Money Laundering Bill adopted by Indian Parliament

The Parliament of India adopted the Prevention of Money Laundering (Amendment) Bill, 2009 that was passed by the Lok Sabha on February 24.

This Money Laundering Bill is aimed to combat money laundering, terrorist financing as well as cross-border economic offences. The new legislation also provides for checking use of black money for financing terrorist activities.

It is important that the new law will check the misuse of promissory notes. The proceeds of crime will be checked for not being raised from sale of banned narcotic substances or breach of the Unlawful Activities (Prevention) Act.

The passage of the Prevention of Money Laundering (Amendment) Bill, 2009 will enable India’s entering into the Financial Action Task Force (FATF).

After becoming an Act, the Bill will address international obligation of India and empower the Enforcement Directorate to look for the premises immediately after the offences are committed and a report has been filed by police.

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