Correct
Ans: A
Exp:
PMLA was a comprehensive penal statute to counter the threat of money laundering, specifically stemming from trade in narcotics. Currently, the offences in the schedule of the Act are highly overbroad and, in several cases, have no relation to either narcotics or organised crime.
Statement 1 is incorrect: In the case of PMLA, an ECIR (Enforcement Case Information Report) is filed. It is similar to the FIR but is regarded as an “internal document” and is not released to the accused. Throughout the procedure, the accused needs to learn the facts of the allegation against him, as the only document which contains the allegation is the ECIR, which is not supplied to the accused persons.
Statement 2 is correct: In General Criminal Law, every accused is innocent until proven guilty. However, in PMLA, this burden has been shifted to the accused; they must prove their innocence.
Statement 3 is incorrect: With the onset of the process of economic liberalisation, FERA, 1973, which was a regulatory law, was repealed and in its place, a new law viz. the Foreign Exchange Management Act, 1999 (FEMA) came into operation w.e.f. 1st June 2000. In tune with the International Anti-Money Laundering regime, the Prevention of Money Laundering Act, 2002 (PMLA) was enacted, and ED was entrusted with its enforcement w.e.f. 1st July 2005.
Statement 4 is incorrect: Section 45 of the Prevention of Money Laundering Act (PMLA) made offences to be cognizable and non-bailable and no person accused of an offence shall be released on bail or on his own bond unless the Public Prosecutor is allowed to oppose the application for such release and where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that the accused is not likely to commit any offence while on bail.
Incorrect
Ans: A
Exp:
PMLA was a comprehensive penal statute to counter the threat of money laundering, specifically stemming from trade in narcotics. Currently, the offences in the schedule of the Act are highly overbroad and, in several cases, have no relation to either narcotics or organised crime.
Statement 1 is incorrect: In the case of PMLA, an ECIR (Enforcement Case Information Report) is filed. It is similar to the FIR but is regarded as an “internal document” and is not released to the accused. Throughout the procedure, the accused needs to learn the facts of the allegation against him, as the only document which contains the allegation is the ECIR, which is not supplied to the accused persons.
Statement 2 is correct: In General Criminal Law, every accused is innocent until proven guilty. However, in PMLA, this burden has been shifted to the accused; they must prove their innocence.
Statement 3 is incorrect: With the onset of the process of economic liberalisation, FERA, 1973, which was a regulatory law, was repealed and in its place, a new law viz. the Foreign Exchange Management Act, 1999 (FEMA) came into operation w.e.f. 1st June 2000. In tune with the International Anti-Money Laundering regime, the Prevention of Money Laundering Act, 2002 (PMLA) was enacted, and ED was entrusted with its enforcement w.e.f. 1st July 2005.
Statement 4 is incorrect: Section 45 of the Prevention of Money Laundering Act (PMLA) made offences to be cognizable and non-bailable and no person accused of an offence shall be released on bail or on his own bond unless the Public Prosecutor is allowed to oppose the application for such release and where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that the accused is not likely to commit any offence while on bail.