Amendment in money laundering scheme

Amendment made in the money laundering act. This includes increasing the scope of Money laundering act and includes freezing in the act. There is also changes made in rule 1, rule 2, rule 8, rule 9 and rule 10 of money laundering act. The department also launched Form 1 with the notification no. 11/2013 dated 19 August 2013. Full notification and new form 1 are as under.

In exercise of the powers conferred by sub-section (1) read with clause (a), clause (m), clause (n), clause (p), clause (pp) and clause (w) of sub-section (2) of section 73 of the Prevention of Money-laundering Act, 2002 (15 of 2003), the Central Government hereby makes the following rules to amend the Prevention of Money-laundering (Forms, Search and Seizure and the Manner of Forwarding the Reasons and Material to the Adjudicating Authority, Impounding and Custody of Records and the Period of Retention) Rules, 2005, namely:-
Short title and commencement
1. (1) These rules may be called the Prevention of Money-laundering (Forms, Search and Seizure or Freezing and the Manner of Forwarding the Reasons and Material to the Adjudicating Authority, impounding and Custody of Records and the Period of Retention) (Amendment) Rules 2013.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Prevention of Money-laundering (Forms, Search and Seizure and he Manner of Forwarding the Reasons and Material to the Adjudicating Authority, impounding and Custody of Records and the Period of Retention) Rules, 2005 hereinafter referred to as the principal rules), in the opening paragraph, after the word, rackets and letter "clause (o)", the word, brackets and letters "clause (pp)" shall be inserted.
3. In the principal rules, in rule 1, in sub-rule (1), after the words "and Seizure", the words "or Freezing" shall be inserted.
4. In the principal rules, in rule 2, in sub-rule (1),
(i) for clause (c) and clause (d), the following clause shall be substituted, namely:-
'(c) "authority" for the purposes of sub-section (2) of section 17 or sub-section (1A) of section 17 or sub-section (1) of section 18 of the Act means an officer subordinate to the Director and authorized by the Director under sub-section (1) of section 17 or the Central Government under sub-section (1) of section 18 of the Act;';
(ii) for clause (j), the following clause shall be substituted, namely :-
'(j) "material for the purpose of sub-section (1A) and sub-section (2) of section 17 of the Act" means the material in possession of the authority, referred to in clause (c) of sub-rule (1) of rule 2, after search, seizure or freezing under sub-section (1) of section 17 respectively of the Act, including a report forwarded to a Magistrate under section 157 of the Code of Criminal Procedure, 1973 (2 of 1974) or a complaint filed before a Magistrate or a Court by a person authorized to investigate the scheduled offence for taking cognizance of such scheduled offence; as the case may be, or in cases where such report is not required to be forwarded, a similar report of information received or otherwise submitted by an officer authorized to investigate a scheduled offence to an officer not below the rank of Additional Secretary to the Government of India or equivalent being Head of the office or Ministry or Department or Unit, as the case may be, or any other officer who may be authorized by the Central Government, by notification, for this purpose;'
(iii) for clause (k), the following clause shall be substituted, namely :-
'(k) "material for the purposes of sub-section (2) of section 18 of the Act" means the material in possession of the authority referred to in clause (c) of sub-rule (1) of rule 2, after search and seizure under sub-section (1) of section 18 of the Act including a report forwarded to the Magistrate under section 173 of the Code of Criminal Procedure, 1973 (2 of 1974) or a complaint filed before the Magistrate or court by a person authorized to investigate the scheduled offence for taking cognizance of such scheduled offence; as the case may be, or in cases where such report is not required to be forwarded, a similar report of information received or otherwise has been submitted by an officer authorized to investigate a scheduled offence to an officer not below the rank of Additional Secretary to the Government of India or equivalent being Head of the office or Ministry or Department or Unit, as the case may be, or any other officer who may be authorized by the Central Government, by notification, for this purpose;'
5. In the principal rules, in rule 4,-
(i) for the existing marginal heading, the following marginal heading shall be substituted, namely:-
 "4. Procedure relating to seizure or freezing.- (1) The officer or the authority, as the case may be, freeze or seize any record or property found as a result of search of any building, place, vessel or vehicle or aircraft.";
(ii) after sub-rule (1), the following sub-rule shall be inserted, namely:-
 "(1A) Where it is not practicable to seize any record or property, the officer or the authority, as the case may be, may pass an order to freeze such property whereupon the property shall not be transferred or otherwise dealt with, except with the prior permission of the officer or the authority making such order, and a copy of such order shall be served on the person concerned.".
6. In the principal rules, in rule 8 for the marginal heading, the following marginal heading shall be substituted, namely:—
"8. Manner of forwarding of a copy of the reasons and the material relating to search, seizure and freezing under sub-section (2) of section 17 and sub-section (1A) of section 17 of the Act and search of persons under sub-section (2) of section 18 and sub-section (2) of section 20 of the Act to the Adjudicating Authority.-".
7. In the principal rules, in rule 9, in the marginal heading, for the words "search and seizure", the words "search, seizure or freezing" shall be substituted.
8. In the principal rules, in rule 10, in the marginal heading, for the words "search and seizure", the words "search, seizure or freezing" shall be substituted.
9. In the principal rules, for FORM I, the following Forms shall be substituted, namely:-
FORM - I
[See sub-rule (1) of 3]
AUTHORISATION FOR SEARCH, SEIZURE AND FREEZING UNDER SUB-SECTION (1)
AND SUB-SECTION (1A) OF SECTION 17 OF THE ACT
Authorization Number…………..of………… [year] Dated…………………
WHEREAS I……………………………. [Director/Additional Director/Joint Director/Deputy Director], have reason to believe that
……………………………………………………………………………… [name and complete address of the person]
(i) has committed an act which constitutes money-laundering, or
(ii) is in possession of proceeds of crime involved in money-laundering, or
(iii) is in possession of records relating to money-laundering, and
certain documents including proceeds of crime and/or records relating to money laundering, which in my opinion, will be useful for or relevant to the investigation and other proceedings under the Prevention of Money-laundering Act, 2002 (15 of 2003) are secreted in the premises specified in the Schedule below.
I hereby authorize …………………………………………………………………….. [name and designation of the Authority ] to conduct the search of the premises specified in Schedule below, under sub-section (1) of section 17 of the Prevention of Money-laundering Act, 2002 (15 of 2003) and rule 3 of these Rules.
The officer so authorized to conduct search shall seize or freeze any record or property, as the case may be, which is considered relevant for the purposes of proceedings under Act as per procedure specified in rule 4 of these rules.
Given under my hand and seal on this…………………………..day of…………………………..
Two thousand…………………………..
Schedule of Premises


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1 comments:

  1. MONEY LAUNDERING BY GOVT.REVENUE OFFICIALS AND POLITICIANS are "EXEMPTED" by this "amendment".
    What an IDEA SIRJI!

    ReplyDelete