Q. 1
Judicial Studies
Difficulty: Easy
(1 Mark)
Under the Anti-Money Laundering Act (AMLA) 2010, the offence of 'Money Laundering' is defined under which section?
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Step-by-Step Explanation & Concept Rationale
Section 3 of AMLA 2010 defines the offence of money laundering: A person commits money laundering if he acquires, converts, possesses, uses or transfers property knowing or having reason to believe that such property is proceeds of crime, or conceals/disguises its true nature.
Q. 2
Judicial Studies
Difficulty: Medium
(1 Mark)
Under Section 4 of the Anti-Money Laundering Act 2010, what is the punishment prescribed for committing the offence of money laundering?
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Step-by-Step Explanation & Concept Rationale
Section 4 AMLA 2010 prescribes rigorous imprisonment for a term between one and ten years, fine which may extend to 25 million rupees (amended to 50 million in 2020), and forfeiture of all properties involved in money laundering.
Q. 3
Judicial Studies
Difficulty: Easy
(1 Mark)
Under Section 6 of AMLA 2010, which autonomous body in the State Bank of Pakistan is established to receive and analyze Suspicious Transaction Reports (STRs)?
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Step-by-Step Explanation & Concept Rationale
Section 6 of AMLA 2010 establishes the Financial Monitoring Unit (FMU), an autonomous body housed in the State Bank of Pakistan that serves as the national financial intelligence unit (FIU) to receive, analyze, and disseminate STRs and CTRs.
Q. 4
Judicial Studies
Difficulty: Medium
(1 Mark)
Under Section 7 of AMLA 2010, reporting entities (banks, financial institutions) are legally bound to file a Suspicious Transaction Report (STR) with the FMU within:
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Step-by-Step Explanation & Concept Rationale
Under Section 7(1) AMLA 2010 and FMU regulations, every reporting entity shall file an STR to the FMU within seven working days after forming a suspicion that transactions involve proceeds of crime.
Q. 5
Judicial Studies
Difficulty: Medium
(1 Mark)
What is a 'Currency Transaction Report' (CTR) under AMLA 2010 regulations in Pakistan?
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Step-by-Step Explanation & Concept Rationale
A CTR is a mandatory regulatory filing submitted by reporting entities to the FMU for all cash transactions (cash deposits, withdrawals, transfers) exceeding the prescribed threshold of Rs. 2 Million (20 Lakhs) or its equivalent in foreign currency.
Q. 6
Judicial Studies
Difficulty: Hard
(1 Mark)
Under Section 8 of AMLA 2010, an Investigating Officer may, with prior permission of the Court, order the attachment of property involved in money laundering for a period not exceeding:
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Step-by-Step Explanation & Concept Rationale
Under Section 8 AMLA, the investigating officer, upon finding that property represents proceeds of crime and is likely to be concealed or transferred, may order attachment of property for a period not exceeding 180 days.
Q. 7
Judicial Studies
Difficulty: Medium
(1 Mark)
Under Section 20 of AMLA 2010, which Court has exclusive jurisdiction to try offences of money laundering under the Act?
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Step-by-Step Explanation & Concept Rationale
Section 20 AMLA 2010 provides that the Court of Session established under the CrPC shall be the Special Court to try offences under this Act, provided that if the predicate offence is triable by a Special Court (e.g. Accountability Court or Special Judge Central), that Special Court shall try the AML offence jointly.
Q. 8
Judicial Studies
Difficulty: Easy
(1 Mark)
What is the global inter-governmental policymaking body that sets international standards and evaluations for Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT)?
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Step-by-Step Explanation & Concept Rationale
The Financial Action Task Force (FATF), based in Paris, is the global watchdog that establishes international standards (40 Recommendations) to prevent money laundering, terrorist financing, and proliferation financing.
