Prevention of Money Laundering Act 2002 MCQs-“Practice high-quality MCQs for the Inspector of Post Office (IPO) Exam covering key postal rules, procedures, and current schemes. Ideal for quick revision and accurate self-assessment based on the latest syllabus.”
1. What is the main objective of the Prevention of Money Laundering Act, 2002?
A. To regulate banking companies
B. To protect consumer rights
C. To prevent money-laundering and confiscate related property
D. To control black marketing
2. Under which section is the offence of money-laundering defined?
A. Section 4
B. Section 6
C. Section 3
D. Section 5
3. What is the minimum punishment under Section 4 of the PMLA?
A. 1 year imprisonment
B. 2 years imprisonment
C. 3 years rigorous imprisonment
D. 5 years imprisonment
4. What does “attachment” of property mean under PMLA?
A. Imprisonment of the accused
B. Prohibition on transfer or disposal of property
C. Seizure of passport
D. Arrest of offender
5. “Proceeds of crime” refers to:
A. Property bought via loan
B. Property derived from a scheduled offence
C. Legal property
D. Any movable asset
6. Who is empowered to attach property under Section 5 of PMLA?
A. Income Tax Officer
B. Director or Deputy Director
C. Police Inspector
D. Public Prosecutor
7. What is the maximum period of provisional attachment under Section 5?
A. 60 days
B. 30 days
C. 90 days
D. 120 days
8. The offence of money-laundering is considered committed when:
A. Proceeds of crime are claimed as untainted
B. Assets are purchased legally
C. Property is held in trust
D. Bank accounts are audited
9. Which section grants the Adjudicating Authority the powers of a civil court?
A. Section 9
B. Section 11
C. Section 8
D. Section 13
10. What is the burden of proof under Section 24 of PMLA?
A. On Enforcement Directorate
B. On the accused
C. On High Court
D. On police
