New Delhi: A Bill aimed at effectively combating money laundering, terror financing and cross-border economic offences was passed by Parliament on Tuesday, with the Lok Sabha approving the measure. The new law seeks to check use of black money for financing terror activities.
Financial intermediaries such as full-fledged money changer, money transfer service providers such as Western Union and International Payment gateways including VISA and MasterCard have also been brought under the ambit of the Prevention of Money Laundering Act.
Consequently, these intermediaries as also casinos will be brought under the reporting regime of the enforcement authorities. It would also check the misuse of Promissory Notes by foreign institutional investors, who would now be required to furnish all details of their source. Bansal said the Act would check misuse of “proceeds of crime” be it from sale of banned narcotic substances or breach of the Unlawful Activities (Prevention) Act. The Prevention of Money Laundering (Amendment) Bill, 2009, passed by the Rajya Sabha last week, seeks to ensure a legal framework to check such crimes.