📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Which of the following obligations are laid down by

    Section 12 of Prevention of Money Laundering Act 2002 on banking companies, financial institutions and intermediaries?  I. maintain a record of all transactions II. maintain record of documents evidencing identity of its clients and beneficial owners III. Keep all the information maintained or furnished as confidential
    A Only I Correct Answer Incorrect Answer
    B Only II Correct Answer Incorrect Answer
    C Only III Correct Answer Incorrect Answer
    D I, II, III Correct Answer Incorrect Answer

    Solution

    Explanation: Section 12 of Prevention of Money Laundering Act: 1) Every reporting entity shall: (a) maintain a record of all transactions, including information relating to transactions covered under clause (b), in such manner as to enable it to reconstruct individual transactions; (b) furnish to the Director within such time as may be prescribed, information relating to such transactions, whether attempted or executed, the nature and value of which may be prescribed; (e) maintain record of documents evidencing identity of its clients and beneficial owners as well as account files and business correspondence relating to its clients.

    Practice Next
    More Administrative Interpretation and Maxims Questions
    ask-question