The government brought eight amendments to the Prevention of Money Laundering Act (PMLA), 2002, of which six are explanations to the existing clauses. The minister said explanations are being brought to certain existing clauses to remove the "confusion, grey area or ambiguity which might exist" in the vintage Act.
The Finance Bill said that the "proceeds of crime" under PMLA would not only include property obtained from the PMLA offence but also any property which may "directly or indirectly" be obtained as a result of any criminal activity related to the scheduled offence on the basis of which a money laundering case is filed.
Further, entities would be accused of money laundering when they conceal, possess, acquire, use, and project or claim a property as untainted.
Speaking in the Lok Sabha, Sitharaman said of the eight amendments, one relates to deletion of a proviso. "A new proviso is being added to only make sure that where a case exists in one court and the hearings are going on there, and where in a different court there could be proceedings happening, this two cannot be clubbed together and treated as one".
Meanwhile, EY Partner and Financial Services Lead (Forensic & Integrity services) Vikram Babbar said: "Reporting entities will have to do a detailed authentication with regard to transactions which looks suspicious or carry a high risk of money laundering or terror financing".
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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