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The "reason to believe" under Section 5(1) of the Prevention of Money Laundering Act, 2002 must be…

Section 5(1) requires recorded reason to believe based on material in the officer's possession. Neither bare suspicion nor a governmental instruction substitutes for that…

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The "reason to believe" under Section 5(1) of the Prevention of Money Laundering Act, 2002 must be based on-

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Correct answer C

Section 5(1) requires recorded reason to believe based on material in the officer's possession. Neither bare suspicion nor a governmental instruction substitutes for that basis. Oral information is not categorically excluded as information, but the unsupported tip described does not itself state the required evidential foundation.

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