 bill no 133 of  2011 the prevention of money-laundering (amendment) bill, 2011 a billfurther to amend the prevention of money-laundering act, 2002be it enacted by parliament in the sixty-second year of the republic of india as follows:— 1 (1) this act may be called the prevention of money-laundering (amendment)act,  2011short title and commencement(2)   it shall come into force on such date as the central government may, by notification in the official gazette, appoint5amendment of section 215 of 20032  in  section 2 of the prevention of money-laundering act, 2002 (hereinafter referred to as the principal act), in sub-section (1),—(i)  after clause (f), the following clause  shall be inserted, namely:—10'(fa) "beneficial owner" means an individual who ultimately  owns orcontrols a client of a reporting entity or the person on whose behalf a transaction is being conducted and includes a person who exercises ultimate effective control over a juridical person;';(ii) after clause (h), the following clause shall be inserted, namely:—15'(ha) "client" means a person who is engaged in a financial transaction oractivity with a reporting entity and includes a person on whose behalf the person who engaged in the transaction or activity, is acting;';(iii) after  clause (i), the following clauses shall be inserted, namely:—'(ia) "corresponding law" means any law of any foreign country corresponding to any of the provisions of this act or dealing with offences in that country corresponding to any of the scheduled offences;5(ib) "dealer" has the same meaning as assigned to it in clause (b) of section 2 of the central sales tax  act, 1956;';74 of 1956(iv) clause (ja) shall be omitted; (v) for clause (l), the following clause shall be substituted, namely:—2 of 193410'(l) "financial institution" means a financial institution as defined in clause(c) of   section 45-i of the reserve bank of india act, 1934 and includes a chit fund company, a housing finance institution, an authorised person, a payment system operator, a non-banking financial company and the department of posts in the government of india;'; (vi) for clause (n), the following clause shall be substituted, namely:—'(n) "intermediary" means,—15(i) a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser or any other intermediary associated with securities market and registered under section 12 of the securities and exchange board of india act, 1992; or2015 of 199274 of 1952(ii) an association recognised or registered under the forward contracts (regulation) act, 1952 or any member of such association; or(iii) intermediary registered by the pension fund regulatory and development authority; or25(iv) a recognised stock exchange referred to in clause (f) of section 2of the securities contracts (regulation) act, 1956;';42 of 1956(vii) in clause (q),  the words "and includes a person carrying on designated business or  profession" shall be omitted;(viii) in clause (ra), in sub-clause (i), for the word "remits", the words "transfers in any manner" shall be substituted;30(ix) after clause (s), the following clauses shall be inserted, namely:—'(sa) "person carrying  on designated business or profession" means,—(i)  a person carrying on activities for playing games of chance for cash or kind, and includes such activities associated with casino;3516 of 1908(ii) a registrar or sub-registrar appointed under section 6 of the registration act, 1908, as may be notified by the central government;(iii)  real estate agent, as may be notified by the central government; (iv) dealer in precious metals, precious stones and other high value goods, as may be notified by the central government;40(v) person engaged in safekeeping and administration of cash and liquid securities on behalf of other persons, as may be notified by the central government; or(vi)  person carrying on such other activities as the central government may, by notification, so designate, from time to time; (sb) "precious metal" means gold, silver, platinum, palladium or rhodium or such other metal as may be notified by the central government;(sc) "precious stone" means diamond, emerald, ruby, sapphire or any such other stone as may be  notified by the central government;'; (x) after clause (v), the following shall be inserted, namely:—5'explanation—for the removal of doubts, it is hereby clarified that the term "property" includes property of any kind used in the commission of an offence under this act or any of the scheduled offences;(va) "real estate agent" means a real estate agent as defined in clause (88)of section 65 of the finance act, 1994;';1032 of 1994(xi)  after clause (w), the following clause shall be inserted, namely:—'(wa) "reporting entity" means a banking company, financial institution, intermediary or a person carrying on a designated business or profession;'amendment of section 3153 in section 3 of the principal act, for the words "proceeds of crime and projecting", the words "proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming" shall be substitutedamendment of section 44 in section 4 of the principal act, the words "which may extend to five lakh rupees"shall be omittedamendment of section 55 in section 5 of the principal act, for sub-section (1), the following sub-section shall be substituted, namely:—20"(1) where the director or any other officer not below the rank of deputy director authorised by the director for the purposes of this section, has reason to believe (the reason for such belief to be recorded in writing), on the basis of material in his possession, that—(a) any person is in possession of any proceeds of crime;25(b) such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime under this chapter,30he may, by order in writing, provisionally attach such property for a period not exceeding one hundred and eighty days from the date of the order, in such manner as may be prescribed:2 of 197435provided that no such order of attachment shall be made unless, in relation tothe scheduled offence, a report has been forwarded to a magistrate under section 173 of the code of criminal procedure, 1973, or a complaint has been filed by a person authorised to investigate the offence mentioned in that schedule, before a magistrate or court for taking cognizance of the scheduled offence, as the case may be, or a similar report or complaint has been made or filed under the corresponding law of any other country:40provided further that, notwithstanding anything contained in clause (b), anyproperty of any person may be attached under this section if the director or any other officer not below the rank of deputy director authorised by him for the purposes of this section has reason to believe (the reasons for such belief to be recorded in writing), on the basis of material in his possession, that if such property involved in moneylaundering is not attached immediately under this chapter, the non-attachment of the property is likely to frustrate any proceeding under this act"6  in section 8 of the principal act,—45amendment of section 8(i)  in sub-section (1), after the words and figure "section 5, or, seized", thewords "or frozen" shall be inserted;(ii)  in sub-section (3),—5(a)   in the opening portion, for the words "record seized under section 17or section 18 and record a finding to that effect, such attachment or retention of the seized property", the words "record seized or frozen under section 17 or section 18 and record a finding to that effect, whereupon such attachment or retention or freezing of the seized or frozen property" shall be substituted;(b)  in clause (a), for the words "scheduled offence before a court; and", the words "offence under this act before a court or under the corresponding law of any other country, before the competent court of criminal jurisdiction outside india, as the case may be; and" shall be substituted;10(c) for clause (b), the following clause shall be substituted, namely:—"(b) becomes final after an order of confiscation is passed under sub-section (5) or sub-section (7) of section 8 or section 58b or subsection (2a) of section 60 by the adjudicating authority";15(iii) in sub-section (4), for the words "possession of the attached property", the following shall be substituted, namely:—"possession of the property attached under section 5 or frozen under subsection (1a) of section 17, in such manner as may be prescribed:20provided that if it is not practicable to take possession of a property frozen under sub-section (1a) of section 17, the order of confiscation shall have the same effect as if the property had been taken possession of"; (iv) for sub-sections (5) and (6), the following sub-sections shall be substituted, namely:—25"(5) where on conclusion of a trial of an offence under this act, the special court finds that the offence of money-laundering has been committed, it shall order that such property involved in the money-laundering or which has been used for commission of the offence of money-laundering shall stand confiscated to the central government30(6) where on conclusion of a trial under this act, the special court finds that the offence of money-laundering has not taken place or the property is not involved in money-laundering, it shall order release of such property to the person entitled to receive it3540(7) where the trial under this act cannot be conducted by reason of the death of the accused or the accused being declared a proclaimed offender or for any other reason or having commenced but could not be concluded, the special court shall, on an application moved by the director or a person claiming to be entitled to possession of a property in respect of which an order has been passed under sub-section (3) of section 8, pass appropriate orders regarding confiscation or release of the property, as the case may be, involved in the offence of money-laundering after having regard to the material before it"7 in section 9 of the principal act,—amendment of section 9(i)  in the opening portion, for the words, brackets and figures "sub-section (6)of section 8", the words, brackets and figures "sub-section (5) or sub-section (7) of section 8 or section 58b or sub-section (2a) of section 60" shall be substituted;45(ii) in the first proviso,—(a) for the words "adjudicating authority", the words "special court or the adjudicating authority, as the case may be," shall be substituted;(b)  after the words "or seized", the words "or frozen" shall be insertedamendment of section 108 in section 10 of the principal act, in sub-section (2), for the words, brackets and figures "sub-section (6) of section 8", the words, brackets and figures "sub-section (5) or sub-section (6) or sub-section (7) of section 8 or section 58b or sub-section (2a) of section 60" shall be substituted59 for section 12 of the principal act,  the following section shall be substituted, namely:—substitution of new section for section 12"12 (1) every reporting entity shall—reporting entity to maintain records(a) maintain a record of all transactions, including information relating to transactions covered under clause (b), in such manner as to enable it to reconstruct individual transactions;10(b) furnish to the director within such time as may be prescribed, information relating to such transactions, whether attempted or executed,  the nature and value of which may be prescribed;15(c) verify the identity of its clients in such manner and subject to such conditions, as may be prescribed;(d) identify the beneficial owner, if any, of such of its clients, as may be prescribed;20(e) maintain record of documents evidencing identity of its clients and beneficial owners as well as account files and business correspondence relating to its clients (2) every information maintained, furnished or verified, save as otherwise provided under any law for the time being in force, shall be kept confidential(3) the records referred to in clause (a) of sub-section (1) shall be maintained for a period of ten years from the date of transaction between a client and the reporting entity25(4) the records referred to in clause (e) of sub-section (1) shall be maintained for a period of ten years after the business relationship between a client and the reporting entity has ended or the account has been closed, whichever is later(5) the central government may, by notification, exempt any reporting entity or class of reporting entities from any obligation under this chapter"3010 after section 12 of the principal act, the following section shall be inserted, namely:—insertion of new section 12a access to information"12a (1) the director may call for from any reporting entity any of the records referred to in sub-section (1) of section 12 and any additional information as he considers necessary for the purposes of this act35(2) every reporting entity shall furnish to the director such information as may be required by him under sub-section (1) within such time and in such manner as he may specify40(3) save as otherwise provided under any law for the time being in force, every information sought by the director under sub-section (1), shall be kept confidential" 11 in section 13 of the principal act,—amendment of section 13(i) in sub-section (1), for the words "call for records referred to in sub-section (1)of section 12 and may make such inquiry or cause such inquiry to be made, as he thinks fit", the words "make such inquiry or cause such inquiry to be made, as he thinks fit to be necessary, with regard to the obligations of the reporting entity, under this chapter"45510 15202530shall be substituted;(ii) after sub-section (1), the following sub-sections shall be inserted, namely:—"(1a) if at any stage of inquiry or any other proceedings before him, the director having regard to the nature and complexity of the case, is of the opinion that it is necessary to do so, he may direct the concerned reporting entity to get its records, as may be specified, audited by an accountant from amongst a panel of accountants, maintained by the central government for this purpose(1b)  the expenses of, and incidental to, any audit under sub-section (1a)may be determined by the director and shall be paid by the reporting entity and in default of such payment, shall be recoverable from such reporting entity in the manner provided in section 69"; (iii) for sub-section (2), the following sub-section shall be substituted, namely:—"(2) if the director, in the course of any inquiry, finds that a reporting entity or its designated director on the board or any of its employees has failed to comply with the obligations under this chapter, then, without prejudice to any other action that may be taken under any other provisions of this act, he may—(a) issue a warning in writing; or (b) direct such reporting entity or its designated director on the board or any of its employees, to comply with specific instructions; or(c) direct such reporting entity or its designated director on the board or any of its employees, to send reports at such interval as may be prescribed on the measures it is taking; or(d) by an order, impose a monetary penalty on such reporting entity or its designated director on the board or any of  its employees, which  shall not be less than ten thousand rupees but may extend to one lakh rupees for each failure"; (iv) after sub-section (3), the following explanation shall be inserted, namely:—"explanation— for the purpose of this section, "accountant" shall mean a chartered accountant within the meaning of the chartered accountants act, 1949"12 for section 14 of the principal act, the following section shall be substituted, namely:—38 of 1949substitution of new section for section 14"14 save as otherwise provided in section 13, the reporting entity, its directors and employees shall not be liable to any civil or criminal proceedings against them for furnishing information under clause (b) of sub-section (1) of section 12"no civil or criminal proceedings against reporting entity, its directors and employees in certain cases3513 for section 15 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 1540"15 the central government may, in consultation with the reserve bank of india, prescribe the procedure and the manner of maintaining and furnishing information by a reporting entity under sub-section (1) of section 12 for the purpose of implementing the provisions of this act"procedure and manner of furnishing information by reporting entities14 in section 17 of the principal act,—amendment of section 17(i) in sub-section (1),—(a) in clause (iii), after the word "money-laundering," , the word "or" shall be inserted;(b) after clause (iii), the following clause shall be inserted, namely:—"(iv) is in possession of any property related to crime,";(c) in clause (d), after the words "such record or", the words "property, if required or" shall be inserted;5(d) for the proviso, the following