New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    In India, the primary legal framework for Anti-Money

    Laundering (AML) and Countering Financing of Terrorism (CFT) is provided by _________.   
    A The Banking Regulation Act, 1949 Correct Answer Incorrect Answer
    B The Reserve Bank of India Act, 1934 Correct Answer Incorrect Answer
    C The Prevention of Money-Laundering Act, 2002 and its accompanying Rules Correct Answer Incorrect Answer
    D The Payment and Settlement Systems Act, 2007 Correct Answer Incorrect Answer
    E The Companies Act, 2013 Correct Answer Incorrect Answer

    Solution

    The Prevention of Money-Laundering Act, 2002 and its accompanying Rules     In India, AML and CFT activities are governed by the Prevention of Money-Laundering Act, 2002, and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005. These laws provide guidelines for financial institutions to mo nitor a nd report suspicious transactions effectively.  

    Practice Next

    Relevant for Exams: