Parliament nod to amend money laundering law
New Delhi: A bill, which seeks to enlarge the definition of money laundering offences and could help curb funding of terrorist operations, was approved by Parliament on Monday.
The Prevention of Money Laundering (Amendment) Bill was passed by the Rajya Sabha by voice vote after Finance Minister P Chidambaram emphasised the need for continuously amending the law to meet new challenges.
The Bill, passed by Lok Sabha last month, seeks to remove existing limit of Rs 5 lakh as fine under the Act.
Replying to the debate on the bill, Chidambaram said the Bill will help in checking money-laundering and especially funding for terrorist operations.
Clarifying members' doubts, he said the Bill was first approved in 2002 and after that twice it has been brought for amendment.
In the next 3-4 years, there can be more amendments made to it as it is an evolving issue to meet the challenges, he said.
Moving the bill for consideration, he said, "It (money laundering) is a global menace. We have amended the bill in 2005 and 2009. India is a member of Financial Action Task Force on money laundering and we need to amend our law to align with the international law."
The government has accepted all the 18 recommendations made by the Parliamentary Standing Committee, he said.
Chidambaram said the bill seeks to enlarge definition of offence of money laundering to include activities like concealment, acquisition, possession and use of proceeds of crime as criminal activities.