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      Question

      Under the PMLA, the offence committed by a company

      attributes liability to which persons?
      A Only the company Correct Answer Incorrect Answer
      B Only the customers Correct Answer Incorrect Answer
      C Only the shareholders Correct Answer Incorrect Answer
      D Only the auditors Correct Answer Incorrect Answer
      E Every person in charge of and responsible for the conduct of its business Correct Answer Incorrect Answer

      Solution

      Under Section 70 of the Prevention of Money Laundering Act, where a contravention or offence has been committed by a company, every person who at the time was in charge of and responsible to the company for the conduct of its business, as well as the company, is deemed guilty. Directors, managers and officers may be liable where the offence was committed with their consent, connivance or due to their neglect. This extends accountability for money laundering to those responsible for the company's affairs.

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