proviso shall be substituted, namely:—2 of 197410 15"provided that no search shall be conducted unless, in relation to the scheduled offence, a report has been forwarded to a magistrate under section 157 of the code of criminal procedure, 1973, or a complaint has been filed by a person, authorised to investigate the offence mentioned in the schedule, before a magistrate or court for taking cognizance of the 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 authorised 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 authorised by the central government, by notification, for this purpose";(ii) after sub-section (1), the following sub-section shall be inserted, namely:—20"(1a) where it is not practicable to seize such record or property, the officer authorised under sub-section (1), may make 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 making such order, and a copy of such order shall be served on the person concerned:25provided that if, at any time before its confiscation under sub-section (5)or (7) of section 8 or section 58b or sub-section (2a) of section 60, it becomes practical to seize a frozen property, the officer authorised under sub-section (1) may seize such property"; (iii) in sub-section (2), after the words, "immediately after search and seizure"the words "or upon issuance of a freezing order" shall be inserted;(iv) for sub-section (4), the following sub-section shall be substituted, namely:—3035"(4) the authority seizing any record or property under sub-section (1) or freezing any record or property under sub-section (1a) shall, within a period of thirty days from such seizure or freezing, as the case may be, file an application, requesting for retention of such record or property seized under sub-section (1) or for continuation of the order of freezing served under sub-section (1a), before the adjudicating authority"amendment of section 1815 in section 18 of the principal act, in sub-section (1), for the proviso, the following proviso shall  be substituted, namely:—402 of 197445"provided that no search of any person shall be made unless, in relation to the scheduled offence, a report has been forwarded to a magistrate under section 157 of the code of criminal procedure, 1973, or a complaint has been filed by a person, authorised to investigate the offence mentioned in the schedule, before a magistrate or court for taking cognizance of the 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 authorised 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 authorised by the central government, by notification, for this purpose"; 16 for sections  20 and 21 of the principal act, the following sections shall be substituted, namely:—substitution of new sections for section 20 and section 21retention of property5"20 (1) where any property has been seized under section 17 or section 18 or frozen under sub-section (1a) of section 17 and the officer authorised by the director in this behalf has, on the basis of material in his possession, reason to believe (the reason for such belief to be recorded by him in writing) that such property is required to be retained for the purposes of adjudication under section 8, such property may, if seized, be retained or if frozen, may continue to remain frozen, for a period not exceeding one hundred and eighty days from the day on which such property was seized or frozen, as the case may be10 15(2) the officer authorised by the director shall, immediately after he has passed an order for retention or continuation of freezing of the property for purposes of adjudication under section 8, forward a copy of the order along with the material in his possession, referred to in sub-section (1), to the adjudicating authority, in a sealed envelope, in the manner as may be prescribed and such adjudicating authority shall keep such order and material for such period as may be prescribed(3) on the expiry of the period specified in sub-section (1), the property shall be returned to the person from whom such property was seized or whose property was ordered to be frozen unless the adjudicating authority permits retention or continuation of freezing of such property beyond the said period2025(4) the adjudicating authority, before authorising the retention  or continuation of freezing of such property beyond the period specified in sub-section (1), shall satisfy himself that the property is prima facie involved in money-laundering and the property is required for the purposes of adjudication under section 8(5) after passing the order of confiscation under sub-section (5) or sub-section(7) of section 8, the court or the adjudicating authority, as the case may be, shall direct the release of all property other than the property involved in money-laundering to the person from whom such property was seized or the persons entitled to receive it3035retention of records40(6) where an order releasing the property has been made by the court under sub-section (6) of section 8 or by the adjudicating authority under section 58b or sub-section (2a) of section 60, the director or any officer authorised by him in this behalf may withhold the release of any such property for a period of ninety days from the date of such order, if he is of the opinion that such property is relevant for the appeal proceedings under this act21 (1) where any records have been seized, under section 17 or section 18 or frozen under sub-section (1a) of section 17 and the investigating officer or any other officer authorised by the director in this behalf has reason to believe that any of such records are required to be retained for any inquiry under this act, such records may if seized, be retained or if frozen, may continue to remain frozen, for a period not exceeding one hundred and eighty days from the day on which such records were seized or frozen, as the case may be45(2) the person, from whom records  seized or frozen, shall be entitled to obtain copies of records(3) on the expiry of the period specified under sub-section (1), the records shall be returned to the person from whom such records were seized or whose records were ordered to be frozen unless the adjudicating authority permits retention or continuation of freezing of such records beyond the said period50(4) the adjudicating authority, before authorising the retention or continuation of freezing of such records beyond the period specified in sub-section (1), shall satisfy himself that the records are required for the purposes of adjudication under section 8(5) after passing of an order of confiscation under sub-section (5) or subsection (7) of section 8, the adjudicating authority shall direct the release of the records to the person from whom such records were seized5(6) where an order releasing the records has been made by the court under subsection (6) of section 8 or by the adjudicating authority under section 58b or subsection (2a) of section 60, the director or any officer authorised by him in this behalf may withhold the release of any such record for a period of ninety days from the date of such order, if he is of the opinion that such record is relevant for the appeal proceedings under this act"amendment of section 2217 in section 22 of the principal act, in sub-section (1), after the words "a survey or a search,", the words "or where any record or property is produced by any person or has been resumed or seized from the custody or control of any person or has been frozen under this act or under any other law for the time being in force," shall be inserted10amendment of section 2318 in section 23 of the principal act, for the words and figure "under section 8, it shall, unless otherwise proved to the satisfaction of the adjudicating authority", the words "under section 8 or for the trial of the money-laundering offence, it shall unless otherwise proved to the satisfaction of the adjudicating authority or the special court" shall be substituted15amendment of section 2419 for section 24 of the principal  act, the following section shall be substituted, namely:—burden of proof"24 in any proceedings relating to proceeds of crime under this act, unless the contrary is proved, it shall be presumed that such proceeds of crime is involved in money-laundering"20amendment of section 2620 in section 26 of the principal act, in sub-section (2), for the words "banking company, financial institution or intermediary", the words "reporting entity" shall be substituted21 in section 28 of the principal act,—amendment of section 2825(i) in sub-section (1), for the words "he is or has been a judge of the supreme court or of a high court or is qualified to be a judge of the high court", the words "he is a sitting or retired judge of the supreme court or a sitting or retired chief justice of a high court" shall be substituted(ii) for sub-section (2), the following sub-section shall be substituted, namely:—30| "(                                                                              | 2   | ) a person shall not be qualified for appointment as a member of the   ||---------------------------------------------------------------------------------|-----|------------------------------------------------------------------------|| appellate tribunal unless he is a person of ability, integrity and standing who |     |                                                                        || has shown capacity in dealing with problems relating to handling of matters of  |     |                                                                        || proceeds of crime and has qualification and experience of finance, economics,   |     |                                                                        || taxation, accountancy, law or administration";                                 |     |                                                                        || 35                                                                              |     |                                                                        || (                                                                               | iii | ) in sub-section (                                                     || of a high court" shall be substituted                                          |     |                                                                        |22 for section 42 of the principal act, the following sections shall be substituted, namely:—substitution of new sections for section 42 appeal to supreme court40"42 any person aggrieved by any decision or order of the appellate tribunalmay file an appeal to the supreme court within sixty days from the date of communication of the decision or order of the appellate tribunal to him on any question of law arising out of such order:provided that the supreme court may, if it is satisfied that the applicant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days4542a every appeal filed before a high court but pending before it immediatelybefore the commencement of the prevention of money-laundering (amendment) act,continuation of certain appeals before the high court2011 shall continue to be an appeal before the high court and shall be dealt with by that high court as if the prevention of money-laundering (amendment) act, 2011 had not been passed" 23 in section 44 of the principal act, in sub-section (1),—amendment of section 445(i) in clause (a), in the proviso, the word "or" occurring at the end shall be omitted;(ii) in clause (b), for the words "cognizance of the offence for  which  the accused is committed to it for trial" the words "cognizance of offence under section 3, without the accused being committed to it for trial" shall be substituted;(iii) after clause (b), the following clauses shall be inserted, namely:—10 15"(c) if the court which has taken cognizance of the scheduled offence is other than the special court which has taken cognizance of the complaint of the offence of money-laundering under sub-clause (b), it  shall, on an application by the authority authorised to file a complaint under this act, commit the case relating to the scheduled offence to the special court and the special court shall, on receipt of such case proceed to deal with it from the stage at which it is committed(d) a special court while trying the scheduled offence or the offence of money-laundering shall hold trial in accordance with the provisions of the code of criminal procedure, 1973, as it applies to a trial before a court of session"2 of 197420amendment of section 5024 in section 50 of the principal act, in sub-section (1),  in clause (b), for the words"banking company or a financial institution or a company,", the words "reporting entity" shall be substituted25 in section 54 of the principal act,—amendment of section 5425(i) in the opening portion, for the word "officers", the words "officers and others"shall be substituted;(ii) for clause (d), the following clause shall be substituted, namely:—30 "(d) members of the recognised stock exchange referred to in clause (f) ofsection 2  and the officers of the stock exchanges  recognised under section 4 of the securities contracts (regulation) act, 1956;42 of 1956(iii) after clause (h), the following clauses shall be inserted, namely:—41 of 1999"(ha) officers of the  insurance regulatory and development authority established under section 3 of the insurance regulatory and development authority act, 1999;3574 of 1952(hb) officers of the forward markets commission established under section3 of the forward contracts (regulation) act, 1952;74 of 1952(hc) officers and members of the recognised association recognised under section 6 of the forward contracts (regulation)  act, 1952;(hd) officers of the pension fund regulatory and development authority; (he) officers of the department of posts in the government of india;4016 of 1908(hf) registrars or sub-registrars appointed by the state governments under section 6 of the registration act, 1908;59 of 1988(hg)  registering authority empowered to register motor vehicles under chapter iv of the motor vehicles act, 1988;38 of 1949(hh) officers and members of the institute of chartered accountants of india constituted under section 3 of the chartered accountants act, 1949;(hi) officers and members of the institute of cost and works accountants of india constituted under section 3 of the cost and works accountants act, 1959;23 of 1959556 of 1980(hj) officers and members of the institute  of  company  secretaries  of india  constituted under section 3 of  the  company secretaries act, 1980;"; (iv) in clause (j) for the words "banking companies", the words "reporting entities"shall be substituted 26 after section 58, the following sections shall be inserted, namely:—10insertion of new sections 58a and 58b special court to release the property15"58a where on closure of the criminal case or conclusion of a trial in a criminal court outside india under the corresponding law of any other country, such court finds that the offence of money-laundering has not taken place or the property in india is not involved in money-laundering, the special court shall, on an application moved by the concerned person or the director, after notice to the other party, order release of such property to the person entitled to receive it20letter of request of a contracting state or authority for confiscation or release the property58b where the trial under the corresponding law of any other country cannot be conducted by reason of the death of the accused or the accused being declared a proclaimed offender or for any other reason or having commenced but could not be concluded, the central government shall, on receipt of a letter of request from a court or authority in a contracting state requesting for confiscation or release of property, as the case may be, forward the same to the director to move an application before the special court and upon such application the special court shall pass appropriate orders regarding confiscation or release of such property involved in the offence of money-laundering"2527 in section 60 of the principal act,—amendment of section 6030(i) in sub-section (1), for the words and figures "property under section 5 or where an adjudicating authority has made an order confirming such attachment or confiscation of any property under section 8", the words, figures, brackets and letter "property under section 5 or for freezing under sub-section (1a) of section 17 or where an adjudicating authority has made an order relating to a property under section 8 or where a special court has made an order of confiscation relating to a property under sub-section (5) or sub section (6) of section 8" shall be substituted;(ii) in sub-section (2),—35(a) for the words "attachment or confiscation", the words  "attachment,seizure, freezing or confiscation" shall be substituted;(b) for the word and figure "section 