Cabinet okays amendments to Prevention of Money Laundering Act

The Govt approved amendments to the Prevention of Money Laundering Act, which would expedite the process of India's entry into FATF, an inter-governmental body combating money laundering and terrorist financing.

The government on Wednesday approved amendments to the Prevention of Money Laundering Act, which would expedite the process of India's entry into Financial Action Task Force (FATF) -- an inter-governmental body combating money laundering and terrorist financing.

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A Bill seeking to change the Act will be introduced in Parliament, Home Minister P Chidambaram told reporters after a meeting of the Cabinet.

"Some amendments have been made. The Bill will be introduced in the current session of Parliament and we will plan to get it passed if possible," he said.

He said the changes in the Act were necessary for India to become a member of the FATF.

"This is important in order to get India's membership in the Financial Action Task Force, which is an international body," he said, however, not elaborating what amendments have been proposed in the Bill.

India, along with South Korea, has been trying to become a full member of FATF. It was given the observer status in February 2007.

In another decision, the Cabinet gave post-facto approval for Agricultural and Processed Food Private Export Development Authority Amendment Bill 2008, which is already in Parliament as an amendment Bill.