Q. 9
Judicial Studies
Difficulty: Medium
(1 Mark)
Under AMLA 2010, 'Tipping-Off' refers to the illegal act of:
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Step-by-Step Explanation & Concept Rationale
Section 34 of AMLA 2010 penalizes tipping-off: It is an offence for any officer or employee of a reporting entity to disclose to any person that an STR, report, or information has been communicated to the FMU, punishable with imprisonment up to 5 years and fine.
Q. 10
Judicial Studies
Difficulty: Easy
(1 Mark)
Under AMLA 2010, what is meant by a 'Predicate Offence'?
💡
Step-by-Step Explanation & Concept Rationale
Under Section 2(xxv) of AMLA 2010, a predicate offence is any offence listed in the Schedule to the Act (e.g. corruption, drug trafficking, tax fraud, human smuggling) generating illicit proceeds that are subsequently laundered.
Q. 11
Judicial Studies
Difficulty: Medium
(1 Mark)
Under AMLA 2010, the apex policymaking body responsible for national AML/CFT coordination is the:
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Step-by-Step Explanation & Concept Rationale
Section 5 of AMLA 2010 establishes the National Executive Committee (NEC), chaired by the Federal Minister for Finance, to formulate national policy, review risk assessments, and oversee FATF compliance.
Q. 12
Judicial Studies
Difficulty: Medium
(1 Mark)
Under AMLA 2010 regulations, reporting entities must retain transaction records and account opening documentation for a minimum statutory period of:
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Step-by-Step Explanation & Concept Rationale
Under AMLA Section 7(3) and State Bank/SECP AML regulations, reporting institutions must maintain all necessary records of domestic and international transactions for at least five years following completion of the transaction or termination of the business relationship.
Q. 13
Judicial Studies
Difficulty: Easy
(1 Mark)
In AML compliance, what does 'PEP' stand for?
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Step-by-Step Explanation & Concept Rationale
A Politically Exposed Person (PEP) is an individual who is or has been entrusted with prominent public functions (heads of state, senior politicians, judicial/military officials, senior executives of state-owned corporations), requiring Enhanced Due Diligence (EDD).
Q. 14
Judicial Studies
Difficulty: Hard
(1 Mark)
Under Section 9 of AMLA 2010, in proceedings for money laundering where an accused is found in possession of proceeds of crime disproportionate to his lawful income, the burden of proving that the property is not proceeds of crime lies on the:
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Step-by-Step Explanation & Concept Rationale
Under Section 9 of AMLA 2010, the statutory presumption applies: where the prosecution establishes that the accused possesses assets disproportionate to his declared income, the burden shifts to the accused to prove lawful acquisition.
Q. 15
Judicial Studies
Difficulty: Medium
(1 Mark)
Under Sections 26 and 27 of AMLA 2010, Pakistan may cooperate with foreign states in tracing, freezing, and confiscating laundered assets through:
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Step-by-Step Explanation & Concept Rationale
Sections 26 to 28 of AMLA 2010 govern Mutual Legal Assistance (MLA) in criminal matters, allowing the Federal Government to seek or provide legal assistance to contracting states for evidence gathering and asset forfeiture.
Q. 16
Judicial Studies
Difficulty: Medium
(1 Mark)
Which of the following is a non-financial business or profession categorized as a 'Designated Non-Financial Business and Profession' (DNFBP) under AMLA 2010?
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Step-by-Step Explanation & Concept Rationale
Under Section 2(xii) of AMLA 2010, DNFBPs include real estate agents, dealers in precious metals/stones, chartered accountants, and legal professionals when conducting financial or property transactions for clients.
Q. 17
Judicial Studies
Difficulty: Medium
(1 Mark)
Under Section 33 of AMLA 2010, reporting entities and their officers who submit STRs in good faith to the FMU are granted:
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Step-by-Step Explanation & Concept Rationale
Section 33 of AMLA provides 'Safe Harbor' protection: No civil, criminal or disciplinary proceedings shall lie against a reporting entity, its directors or employees for reporting suspicious transactions in good faith.
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