PREVENTION OF MONEY LAUNDERING ACT
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One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the full form of PMLA and when did it come into force?
PMLA stands for Prevention of Money Laundering Act; it was enacted in 2002 and came into force on 1st July 2005.
What year was the Prevention of Money Laundering Act enacted in India?
PMLA was enacted in the year 2002.
What are the three stages of money laundering as recognised under PMLA?
The three stages are Placement (introducing illegal funds into the financial system), Layering (concealing the trail through complex transactions), and Integration (merging the funds back into the legitimate economy).
What is the primary objective of PMLA?
To prevent money laundering and confiscate proceeds of crime.
What is the definition of 'proceeds of crime' under PMLA?
'Proceeds of crime' means any property derived or obtained directly or indirectly by any person as a result of criminal activity relating to a scheduled offence, including property taken outside India.
Under PMLA, what is the maximum punishment for money laundering offence?
Maximum punishment is imprisonment up to seven years.
Which authority is empowered to attach and confiscate property under PMLA?
The Adjudicating Authority constituted under PMLA is empowered to confirm attachment and order confiscation of property involved in money laundering.
In which scheduled offence category does drug trafficking fall under PMLA?
Drug trafficking falls under Part A of the Schedule.
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