Question

    Which of the following statements correctly reflects the

    power of the authorities under the PMLA regarding provisional attachment of property?
    A Property can be attached only after conviction of the accused. Correct Answer Incorrect Answer
    B Property can be attached only if it is located within India. Correct Answer Incorrect Answer
    C Property derived from scheduled offence can be provisionally attached by the Adjudicating Authority. Correct Answer Incorrect Answer
    D Director or an officer not below the rank of Deputy Director may provisionally attach property if they have reason to believe it is involved in money laundering. Correct Answer Incorrect Answer
    E Provisional attachment is permitted only after trial begins. Correct Answer Incorrect Answer

    Solution

    According to Section 5(1) of the PMLA, 2002, the Director or any officer not below the rank of Deputy Director, on the basis of material in their possession and having reason to believe (recorded in writing) that any person is in possession of proceeds of crime, can provisionally attach such property. • The property must be involved in money laundering. • Such provisional attachment is valid for 180 days, pending adjudication. • The intention is to prevent transfer or concealment of assets suspected to be proceeds of crime. This provision is a preventive measure and can be invoked before conviction or even trial, to secure the assets.

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