Date:30/04/2005 URL: http://www.thehindubusinessline.com/2005/04/30/stories/2005043002080100.htm

Back A Bill to whittle down money laundering Act

Our Bureau

New Delhi , April 29

THE Union Finance Minister, Mr P. Chidambaram, on Friday introduced a Bill in the Lok Sabha, which seeks to omit an existing clause that treated every offence punishable under the Prevention of Money Laundering Act, 2002, as a cognisable offence.

Further, the Bill provides that a police officer can investigate an offence under the prevention of money laundering legislation only after he has been specifically authorised by the Central Government, subject to certain conditions as may be specified by rules.

The Bill also provides that the chairperson or a member of any other tribunal may be appointed (in addition to their holding the post as such), the Chairperson or a member of the Appellate Tribunal under the Prevention of Money Laundering Act, 2002.

The Statement of objects and reasons to the Bill held that certain difficulties were envisaged while planning the implementation of the Act.

The Centre has now proposed amendments to the Prevention of Money Laundering Act, 2002, to ensure effective implementation and to remove certain difficulties in the implementation of the Act.

The Prevention of Money Laundering Act, 2002 was enacted to prevent money-laundering and to provide for confiscation of property derived from, or involved in money laundering.

The Finance Minister has in the Statement of objects and reasons to the Bill highlighted that steps are being taken to implement the provisions of the Prevention of Money Laundering Act, 2002 including the entrusting of the enforcement of this legislation to the Directorate of Enforcement in the Finance Ministry, setting up of four benches of adjudicating authorities and setting up of an appellate tribunal etc.