IP Exam Daily Spark: Day 6
Objective Questions for Inspector Posts Departmental Exam
The Prevention of Money-Laundering Act, 2002
Objective Questions for Inspector Posts Departmental Exam
The Prevention of Money-Laundering Act, 2002
1. What is the minimum period of rigorous imprisonment for the offence of money-laundering as per Section 4 of the Act?
A) Not less than one year B) Not less than three years C) Not less than five years D) Not less than seven years
2. Under which condition can the punishment for money-laundering be extended to ten years?
A) When the proceeds of crime exceed one crore rupees. B) When the offence is of cross-border implications. C) When the proceeds of crime relate to an offence specified under paragraph 2 of Part A of the Schedule. D) When the offence is committed by a company.
3. According to the Act, "attachment" means the prohibition of transfer, conversion, disposition or movement of property by an order issued under which Chapter?
A) Chapter II B) Chapter III C) Chapter IV D) Chapter V
4. Who is defined as a "reporting entity" under the Act?
A) A banking company or financial institution only B) An intermediary only C) A person carrying on a designated business or profession only D) All of the above
5. As per the Act, a "scheduled offence" specified under Part B of the Schedule is applicable if the total value involved in such an offence is:
A) one crore rupees or more B) fifty lakh rupees or more C) thirty lakh rupees or more D) ten lakh rupees or more
6. "Offence of cross border implications" includes conduct by a person outside India if it would have constituted an offence under which part of the Schedule, had it been committed in India?
A) Part A only B) Part B only C) Part C only D) Part A, Part B or Part C
7. What does "proceeds of crime" include, as per the explanation under Section 2(1)(u)?
A) Only property derived directly from a scheduled offence. B) Property derived directly or indirectly from a scheduled offence, or its value. C) Property derived from a scheduled offence and also any property used in the commission of the offence. D) The value of the property only if it is held outside the country.
8. The term "investigation" as defined in the Act includes all proceedings for the collection of evidence conducted by whom?
A) The Director or an authority authorised by the Central Government. B) The Adjudicating Authority. C) The Special Court. D) Any police officer of a rank not below that of Deputy Superintendent of Police.
9. An order for provisional attachment of property under Section 5 can be made for a period not exceeding how many days?
A) 90 days B) 120 days C) 150 days D) 180 days
10. Who is the minimum rank of officer who can provisionally attach property under Section 5?
A) Director B) Additional Director C) Joint Director D) Deputy Director
11. Within what period from a provisional attachment must the officer file a complaint before the Adjudicating Authority?
A) 15 days B) 30 days C) 45 days D) 60 days
12. What is the composition of the Adjudicating Authority?
A) A Chairperson and one Member B) A Chairperson and two Members C) A Chairperson and three Members D) A Chairperson and such other Members as the Central Government may deem fit
13. The notice served by the Adjudicating Authority to a person to show cause why their property should not be confiscated must be of a period of not less than:
A) 7 days B) 15 days C) 30 days D) 60 days
14. How long do the Chairperson and Members of the Adjudicating Authority hold office?
A) 3 years B) 5 years C) 65 years D) Until they attain the age of sixty-five years
15. What happens to the provisional attachment order if the Adjudicating Authority confirms it after the adjudication process?
A) It becomes final and the property vests with the Central Government immediately. B) It continues for a period not exceeding three hundred and sixty-five days during investigation. C) It continues only if the Special Court passes an order of confiscation. D) It ceases to have effect after the expiry of 180 days.
16. If the Special Court finds that the offence of money-laundering has been committed, it shall order that such property shall stand confiscated to whom?
A) The Adjudicating Authority B) The Central Government C) The State Government D) The Director
17. If a person's provisional attachment is confirmed, who is responsible for taking possession of the attached property?
A) The Adjudicating Authority B) The Special Court C) The Director or any other officer authorized by him D) The Central Government
18. What is the age of retirement for the Chairperson and Members of the Adjudicating Authority?
A) 62 years B) 65 years C) 68 years D) 70 years
19. The Director may impose a monetary penalty on a reporting entity for failure to comply with its obligations. What is the minimum and maximum fine for each failure?
A) Not less than ten thousand rupees but may extend to one lakh rupees. B) Not less than fifty thousand rupees but may extend to five lakh rupees. C) Not less than one lakh rupees but may extend to ten lakh rupees. D) Not less than five lakh rupees but may extend to fifty lakh rupees.
20. What is the period for which a reporting entity must maintain records of all transactions?
A) Five years from the date of the transaction. B) Five years from the date of the cessation of transactions with a client. C) Ten years from the date of the transaction. D) Ten years from the date of the cessation of transactions with a client.
Answer Key Day 6
1. B) Not less than three years (Section 4)
2. C) When the proceeds of crime relate to an offence specified under paragraph 2 of Part A of the Schedule. (Section 4)
3. B) Chapter III (Section 2(d))
4. D) All of the above (Section 2(wa))
5. A) one crore rupees or more (Section 2(y)(ii))
6. D) Part A, Part B or Part C (Section 2(ra))
7. B) Property derived directly or indirectly from a scheduled offence, or its value. (Section 2(u))
8. A) The Director or an authority authorised by the Central Government. (Section 2(na))
9. D) 180 days (Section 5(1))
10. D) Deputy Director (Section 5(1))
11. B) 30 days (Section 5(5))
12. B) A Chairperson and two Members (Section 6(2))
13. C) 30 days (Section 8(1))
14. B) 5 years (Section 6(8))
15. B) It continues for a period not exceeding three hundred and sixty-five days during investigation. (Section 8(3))
16. B) The Central Government (Section 8(5))
17. C) The Director or any other officer authorized by him (Section 8(4))
18. B) 65 years (Section 6(8))
19. A) Not less than ten thousand rupees but may extend to one lakh rupees. (Section 13(2)(d))
20. D) Ten years from the date of the cessation of transactions with a client. (Section 12(1)(a))
Answer Key Day 6
1. B) Not less than three years (Section 4)
2. C) When the proceeds of crime relate to an offence specified under paragraph 2 of Part A of the Schedule. (Section 4)
3. B) Chapter III (Section 2(d))
4. D) All of the above (Section 2(wa))
5. A) one crore rupees or more (Section 2(y)(ii))
6. D) Part A, Part B or Part C (Section 2(ra))
7. B) Property derived directly or indirectly from a scheduled offence, or its value. (Section 2(u))
8. A) The Director or an authority authorised by the Central Government. (Section 2(na))
9. D) 180 days (Section 5(1))
10. D) Deputy Director (Section 5(1))
11. B) 30 days (Section 5(5))
12. B) A Chairperson and two Members (Section 6(2))
13. C) 30 days (Section 8(1))
14. B) 5 years (Section 6(8))
15. B) It continues for a period not exceeding three hundred and sixty-five days during investigation. (Section 8(3))
16. B) The Central Government (Section 8(5))
17. C) The Director or any other officer authorized by him (Section 8(4))
18. B) 65 years (Section 6(8))
19. A) Not less than ten thousand rupees but may extend to one lakh rupees. (Section 13(2)(d))
20. D) Ten years from the date of the cessation of transactions with a client. (Section 12(1)(a))
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