IP Exam Daily Spark: Day 7
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
21. Under what circumstances can the Director order a reporting entity's records to be audited by an accountant?
A) When the Director suspects the reporting entity is involved in money laundering. B) At any stage of inquiry, having regard to the nature and complexity of the case. C) Only with the prior approval of the Central Government. D) When the reporting entity fails to provide information within the specified time.
22. As per the Act, who prescribes the procedure and manner of furnishing information by a reporting entity?
A) The Director, in consultation with the Central Government. B) The Central Government, in consultation with the Reserve Bank of India. C) The Adjudicating Authority. D) The Financial Intelligence Unit (FIU-IND).
Section: Searches, Seizures, and Arrest
23. Which officer is empowered to arrest a person whom he has reason to believe is guilty of a money-laundering offence?
A) Any officer of the Directorate of Enforcement. B) Any officer of the rank of Deputy Director or above. C) Director, Deputy Director, Assistant Director, or any other officer authorized by the Central Government. D) Director, or an officer not below the rank of Deputy Director.
24. What are the two conditions under which an officer not below the rank of Deputy Director can exercise the power of search and seizure under Section 17?
A) He has a search warrant from a magistrate and has reason to believe a person has committed an offence. B) He has information in his possession and a valid reason to believe that a person is in possession of proceeds of crime or records. C) He has prior approval from the Director and has reason to believe a person has concealed records. D) He has reason to believe that the records or proceeds of crime are likely to be tampered with, and he has a written order from the Director.
25. The officer making a search and seizure under Section 17 must forward a copy of the reasons for belief and the seized records or property to whom within a sealed envelope?
A) The Adjudicating Authority B) The Director C) The Special Court D) The Central Government
26. How long can an officer, with a written order from the Adjudicating Authority, retain records seized under Section 17?
A) For a period not exceeding one hundred and eighty days. B) For a period not exceeding three hundred and sixty-five days. C) For such period as may be specified in the order of the Adjudicating Authority. D) Until the completion of the trial.
27. Where money-laundering involves two or more inter-connected transactions, what is the presumption regarding the remaining transactions?
A) They are presumed to be untainted property. B) They are presumed to be part of the same money-laundering scheme. C) They are presumed to be separate transactions. D) They are presumed to have no connection to the proven transactions.
Section: Appellate Tribunal and Special Courts
28. Who can prefer an appeal to the Appellate Tribunal against an order made by the Adjudicating Authority?
A) The Director or any person aggrieved by the order. B) Only the person whose property has been attached. C) Only the Director. D) The Central Government.
29. A reporting entity aggrieved by an order of the Director made under Section 13 can prefer an appeal to which authority?
A) The Central Government B) The High Court C) The Appellate Tribunal D) The Adjudicating Authority
30. Which court is responsible for trying an offence punishable under Section 4 of the Act?
A) The High Court B) The Court of Session C) The Special Court D) The Supreme Court
31. Can an offence punishable under Section 4 be tried along with a scheduled offence?
A) No, they must be tried separately. B) Yes, and the Special Court shall try both at the same trial. C) Yes, and the trial of both sets of offences by the same court shall be construed as a joint trial. D) The Special Court can only try the offence under Section 4.
32. What is the nature of offences under Section 45 of the Act?
A) Cognizable and bailable B) Non-cognizable and bailable C) Cognizable and non-bailable D) Non-cognizable and non-bailable
33. What is the minimum number of days' notice a Special Court must give to affected persons before ordering the confiscation of property received through a letter of request from a contracting State?
A) Not less than 15 days B) Not less than 30 days C) Not less than 60 days D) Not less than 90 days
34. Under Section 41, civil courts are barred from having jurisdiction in respect of any matter which the Adjudicating Authority or the Appellate Tribunal is empowered to deal with. This is an example of what legal principle?
A) Res judicata B) Separation of powers C) Bar of jurisdiction D) Stare decisis
Section: Authorities and Reciprocal Arrangements
35. The Central Government, in consultation with the Chief Justice of the High Court, shall designate one or more Courts of Session as a Special Court for trial of offence punishable under which section?
A) Section 3 B) Section 4 C) Section 5 D) Section 6
36. An officer of which rank is empowered to assist the Director in an inquiry or investigation?
A) Director or above B) Deputy Director or above C) Director, Additional Director, or Joint Director D) All authorities under the Act are empowered to assist.
37. What is the maximum period an officer can retain property seized under the Act?
A) 90 days from the date of seizure. B) A period not exceeding three hundred and sixty-five days or the pendency of proceedings. C) The duration of the provisional attachment. D) The duration of the adjudication proceedings before the Adjudicating Authority.
38. The Central Government may enter into an agreement with any foreign country for reciprocal assistance in which matters?
A) Service of summons and execution of warrants. B) Attachment and confiscation of property. C) Transfer of accused persons. D) All of the above.
39. A letter of request for the attachment or confiscation of property in India can be received by the Central Government from a court or authority in a contracting State. To whom can the Central Government forward this request for execution?
A) The Adjudicating Authority B) The Special Court C) The Director D) The High Court
40. What happens to the property in India that is subject to a letter of request from a contracting State for confiscation, if the foreign criminal court finds that the offence has been committed?
A) The Special Court shall release the property. B) The Central Government shall confiscate the property. C) The Special Court shall, on application by the Director, order the confiscation of the property. D) The Director can provisionally attach the property for 180 days.
Answer keys Day 7
21. B) At any stage of inquiry, having regard to the nature and complexity of the case. (Section 13(1A))
22. B) The Central Government, in consultation with the Reserve Bank of India. (Section 15)
23. C) Director, Deputy Director, Assistant Director, or any other officer authorized by the Central Government. (Section 19(1))
24. B) He has information in his possession and a valid reason to believe that a person is in possession of proceeds of crime or records. (Section 17(1))
25. A) The Adjudicating Authority (Section 17(2))
26. B) For a period not exceeding three hundred and sixty-five days. (Section 21(1))
27. B) They are presumed to be part of the same money-laundering scheme. (Section 23)
28. A) The Director or any person aggrieved by the order. (Section 26(1))
29. C) The Appellate Tribunal (Section 26(2))
30. C) The Special Court (Section 43(1))
31. B) Yes, and the Special Court shall try both at the same trial. (Section 44(1)(d) and Explanation)
32. C) Cognizable and non-bailable (Section 45(1))
33. B) Not less than 30 days (Section 60(2A))
34. C) Bar of jurisdiction (Section 41)
35. B) Section 4 (Section 43(1))
36. C) Director, Additional Director, or Joint Director (Section 54)
37. B) A period not exceeding three hundred and sixty-five days or the pendency of proceedings. (Section 20(1))
38. D) All of the above. (Section 56)
39. C) The Director (Section 60(2))
40. C) The Special Court shall, on application by the Director, order the confiscation of the property. (Section 60(2A))
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