COMMENTARY
INTERVIEW
SPECIALS
CHAT
ARCHIVES

Ministerial group finalises report on money laundering bill

The report on the money laundering bill has been finalised by an inter-ministerial group.

The meeting of the group was held under the chairmanship of Central Board of Direct Taxes member K Subramaniam. The report, along with the draft, has been submitted to Revenue Secretary N K Singh.

Singh said the report would be placed shortly before the Committee of Secretaries for consideration. After accommodating the changes, the draft report will be submitted to Finance Minister Palaniappan Chidambaram.

The minister would like the money laundering bill to be introduced in the monsoon session of Parliament, beginning Wednesday, July 23.

Explaining the rationale for the money laundering bill, Singh said it would cover economic offences and other crimes following replacement of the Foreign Exchange Regulation Act the by Foreign Exchange Management Act.

Singh said the money laundering bill and FEMA should run parallel to each other.

Finance Secretary Montek Singh Ahluwalia has held a meeting for finalising FEMA.

The draft of FEMA is likely to be finalised shortly and both bills are expected to be introduced in the monsoon session of Parliament.

According to Singh, the changes in FEMA are being introduced with a view to bringing the external sector regulations in harmony with the future convertibility of the rupee on capital account.

Contrary to general apprehensions, economic offences would be covered by the proposed Money Laundering Act.

Under the act, it is being proposed that all the bank accounts of Rs 10 million or more should be investigated by a designated authority.

It will be obligatory on the part of the bank officials to inform the designated authority about such accounts.

UNI