If a client fails to fulfill the conditions under Section 12AA(1) of the Prevention of Money Laundering…
Section 12AA(2) is mandatory: where the client fails to fulfil the conditions in sub-section (1), "the reporting entity shall not allow the specified transaction to be…
Choose your answer
If a client fails to fulfill the conditions under Section 12AA(1) of the Prevention of Money Laundering Act, 2002, the reporting entity shall-
Answer and explanation
Correct answer A
Section 12AA(2) is mandatory: where the client fails to fulfil the conditions in sub-section (1), "the reporting entity shall not allow the specified transaction to be carried out". Allowing it with a report or a warning is not an option the Act gives.