THE PREVENTION OF MONEY-LAUNDERING ACT, 2002
ACT NO. 15 OF 2003
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