Lok Sabha passed the Prevention of Money Laundering (Amendment) Bill, 2011 which proposes to introduce the concept of ‘corresponding law’ to link the provisions of Indian law with the laws of foreign countries.

Moving the Prevention of Money Laundering (Amendment) Bill, 2011, Finance Minister P Chidambaram said the measure seeks to enlarge the definition of offence of money laundering to include activities like concealment, acquisition, possession and use of proceeds of crime as criminal activities and remove existing limit of Rs 5 lakh as fine under the Act.

The amended bill also provides that banking companies, financial institutions, intermediaries or a person carrying on a designated business or profession can act as Reporting Entities and bring cases of money laundering to light.

The Bill expands the definition of offence under money laundering to include activities like concealment, acquisition, possession and use of proceeds of crime.

He said the amendments will also help the Centre to bring the anti-money laundering legislation on par with international standards and obviate some of the deficiencies in the present Act that have been experienced by the implementing agencies.

The proposed amendments also seek to introduce the concept of ‘corresponding law’ to link the provisions of Indian law with the laws of foreign countries.