New Delhi, November 29
The Lok Sabha today okayed important amendments to enlarge the definition of offences under money laundering by including activities such as concealment, acquisition and use of proceeds of crime as criminal activities. It also removes the upper limit of Rs 5 lakh that can be imposed as fine on offenders and makes bankers liable for reporting any suspicious transactions.

The Bill was later approved by voice vote. It will go to the Rajya Sabha for ratification before it is accepted by the President.

Finance Minister P Chidambaram, while replying to discussion on the Prevention of Money Laundering (Amendment) Bill, 2011, said the changes in law would give a signal to the international community about India's commitment to deal with the offences having wide international ramifications.

Responding to queries on black money, Chidambaram said, “We are taking action...Every single piece of information (received European countries) was being investigated” and more action would be taken. In case of the Money Laundering Law, he said, 37 cases of prosecution have been launched but no one has been either convicted or acquitted.

The amendment Bill was introduced in the Lok Sabha in December 2011 by the then Finance Minister Pranab Mukherjee and referred to the Parliamentary Standing Committee on Finance. Chidambaram said the government has accepted all the 18 recommendations made by the panel and termed it as an indicator of “consensus” between government and the Opposition on the issue.

The amendment will bring the anti-money laundering legislation on par with international standards and obviate some of the deficiencies in the present Act that have been experienced by the implementing agencies.

This will now include the concept of ‘reporting entity’ to include a banking company, financial institution, intermediary or a person carrying on a designated business or profession. A ‘reporting entity’ is one through which a transaction is conducted making it important from banks and its employees to report the transactions.

The new law will allow provision for attaching and confiscation of the proceeds of crime even if there is no conviction so long as it is proved that offence of money-laundering has taken place and property in question is involved in money-laundering;

The Director in charge of enforcing the law will have the power to call for records of transactions and make inquiries for non-compliance of reporting obligations cast upon them.

Appeal against the orders of the Appellate Tribunal will now go directly to the Supreme Court, instead of high court.