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    Question

    With reference to Virtual Digital Assets and Prevention of Money Laundering Act (PMLA) 2002 , consider the following statements:

    1.    VDA service providers must adhere to the same reporting requirements and KYC requirements as other regulated companies, such as banks.

    2.    The PMLA controls the transfer of virtual digital assets.

    3.    Prevention Of Money Laundering Act (PMLA) formulated in the year 2003 .

    Which of the following statements given above is/are correct?

    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C 3 only Correct Answer Incorrect Answer
    D 1 and 2 only Correct Answer Incorrect Answer
    E 2 and 3 only Correct Answer Incorrect Answer

    Solution

    Virtual Digital Assets service providers/businesses have now become the ‘Reporting Entities’ under PMLA Act 2002 , and they must follow similar reporting standards and KYC norms as the other regulated entities like banks, securities intermediaries, payment system operators, etc. PMLA-covered activities include: Exchange of Virtual digital assets (VDA) and fiat currencies, Change between one or more VDA types, etc. The Prevention o f Money Laundering Act (PMLA) formulated in the year 2002 has undergone various critical changes from time to time in order to give itself more strength to deal with the offence of money laundering.

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