Insertion of new section 72A.
191. After section 72 of the principal Act, the following section shall be inserted, namely:–
Inter-ministerial Co-ordination Committee.
“72A. The Central Government may by notification constitute an Inter-ministerial Co-ordination Committee for inter-departmental and inter-agency co-ordination for the following purposes, namely:-
(a) operational co-operation between the Government, law enforcement agencies, the Financial Intelligence Unit, India and the regulators or supervisors;
(b) policy co-operation and co-ordination across all relevant or competent authorities;
(c) such consultation among the concerned authorities, the financial sector and other sectors, as are appropriate, and are related to anti money-laundering or countering the financing of terrorism laws, regulations and guidelines;
(d) development and implementing policies on anti money-laundering or countering the financing of terrorism; and
(e) any other matter as the Central Government may, by notification, specify in this behalf.”.
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.
