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      Question

      Under the Prevention of Money-Laundering Act, 2002,

      'attachment' is defined as:
      A Prohibition of transfer, conversion, disposition or movement of property by an order issued under Chapter III Correct Answer Incorrect Answer
      B Seizure of property and handing it over to the Central Government Correct Answer Incorrect Answer
      C Freezing of bank accounts by a court order under the Code of Civil Procedure Correct Answer Incorrect Answer
      D Physical custody of property by the Director of Enforcement Correct Answer Incorrect Answer
      E Confiscation of property after conviction by a Special Court Correct Answer Incorrect Answer

      Solution

      As per Section 2(d) of the PMLA, 2002, 'attachment' specifically means the prohibition of transfer, conversion, disposition or movement of property by an order issued under Chapter III. This definition is crucial because it clarifies that attachment under PMLA is not the same as physical seizure or confiscation. The prohibition is operative through a written order and prevents the property from being transferred or dealt with. It is distinct from confiscation, which is a final vesting of property in the Central Government. The power to provisionally attach property is exercised under Section 5 of PMLA. Option A incorrectly describes confiscation, and Option C refers to a civil court procedure not applicable here.

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