Bill to enlarge definition of money laundering offence

A bill which seeks to enlarge the definition of offence of money laundering by including activities like concealment, acquisition and use of proceeds of crime as criminal activities was moved in the Lok Sabha today.

Moving the Prevention of Money Laundering (Amendment) Bill, 2011, Finance Minister P Chidambaram said the measure seeks to enlarge the definition of offence of money laundering to include activities like concealment, acquisition, possession and use of proceeds of crime as criminal activities and remove existing limit of Rs 5 lakh as fine under the Act.

The bill was introduced in the Lok Sabha in December, 2011 by the then Finance Minister Pranab Mukherjee and referred to the Parliamentary Standing Committee on Finance.

Chidambaram said the government has accepted all the 18 recommendations made by the panel and termed it as an indicator of consensus between government and the opposition on the issue.

He said the amendments will also help the Centre to bring the anti-money laundering legislation on par with international standards and obviate some of the deficiencies in the present Act that have been experienced by the implementing agencies.

The proposed amendments also seek to introduce the concept of 'corresponding law' to link the provisions of Indian law with the laws of foreign countries.

It also proposes to make provision for attachment and confiscation of the proceeds of crime even if there is no conviction so long as it is proved that offence of money laundering has taken place and property in question is involved in money-laundering, the Statement of the Bill read.

It provides for appeal against the orders of the Appellate Tribunal directly to the Supreme Court.

Initiating the debate on the bill, Nishikant Dubey (BJP) sought to attack the Congress and the government on the issue of Indian blackmoney stashed away in Swiss bank accounts.

He claimed that despite the name of a sitting MP from the treasury benches in the list of Indians allegedly having Swiss bank accounts coming out, the government has not made a statement and asked Chidambaram to clarify on the subject in his reply.

He said the amendments do clarify government's stand on money flowing out of the 2G scam and human and drug trafficking as well as gun running.

Sanjay Nirupam (Cong) sought to turn the tables on the BJP by demanding that corruption be added in the bill.

In an oblique reference to a top BJP leader, he said a minister may favour a contractor using his position and later himself open a company which may get funds from the same contractor as a return favour.

When some members from other opposition parties prodded him to clarify, Nirupam refused saying his reference was clear.