Question

Which of the following acts is related to the regulation of money laundering in India?

• A. The Money Laundering (Prevention) Act, 2002
• B. The Prevention of Corruption Act, 1988
• C. The Indian Penal Code, 1860
• D. The Consumer Protection Act, 2019

Hint:

When studying Indian laws, always identify the specific focus of each act to determine its applicability to the issue at hand.

Answer 1

The Correct Option is A

Step 1: Understand the concept of money laundering
Money laundering involves concealing the origins of illegally obtained money, typically by passing it through a complex sequence of banking transfers or commercial transactions.
Step 2: Analyze each option
- Option (1): The Money Laundering (Prevention) Act, 2002, specifically addresses the prevention of money laundering and provides for confiscation of property derived from such activities.
- Option (2): The Prevention of Corruption Act, 1988, deals with bribery and corruption by public servants, not specifically money laundering.
- Option (3): The Indian Penal Code, 1860, is a general criminal code and does not specifically target money laundering.
- Option (-when studying Indian laws, always identify the specific focus of each act to determine its applicability to the issue at hand.4): The Consumer Protection Act, 2019, focuses on consumer rights and protection, unrelated to money laundering.
Step 3: Conclusion
The Money Laundering (Prevention) Act, 2002, is the act directly related to the regulation of money laundering in India.