3", the words "a corresponding law"shall be substituted;(iii) after sub-section (2), the following sub-section shall be inserted, namely:—4045"(2a) where on closure of the criminal case or conclusion of trial in acriminal court outside india under the corresponding law of any other country, such court finds that the offence of money-laundering under the corresponding law of that country has been committed, the adjudicating authority shall, on receipt of an application from the director for execution of confiscation under sub-section (2), order, after giving notice to the affected persons, that such property involved in money-laundering or which has been used for commission of the offence of money-laundering stand confiscated to the central government"amendment of section 6328 in section 63 of the principal act, after sub-section (3), the following sub-sectionshall be inserted, namely:—45 of 1860"(4) notwithstanding anything contained in clause (c) of sub-section (2), a person who intentionally disobeys any  direction issued under section 50 shall also be liable to be proceeded against under section 174 of the indian penal code"529 for section 69 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 69 recovery of fine or penalty1043 of 1961"69 where any fine or penalty imposed on any person under section 13 or section 63 is not paid within six months from the day of imposition of fine or penalty, the director or any other officer authorised by him in this behalf may proceed to recover the amount from the said person in the same manner as prescribed in schedule ii of the income-tax act, 1961 for the recovery of arrears and he or any officer authorised by him in this behalf shall have all the powers of the tax recovery officer mentioned in the said schedule for the said purpose"15amendment of section 7030 in section 70 of the principal act, the explanation shall be numbered as explanation 1thereof and after explanation 1 as so numbered, the following explanation shall be inserted, namely:—20"explanation 2—for the removal of doubts, it is hereby clarified that a company may be prosecuted, notwithstanding whether the prosecution or conviction of any legal juridical person shall be contingent on the prosecution or conviction of any individual"amendment of section 7231 in section 72 of the principal act, in sub-section (2), for the words "high court",wherever they occur, the words "supreme court" shall be substituted32 in section 73 of the principal act, in sub-section (2),—amendment of section 73(i) after clause (a), the following clause shall be inserted, namely:—25"(aa) the manner of provisional attachment of property under sub-section(1) of section 5;"; (ii) after clause (e), the following clause shall be inserted, namely:—30"(ee) the manner of seizing or taking possession of property attachedunder section 5 or frozen under sub-section (1a) of section 17 or under subsection (4) of section 8;"; (iii) clause (h) shall be omitted;(iv) in clause (i), for the words "the time within which", the words "the nature and value of transactions and the time within which" shall be substituted;(v) for clause (j), the following clauses shall be substituted, namely:—35"(j)  the manner and the conditions in which identity of clients  shall be verified by the reporting entities under clause (c) of sub-section (1) of section12;(jj) the manner of  identifying beneficial owner, if any, from the clients by the reporting entities under clause (d) of sub-section (1) of section 12;40(jjj) the period of interval in which the reports are sent by the reporting entities or any of its employees under clause (c) of sub-section (2) of section 13;";(vi) after clause (p), the following clause shall be inserted, namely:—45"(pp) the manner in which the forwarding of the order for retention or continuation of freezing of the property and the period of keeping such order and material under sub-section (2) of section 20;"33  in the schedule to the principal act,—amendment of the schedule(i) for  part a,  the following part shall be substituted, namely:— "part a paragraph 1 offences under the indian penal code 5 (45 of 1860)| section                                | description of offence                                                          ||----------------------------------------|---------------------------------------------------------------------------------|| 120b                                   | criminal conspiracy                                                            || 10                                     |                                                                                 || 121                                    | waging or attempting to wage war or abetting waging of war, against the         || government of india                   |                                                                                 || 121a                                   | conspiracy to commit offences punishable by section 121 against the state      || 255                                    | counterfeiting government stamp                                                || 257                                    | making or selling instrument for counterfeiting government stamp               || 258                                    | sale of counterfeit government stamp                                           || 259                                    | having possession of counterfeit government stamp                              || 15                                     |                                                                                 || 260                                    | using as genuine a government stamp known to be counterfeit                    || 302                                    | murder                                                                         || 304                                    | punishment for culpable homicide not amounting to murder                       || 307                                    | attempt to murder                                                              || 20                                     |                                                                                 || 308                                    | attempt to commit culpable homicide                                            || 327                                    | voluntarily causing hurt to extort property, or to constrain to an illegal act || 329                                    | voluntarily causing grievous hurt to extort property, or to constrain to an     || illegal act                           |                                                                                 || 364a                                   | kidnapping for ransom, etc                                                     || 384 to 389                             | offences relating to extortion                                                 || 25                                     |                                                                                 || 392 to 402                             | offences relating to robbery and dacoity                                       || 411                                    | dishonestly receiving stolen property                                          || 412                                    | dishonestly receiving property stolen in the commission of a dacoity           || 413                                    | habitually dealing in stolen property                                          || 414                                    | assisting in concealment of stolen property                                    || 30                                     |                                                                                 || 417                                    | punishment for cheating                                                        || 418                                    | cheating with knowledge that wrongful loss may ensue to person whose            || interest offender is bound to protect |                                                                                 || 419                                    | punishment for cheating by personation                                         || 420                                    | cheating and dishonestly inducing delivery of property                         || 35                                     |                                                                                 || 421                                    | dishonest or fraudulent removal or concealment of property to prevent           || distribution among creditors          |                                                                                 || section                     | description of offence                                                      ||-----------------------------|-----------------------------------------------------------------------------|| 422                         | dishonestly or fraudulently preventing debt being available for creditors  || 423                         | dishonest or fraudulent execution of deed of transfer containing false      || statement of consideration |                                                                             || 424                         | dishonest or fraudulent removal or concealment of property                 || 5                           |                                                                             || 467                         | forgery of valuable security, will, etc                                    || 471                         | using as genuine a forged document or electronic record                    || 472 and 473                 | making or possessing counterfeit seal, etc, with intent to commit forgery || 475 and 476                 | counterfeiting device or mark                                              || 481                         | using a false property mark                                                || 10                          |                                                                             || 482                         | punishment for using a false property mark                                 || 483                         | counterfeiting a property mark used by another                             || 484                         | counterfeiting a mark used by a public servant                             || 485                         | making or possession of any instrument for counterfeiting a property mark  || 486                         | selling goods marked with a counterfeit property mark                      || 15                          |                                                                             || 487                         | making a false mark upon any receptacle containing goods                   || 488                         | punishment for making use of any such false mark                           || 489a                        | counterfeiting currency  notes or bank notes                               || 489b                        | using as genuine, forged or counterfeit currency notes or bank notes       |20 offences under the narcotic drugs and psychotropic substances act, 1985 (61 of 1985)| section                                                             | description of offence                                                          ||---------------------------------------------------------------------|---------------------------------------------------------------------------------|| 15                                                                  | contravention in relation to poppy straw                                       || 25                                                                  |                                                                                 || 16                                                                  | contravention in relation to coca plant and coca leaves                        || 17                                                                  | contravention in relation to prepared opium                                    || 18                                                                  | contravention in relation to opium poppy and opium                             || 19                                                                  | embezzlement of opium by cultivator                                            || 20                                                                  | contravention in relation to cannabis plant and cannabis                       || 30                                                                  |                                                                                 || 21                                                                  | contravention in relation to manufactured drugs and preparations               || 22                                                                  | contravention in relation to psychotropic substances                           || 23                                                                  | illegal import into india, export from india to  transhipment of narcotic drugs || and psychotropic substances                                        |                                                                                 || 35                                                                  |                                                                                 || 24                                                                  | external dealings in narcotic drugs and psychotropic substances in              || contravention of section 12 of the narcotics drugs and psychotropic |                                                                                 || substances act, 1985                                               |                                                                                 || section                            | description of offence                                                  ||------------------------------------|-------------------------------------------------------------------------|| 25a                                | contravention of orders made under section 9a of the narcotic drugs and || psychotropic substances act, 1985 |                                                                         || 27a                                | financing illicit traffic and harbouring offenders                     || 29                                 | abetment and criminal conspiracy                                       || 5                                  |                                                                         | paragraph 3 offences under the explosive substances act, 1908(6 of 1908)sectiondescription of offence3causing explosion likely to endanger life or property104attempt to cause explosion, or for making or keeping explosives with intent to endanger life or property5making or possessing explosives under suspicious circumstances paragraph 4 offences under the unlawful  activities (prevention)  act,  196715( 37 of 1967)sectiondescription of offence10 read withpenalty for being member of an unlawful association, etcsection 3 11 read withpenalty for dealing with funds of an unlawful association20section 3 13 read withpunishment for unlawful activitiessection 3 16 read withpunishment for terrorist actsection 152516apunishment for making demands of radioactive substances, nuclear devices,etc17punishment for raising fund for terrorist act18punishment for conspiracy, etc18apunishment for organising of terrorist camps3018bpunishment for recruiting of any person or persons for terrorist act19punishment for harbouring, etc20punishment for being member of terrorist gang or organisation21punishment for holding proceeds of terrorism3538offence relating to membership of a terrorist organisation39offence relating to support given to a terrorist organisation40offence of raising fund for a terrorist organisation paragraph 5 offences under the arms act, 1959 (54 of 1959)|                                                                               | section                                                                     | description of offence                                                        ||-------------------------------------------------------------------------------|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------|| 5                                                                             | 25                                                                          | to manufacture, sell, transfer, convert, repair or test or prove or expose or || offer for sale or transfer or have