Anti Money Laundering Blog

The Indian government is going to strengthen the Securities and Exchange Board of India Act to include insider trading as money laundering. Then, the stock market regulator will be able to take action against this type of crime.

Generally, insider trading is a way to bring unaccounted money into the system. Previously, insider trading and money laundering it have been discussed as regards how how insider trading differs from money laundering and how it is identified.

According to the government of India, including insider trading as money laundering “will help smoothen the functioning of the exchange”.

It is proposed that Section 24 of the SEBI Act, relating to insider trading, is included in the ambit of the Prevention of Money Laundering Act.

The initiative is said to be taken after the recommendations of the FATF suggesting numerous measures to fight money laundering.

This entry was posted on Friday, October 5th, 2007 at 10:32 am and is filed under Anti-Money Laundering legislation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.