Q. Consider the following statements regarding Prevention of Money Laundering Act (PMLA):
1) An FIR is required before starting an investigation under the act.
2) Under PMLA, burden of proving innocence is on the accused.
Select the correct answer using the codes given below

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Statement 1 is incorrect. : IN case of PMLA, an ECIR (Enforcement Case Information Report) is registered. It is an equivalent of the FIR, is considered an “internal document” and not given to the accused.

Statement 2 is correct. In PMLA, this burden has been shifted to the accused persons; they will have to prove their innocence. Under general law every person is innocent until proven guilty.