Govt makes anti-money laundering law stricter, widens definition of 'proceeds of crime'

Tightening the anti money-laundering law, the government Thursday widened the definition of 'proceeds of crime' stating that a property will be considered as tainted if it relates to any offence on the basis of which a PMLA case has been slapped.

The definitions were brought in the form of amendments to the Finance Bill, 2019, in the Lok Sabha, which was later approved by the House by a voice vote.

According to the amendments brought by Finance Minister Nirmala Sitharaman, "a person shall be guilty of offence of money-laundering if such person is found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually involved" in "concealment, or possession, or acquisition, or use, or projecting as untainted property or claiming as untainted property."

The government brought eight amendments to the Prevention of Money Laundering Act (PMLA), 2002, of which six are explanations to the existing clauses. The minister said explanations are ...