Postman Exam Materials - VOLUME V - READ FOR THE EXAMINATION PURPOSE

 IP Exam Daily Spark: Day 8
Objective Questions for Inspector Posts Departmental Exam
The Prevention of Money-Laundering Act, 2002

Section: Miscellaneous and General Provisions
41. Under Section 63, what is the penalty for a person who refuses to answer a question legally required by an authority under the Act? 
A) Imprisonment up to 1 year and a fine. B) A monetary penalty which shall not be less than five hundred rupees but may extend to ten thousand rupees. C) Rigorous imprisonment up to 3 years. D) A fine which may extend to five lakh rupees.

42. If an offence under the Act has been committed by a company, who shall be deemed to be guilty of the offence? 
A) The company as a whole. B) The company's Chairman and Managing Director. C) The person in charge of and responsible to the company for the conduct of its business at the time the offence was committed. D) The company's legal advisor.

43. In case of an inter-connected transaction, when is the presumption that the remaining transactions are also part of the money-laundering scheme considered invalid? 
A) When the person charged proves the contrary to the satisfaction of the Authority or Court. B) When the value of the remaining transactions is less than the value of the proven transactions. C) When the Director gives a written statement to that effect. D) The presumption is irrefutable.

44. The power of the Central Government to make rules under the Act is given under which section?

A) Section 71 B) Section 72A C) Section 73 D) Section 74

45. The Act to have overriding effect over other laws is stated in which section? 

A) Section 65 B) Section 67 C) Section 71 D) Section 75

46. What is the maximum period for which the Central Government can exercise its power to remove difficulties by an order under the Act? 

A) One year from the commencement of the Act. B) Two years from the commencement of the Act. C) Three years from the commencement of the Act. D) Five years from the commencement of the Act.

47. When is a Special Court allowed to take cognizance of an offence under Section 3 without the accused being committed to it for trial?

 A) Upon a complaint made by an authority authorized in this behalf. B) After a police report has been filed under Section 173 of the Code of Criminal Procedure. C) After the Adjudicating Authority has passed a confiscation order. D) When the Director makes an application to the Special Court.

48. What is the punishment for a vexatious search by an officer under the Act? 

A) Imprisonment for a term which may extend to two years. B) Imprisonment for a term which shall not be less than one year but which may extend to seven years. C) Rigorous imprisonment for a term which may extend to five years. D) Rigorous imprisonment for a term which may extend to two years and a fine of up to ten thousand rupees.

49. Under Section 54, which of the following officers are required to assist the authorities in the enforcement of the Act? 

A) Officers of the Customs and Central Excise Departments. B) Income-tax authorities. C) Officers of the Reserve Bank of India. D) All of the above.

50. The Adjudicating Authority, in a proceeding, is not bound by the procedure laid down by the Code of Civil Procedure, 1908. By what is it guided? 

A) The principles of natural justice. B) The Indian Evidence Act, 1872. C) The Code of Criminal Procedure, 1973. D) The Prevention of Money Laundering (Adjudication) Rules, 2005.

51. The power to attach property involved in money-laundering is given to the Director or any other officer not below the rank of Deputy Director under which section of the Act? 

A) Section 3 B) Section 4 C) Section 5 D) Section 6

52. The term "designated business or profession" under the Act includes a person carrying on activities for playing games of chance for cash or kind, which includes such activities associated with a: 

A) Horse race B) Casino C) Lottery D) Gambling

53. Who is the "beneficial owner" as per the Act? 

A) An individual who ultimately owns or controls a client of a reporting entity. B) The person on whose behalf a transaction is being conducted. C) A person who exercises ultimate effective control over a juridical person. D) All of the above.

54. If a provisional attachment order is stayed by the High Court, how is the period of 180 days computed? 

A) The period of stay is included. B) The period of stay is excluded. C) A new 180-day period begins after the stay is vacated. D) The provisional attachment order becomes invalid.

55. Under Section 11, the Director has the same powers as a civil court under the Code of Civil Procedure, 1908. Which of the following is not one of these powers? 

A) Discovery and inspection. B) Enforcing the attendance of any person. C) Issuing a warrant for arrest. D) Receiving evidence on affidavit.

56. The burden of proof in a proceeding relating to proceeds of crime under the Act is on whom?

 A) The authority or court to prove the proceeds of crime are involved in money laundering. B) The person charged with the offence to prove the contrary. C) The victim of the scheduled offence. D) The person from whom the property was seized.

57. An appeal to the High Court against an order of the Appellate Tribunal must be filed within how many days from the date of communication of the decision or order? 

A) 30 days B) 60 days C) 90 days D) 120 days

58. The Central Government, for the trial of an offence punishable under Section 4, can designate which court as a Special Court? 

A) A Court of Civil Judge B) A Court of Magistrate C) A Court of Session D) A Court of District Judge

59. Who is empowered to appoint the Director and other authorities under the Act?

 A) The Central Government B) The Director General C) The Adjudicating Authority D) The Special Court

60. Who is responsible for the management of properties confiscated under Chapter III of the Act?

 A) The Adjudicating Authority B) The Director C) The Central Government D) An Administrator appointed by the Central Government.

Answer Key Day 8 
41. B) A monetary penalty which shall not be less than five hundred rupees but may extend to ten thousand rupees. (Section 63(2)(c))
42. C) The person in charge of and responsible to the company for the conduct of its business at the time the offence was committed. (Section 70(1))
43. A) When the person charged proves the contrary to the satisfaction of the Authority or Court. (Section 23)
44. C) Section 73 (Section 73(1))
45. C) Section 71 (Section 71)
46. B) Two years from the commencement of the Act. (Section 75(1))
47. A) Upon a complaint made by an authority authorized in this behalf. (Section 44(1)(b))
48. A) Imprisonment for a term which may extend to two years. (Section 62)
49. D) All of the above. (Section 54)
50. A) The principles of natural justice. (Section 6(15))
51. C) Section 5 (Section 5(1))
52. B) Casino (Section 2(sa)(i))
53. D) All of the above. (Section 2(fa))
54. B) The period of stay is excluded. (Section 5(1) third proviso)
55. C) Issuing a warrant for arrest. (Section 11)
56. B) The person charged with the offence to prove the contrary. (Section 24(a))
57. C) 90 days (Section 42)
58. C) A Court of Session (Section 43(1))
59. A) The Central Government (Section 49)
60. D) An Administrator appointed by the Central Government. (Section 10(1))