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Question

Which of the following statements related to Prevention of Money Laundering Act (PMLA) is not true ?

  1. It includes all major offences which help in generation of black money.
  2. Tax evasion and smuggling have been kept out of the definition of money laundering.
  3. Any case under this Act is non-bailable.
  4. The Director of Money Laundering is not given power to call for the records maintained by Financial Institutions (FIs).

Answer:

Option D: The Director of Money Laundering is not given power to call for the records maintained by Financial Institutions (FIs).

Detailed Solution:

The correct answer is “The Director of Money Laundering is not given power to call for the records maintained by Financial Institutions (FIs).”.

The Enforcement Directorate (headed by the Director) has the power to call for records and documents from financial institutions and intermediaries to investigate money laundering cases.