MCQ for CA Final LAW - PART 2 - ECONOMIC LAW - Chapter 2 THE PREVENTION OF MONEY LAUNDERING ACT, 2002

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 4 - Corporate and Economic Laws - PART 2 - ECONOMIC LAW - Chapter 2: THE PREVENTION OF MONEY LAUNDERING ACT, 2002 - For Practice relevant for May/Nov 23 Examinations

 

Q:1 Objectives of the Prevention of Money Laundering Act, 2002 is:      

 

  1. to prevent money laundering
  2. to provide for confiscation of property derived from, or involved in, money laundering
  3. to provide for matters connected or incidental to matters stated in (a) and (b) above.
  4. All of the above.

Answer: 1

Q:2 Money Laundering is a -      

 

  1. Civil Offence
  2. Criminal Offence
  3. Both (a) and (b)
  4. None of the above

Answer: 2

Q:3 The process of money laundering involves three stages. Choose the correct answer as to sequence of the stages generally occurs:            

 

  1. Placement, Integration followed by Layering.
  2. Placement, Layering followed by Integration.
  3. Layering, Placement Followed by Integration.
  4. Layering, Integration followed by Placement.

Answer: 2

Q:4 The process of money laundering involves three stages, placement, layering and integration. Which of the following activity forms part of placement stage?               

 

  1. Introducing the legal funds into the financial systems.
  2. Engaging in a series of continuous conversions or movements of funds, within the financial or banking system by way of numerous accounts, so as to hide their true origin and to distance them from their criminal source.
  3. Money enters the financial system in such a way that original association with crime is sought to be obliterated so that the money can then be used by the offender or person receiving as clean money.
  4. All of the above.

Answer: 12

Q:5 Every reporting entity shall maintain record of documents evidencing identity of its ______ and ______.

 

  1. Clients; beneficial owners
  2. Employees; officers
  3. Employees; directors
  4. Directors; members

Answer: 1

Q:6 The record of documents evidencing identity of clients and beneficial owners shall be maintained by a reporting entity for a period of _________ after the business relationship between a client and the reporting entity has ended or the account has been closed, whichever is _________.

 

  1. 8 years; later
  2. 5 years; later
  3. 8 years; earlier
  4. 5 years; earlier

Answer: 2

Q:7 Where the Director calls for any information from any reporting entity, such reporting entity shall furnish such information to the director within ______.       

 

  1. 7 days
  2. 15 days
  3. 30 days
  4. Such time as may be specified by the Director

Answer: 4

 

CA Final - Paper 4 - Corporate and Economic Laws - PART 2 -  Economic Law - Chapter 3   

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