in his possession for sale, transfer,      |                                                                             |                                                                               || conversion, repair, test or proof, any arms or ammunition to contravention    |                                                                             |                                                                               || of section 5 of the arms act, 1959                                           |                                                                             |                                                                               || to acquire, have in possession or carry any prohibited arms or prohibited     |                                                                             |                                                                               || ammunition in contravention of section 7 of the arms  act, 1959              |                                                                             |                                                                               || 10                                                                            |                                                                             |                                                                               || contravention of section 24a of the arms act, 1959 relating to prohibition    |                                                                             |                                                                               || as to possession of notified arms in disturbed areas, etc                    |                                                                             |                                                                               || contravention of section 24b of the arms act, 1959 relating to prohibition    |                                                                             |                                                                               || as to carrying of notified arms in or through public places in disturbed      |                                                                             |                                                                               || areas                                                                        |                                                                             |                                                                               || 15                                                                            |                                                                             |                                                                               || other offences specified in section 25                                       |                                                                             |                                                                               || 26                                                                            | to do any act in contravention of any provisions of section 3, 4, 10 or     |                                                                               || section  12 of the arms act, 1959 in such manner as  specified in sub-section |                                                                             |                                                                               || (1)                                                                           | of section 26 of the said act                                              |                                                                               || 20                                                                            |                                                                             |                                                                               || to do any act in contravention of any provisions of section 5, 6, 7 or        |                                                                             |                                                                               || section 11 of the arms act, 1959 in such manner as specified in sub-section   |                                                                             |                                                                               || (2)                                                                           | of section 26 of the said act                                              |                                                                               || other offences specified in section 26                                       |                                                                             |                                                                               || 27                                                                            | use of arms or ammunitions in contravention of section 5 or use of any arms |                                                                               || or ammunition in contravention of section 7 of the arms act, 1959            |                                                                             |                                                                               || 25                                                                            |                                                                             |                                                                               || 28                                                                            | use and possession of fire arms or imitation fire arms in certain cases    |                                                                               || 29                                                                            | knowingly purchasing arms from unlicensed person or for delivering arms,    |                                                                               || etc, to person not entitled to possess the same                             |                                                                             |                                                                               || 30                                                                            | contravention of any condition of a licence or any provisions of the arms   |                                                                               || act, 1959 or any rule made thereunder                                        | 30                                                                          |                                                                               | paragraph 6 offences under the wild life  (protection) act, 1972(53 of 1972)sectiondescription of offence3551 read withhunting of wild animalssection  9 51 read withcontravention of provisions of section 17a relating to prohibition of picking,section 17auprooting, etc, of specified plants| section      | description of offence                                                         ||--------------|--------------------------------------------------------------------------------|| 51 read with | contravention of provisions of section 39 relating to wild animals, etc, to   || section 39   | be government property                                                        || 51 read with | contravention of provisions of section 44 relating to dealings in trophy and   || section 44   | animal articles without licence prohibited                                    || 5            |                                                                                || 51 read with | contravention of provisions of section 48 relating to purchase of animal,      || section 48   | etc, by licensee                                                             || 51 read with | contravention of provisions of section 49b relating to prohibition of dealings || section 49b  | in trophies, animals articles, etc, derived from scheduled animals           || 10           |                                                                                | paragraph 7 offences under the immoral traffic (prevention) act, 1956(104 of 1956)sectiondescription of offence5procuring, inducing or taking person for the sake of prostitution6detaining a person in premises where prostitution is carried on158seducing or soliciting for purpose of prostitution9seduction of a person in custody paragraph 8 offences under the prevention of  corruption act, 198820(49 of 1988)sectiondescription of offence7public servant taking gratification other than legal remuneration in respect of an official act8taking gratification in order, by corrupt or illegal means, to influence public servant259taking gratification for exercise of personal influence with public servant10abetment by public servant of offences defined in section 8 or section 9 of the prevention of corruption act, 198813criminal misconduct by a public servant paragraph 9 30 offences under the explosives act, 1884( 4 of 1884)sectiondescription of offence9bpunishment for certain offences359coffences by companies paragraph 10 offences under the  antiquities and arts treasures  act, 1972( 52 of 1972)sectiondescription of offence525 read withcontravention of export trade in antiquities and art treasuressection 328offences by companiesoffences under the securities and exchange  board of india  act, 1992(15 of 1992)10sectiondescription of offence12a read withprohibition of manipulative and deceptive devices, insider trading andsection 24substantial24acquisition of securities or controlparagraph 1215offences under the  customs  act, 1962( 52 of 1962)sectiondescription of offence135evasion of duty or prohibitionsparagraph 1320offences under the bonded  labour  system (abolition) act, 1976(  19 of 1976)sectiondescription of offence16punishment for enforcement of bonded labour18punishment for extracting bonded labour under the bonded labour system2520abetment to be an offenceoffences under the child labour (prohibition and regulation) act, 1986(61 of 1986)sectiondescription of offence3014punishment for employment of any child to work in contravention of theprovisions of section 3 paragraph 15 offences under the  transplantation of human  organs  act, 1994( 42 of 1994)sectiondescription of offence518punishment for removal of human organ without authority19punishment for commercial dealings in human organs20punishment for contravention of any other provisions of this act paragraph 16 offences under the juvenile  justice  (care  and protection of children) act, 200010( 56 of 2000)sectiondescription of offence23punishment for cruelty to juvenile or child24employment of juvenile or child for begging1525penalty for giving intoxicating liquor or narcotic drug or psychotropicsubstance to juvenile or child26exploitation of juvenile or child employeeoffences under the  emigration  act, 1983( 31 of 1983)sectiondescription of offence2024offences and penaltiesoffences under the passports act, 1967(15 of 1967)sectiondescription of offence2512offences and penaltiesoffences under the  foreigners  act, 1946( 31 of 1946)30sectiondescription of offence14penalty for contravention of provisions of the act, etc14bpenalty for using forged passport14cpenalty for abetment paragraph 20 offences under the copyright act, 1957(14 of 1957)sectiondescription of offence63offence of infringement of copyright or other rights conferred by this act563aenhanced penalty on second and subsequent convictions63bknowing use of infringing copy of computer programme68apenalty for contravention of section 52aoffences under the  trade marks act, 199910(47 of 1999)sectiondescription of offence103penalty for applying false trade marks, trade descriptions, etc104penalty for selling goods or providing services to which false trade mark or false trade description is applied15105enhanced penalty on second or subsequent conviction107penalty for falsely representing a trade mark as registered120punishment of abetment in india of acts done out of indiaparagraph 22offences under the  information technology  act, 200020( 21 of 2000)sectiondescription of offence72penalty for breach of confidentiality and privacy75act to apply for offence or contravention committed outside indiaparagraph 2325offences under the  biological diversity act, 2002( 18 of 2003)sectiondescription of offence55 read withpenalties for contravention of section 6, etcsection 630 paragraph 24 offences under the protection of plant varieties and farmers'  rights act, 2001( 53 of 2001)sectiondescription of offence570 read withpenalty for applying false denomination, etcsection 68 71 read withpenalty for selling varieties to which false denomination is appliedsection 681072 read withpenalty for falsely representing a variety as registeredsection 68 73 read withpenalty for subsequent offencesection 68 paragraph 25 offences under the  environment  protection  act, 1986( 29 of 1986)15sectiondescription of offence15 read withpenalty for discharging environmental pollutants, etc, in excess ofsection 7prescribed standards15 read withpenalty for handling hazardous substances without complying withsection 8procedural safeguards20 paragraph 26 offences under the water (prevention and control of pollution) act, 1974( 6 of 1974)sectiondescription of offence41(2)penalty for pollution of stream or well2543penalty for contravention of provisions of section 24 paragraph 27 offences under the  air (prevention and control of  pollution) act, 1981( 14 of 1981)sectiondescription of offence3037failure to comply with the provisions for operating industrial plant paragraph 28 offences under the suppression of  unlawful  acts  against  safety of maritime navigation and fixed platforms on continental shelf act, 2002( 69 of 2002)5sectiondescription of offence3offences against ship, fixed platform, cargo of a ship, maritime navigationalfacilities, etc";(ii)  in part b, paragraphs 1 to 25 shall be omitted;(iii) in part c, serial number (2)  and the entries relating thereto shall be omitted10 statement of objects and reasonsthe prevention of money-laundering act, 2002 was enacted to prevent moneylaundering and to provide for confiscation of property derived from, or involved in, moneylaundering and for matters connected therewith or incidental thereto  the aforesaid act also addresses the international obligations under the political declaration and global programme of action adopted by the general assembly of the united nations to prevent moneylaundering  the act was amended in the year 2005 and 2009 to remove the difficulties arisen in implementation of the act2 the problem of money-laundering is no longer restricted to the geo political boundaries of any country it is a global menace that cannot be contained by any nation alone in view of this, india has become a member of the financial action task force and asia pacific group on money-laundering, which are committed to the effective implementation and enforcement of internationally accepted standards against money-laundering and the financing of terrorism consequent to the submission of an action plan to the financial action task force to bring anti money-laundering legislation of india at par with the international standards and to obviate some of the deficiencies in the act that have been experienced by the implementing agencies, the need to amend the prevention of money-laundering act, 2002 has become necessary3  the prevention of money-laundering (amendment) bill, 2011, inter alia, seeks to—(a) introduce the concept of  'corresponding law' to link the provisions of indian law with the  laws of foreign countries and provide for transfer of the proceeds of the foreign predicate offence in any manner in india;(b) introduce the concept of  'reporting entity' to include therein a banking company, financial institution, intermediary or a person carrying on a designated business or profession;(c) enlarge the definition of offence of money-laundering to include therein the activities like concealment, acquisition, possession and use of proceeds of crime as criminal activities and remove existing limit of five lakh rupees of fine under the act;(d) make provision for attachment 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;(e) confer power upon the director to call for  records of transactions or any additional information that may be required for the purposes of the prevention of money-laundering and also to  make inquiries for non-compliance of reporting obligations cast upon them;(f) make the reporting entity, its designated directors on the board and employees responsible for omissions or commissions in relation to the reporting obligations under chapter iv of the