Q. Consider the following statements:
1.Money laundering is the illegal process of concealing the origin of illegally obtained money, making it appear legitimate.
2.The Prevention of Money Laundering Act (PMLA) does not apply to cash transactions below a certain threshold.
Select the correct statements using the codes given below:
Answer: A
Notes:
Explanation –
Statement 1 is correct. Money laundering is the illegal process of concealing the origin of illegally obtained money, making it appear legitimate. The primary law in India that addresses and prevents money laundering is the Prevention of Money Laundering Act (PMLA).
Statement 2 is incorrect. The PMLA applies to a wide range of transactions, and there is no specific threshold below which it does not apply. The Act covers various financial transactions, and reporting entities are required to comply with its provisions, regardless of the transaction amount.
Source: Forum IAS
