Anti-money laundering news 20 October 2008 Indian money laundering law may be amended in line with FATF recommendations

Indian legislators are debating amendments to the subcontinents money laundering laws after the Minister of State for Finance tabled draft legislation last Friday.

The bill to amend the Prevention of Money Laundering Act, 2002 (PMLA) would expand the offences and punishments on the countrys statute book, and would ensure that these regulations apply to more businesses, including casinos and money transfer agencies. The PMLA currently applies only to financial institutions such as banks.

The Information and Broadcasting Minister, Priyaranjan Das Munshi, said, The bill will give more teeth to the legislation with provisions for punitive action for money laundering.

The proposed amendment also includes counter terrorist financing measures that will bring Indias regulations into compliance with the current recommendations of the Financial Action Task Force (FATF), the international body set up by the G7 countries in 1989 to combat terror organisations being funded with the proceeds of crime.

Earlier this year, the British Prime Minister, Gordon Brown, expressed the belief that India, which currently holds observer status with the FATF, should become a full member. The PMLA amendment, if passed, should add weight to this argument.

In the UK, a founder member of the organisation, money laundering law already complies with the great majority of FATFs recommendations, and, according to the Treasury, will soon be fully compliant following the passage of new regulations dealing with wire transfers by money remitters.

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