Amend anti-money laundering Act?
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Money laundering has recently gained urgency of attention due to its links with terrorist activities. India notified the Prevention of Money Laundering Act, 2002 with amendments from July 1, 2005, defining culpability as “whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in the process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of money laundering”. The RBI, Sebi and IRDA are under the purview of the Act. It allows search and seizure of suspected properties by officials authorised for the purpose, and stipulates punishment of minimum three years’ rigorous imprisonment for the guilty. The Financial Action Task Force (FATF) on Money Laundering set up by G-7 countries in 1989 has laid out 40 recommendations apart from nine other special recommendations for combating use of illegal money in terrorist activities. India has set up the financial intelligence unit to examine reports from the financial system and to coordinate with international agencies. However, combating money laundering requires increased efforts by financial institutions as well as measures to address other entities. More : economictimes.indiatimes.com |