The Government tabled the Prevention of Money-Laundering (Amendment) Bill, 2011, in the Lok Sabha
. It seeks to introduce the concept of a “corresponding law” to link the provisions of Indian law to those of other countries and to provide for transfer of the proceeds of foreign predicate offence committed in any manner in India.
The Bill enlarges the definition of money-laundering to include concealment, acquisition, possession and use of proceeds of crime as criminal activities and to remove the existing limit of Rs. 5 lakh in fine.
The Bill provides for attachment and confiscation of the proceeds of crime even if there is no conviction so long as it is proved that money-laundering has taken place and the property in question is involved in the crime. It confers powers on the director of reporting entities, such as banks, financial institutions and intermediaries, to call for records of transactions or any additional information that may be required for prevention of the crime and to make enquiries for non-compliance with reporting obligations.
The Bill proposes to make the reporting entities and their designated directors on the board and employees responsible for acts of commission and omission. The reporting entities need to maintain a record of all transactions, including information for reconstructing individual transactions. These entities will maintain records of documents in proof of the identity of their clients and beneficial owners as well as account files and business correspondence.
The PMLA, 2002, was aimed at preventing money laundering and confiscating property derived from, or involved in, the crime. It was amended in 2005 and 2009 to remove the difficulties in its implementation.
The Bill also provides for appeal against the orders of the Appellate Tribunal in the Supreme Court, instead of in the High Court as mandated by the existing laws. A person aggrieved by the Tribunal's decision or order may file an appeal within 60 days of the date of communication of the order. The court may allow the appeal to be filed within a further period not exceeding 60 days, if it is satisfied that the applicant has been prevented by sufficient cause from appealing within the stipulated period
