Module: General Practice
Q79: Which of the following statements are correct regarding the definition and nature of Money Laundering under the Prevention of Money Laundering Act (PMLA), 2002?
Under Section 3, the offence is committed if a person knowingly assists or is involved in any process connected with the proceeds of crime, such as concealment or possession.
The offence is legally treated as a "derivative crime," meaning it cannot exist without a valid "Predicate Offence" (Scheduled Offence).
Successfully projecting the money as "untainted property" is a mandatory condition for conviction; mere possession of illicit funds is not sufficient.
The definition covers activities like acquisition and use of proceeds of crime, even if the funds are not physically converted into legitimate assets.
The offence is legally treated as a "derivative crime," meaning it cannot exist without a valid "Predicate Offence" (Scheduled Offence).
Successfully projecting the money as "untainted property" is a mandatory condition for conviction; mere possession of illicit funds is not sufficient.
The definition covers activities like acquisition and use of proceeds of crime, even if the funds are not physically converted into legitimate assets.
✅ Correct Answer: B
The correct answer is Option B. Section 3 of PMLA covers any process connected with proceeds of crime.
Money laundering is a derivative crime relying on a Predicate Offence.
Mere possession is sufficient; projecting it as untainted is not mandatory.
Understanding PMLA definitions is critical for the IIBF AML KYC Exam 2026.
Money laundering is a derivative crime relying on a Predicate Offence.
Mere possession is sufficient; projecting it as untainted is not mandatory.
Understanding PMLA definitions is critical for the IIBF AML KYC Exam 2026.