{"id":352,"date":"2025-07-05T12:31:14","date_gmt":"2025-07-05T12:31:14","guid":{"rendered":"https:\/\/postaladda.com\/mcq\/?p=352"},"modified":"2025-11-09T11:44:20","modified_gmt":"2025-11-09T11:44:20","slug":"prevention-of-money-laundering-act-2002-mcqs","status":"publish","type":"post","link":"https:\/\/postaladda.com\/mcq\/prevention-of-money-laundering-act-2002-mcqs\/","title":{"rendered":"Prevention of Money Laundering Act 2002 MCQs"},"content":{"rendered":"\n<p>Prevention of Money Laundering Act 2002 MCQs-&#8220;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.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>1. What is the main objective of the Prevention of Money Laundering Act, 2002?<\/strong><\/h2>\n\n\n\n<p>A. To regulate banking companies<br>B. To protect consumer rights<br>C. To prevent money-laundering and confiscate related property<br>D. To control black marketing<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is:  To prevent money-laundering and confiscate related property<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. Under which section is the offence of money-laundering defined?<\/strong><\/h2>\n\n\n\n<p>A. Section 4<br>B. Section 6<br>C. Section 3<br>D. Section 5<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is:   Section 3<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>3. What is the minimum punishment under Section 4 of the PMLA?<\/strong><\/h2>\n\n\n\n<p>A. 1 year imprisonment<br>B. 2 years imprisonment<br>C. 3 years rigorous imprisonment<br>D. 5 years imprisonment<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: 3 years rigorous imprisonment<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>4. What does \u201cattachment\u201d of property mean under PMLA?<\/strong><\/h2>\n\n\n\n<p>A. Imprisonment of the accused<br>B. Prohibition on transfer or disposal of property<br>C. Seizure of passport<br>D. Arrest of offender<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is:  Prohibition on transfer or disposal of property<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>5. &#8220;Proceeds of crime&#8221; refers to:<\/strong><\/h2>\n\n\n\n<p>A. Property bought via loan<br>B. Property derived from a scheduled offence<br>C. Legal property<br>D. Any movable asset<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is:  Property derived from a scheduled offence<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>6. Who is empowered to attach property under Section 5 of PMLA?<\/strong><\/h2>\n\n\n\n<p>A. Income Tax Officer<br>B. Director or Deputy Director<br>C. Police Inspector<br>D. Public Prosecutor<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is:  Director or Deputy Director<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>7. What is the maximum period of provisional attachment under Section 5?<\/strong><\/h2>\n\n\n\n<p>A. 60 days<br>B. 30 days<br>C. 90 days<br>D. 120 days<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is:  90 days<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>8. The offence of money-laundering is considered committed when:<\/strong><\/h2>\n\n\n\n<p>A. Proceeds of crime are claimed as untainted<br>B. Assets are purchased legally<br>C. Property is held in trust<br>D. Bank accounts are audited<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: Proceeds of crime are claimed as untainted<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>9. Which section grants the Adjudicating Authority the powers of a civil court?<\/strong><\/h2>\n\n\n\n<p>A. Section 9<br>B. Section 11<br>C. Section 8<br>D. Section 13<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: Section 11<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>10. What is the burden of proof under Section 24 of PMLA?<\/strong><\/h2>\n\n\n\n<p>A. On Enforcement Directorate<br>B. On the accused<br>C. On High Court<br>D. On police<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: On the accused<\/div>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.11. What is the maximum punishment under Section 4 for money-laundering involving offences under Para 2 of Part A of the Schedule?<\/strong><\/h2>\n\n\n\n<p>A. 7 years<br>B. 8 years<br>C. 9 years<br>D. 10 years<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: D<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.12. Who is authorized to attach property under Section 5?<\/strong><\/h2>\n\n\n\n<p>A. Special Court Judge<br>B. Director or Deputy Director<br>C. Police Inspector<br>D. Income Tax Officer<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: B<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.13. What is the maximum period of provisional attachment under Section 5?<\/strong><\/h2>\n\n\n\n<p>A. 60 days<br>B. 120 days<br>C. 30 days<br>D. 90 days<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: D<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.14. Within how many days must a complaint be filed to the Adjudicating Authority after provisional attachment?<\/strong><\/h2>\n\n\n\n<p>A. 15 days<br>B. 30 days<br>C. 45 days<br>D. 60 days<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: B<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.15. Under which section is the Adjudicating Authority constituted?<\/strong><\/h2>\n\n\n\n<p>A. Section 5<br>B. Section 6<br>C. Section 7<br>D. Section 8<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: B<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.16. What is the composition of the Adjudicating Authority?