act;(g) provide that in any proceedings relating to proceeds of crime under the aforesaid act, unless the contrary is proved, it shall be presumed that such proceeds of crime is involved in money-laundering;(h) provide for appeal against the orders of the appellate tribunal directly to the supreme court;(i) provide for the process of transfer of the cases of scheduled offence pending in a court which had taken cognizance of the offence to the special court for trial of offence of money-laundering and also provide that the special court shall, on receipt of such case proceed to deal with it from the stage at which it is committed(j) putting all the offences listed in part a and part b of the schedule to the aforesaid act into part a of that schedule instead of keeping them in two parts so that the provision of monetary threshold does not apply to the offences4  the bill seeks to achieve the above objectsnew delhi;pranab mukherjeethe 16th december, 2011 notes on clausesclause 1—this clause provides for the short title and commencement of the proposed legislationclause 2—this clause seeks to amend section 2 of the prevention of money-laundering act, 2002 relating to definitions this clause, inter alia, seeks to modify, amend or substitute certain definitions and to insert certain other new definitions sub-clause (i) seeks to insert the definition of the expression "beneficial owner" to mean an individual who ultimately owns or controls a client of a reporting entity or the person on whose behalf a transaction is being conducted and includes a person who exercises ultimate effective control over a juridical person sub-clause (ii) seeks to define the term "client" to mean a person who is engaged in a financial transaction or activity with a reporting entity and includes a person on whose behalf the person who engaged in the transaction or activity, is acting sub-clause (iii) seeks to insert two new definitions relating to "corresponding law" to mean any law of any foreign country corresponding to any of the provisions of the act or dealing with offences in that country corresponding to any of the scheduled offences and the definition of the term "dealer" to provide the same meaning as assigned to it in clause (b) of section 2 of the central sales tax act, 1956sub-clause (v) seeks to substitute the existing definition of the expression "financial institution" to mean a financial institution as defined in clause (c) of   section 45-i of the reserve bank of india act, 1934 and includes a chit fund company, a housing finance institution, an authorised person, a payment system operator, a non-banking financial company and the department of posts in the government of india sub-clause (vi) seeks to substitute clause (n) of section 2 so as to substitute the expression "intermediary" to mean a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser or any other intermediary associated with securities market and registered under section 12 of the securities and exchange board of india act, 1992; or an association recognised or registered under the forward contracts (regulation) act, 1952 or any member of such association; or intermediary registered by the pension fund regulatory and development authority; or a recognised stock exchange referred to in clause (f) of section 2 of the securities contracts (regulation) act, 1956 sub-clause (vii) seeks to amend clause (q) to omit the words "and includes a person carrying on designated business or profession"sub-clause (ix) seeks to insert certain new definitions such as,—(i)  "person carrying on designated business or profession" to mean a person carrying on activities for playing games of chance for cash or kind, and includes such activities associated with casino; a registrar or sub-registrar appointed under section 6 of the registration act, 1908; real estate agent; dealer in precious metals, precious stones and other high value goods, and any person engaged in safekeeping and administration of cash and liquid securities on behalf of other persons; or person carrying on such other activities as the central government may, by notification, so designate, from time to time; (ii) "precious metals" to mean gold, silver, platinum, palladium or rhodium or such other metal as may be notified by the central government; (iii) "precious stone" to mean diamond, emerald, ruby, sapphire or any such other stone as may be  notified by the central government sub-clause (x) seeks to insert, for the removal of doubts, an explanation after clause (v) of sub-section (1) of section 2, that the term "property" includes property of any kind used in the commission of an offence under this act or any of the scheduled offences sub-clause (xi) seeks to define the term "reporting entity" to mean a banking company, financial institution, intermediary or a person carrying on a designated business or professionclause 3—this clause seeks to amend section 3 of the act relating to offence of money-laundering this clause seeks to include acts of concealment, acquisition, possession and use of the proceeds of crime within the provision of offence of money-launderingclause 4—this clause seeks to amend section 4 of the act relating to punishment for money-laundering to omit the fine of five lakh rupees, since the  limit of fine on legal persons under act being very smallclause 5—this clause seeks to substitute sub-section (1) of section (5) of the principal act relating to attachment of property involved in money-laundering to facilitate attachment of proceeds of crime in all cases, irrespective of in whose possession the property is, and also provides for attachment in cases where report has been filed under the corresponding law of any other country further this clause seeks to increase the period of provisional attachment from existing one hundred and fifty days to one hundred and eighty daysclause 6—this clause seeks to amend section 8 of the act relating to adjudication to delink the attachment of the property to the pendency of the proceedings relating to the scheduled offence and links it to the money laundering offence it further seeks to delink the attachment to conviction it also seeks to broaden the scope of seizing by also enabling freezing of property and documents which cannot be seized  it also seeks to take away the powers of the adjudicating authority to release the attached properties, where the scheduled offence itself is found not to have been committed or the attached property is not involved in money-laundering and vest the same with the special courtclause 7—this clause seeks to amend section 9 of the act relating to vesting of property in central government by taking away the power to confiscate the attached property from the adjudicating authority and vesting it with the special courtclause 8—this clause seeks to make the consequential changes in section 10 of the act relating to management of properties confiscated under this chapter as the provisions relating to confiscation has been provided under some of the sub-sections of section 8clause 9—this clause seeks to substitute section 12 and to  introduce the expression"reporting entity" in the place of "banking company, financial institution or intermediary" in section 12 of the act it also widens the scope of maintenance of record that is prescribed for reporting this clause also seeks to omit the words "series of transactions integrally connected" in section 12clause 10—this clause seeks to insert a new section 12a relating to access to information to empower the director to call for records of transaction or any additional information that may be required and for the power to make enquires for non-compliance of reporting entities to the obligations imposed upon such reporting entitiesclause 11—this clause seeks to amend section 13 of the act relating to powers of director to impose fine by the director on the designated directors and the employees of the reporting entities it further seeks to empower the director for appointment of a chartered accountant from amongst a panel of accountants, maintained by the central government it also seeks to make the designated directors on the board of a company alongwith the employees responsible for omissions or commissions of any reporting entities in their failure and to impose monetary penalty on such reporting entity, or its designated director on the board or any of its employees, which shall not be less than ten thousand rupees but may extend to one lakh rupees for each such failureclause 12—this clause seeks to substitute new section for section 14 not to make liable to any civil or criminal proceedings against the reporting entity, its directors and employees in certain cases for furnishing information under clause (b) of sub-section (1) of section 12clause 13—this clause seeks to substitute a new section for section 15 of the act relating to procedure and manner of furnishing information by reporting entities it provides that the central government may, in consultation with the reserve bank of india, prescribe the procedure and the manner of maintaining and furnishing information by a reporting entity under sub-section (1) of section 12 for the purpose of implementing the provisions of the actclause 14—this clause seeks to amend section 17 of the act relating to search and seizure and includes provision for freezing any property, so that it can be seized or attached and confiscated later sub-clause (ii) seeks to insert a new sub-section (1a) after sub-section (1)to provide that no search shall be conducted unless, in relation to the scheduled offence, a report has been forwarded to a magistrate under section 157 of the code of criminal procedure, 1973, or a complaint has been filed by a person, authorised to investigate the offence mentioned in the schedule, before a magistrate or court for taking cognizance of the 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 authorised 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 authorised by the central government, by notification, for this purposesub-clause (iv) seeks to substitute sub-section (4) with new sub-section to provide that the authority seizing any record or property under sub-section (1) or freezing any record or property under sub-section (1a) shall, within a period of thirty days from such seizure or freezing, as the case may be, file an application, requesting for retention of such record or property seized under sub-section (1) or for continuation of the order of freezing served under sub-section (1a), before the adjudicating authorityclause 15—this clause seeks to amend section 18 of the act relating to search of persons it seeks to substitute the existing proviso with a new proviso in sub-section (1) of section 18 so as to provide that, no search of any person shall be made unless, in relation to the scheduled offence, a report has been forwarded to a magistrate under section 157 of the code of criminal procedure, 1973, or a complaint has been filed by a person, authorised to investigate the offence mentioned in the schedule, before a magistrate or court for taking cognizance of the 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 authorised 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 authorised by the central government, by notification, for this purposeclause 16—this clause seeks to substitute new sections for section 20 and section21of the act relating to retention of property and retention of records respectively it proposes, inter alia, to increase the period of withholding of releasing of property or records, as the case may be, from the existing forty-five days to ninety days so as to allow sufficient time to the officers of enforcement directorate to file appeal and obtain a stay in the cases requiredclause 17—this clause seeks to amend section 22 of the act relating to presumption as to records or property also to include cases such as where any record or property is produced by any person or it has been seized from the custody or control of any person or has been frozen under the act or under any other law for the time being in forceclause 18—this clause seeks to amend section 23 of the act relating to presumption in inter-connected transactions to include the special court also alongwith the adjudicating authority for the purposes of adjudication or confiscation under section 8 or for trial of the money-laundering offenceclause 19—this clause seeks to substitute section 24 of the principal act relating to burden of proof this clause proposes that in any proceedings relating to proceeds of crime under the proposed legislation, unless the contrary is proved, it shall be presumed that such proceeds of crime is involved in money-laundering so as to ensure the property related to the offence is not passed off to someone to avoid confiscationclause 20—this clause seeks to amend section 26 of the act relating to appeals to the appellate tribunal by replacing reference relating to "banking company, financial institution or intermediary" with the term "reporting entity"clause 21—this clause seeks to amend section 28 of the principal act relating to qualifications for appointment of chairperson and member of the appellate tribunalsub-clause (i) seeks to amend the sub-section (1) of section 28 to substitute the words "he is a sitting or retired judge of the supreme court or a sitting or retired chief justice of a high court" for the words "he is or has been a judge of the supreme court or of a high court or is qualified to be a judge of the high court" sub-clause (ii) seeks to substitute sub-section (2) of the said section to provide for qualification of appointment as a member of the appellate tribunal unless such person is of ability, integrity and standing who has shown capacity in dealing with problems relating to handling of matters of proceeds of crime and has qualification and experience of finance, economics, taxation, accountancy, law or administrationclause 22—this clause seeks to substitute the existing section 42 of the act relating to appeals to high court with a new section relating to appeal to supreme court this clause provides that any person aggrieved by any decision or order of the appellate tribunal may file an appeal to the supreme court within sixty days from the date of communication of the decision or order of the appellate tribunal to him on any question of law arising out of such order however, the supreme court may, if it is satisfied that the applicant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty days this clause further provides for continuation of certain appeals filed before the high court but pending before it immediately before the commencement of the proposed legislation to continue to be an appeal before the high court and to be dealt with by that high court as if the proposed legislation had not been passedclause 23—this clause seeks to amend sub-section (1) of section 44 of the act relating to offences triable by special courts sub-clause (ii) provides that if the court which has taken cognizance of the scheduled offence is other than the special court which has taken cognizance of the complaint of the offence of money-laundering under sub-clause (b), it  shall, on an application by the authority authorised to file a complaint under the proposed legislation, commit the case relating to the scheduled offence to the special court and the special court shall, on receipt of such case proceed to deal with it from the stage at which it is committed sub-clause (iii) seeks to insert a new clause (c) after clause (b) in the said section provides that a special court while trying the scheduled offence or the offence of money-laundering shall hold trial in accordance with the provisions of the code of criminal procedure, 1973, as it applies to a trial before a court of sessionclause 24—this clause seeks to amend section 50 of the act relating to powers of authorities regarding summons, production of documents and to give evidence it seeks to make a consequential amendment to substitute the words "banking company or a financial institution or a company," with the words "reporting entity"clause 25—this clause seeks to amend section 54 of the act relating to certain officers to assist in inquiry, etc it seeks to provide for enlarging the scope of section 54 so as to include new set of officials and persons who will be expected to assist the authorities in the enforcement of the act by bring various departments, entities and members of organisations under the coverage of the act, such as the insurance regulatory and development authority, the department of posts, the forward markets commission, the pension fund regulatory and development authority, the registrar or sub-registrars appointed under the registration act, 1908, the registering authority empowered to register motor vehicles under the motor vehicle