Quick practice
Question 1 of 5
Mr. Ram gave two of his friends’ cash amount of two lakh each in case of dire necessity for their business purposes. Later at the time of return, he asked both of them, in lieu of the same, to buy his product via credit card and online transfers in installments through next couple of months’ time for which he issued bills to adjust the amount in his account books. Does this payment system through credit card and online transfer mode are covered under money laundering act?
Yes, money laundering transactions done via credit card and online payments comes under the Prevention of Money Act.
No, it is not money laundering as none of Mr. Ram friends are benefiting from this transaction.
No, payment are made through credit cards & online transfers hence all the transaction are genuine.
No, because the transactions are not done with shell companies.
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