. Call two or more persons to witness the search
149. Searches of females under Section 18(8) must be conducted by—
a. Any authority
b. A female officer
c. Gazetted Officer only
d. Adjudicating Authority
150. During the search, the authority must—
a. Only seize cash
b. Release the person immediately
c. Prepare a list of records or property seized and obtain signatures of witnesses
d. Conduct search without witnesses
151. Section 18 requires recording the statement of the person searched—
a. Only if money is found
b. In respect of records or proceeds of crime found or seized
c. Only if the person requests
d. Not required
152. An application for retention of seized property under Section 18 must be filed—
a. Within 15 days
b. Within 6 months
c. Only if the person appeals
d. Within 30 days before the Adjudicating Authority
153. The main purpose of Section 18 is—
a. To allow free access to client assets
b. To search persons for records or proceeds of crime relevant to PMLA proceedings
c. To impose fines on reporting entities
d. To authorise Adjudicating Authority to sell property
154. Section 18 ensures that searches are conducted—
a. In secret without witnesses
b. Only with police assistance
c. Only for high-value clients
d. In the presence of at least two witnesses
155. Records or property seized under Section 18—
a. Must be destroyed immediately
b. Must be forwarded to the Adjudicating Authority and may be retained under PMLA proceedings
c. Can be transferred freely by the person
d. Are optional for retention
156. The “reason to believe” in Section 18 must be—
a. Based on hearsay only
b. Recorded in writing
c. Verbal statement from the reporting entity
d. Optional
157. Section 18 powers complement which other section?
a. Section 16 – Power of survey
b. Section 10 – Management of properties
c. Section 5 – Attachment of property
d. Section 12 – Reporting obligations
158. Under Section 18, seized property can include—
a. Only cash
b. Only physical property
c. Only bank statements
d. Any record or proceeds of crime under the person’s control or possession
159. Section 19 of PMLA, 2002 primarily deals with—
a. Attachment of property
b. Power to arrest
c. Search of persons
d. Adjudication
160. Who can exercise the power of arrest under Section 19?
a. Any police officer
b. Any reporting entity
c. Director, Deputy Director, Assistant Director, or any officer authorised by the Central Government
d. Adjudicating Authority
161. The officer can arrest a person under Section 19 when—
a. They have suspicion only
b. They have reason to believe, recorded in writing, that the person has committed an offence under PMLA
c. The person is under investigation in another case
d. They receive a verbal complaint
162. Upon arrest, the officer must—
a. Detain the person indefinitely
b. Immediately inform the person of the grounds for arrest
c. Forward the person to a police station only
d. Start trial immediately
163. After arrest, the officer must forward a copy of the order and material to—
a. Police Headquarters
b. Adjudicating Authority in a sealed envelope
c. Reporting entity
d. Central Government only
164. Section 19 requires that the arrested person be produced before—
a. Any police officer
b. Reporting entity
c. Special Court, Judicial Magistrate, or Metropolitan Magistrate having jurisdiction
d. Adjudicating Authority
165. Within how many hours must the arrested person be taken to the Special Court or Magistrate?
a. 12 hours
b. 24 hours excluding journey time
c. 48 hours
d. 72 hours
166. The period of 24 hours under Section 19 excludes—
a. Time for issuing notice to the person
b. Time for investigation
c. Time necessary for the journey from the place of arrest to the Special Court or Magistrate
