Bill seeks to include activities such as concealment and possession of proceeds of crime under ambit of PMLA

First Published: Thu, Nov 29 2012. 07 52 PM IST

http://www.livemint.com/Politics/P49KxOKkfZUNmTIC0GjWIJ/Lok-Sabha-approves-changes-in-money-laundering-Bill.html

The Lok Sabha on Thursday passed the Prevention of Money Laundering (Amendment) Bill, 2011, aimed at widening the coverage of the law to make it more stringent and bring it in line with similar legislation in other countries.

The Bill seeks to include activities such as concealment and possession of proceeds of crime under the ambit of the Prevention of Money Laundering Act (PMLA).

It will also put the onus on banks, financial institutions, intermediaries or a person carrying on a specified business to report such instances by introducing the concept of a “reporting entity”.

The amendment will also link the provisions of Indian law with laws of other countries.

With money laundering becoming a global menace and a source of terror financing, India became a member of the Financial Action Task Force (FATF) in 2010.

The amendments to the existing law were envisaged after FATF found several shortcomings in it.

Currently, under PMLA, a fine of up to Rs.5 lakh can be levied.

The amendment proposes to remove this upper limit.

It also proposes to make a provision for attachment and confiscation of the proceeds of crime even if there is no conviction, so long as it is proved that a specific property was involved in money-laundering.

The Bill, introduced last year in the Lok Sabha, and thereafter referred to the standing committee of finance, seeks to amend PMLA, 2002.

The standing committee had recommended that the power of Indian courts should be restored over other foreign courts.

It also suggested changes in the Bill to monitor money laundering through stock markets and trade.

The committee had also said that only financial transactions above a certain level should be monitored to avoid over burdening of existing staff.

Finance minister P. Chidambaram, while moving the Bill, said the government has accepted all the 18 recommendations made by the panel.

Chidambaram said the amendments will help India bring its anti-money laundering legislation on par with international standards.

It will also address the deficiencies in the present Act that have been experienced by the implementing agencies, he said.

The Bill also provides for appeal against an order of the Appellate Tribunal directly to the Supreme Court.