Govt to bring corporate fraud under PMLA ambit through Finance Bill 2018
The amendments to PMLA proposed through the Finance Bill 2018 seek to modify the definition of “proceeds of crime” to ensure that domestic properties can be attached in case the proceeds of crime are parked abroadbusiness Updated: Feb 01, 2018 20:57 IST
The finance ministry on Thursday proposed to tighten the Prevention of Money Laundering Act by bringing in corporate fraud within its ambit.
The amendments to PMLA proposed through the Finance Bill 2018 seek to modify the definition of “proceeds of crime” to ensure that domestic properties can be attached in case the proceeds of crime are parked abroad.
It also proposed an amendment to make bail conditions uniform for all offences under the PMLA.
The amendments to PMLA, 2002, are aimed at enhancing the effectiveness of the Act, widen its scope and take care of certain procedural difficulties faced by the Enforcement Directorate in prosecution of PMLA cases, a finance ministry statement said.
It further said that Section 447 of Companies Act is being included as a scheduled offence under PMLA so that the Registrar of Companies, in suitable cases, would be able to report such cases for action by the Enforcement Directorate under PMLA provisions. Section 447 deals with punishment for fraud.
“This provision shall strengthen the PMLA with respect to corporate frauds,” the statement said.
With regard to changes in bail provisions, it said the bail conditions will apply uniformly to all offences under the PMLA.