act,1988, the recognised stock exchanges, the institute of chartered accountants of india, the institute of cost and works accountants of india and the institute of company secretaries of indiaclause 26—this clause seeks to insert new sections 58a and 58b the proposed new section 58a relating to special court to release the property, this new clause provides that, if on closure of the criminal case or conclusion of a trial in a criminal court outside india under the corresponding law of any other country, such court finds that the offence of money-laundering has not taken place or the property in india is not involved in moneylaundering, the special court shall, on an application moved by the concerned person or the director, after notice to the other party, order release of such property to the person entitled to receive it the proposed new section 58b relating to letter of request of a contracting state or authority for confiscation or release the property provides that,  if the trial under the corresponding law of any other country cannot be conducted by reason of the death of the accused or the accused being declared a proclaimed offender or for any other reason or having commenced but could not be concluded, the central government shall, on receipt of a letter of request from a court or authority in a contracting state requesting for confiscation or release of property, as the case may be, forward the same to the director to move an application before the special court and upon such application the special court shall pass appropriate orders regarding confiscation or release of such property involved in the offence of money-launderingclause 2 7  ¯this clause seeks to amend section 60 of the act relating to attachment, seizure and confiscation, etc, of property in a contracting state or india sub-clause (i) seeks to amend sub-section (1) of the said section to substitute for the words and figures "property under section 5 or where an adjudicating authority has made an order confirming such attachment or confiscation of any property under section 8", with the words , figures, brackets and letter "property under section 5 or for freezing under sub-section (1a) of section 17 or where an adjudicating authority has made an order relating to a property under section 8 or where a special court has made an order of confiscation relating to a property under subsection (5) or sub section (6) of section 8" sub-clause (ii) proposes to amend sub-section (2) of the said section so as to substitute the words "attachment or confiscation", with the words  "attachment, seizure, freezing or confiscation" sub-clause (iii) seeks to insert a new sub-section after sub-section (2) of the said act which provides that, if on closure of the criminal case or conclusion of trial in a criminal court outside india under the corresponding law of any other country, such court finds that the offence of money-laundering under the corresponding law of that country has been committed, the adjudicating authority shall, on receipt of an application from the director for execution of confiscation under sub-section (2), order, after giving notice to the affected persons, that such property involved in moneylaundering or which has been used for commission of the offence of money-laundering stand confiscated to the central governmentclause 28—this clause seeks to amend section 63 of act relating to punishment for false information or failure to give information it seeks to insert a new sub-section after subsection (3) which provides that notwithstanding anything contained in clause (c) of subsection (2), a person who intentionally disobeys any direction issued under section 50 shall also be liable to be proceeded against under section 174 of the indian penal codeclause 29—this clause seeks to substitute section 69 relating to recovery of fine or penalty it provides that, if any fine or penalty imposed on any person under section 13 or section 63 is not paid within six months from the day of imposition of fine or penalty, the director or any other officer authorised by him in this behalf may proceed to recover the amount from the said person in the same manner as prescribed in schedule ii of the incometax act, 1961 for the recovery of arrears and he or any officer authorised by him in this behalf shall have all the powers of the tax recovery officer mentioned in the said schedule for the said purposeclause 30—this clause seeks to amend section 70 of the act relating to offences by companies it seeks to insert a new explanation after the existing explanation to clarity that a company may be prosecuted, notwithstanding whether the prosecution or conviction of any legal juridical person shall be contingent on the prosecution or conviction of any individualclause 31—this clause seeks to amend section 72 of the act relating to continuation of proceedings in the event of death or insolvency it seeks to substitute the words "high court", wherever they occur, with the words "supreme court" it is a consequential change in the said sectionclause 32—this clause seeks to amend section 73 of the act relating to power to make rules it proposes to insert clauses (aa), (ee) and clause (pp), to omit clause (h) and to substitute clause (j) with new clause (j), (jj) and (jjj) specifying the matters in respect of which rules may be madeclause 33—this clause seeks to amend the schedule to the act sub-clause (i) seeks to substitute part a, with new part so as to include the existing paragraphs 1 to 25 of part b in part a sub-clause (ii) seeks to omit the paragraphs 1 to 25 and sub-clause (iii) proposes to amend part c to omit the entries relating to serial number (2) memorandum  regarding  delegated  legislationsub-clause (1) of clause 5 of the bill empowers the central government to make rules for provisional attachment of property2 clause 9 of the bill empowers the central government to make rules to provide the period within which the reporting entity to furnish information to director relating to transaction, the nature and value of such transaction; to verify the identity of its client and the identity of beneficial owner of such clients this clause further empowers the central government to notify exempting any reporting entity or class of entities from the obligation3 clause 11 of the bill empowers the central government to make rules to provide the period of interval at which the reporting entity or its designated director on the board or any of its employees to send reports on the measures taken by it4 clause 13 of the bill empowers the central government to make rules, in consultation with the reserve bank of india, to provide the procedure and the manner of maintaining and furnishing information by reporting entity for the purpose of implementing the provisions of the act6 clause 16 of the bill empowers the central government to make rules to provide the manner in which the officer shall forward a copy of the order alongwith the materials in his possession to the adjudicating authority 7the rules as may be made by the central government are required to be laid before the parliament the matters in respect of which rules may be made by the central government in accordance with the provisions of the act are matters of procedure and administrative details and it is not practical to provide for them in the bill itself the delegation of legislative power is, therefore, of a normal character annexure extracts from the prevention of money-laundering act, 2002 (15 of 2003)|     |     |     |     |    ||------|------|------|------|-----|2 (1) in this act, unless the context otherwise  requires,—definitions|     |     |     |     |    ||------|------|------|------|-----|2 of 1934(l) "financial institution" means a financial institution as defined in clause (c) of section 45-i of the reserve bank of india act, 1934 and includes a chit fund company, a co-operative bank, a housing finance institution and  an authorised person, a payment system operator and a non-banking financial company;|     |     |     |     |    ||------|------|------|------|-----|15 of 1992(n) "intermediary" means a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and any other intermediary associated with securities market and registered under section 12 of the securities ane exchange board of india act, 1992;|     |     |     |     |    ||------|------|------|------|-----|2 of 1934(q) "non-banking financial company" shall have the same meaning as assigned to it in clause (f) of section 45-i of the reserve bank of india act, 1934 and includes a person carrying on designated business or profession|     |     |     |     |    ||------|------|------|------|-----|(ra) "offence of cross border implications", means—(i) any conduct by a person at a place outside india which constitutes an offence at that place and which would have constituted an offence specified in part a, part b or part c of the schedule, had it been committed in india and if such person remits the proceeds of such conduct or part thereof to india; or(ii) any offence specified in part a, part b or part c of the schedule which has been committed in india and the proceeds of crime, or part thereof have been transferred to a place outside india or any attempt has been made to transfer the proceeds of crime, or part thereof from india to a place outside indiaexplanation—nothing contained in this clause shall adversely affect any investigation, enquiry, trial or proceeding before any authority in respect of the offences specified in part a or part b of the schedule to theact before the commencement of the prevention of moneylaundering (amendment) act, 2009|     |     |     |     |    ||------|------|------|------|-----| chapter ii offence of money-launderingoffence of moneylaundering3 whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of moneylaunderingpunishment for moneylaundering4 whoever commits the offence of money-laundering shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine which may extend to five lakh rupees:provided that where the proceeds of crime involved in money-laundering relates to any offence specified under paragraph 2 of part a of the schedule, the provisions of this section shall have effect as if for the words "which may extend to seven years", the words "which may extend to ten years" had been substituted chapter iii attachment, adjudication and confiscation5 (1) where the director, or any other officer not below the rank of deputy director authorised by him for the purposes of this section, has reason to believe (the reason for such belief to be recorded in writing), on the basis of material in his possession, that—attachment of property involved in moneylaundering(a) any person is in possession of any proceeds of crime; (b) such person has been charged of having committed a scheduled offence;and(c) such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime under this chapter,43 of 1961he may, by order in writing, provisionally attach such property for a period not exceeding one hundred and fifty days form the date of the order, in the manner provided in the second schedule to the income-tax act, 1961 and the director or the other officer so authorised by him, as the case may, shall be deemed to be an officer under sub-rule (e) of rule 1 of that schedule:2 of 1974provided that no such order of attachment shall be made unless, in relation to the scheduled offence, a report has been forwarded to a magistrate under section 173 of the code of criminal procedure, 1973, or a complaint has been filed by a person, authorised to investigate the offence mentioned in the schedule, before a magistrate or court for taking cognizance of the scheduled offence, as the case may be:provided further that, notwithstanding anything contained in clause (b), any property of any person may be attached under this section if the director or any other officer not below the rank of deputy director authorised by him for the purposes of this section has reason to believe (the reasons for such belief to be recorded in writing), on the basis of material in his possession, that if such property involved in moneylaundering is not attached immediately under this chapter, the non-attachment of the propoerty is likely to frustrate any proceeding under this act    adjudication8 (1) on receipt of a complaint under sub-section (5) of section 5, or applications made under sub-section (4) of section 17 or under sub-section (10) of section 18, if the adjudicating authority has reason to believe that any person has committed an offence under section 3 or is in possession of proceeds of crime, it may serve a notice  of not less than thirty days on such person calling upon him to indicate the sources of his income, earning or assets, out of which or by means of which he has acquired the property attached under  subseciton (1) of section 5, or, seized under section 17 or section 18, the evidence on which he relies and other relevant information and particulars, and to show cause why all or any of such properties should not be declared to be the properties involved in money-laundering and confiscated by the central government:provided that where a notice under this sub-section specifies any property as being held by a person on behalf of any other person, a copy of such notice shall also be served upon such other person:provided further that where such property is held jointly by more than one person, such notice shall be served to all persons holding such property [10] m c(3) where the adjudicating authority decides under sub-section (2) that any property is involved in money-laundering, he shall, by an order in writing, confirm the attachment of the property made under sub-section (1) of section 5 or retention of property or record seized under section 17 or section 18 and record a finding to that effect, such attachment or retention of the seized property or record shall—(a) continue during the pendency of the proceedings relating to any scheduled offence before a court; and    (4) where the provisional order of attachment made under sub-section (1) of section5 has been confirmed under sub-section (3), the director or any other officer authorised by him in this behalf shall forthwith take the possession of the attached property(5) where on conclusion of a trial for any scheduled offence, the person concerned is acquitted, the attachment of the property or retention of the seized property or record under sub-section (3) and net income, if any, shall cease to have effect(6) where the attachment of any property  or retention of the seized property or record becomes final under clause (b) of sub-section (3), the adjudicating authority shall, after giving an opportunity of being heard to the person concerned, make an order confiscating such property9  where an order of confiscation has been made under sub-section  (6) of section 8in respect of any property of a person, all the rights and title in such property shall vest absolutely in the central government free from all encumbrances:vesting of property in central governmentprovided that where the adjudicating authority, after giving an opportunity of being heard to any other person interested in the property attached under this chapter, or seized under chapter v, is of the opinion that any encumbrance on the property or lease-hold interest has been created with a view to defeat the provisions of this chapter, it may, by order, declare such encumbrance or lease-hold interest to be void and thereupon the aforesaid property shall vest in the central government free from such encumbrances or lease-hold interest:provided further that nothing in this section shall operate to discharge any person from any liability in respect of such encumbrances which may be enforced against such person by a suit for damages10 (1)    management of properties c o n f i s c a t e d under this chapter(2) the administrator appointed under sub-section (1) shall receive and manage the property in relation to which an order has been made under sub-section (6) of section 8 in such manner and subject to such conditions as may be prescribed [10] m c chapter iv obligations of banking companies, financial institutions and intermediaries12 (1) every banking company, financial institution and intermediary shall—(a) maintain a record of all transactions, the nature and value of which may be prescribed, whether such transactions comprise of a single transaction or a series of transactions integrally connected to each other, and where such series of transactions take place within a month;banking companies, financial institutions and intermediaries to maintain records(b) furnish information of transactions referred to in clause (a) to the director within such time as may be prescribed;(c) verify and maintain the records of the identity of all its clients, in such manner as may be