<\/strong><\/h2>\n\n\n\n<p>A. Chairperson + 3 Members<br>B. Chairperson only<br>C. Chairperson + 2 Members<br>D. Chairperson + 4 Members<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: C<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.17. What is the tenure of members of the Adjudicating Authority?<\/strong><\/h2>\n\n\n\n<p>A. 3 years or till 60 years<br>B. 5 years or till 62 years<br>C. 4 years or till 65 years<br>D. 6 years or till 60 years<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: B<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.18. Which principles guide the Adjudicating Authority?<\/strong><\/h2>\n\n\n\n<p>A. Indian Penal Code<br>B. Code of Criminal Procedure<br>C. Principles of Natural Justice<br>D. Income Tax Rules<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: C<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.19. Which section empowers the Central Government to appoint staff for Adjudicating Authorities?<\/strong><\/h2>\n\n\n\n<p>A. Section 7<br>B. Section 8<br>C. Section 9<br>D. Section 6<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: A<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.20. Under Section 8, before confirming attachment, how many days must be given for reply?<\/strong><\/h2>\n\n\n\n<p>A. 45 days<br>B. 60 days<br>C. 30 days<br>D. 15 days<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: C<\/div>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.21. If a person is acquitted in a money-laundering case, what happens to the attached property?<\/strong><\/h2>\n\n\n\n<p>A. It is auctioned<br>B. It is destroyed<br>C. It is returned<br>D. It is given to the bank<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: C<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.22. Upon conviction in a money-laundering case, the property:<\/strong><\/h2>\n\n\n\n<p>A. Remains attached until appeal<br>B. Is released to heirs<br>C. Is confiscated to Central Government<br>D. Is frozen permanently<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: C<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.23. Under which section does the property vest absolutely with the Central Government upon confiscation?<\/strong><\/h2>\n\n\n\n<p>A. Section 9<br>B. Section 10<br>C. Section 7<br>D. Section 6<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: A<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.24. If a lease or encumbrance is created to defeat the confiscation process, what can Adjudicating Authority do?<\/strong><\/h2>\n\n\n\n<p>A. Send case to Supreme Court<br>B. Ignore the encumbrance<br>C. Declare it void after hearing<br>D. Fine the lessee<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: C<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.25. Who can be appointed as Administrator of confiscated properties?<\/strong><\/h2>\n\n\n\n<p>A. Director of Enforcement<br>B. Any Gazetted Officer<br>C. Officer not below Joint Secretary rank<br>D. Magistrate<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: C<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.26. Which section grants powers of Civil Court to the Adjudicating Authority?<\/strong><\/h2>\n\n\n\n<p>A. Section 9<br>B. Section 11<br>C. Section 12<br>D. Section 13<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: B<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.27. Failure to attend a summons by Adjudicating Authority is treated as:<\/strong><\/h2>\n\n\n\n<p>A. Civil wrong<br>B. Judicial proceeding<br>C. Minor offence<br>D. Administrative breach<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: B<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.28. Which sections of IPC apply to proceedings under Adjudicating Authority?<\/strong><\/h2>\n\n\n\n<p>A. 120B and 420<br>B. 406 and 409<br>C. 302 and 304<br>D.  193 and 228<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: D<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.29. Record retention period under Section 12 is:<\/strong><\/h2>\n\n\n\n<p>A. 5 years<br>B. 3 years<br>C. 10 years<br>D. 7 years<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: C<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q.30. Under Section 13, the maximum penalty for failure to comply with reporting obligations is<\/strong><\/h2>\n\n\n\n<p>A. \u20b910,000<br>B. \u20b950,000<br>C. \u20b91,00,000<br>D. \u20b92,00,000<\/p>\n\n\n<button class=\"show-answer-btn\" onclick=\"pa_toggle_answer(this)\">Show Answer<\/button><div class=\"answer\">The correct answer is: C<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Prevention of Money Laundering Act 2002 MCQs-&#8220;Practice high-quality MCQs for the Inspector of Post Office (IPO) Exam covering key postal [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1,4,18],"tags":[],"class_list":["post-352","post","type-post","status-publish","format-standard","hentry","category-blog","category-ipo-mcqs","category-ipo-paper-01"],"_links":{"self":[{"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/posts\/352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/comments?post=352"}],"version-history":[{"count":5,"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/posts\/352\/revisions"}],"predecessor-version":[{"id":1120,"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/posts\/352\/revisions\/1120"}],"wp:attachment":[{"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/media?parent=352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/categories?post=352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/postaladda.com\/mcq\/wp-json\/wp\/v2\/tags?post=352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}