d. Time for filing the complaint
167. The “reason to believe” for arrest under Section 19 must be—
a. Recorded in writing
b. Based on hearsay
c. Only verbal communication
d. Optional
168. The purpose of forwarding the order and material to the Adjudicating Authority is—
a. For record-keeping and future reference in PMLA proceedings
b. To start trial immediately
c. To release the person
d. To impose a fine
169. Which officers can be authorised by the Central Government for the purpose of arrest under Section 19?
a. Only police officers
b. Any officer not below the rank of Director, Deputy Director, or Assistant Director
c. Any reporting entity officer
d. Magistrates
170. Section 19 ensures that the arrested person—
a. Must be informed of the reasons for arrest immediately
b. Can be detained indefinitely without explanation
c. Cannot approach any court
d. Must be kept in custody for investigation only
171. The forwarding of order and material to the Adjudicating Authority must be done—
a. By phone
b. Verbally to the court
c. By email
d. In a sealed envelope in the prescribed manner
172. The jurisdiction for production of an arrested person under Section 19 lies with—
a. Special Court, Judicial Magistrate, or Metropolitan Magistrate
b. Any civil court
c. Police Station
d. Reporting entity
173. The main object of Section 19 is—
a. To attach property
b. To maintain records
c. To verify identity of clients
d. To provide power to arrest persons involved in offences under PMLA
174. Section 20 of PMLA, 2002 primarily deals with—
a. Power to arrest
b. Adjudication of property
c. Retention of property
d. Search and seizure
175. Property can be retained under Section 20 if—
a. It is believed to be stolen
b. It is held by any person under suspicion
c. It has been seized under Section 17 or 18, or frozen under Section 17(1A), and is required for adjudication under Section 8
d. It is immovable property only
176. Who is authorised to retain or continue freezing of the property under Section 20?
a. Officer authorised by the Director
b. Any police officer
c. Adjudicating Authority only
d. Special Court
177. The “reason to believe” for retention under Section 20 must be—
a. Based on hearsay
b. Recorded in writing
c. Optional
d. Given verbally
178. Maximum period for which seized or frozen property may be retained under Section 20(1) is—
a. 90 days
b. 120 days
c. 180 days
d. 365 days
179. After passing an order of retention, the officer must—
a. Immediately release the property
b. Send the property to the Special Court
c. Forward a copy of the order along with material to the Adjudicating Authority in a sealed envelope
d. Inform the police only
180. Upon expiry of 180 days, property shall—
a. Be returned to the person from whom it was seized or whose property was frozen, unless Adjudicating Authority permits further retention
b. Automatically vest in the Central Government
c. Be sold by the Director
d. Be frozen indefinitely
181. Before authorising retention beyond 180 days, the Adjudicating Authority must satisfy that—
a. Property is immovable
b. Property belongs to a reporting entity
c. Property is prima facie involved in money-laundering and required for adjudication under Section 8
d. Property is movable
182. After an order of confiscation under Section 8, the Special Court shall—
a. Retain all property indefinitely
b. Sell all property immediately
c. Forward property to the Adjudicating Authority
d. Direct the release of all property other than property involved in money-laundering to the rightful owner
183. Section 20 allows the Director to withhold release of property for—
a. 30 days
b. 60 days
c. 90 days if the property is relevant for appeal proceedings
d. 120 days
184. Retention under Section 20 applies to—
a. Only immovable property
b. Both seized and frozen property
c. Only movable property
d. Only bank accounts
185. The forwarding of order and material to the Adjudicating Authority under Section 20 is for—
a. Filing a criminal complaint
b. Record-keeping and ensuring proper adjudication
c. Immediate confiscation
d. Verification of ownership only
186. The officer authorised by the Director can continue freezing property beyond 180 days only if—
a. The property is immovable
b. Owner requests for it
c. Adjudicating Authority is satisfied of its prima facie involvement in money-laundering
d. The Special Court approves without conditions
187. Section 20 is connected primarily with—
a. Section 17 and 18 (search and seizure) and Section 8 (adjudication)
b. Section 19 (arrest) only
c. Section 15 (reporting procedures) only
d. Section 13 (fine) only
188. The purpose of Section 20 is—
a. To permanently confiscate all seized property
b. To regulate temporary retention and freezing of property pending adjudication
c. To arrest owners of property
d. To maintain record of reports only
189. Under Section 21(1), records seized under which sections may be retained for inquiry under PMLA?
a. Section 16 or 17
b. Section 17 or 18 or frozen under section 17(1A)
c. Section 19 or 20
d. Section 21 or 22
190. The maximum period for retaining seized or frozen records under Section 21(1) is:
a. 90 days
b. 120 days
c. 180 days
d. 365 days
191. Who is empowered to retain or continue the freezing of records under Section 21?
a. Only the Director
b. Investigating Officer or any officer authorized by the Director
c. Any police officer
d. Adjudicating Authority
192. Under Section 21(2), the person from whom records are seized or frozen is entitled to:
a. Obtain copies of the records
b. Only be informed about the seizure
c. Request immediate return of records
d. Challenge the seizure in High Court only
193. What happens to seized or frozen records after 180 days if no extension is granted under Section 21(3)?
a. They remain with the Investigating Officer indefinitely
b. They must be returned to the person from whom records were seized
c. They are destroyed
d. They are sent to the Central Government
194. Who can authorize the retention or continued freezing of records beyond 180 days?
a. Central Government
b. Director
c. Adjudicating Authority
d. Special Court
195. Before authorizing retention beyond 180 days, the Adjudicating Authority must satisfy itself that:
a. The records are required for adjudication under Section 8
b. The person has committed an offence
c. The Director approves
d. The records are under appeal
196. After an order of confiscation or release under Section 8, who directs the release of records to the concerned person?
