[amp_mcq option1=”Rigorous imprisonment for 3 – 7 years” option2=”Fine of Rs.5 lakhs” option3=”Both A & B” option4=”None of the above” correct=”option3″]<\/p>\n
The correct answer is C. Both A & B.<\/p>\n
The Prevention of Money Laundering Act, 2002 (PMLA) is an Act of the Parliament of India enacted to prevent money laundering and to provide for confiscation of property derived from unlawful activities. The PMLA came into effect on 15 November 2005.<\/p>\n
The PMLA defines money laundering as “the process of concealing the origins of illegally obtained proceeds (i.e. “dirty money”) by introducing them into the financial system in a way that makes them appear legal (i.e. “clean”).”<\/p>\n
The PMLA provides for punishment for money laundering, which includes rigorous imprisonment for a term of not less than three years but which may extend to seven years and with fine which may extend to five lakh rupees.<\/p>\n
The PMLA also provides for confiscation of property derived from unlawful activities.<\/p>\n
The PMLA is a powerful tool to combat money laundering and has been used to successfully prosecute a number of money laundering cases in India.<\/p>\n
Option A is correct because the PMLA provides for rigorous imprisonment for a term of not less than three years but which may extend to seven years for money laundering.<\/p>\n
Option B is correct because the PMLA also provides for a fine of not less than five lakh rupees for money laundering.<\/p>\n
Option C is correct because the PMLA provides for both rigorous imprisonment and a fine for money laundering.<\/p>\n
Option D is incorrect because the PMLA does provide for punishment for money laundering.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Rigorous imprisonment for 3 – 7 years” option2=”Fine of Rs.5 lakhs” option3=”Both A & B” option4=”None of the above” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32565","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n