India: Money Laundering Bill passes final hurdle
It's been a long road to updating India's money laundering legislation. But at last the signs are good.
So many people, so many dissenters and so many vested interests. That has been the history of India's attempts to get an effective counter-money laundering law passed. Subtle cajoling (at least in public) from the USA with expressions of undying affection and trade agreements have encouraged India's politicians to make more progress in the past few months than at any time in the past five years.
On 24th January, India gave Presidential Assent to legislation that goes much of the way towards a broadly acceptable standard of counter-money laundering law.
India has had some law for some time but it has been largely handicapped by a narrow ambit. The Money Laundering Act 2003 takes the following leaps forward:
- laundering of moneys obtained through serious crimes is a criminal offence,
- financial institutions must report relevant transactions,
- proceeds of crime may be confiscated,
- money laundering becomes an extraditable offence
- international cooperation in investigation of money laundering will be made easier.
- mutual legal assistance treaties will be permitted
- procedures are to be created for the securing and confiscating of property to permit attachment to overseas assets
- agreements will be entered into to enable the extradition of a person accused of money laundering to be brought to India from abroad.
- the setting up of Money Laundering Tribunal and system for appeals arising out of the orders of the Tribunal to the Money Laundering Appellate Tribunal and from there to the Supreme Court of India for offences relating to money laundering.
The creation of a dedicated court to handle money laundering cases is an unusual feature, thought to be the first such special court anywhere worldwide.
Download PDF version of this page