Section 12AA(3) of the Prevention of Money Laundering Act, 2002 requires reporting entities to increase…
Section 12AA(3) applies where a specified transaction or series "is considered suspicious or likely to involve proceeds of crime"; the entity must then "increase the future…
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Section 12AA(3) of the Prevention of Money Laundering Act, 2002 requires reporting entities to increase monitoring when-
Answer and explanation
Correct answer D
Section 12AA(3) applies where a specified transaction or series "is considered suspicious or likely to involve proceeds of crime"; the entity must then "increase the future monitoring of the business relationship with the client". Newness of the client or use of Aadhaar does not trigger it.