Budget 2018: Government to bring corporate frauds under PMLA ambit

NEW DELHI: The finance ministry today proposed to tighten the Prevention of Money Laundering Act by bringing in corporate frauds within its ambit.

The amendments to PMLA proposed through Finance Bill 2018 seek to modify the definition of "proceeds of crime" to ensure that domestic properties can be attached in case the proceeds of crime are parked abroad.

It also proposed an amendment to make bail conditions uniform for all offences under the PMLA.


The amendments to PMLA, 2002, are aimed at enhancing the effectiveness of the Act, widen its scope and take care of certain procedural difficulties faced by the Enforcement Directorate in prosecution of PMLA cases, a finance ministry statement said.

It further said that Section 447 of Companies Act is being included as scheduled offence under PMLA so that Registrar of Companies in suitable cases would be able to report such cases for action by Enforcement Directorate under the PMLA provisions. Section 447 deals with punishment for fraud.

"This provision shall strengthen the PMLA with respect to corporate frauds," the statement said.

With regard to changes in bail provisions, it said the bail conditions will apply uniformly to all offences under the PMLA.