Question
Consider the following about Prevention of Money
Laundering Act. I. PMLA was enacted in 2002 and it came into force in 2005. II. The PLMA has been amended two times, that is, in 2009 and 2012. III. The provisions of this act are applicable Reserve bank of India. Which of the above statement is/are incorrect?Solution
Money Laundering is the process through which black money is converted into white money i.e. legitimate money. Such funds are used for various anti-social activities such as terrorism etc. In order to prevent that, the PMLA Act was passed in the year 2002 and it has the authority to also seize property obtained from the illegal money. It came into force in 2005. The PLMA has been amended three times, that is, in 2009, 2009 and 2012. The provisions of this act are applicable to all financial institutions, banks (Including RBI), mutual funds, insurance companies, and their financial intermediaries.
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