Lok Sabha today approved the Prevention of Money Laundering (Amendment) Bill, 2011, enlarging the definition of money laundering offences and making the provisions for fine to be imposed commensurate to the proportion of the committed offence.
The Bill sought to remove existing limit of Rs 5 lakh as fine under the Act.
Finance Minister P Chidambaram moved the Bill for consideration which includes activities like cheating, concealment, acquisition and use of proceeds of crime as criminal activities for the purpose of Money Laundering.
Chidambaram said while moving the Bill that all the 18 recommendations of the Parliamentary Standing Committee had been accepted by the government.
The Finance Minister, replying to the issues raised by the members, later said that the changes in law would give signal to the international community about India's commitment to deal with the offences having wide international ramifications. The Bill was later approved by voice vote.
"Parliament has improved upon the law in 2005, after bringing it in 2002, and then again in 2009 and once again in 2012," Chidambaram said.
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The amendment Bill was introduced in the Lok Sabha in December, 2011 by then Finance Minister Pranab Mukherjee and was subsequently referred to the Parliamentary Standing Committee on Finance.
Responding to the members’ queries on black money, Chidambaram said, "We are taking action...Every single piece of information [received from France and other countries] is being investigated" and more action would be taken.
As regards the Money Laundering Law, he said, 37 cases of prosecution had been launched but no one had been either convicted or acquitted.
The amendments also seek to introduce the concept of 'corresponding law' to link the provisions of Indian law with the laws of foreign countries.
Replying to issues raised by members, Chidambaram said blackmoney was a different issue while the money laundering law deals with the proceeds of crime which are defined in the statute. "We need to have a separate discussion on blackmoney," he added.
The minister also said that government was initiating steps to fill vacancies in the Enforcement Directorate to strengthen it to deal with the menace of black money
The government plans to induct 1,319 additional officers in the Enforcement Directorate to increase the strength to 2,064.
The treasury benches voted out the provisions in the amendment Bill regarding appointment of sitting or retired judges of Supreme Court or Chief Justice of High Court as Chairman of the Appellate Tribunal to be set up under the Money Laundering law.