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2 February 2018
 |
Bank
(The Total Investment & Insurance Solutions)
The
government on Thursday sought to amend the Prevention of Money Laundering Act
(PMLA), 2002 aiming to widen its scope by providing for action against
property, equivalent to proceeds of crime, held outside the country.
So
far, the government could only proceed against property held within the
country.
The
amendments made through the Finance Act, 2018 would also take care of certain
procedural difficulties faced by the Enforcement Directorate (ED) in
prosecution of PMLA cases.
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", an
official statement said.
It
added that the present amendment would allow the government to proceed against
property acquired abroad.
The
government had also proposed to include corporate frauds as scheduled offence
under PMLA so that Registrar of Companies in suitable cases would be able to
report such cases for action by the ED under the PMLA provisions.
"This
provision shall strengthen the PMLA with respect to corporate frauds."
The
government also sought to make the applicability of bail conditions uniform to
all the offences under PMLA, instead of only those offences under the schedule
which are liable to imprisonment of more than three years.
"This
will be a significant step forward in delinking the proceedings against
scheduled offences and money laundering offences under PMLA," it said.
"Section
5(1) of the Act provides that every order of provisional attachment passed by an
officer of the ED shall cease to have effect after 180 days from the date of
the provisional attachment order, unless confirmed by the adjudicating
authority under PMLA within that period.
"The
section is proposed to be amended to include the period of stay in this time
limit of 180 days and also further period of not more than 30 days to take care
of delays if any in communication of judicial orders," it added.The Total Investment & Insurance Solutions
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