PART XIII
AMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002
Amendment of section 2.
187. In the Prevention of Money-laundering Act, 2002 (15 of 2003.) (hereafter in this Part referred to as the principal Act), in section 2, in sub-section (1),––
(i) in clause (n), in sub-clause (i), the word “sub-broker,” shall be omitted;
(ii) in clause (sa), for sub-clause (ii), the following sub-clause shall be substituted, namely:––
‘‘(ii) Inspector-General of Registration appointed under section 3 of the Registration Act, 1908 as may be notified by the Central Government;’’.
Note:
While Passing the bill in the Loksabha as on 18-7-2019, the following amendments were made:
Page 53, after line 19, insert-
‘(iii) in clause (u), the following Explanation shall be inserted, namely:--
‘Explanation. -- For the removal of doubts, it is hereby clarified that “proceeds of crime” include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence;’. (24)
Thus, the amended provision will be:
Amendment of section 2.
187. In the Prevention of Money-laundering Act, 2002 (15 of 2003.) (hereafter in this Part referred to as the principal Act), in section 2, in sub-section (1),––
(i) in clause (n), in sub-clause (i), the word “sub-broker,” shall be omitted;
(ii) in clause (sa), for sub-clause (ii), the following sub-clause shall be substituted, namely:––
‘‘(ii) Inspector-General of Registration appointed under section 3 of the Registration Act, 1908 as may be notified by the Central Government;’’.
(iii) in clause (u), the following Explanation shall be inserted, namely:--
‘Explanation. -- For the removal of doubts, it is hereby clarified that “proceeds of crime” include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence.;
Notes on Clauses:
Clauses 187 to 192 of the Bill seek to amend certain provisions of the Prevention of Money-Laundering Act, 2002.
It is proposed to amend sub-clause (i) of clause (n) of sub-section (I) of section 2, to meet out the difficulties being faced out by the Securities and Exchange Board of India.
It is further proposed to amend sub-clause (ii) of clause (sa) of sub-section (I) of section 2, to meet out the difficulties being faced out by the Financial Intelligence Unit, India.
It is also proposed to amend section 12A so as to provide the reference of newly inserted section 12AA therein.
It is also proposed to insert a section 12AA of the said Act so as to provide for the provisions for enhance due diligence.
It is also proposed to amend section 15 of the said Act so as to provide the reference of newly inserted section 12AA therein.
It is also proposed to insert Section 72A to allow power to Central Government to constitute Inter Ministerial Co-ordination Committee that is responsible for coordination and cooperation across all relevant/competent authorities on implementation of Financial Action Task Force standards. This is required for effective implementation of Financial Action Task Force standards Recommendations and to draw, coordinate, monitor and review the Anti Money Laundering or Countering Financing of Terrorism policies or activities and their implementation to strengthen Anti Money Laundering or Countering Financing of Terrorism framework in line with Financial Action Task Force standards.
It is also proposed to amend section 73 of the Act so as to provide certain rule making provisions.
