India will flag its recent moves to amplify domestic laws relating to curbing terrorist financing and money laundering at the Financial Action Task Force (FATF) meeting in Paris next week. This will help the country, which became the 34th member of the FATF in 2010, to reinforce its credibility as a nation cracking down on these illegal/criminal activities and get the full cooperation of other FATF measures in gathering the information on money laundering, black money, etc.
India is now the co-chair of the Asia Pacific Regional Review Group of the FATF, which sets international standards to combat money laundering and terrorist financing.
In 2009, India amended the Prevention of Money Laundering Act to equip the government with the legal authority to check use of black money for financing terror activities. This apart, India will be presenting the another set of amendments being proposed to the Act and the Unlawful Activities (Prevention) Act, as proof of its response to the action plan of FATF Group in the review meeting on February 15, official sources said.
As part of its response, government will present the proposed amendments to the PMLA bill, now with standing committee, seeking to enhance the definition of ‘ offence of money laundering’. Importantly, the bill also talks of including commodities market under the reporting entities under its purview. The idea is make India’s money laundering legislation on par with global norms.
The Bill also has provision for attachment of the proceeds of crime even before conviction, so long as it is proved that offence of money-laundering has taken place and property in question is involved in the illegal activity.
Apart from this, Indian delegation to FATF will also discuss the amendments moved on Unlawful Activities Prevention Act (UAPA) to take effective action against individuals and entities that provide funds to terror groups in the country. The standing committee is also examining this bill. The amendment to the bill seeks to criminalize raising or collecting funds fro the benefit of a terrorist organisation, terrorist gang or individual.
In 2010, India became the 34th member-country of the global body that chalks out policies to counter financial frauds. The group will provide access to information on suspicious financial transactions in Switzerland, China, the US and the UK. The development marks a significant step towards tracing the source of terror financing and black money stashed away in tax havens abroad.
Following its inclusion into the select club, India and its tax enforcement authorities ? the Financial Intelligence Unit, the Enforcement Directorate, the Central Economic Intelligence Bureau and the Directorate of Revenue Intelligence ? would be able to exchange vital information from member-countries on money laundering and terrorist financing activities.