a. Director
b. Adjudicating Authority
c. Special Court
d. Central Government
197. Under Section 21(6), even after an order releasing the records, the Director may withhold records for how long?
a. 30 days
b. 60 days
c. 90 days
d. 180 days
198. The reason the Director may withhold records after a release order is:
a. To punish the person
b. If the records are relevant for appeal proceedings under the Act
c. To transfer records to another agency
d. For further investigation without limit
199. True or False: The person from whom records were seized has no right to obtain copies under Section 21(2).
a. True
b. False
200. Retention of records beyond 180 days requires:
a. Approval from Central Government
b. Consent of the accused
c. Satisfaction of Adjudicating Authority
d. Order of Special Court
201. Which sub-section of Section 21 deals with the Adjudicating Authority directing release of records after confiscation or release orders?
a. Sub-section (1)
b. Sub-section (4)
c. Sub-section (5)
d. Sub-section (6)
202. Seized records can be retained for inquiry under PMLA only if:
a. They are seized under any law
b. The Director feels like retaining
c. Investigating Officer has reason to believe they are required for inquiry
d. Person consents
203. Under Section 21(3), if the Adjudicating Authority allows continued retention beyond 180 days, it must ensure:
a. Records are not misused
b. Records are required for adjudication purposes
c. Records are destroyed after appeal
d. Records are transferred to Special Court
204. Which section is referenced in Section 21(4) to justify retention beyond 180 days?
a. Section 8
b. Section 17
c. Section 19
d. Section 60
205. True or False: The Director can permanently withhold records after a release order without any limitation.
a. True
b. False
206. The term “frozen” records under Section 21 refers to:
a. Records seized physically
b. Records under prohibition or freeze under section 17(1A)
c. Records destroyed by court order
d. Records submitted voluntarily
207. The Adjudicating Authority must direct release of records after which orders?
a. Only confiscation under Section 8(5)
b. Only under Section 21(1)
c. Only after Central Government approval
d. Confiscation, release, or Section 58B or 60(2A) orders
208. Section 21 ensures which of the following rights to the person from whom records are seized?
a. Right to be informed
b. Right to copies of records
c. Right to get records returned after specified period
d. All of the above
209. The Director’s decision to withhold records for 90 days is based on:
a. Investigating Officer’s discretion
b. Relevance for appeal proceedings under PMLA
c. Delay in investigation
d. Central Government orders
210. Under Section 22(1), if any records or property are found in the possession of a person during a survey or search, it is presumed that:
a. The property belongs to the government
b. The property belongs to such person
c. The property is illegal
d. The property must be seized immediately
211. Section 22(1) presumes that the contents of records found or produced are:
a. False
b. True
c. Suspicious
d. Needs verification
212. In case of handwriting on records, Section 22(1) presumes that:
a. Handwriting is fabricated
b. Handwriting is irrelevant
c. Handwriting belongs to the person it purports to be
d. Only signature is authentic
213. If a record is stamped, executed, or attested, Section 22(1) presumes that:
a. It is fake unless proved otherwise
b. Stamp is invalid
c. Execution requires court verification
d. It was executed or attested by the person it purports to be executed or attested by
214. Section 22 applies to records or property that are:
a. Found during survey or search
b. Produced by any person
c. Seized or frozen under this Act or any other law
d. All of the above
215. Under Section 22(2), records received from outside India must be:
a. Verified by the Central Government
b. Authenticated by the prescribed authority or person
c. Presented only in original
d. Sent to the police
216. For foreign records, Section 22(2)(a) presumes that:
a. Only signatures are genuine
b. Handwriting and execution/attestation are genuine
c. The record is false unless verified
d. Only stamps are authentic
217. Section 22(2)(b) allows the Special Court, Appellate Tribunal, or Adjudicating Authority to:
a. Ignore foreign records
b. Admit authenticated foreign records in evidence even if not duly stamped
c. Send records back to the country of origin
d. Require additional authentication
218. True or False: Section 22 creates a rebuttable presumption that records or property found in possession of a person belong to that person.
a. True
b. False
219. Which authorities are mentioned in Section 22(2) for presumption regarding foreign records?
a. Central Government only
b. Police and Investigation Officer
c. Special Court, Appellate Tribunal, Adjudicating Authority
d. High Court only