Bill to amend the Prevention of Money-laundering Act

Why in News?

Government introduced a Bill to amend the Prevention of Money-laundering Act, 2002 through Finance Act, 2018

 

FACTS FOR PRELIMS

Background

The Prevention of Money Laundering Act, 2002 (PMLA) forms the core of the legal framework put in place by India to combat money laundering.

PMLA defines money laundering offence and provides for the freezing, seizure and confiscation of the proceeds of crime.

Amendments have been made in the Prevention of Money-laundering Act, 2002 (PMLA) through Finance Act 2018. The Amendments aim at further enhancing the effectiveness of the Act, widen its scope and take care of certain procedural difficulties faced by the Enforcement Directorate in the prosecution of PMLA cases.

Key amendments-

i)Amendment in the definition of “proceeds of crime”: The definition of “proceeds of crime” in PMLA was amended in 2015 to include “property equivalent held within the country” in case proceeds of crime is taken out or held “outside the country”. The present amendment shall allow proceeding against property equivalent to proceeds to crime held outside the country also.

ii) The applicability of bail conditions will be made uniform to all the offences under PMLA.

iii)Corporate frauds will be included as a Scheduled offence.

iv)Measures to enhance the effectiveness of investigations have been included.

v)Measures for the restoration of the property of persons adversely affected by PMLA investigation through special courts.

 

 

Source-PIB.