The government on Thursday approved amendments to the Unlawful Activities (Prevention) Act to effectively combat money laundering and terror financing and declare such crimes as terrorist acts.
The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh.
With the approval of the home ministry's proposal, a bill incorporating all amendments would be tabled in the monsoon session of Parliament.
Through the proposed amendment, the government intends to make UA(P)A more effective in preventing unlawful financial activities, money laundering, terror financing and circulation of fake Indian currency notes.
The bill enhances from two years to five years the period for which an association involved in terrorist acts, including terror financing, will be declared unlawful.