prescribed:provided that where the principal officer of a banking company or financial institution or intermediary, as the case may be, has reason to believe that a single transaction or series of transactions integrally connected to each other have been valued below the prescribed value so as to defeat the provisions of this section, such officer shall furnish information in respect of such transactions to the director within the prescribed time(2)(a) the records referred to in clause (a) of sub-section (1) shall be maintained for a period of ten years from the date of transactions between the clients and the banking company or financial institution or intermediary, as the case may be(b) the records referred to in clause (c) of sub-section (1) shall be maintained for a period of ten years from the date of cessation of transactions between the clients and the banking company or financial institution or intermediary, as the case may be| powers       | of   ||--------------|------|| director     | to   || impose fine |      |13 (1) the director may, either of his own motion or on an application made by any authority, officer or person, call for records reffered to in sub-section (1) of section 12 and may make such inquiry or cause such inquiry to be made, as he thinks fit(2) if the director, in the course of any inquiry, finds that a banking company, financial institutions or an intermediary or any of its officers has failed to comply with the provisions contained in section 12, then, without prejudice to any other action that may be taken under any other provisions of this act, he may, by an order, levy a fine on such banking company or financial institution or intermediary which shall not be less than ten thousand rupees but may extend to one lakh rupees for each failure     14 save as otherwise provided in section 13, the banking companies, financial institutions, intermediaries and their officers shall not be liable to any civil proceedings against them for furnishing information under clause (b) of sub-section (1) of section 12     no civil proceedings against banking companies,financialinstitutions, etc, in certain cases search andseizure17 (1) where the director or any other officer not below the rank of deputy director authorised by him for the purposes of this section, on the basis of information in his possession, has reason to believe (the reason for such belief to be recorded in writing) that any person—|     |     |     |     |    ||------|------|------|------|-----|(iii) is in possession of any records relating to money-laundering, then, subject to the rules made in this behalf, he may authorise any officer subordinate to him to—|     |     |     |     |    ||------|------|------|------|-----|(d) place marks of identification on such record or make or cause to be made extracts or copies therefrom;(e) make a note or an inventory of such record or property; (f) examine on oath any person, who is found to be in possession or control of any record or property, in respect of all matters relevant for the purposes of any investigation under this act:2 of 1974provided that no search shall be conducted unless, in relation to the scheduled offence, a report has been forwarded to a magistrate under section 157 of the code of criminal procedure, 1973, or a complaint has been filed by a person, authorised to investigate the offence mentioned in the schedule, before a magistrate or court for taking cognizance of the scheduled offence, as the case may be(2) the authority, who has been authorised under sub-section (1) shall, immediately after search and seizure, forward a copy of the reasons so recorded along with material in his possession, referred to in that sub-section, to the adjudicating authority in a sealed envelope, in the manner, as may be prescribed and such adjudicating authority shall keep such reasons and material for such period, as may be prescribed|     |     |     |     |    ||------|------|------|------|-----|(4) the authority, seizing any record or property under this section, shall, within a period of thirty days from such seizure, file an application, requesting for retention of such record or property, before the adjudicating authoritysearch of persons18 (1) if an authority, authorised in this behalf by the central government by generalor special order, has reason to believe (the reason for such belief to be recorded in writing) that any person has secreted about his person or in anything under his possession, ownership or control, any record or proceeds of crime which may be useful for or relevant to any proceedings under this act, he may search that person and seize such record or property which may be useful for or relevant to any proceedings under this act:2 of 1974provided that no search shall be made unless, in relation to the scheduled offence, a report has been forwarded to a magistrate under section 173 of the code of criminal procedure, 1973, or a complaint has been filed by a person, authorised to investigate the offence mentioned in the schedule, before a magistrate or court for taking cognizance of the scheduled offence, as the case may be|                                                                                                   |     |                                                                           ||----------------------------------------------------------------------------------------------------|------|----------------------------------------------------------------------------|| retention of                                                                                       |      |                                                                            || property                                                                                          |      |                                                                            || 20                                                                                                | (1)  | where any property has been seized under section 17 or section 18, and the || officer authorised by the director in this behalf has, on the basis of material in his possession, |      |                                                                            || reason to believe (the reason for such belief to be recorded by him in writing) that such          |      |                                                                            || property is required to be retained for the purposes of adjudication under section 8, such         |      |                                                                            || property may be retained for a period not exceeding three months from the end of the month         |      |                                                                            || in which such property was seized                                                                 |      |                                                                            |(2) the officer authorised by the director immediately after he has passed an order for retention of the property for purposes of adjudication under section 8 shall forward a copy of the order alongwith the material in this possession, referred to in sub-section (1), to  the adjudicating authority, in a sealed envelope, in the manner as may be prescribed and such adjudicating authority shall keep such order and material for such period as may be prescribed(3) on the expiry of the period specified in sub-section (1), the property shall be returned to the person from whom such property was seized unless the adjudicating authority permits retention of such property beyond the said period(4) the adjudicating authority, before authorising the retention of such property beyond the period specified in sub-section (1), shall satisfy himself that the property is prima facie involved in money-laundering and the property is required for the purposes of adjudication under section 8(5) after passing the order of confiscation under sub-section (6) of section 8, the adjudicating authority shall direct the release of all properties other than the properties involved in money-laundering to the person from whom such properties were seized(6) notwithstanding anything contained in sub-section (5), the director or any officer authorised by him in this behalf may withhold the release of any property until filing of appeal under section 26 or forty-five days from the date of order under sub-section  (5), whichever is earlier, if he is of the opinion that such property is relevant for the proceedings before the appellate tribunalretention of records21 (1)  where any records have been seized, under section 17, or section 18, and the investigating officer or any other officer authorised by the director in this behalf has reason to believe that any of such records are required to be retained for any inquiry under this act, he may retain such records for a period not exceeding three months from the end of the month in which such records were seized(2) the person, from whom records were seized, shall be entitled to obtain copies of records retained under sub-section (1)(3) on the expiry of the period specified under sub-section (1), the records shall be returned to the person from whom such records were seized unless the adjudicating authority permits retention of such records beyond the said period(4) the adjudicating authority, before authorising the retention of such records beyond the period mentioned in sub-section  (1), shall satisfy himself that the records are required for the purposes of adjudication under section 8(5) after passing of an order of confiscation under sub-section  (6) of section 8, the adjudicating authority shall direct the release of the records to the person from whom such records were seized(6) notwithstanding anything contained in sub-section (5), the director or any officer authorised by him in this behalf may withhold the release of any records until filing of appeal under section 26 or after forty-five days from the date of order under sub-section (5), whichever is earlier, if he is of the opinion that such records are relevant for the proceedings before the appellate tribunal22 (1) where any records or property are or is found in the possession or control of any person in the course of a survey or a search, it shall be presumed that—presumption as to records or property incertain cases(i) such records or property belong or belongs to such person; (ii) the contents of such records are true; and (iii) the signature and every other parts of such records which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person's handwriting, and in the case of a record, stamped, executed or attested, that it was executed or attested by the person by whom it purports to have been so stamped, executed or attested    presumption in interconnected transactions23 where money-laundering involves two or more inter-connected transactions and one or more such transactions is or are proved to be involved in money-laundering, then for the purposes of adjudication or confiscation under section 8, it shall, unless otherwise proved to the satisfaction of the adjudicating authority, be presumed that the remaining transactions from part of such inter-connected transactionsburden proof24 when a person is accused of having committed the offence under section 3, the burden of proving that proceeds of crime are untainted property shall be on the accused     26 (1)                                                                                                                                                                                                  appeal     toappellatetrubunal       (2) any banking company, financial institution or intermediary aggrieved by any orderof the director made under sub-section (2) of seciton 13, may prefer an appeal to the appellatetribunal                                                                                                                                                                                                              qualifications for appointment28 (1) a person shall not be qualified for appointment as chairperson unless he is or has been a judge of the supreme court or of a high court or is qualified to be a judge of the high court(2) a person shall not be qualified for appointment as a member unless he—     (b) has been a member of the india legal service and has held a post in grade iof that service for at least three years; or(c) has been a member of the indian revenue service and has held the post of commissioner of income-tax equivalent post in that service for at least three years;(d) has been a member of the indian economic service and has held the post of joint secretary or equivalent post in that service for at least three years; or(e) has been a member of the indian customs and central excise service and has held the post of a joint secretary or equivalent post in that service for at least three years; or38 of 1949(f) has been in the practice of accontancy as a chartered accountant under the chartered accountants act, 1949 or as a registered accountant under any law for the time being in force or partly as a registered accountant and partly as a chartered accountant for at least ten years:provided that one of the members of the appellate tribunal shall be from category mentioned n clasue (f), or(g) has been a member of the indian audit and accounts service and has held the post of joint secretary or equivalent post in that service for at least three years (3) no sitting judge of the supreme court or of a high court shall be appointed under this section except after consultation with the chief justice of india    | appeal      ||-------------|| high court |42 any person aggrieved by any decision or order of the appellate tribunal may file an appeal to the high court within sixty days from the date of communication of the decision or order of the appellate tribunal to him on any question of law or fact arising out of such order:provided that the high court may, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding sixty daysexplanation—for the purposes of this section, "high court" means—(i) the high court within the jurisdiction of which the aggrieved party ordinarily resides or carries on business or personally works for gain; and(ii) where the central government is the aggrieved party, the high court within the jurisdiction of which the respondent, or in a case where there are more than one respondent, any of the respondents, ordinarily resides or carries on business or personally works for gain           2 of 197444 (1) notwithstanding anything contained in the code of criminal procedue, 1973,—offences triable by special courts(a) the scheduled offence and the offence punishable under section 4 shall be triable only by the special court constituted for the area in which the offence has been committed:provided that the special court, trying a scheduled offence before the commencement of this act, shall continue to try such scheduled offence; or(b) a special court may, upon a complaint made by an authority authorised in this behalf under this act take cognizance of the offence for which the accused is committed to it for trial       5 of 190850 (1) the director shall, for the purposes of section 13, have the same powers as are vested in a civil court under the code of civil procedure, 1908 while trying a suit in respect of the following matters, namely:—| (                                                                           | a   | ) discovery and inspection;                                                  ||-----------------------------------------------------------------------------|-----|------------------------------------------------------------------------------|| powers of                                                                   |     |                                                                              || authorities                                                                 |     |                                                                              || regarding                                                                   |     |                                                                              || summons,                                                                    |     |                                                                              || production of                                                               |     |                                                                              || documents                                                                   |     |                                                                              || and to give                                                                 |     |                                                                              || evidence, etc                                                              |     |                                                                              || (                                                                           | b   | ) enforcing the attendance of any person, including any officer of a banking || company or a financial institution or a company, and examining him on oath; |     |                                                                              ||                                                                            |     |                                                                              |54 the following officers are hereby empowered and required to assist the authorities in the enforcement of this act, namely:—       certain officers to assist in inquiry, etc(d) officers of the stock exchange recognised under section 4 of the securities contracts (regulation) act, 1956;42 of 1956       (j) such other officers of the central government, state government, local authorities or banking companies as the central government may, by notification, specify, in this behalf       60 (1) where the director has made an order for attachment of any property under section 5 or where an adjudicating authority has made an order confirming such attachment or confiscation of any property under section 8, and such property is suspected to be in a contracting state, the special court, on an application by the director or the administrator appointed under sub-section (1) of section 10, as the case may be, may issue a letter of request to a court or an authority in the contracting state for execution of such orderattachment, sezure and confiscation, etc, of property in a contacting state or india(2) where a letter of request is received by the central government from a court or an authority in a contracting state requesting attachment or confiscation of the property in india, derived or obtained, directly or indirectly, by any person from the commission of an offence under section 3 committed in that contracting state, the central government may forward such letter of request to the director, as it thinks fit, for execution in accordance with the provisions of this act       recovery offines43 of 196169 where any fine imposed on any person under section 13 or section 63 is not paid within six months from the day of imposition of fine, the director or any other officer authorised by him in this behalf may proceed to recover the amount from the said person in the same manner as prescribed in schedule ii of the income-tax act, 1961 for the recovery of arrears and he or any officer authorised by him in this behalf shall have all the powers of the tax recovery officer mentioned in the said schedule for the said purpose       72 (1)    continuation of proceedings in the event of death orinsolvency power to make rules(2) where—(a) after passing of a decision or order by the appellate tribunal, no appeal has been preferred to the high court under section 42; or(b) any such appeal has been preferred to the high court,—then—(i) in a case referred to in clause (a), the person entitled to file the appeal dies or is adjudicated an insolvent before preferring an appeal to the high court, or(ii) in a case referred to in clause (b), the person who had filed the appeal dies or is adjudicated an invsolvent during the pendency of the appeal before the high court, then, it shall be lawful for the legal representatives of such person, or the official assignee or the official receiver, as the case may be, to prefer an appeal to the high court or to continue the appeal before the high court in place of such person and the provisions of section 42 shall, so far as may be, apply, or continue to apply, to such appeal73(1)     power to make rules(2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—    (h) the nature and value of transactions in respect of which records shall be maintained under clause (a) of sub-section (1) of section 12;(i) the time within which the information of transactions under clause (b) of subsection (1) of section 12 shall be furnished;(j) the manner in which records shall be verified and maintained by banking companies, financial institutions and intermediaries under clause (c) of sub-section (1)of section 12;      the schedule[see section 2(y)] part a paragraph 1 offences under the indian penal code| section              | description of offence                                                     ||----------------------|----------------------------------------------------------------------------|| 121                  | waging, or attempting to wage war or abetting waging of war, against the   || government of india |                                                                            || 121a                 | conspiracy to commit offences punishable by section 121 against the state || "489a                | counterfeiting currency notes or bank notes                               || 489b                 | using as genuine, forged or counterfeit currency notes or bank notes";    | paragraph 2 offences under the narcotic drugs and psychotropic substances act, 1985| section         | description of offence                                    ||-----------------|-----------------------------------------------------------|| "15             | contravention in relation to poppy straw                 || 16              | contravention in relation to coca plant and coca leaves  || 17              | contravention in relation to prepared opium              || 18              | contravention in relation to opium poppy and opium       || 19              | embezzlement of opium by cultivator                      || 20              | contravention in relation to cannabis plant and cannabis || 21              | contravention in relation to manufactured drugs and       || preparations"; |                                                           | paragraph 3 offences under the explosive substances act, 1908| section                                   | description of offence                                          ||-------------------------------------------|-----------------------------------------------------------------|| 3                                         | causing explosion likely to endanger life or property          || 4                                         | attempt to cause explosion, or for making or keeping explosives || with intent to endanger life or property |                                                                 || 5                                         | making or possessing explosives under suspicious                || circumstances                            |                                                                 | paragraph 4 offences under the unlawful activities (prevention) act, 1967| section                 | description of offence                                         ||-------------------------|----------------------------------------------------------------|| 10 read with section 3  | penalty for being member of an unlawful association, etc      || 11 read with sections 3 | panalty for dealing with funds of an unlawful association     || and 7                   |                                                                || 13 read with section 3  | punishment for unlawful activities                            || 16 read with section 15 | punishment for terrorist act                                  || 16a                     | punishment for making demands of radioactive substances,       || nuclear devices, etc   |                                                                || 17                      | punishment for raising fund for terrorist act                 || 18                      | punishment for conspiracy, etc                                || 18a                     | punishment for organising of terrorist camps                  || 18b                     | punishment for recruiting of any person or persons for         || terrorist act          |                                                                || 19                      | punishment for harbouring, etc                                || 20                      | punishment for being member of terrorist gang or               || organisation           |                                                                || 21                      | punishment for holding proceeds of terrorism                  || 38                      | offence relating to membership of a terrorist organisation    || 39                      | offence relating to support given to a terrorist organisation || 40                      | offence of raising fund for a terrorist organisation;         | part b paragraph 1offences under the indian penal codesectiondescription of offence120bcriminal conspiracy255counterfeiting government stamp| section                                                | description of offence                                             ||--------------------------------------------------------|--------------------------------------------------------------------|| 257                                                    | making or selling instrument for counterfeiting government         || stamp                                                 |                                                                    || 258                                                    | sale of counterfeit government stamp                              || 259                                                    | having possession of counterfeit government stamp                 || 260                                                    | using as genuine a government stamp known to be counterfeit       || 302                                                    | murder                                                            || 304                                                    | punishment for culpable homicide not amounting to murder          || 307                                                    | attempt to murder                                                 || 308                                                    | attempt to commit culpable homicide                               || 327                                                    | voluntarily causing hurt to extort property, or to constrain to an || illegal act                                           |                                                                    || 392                                                    | voluntarily causing grievous hurt to extort property, or           || to constrain to an illegal act                        |                                                                    || 364a                                                   | kidnapping for ransom, etc                                        || 384 to 389                                             | offences relating to extortion                                    || 392 to 402                                             | offences relating to robbery and dacoity                          || 411                                                    | dishonestly receiving stolen property                             || 412                                                    | dishonestly receiving property stolen in the commission of a       || dacoity                                               |                                                                    || 413                                                    | habitually dealing in stolen property                             || 414                                                    | assisting in concealment of stolen property                       || 417                                                    | punishment for cheating                                           || 418                                                    | cheating with knowledge that wrongful loss may ensue              || to person whose interest offender is bound to protect |                                                                    || 419                                                    | punishment for cheating by personation                            || 420                                                    | cheating and dishonestly inducing delivery of properties          || 421                                                    | dishonest or fraudulent removal or concealment of property to      || prevent distribution among creditors                  |                                                                    || 422                                                    | dishonestly or fraudulently preventing debt being available for    || creditors                                             |                                                                    || 423                                                    | dishonest or fraudulent execution of deed of transfer containing   || false statement of consideration                      |                                                                    || 424                                                    | dishonest or fraudulent removal or concealment of property        || 467                                                    | forgery of valuable security, will, etc                           || 471                                                    | using as genuine a forged document or electronic record           || 472 and 473                                            | making or possessing counterfeit seal, etc, with intent to commit || forgery                                               |                                                                    || 475 and 476                                            | counterfeiting device or mark                                     || section        | description of offence                                      ||----------------|-------------------------------------------------------------|| 481            | using a false property mark                                || 482            | punishment for using a false property mark                 || 483            | counterfeiting a property mark used by another             || 484            | counterfeiting a mark used by a public servant             || 485            | making or possession of any instrument for counterfeiting a || property mark |                                                             || 486            | selling goods marked with a counterfeit property mark      || 487            | making a false mark upon any receptacle containing goods   || 488            | punishment for making use of any such false mark'' ;       | paragraph 2 offences udner the arms act, 1959| section                                                            | description of offence                                              ||--------------------------------------------------------------------|---------------------------------------------------------------------|| 25                                                                 | to manufacture, sell, transfer, convert, repair or test or prove or || expose or offer for sale or transfer or have in his possession for |                                                                     || sale, transfer, conversion, repair, test or proof, any arms or     |                                                                     || ammunition in contravention of section 5 of the arms act, 1959    |                                                                     || to acquire, have in possession or carry any prohibited arms or     |                                                                     || prohibited ammunition in contravention of section 7 of the arms    |                                                                     || act, 1959                                                         |                                                                     || contravention of section 24a of the arms act, 1959 relating to     |                                                                     || prohibition as to possession of notified arms in disturbed areas,  |                                                                     || etc                                                               |                                                                     || contravention of section 24b of the arms act, 1959 relating to     |                                                                     || prohibition as to carrying of notified arms in or through public   |                                                                     || places in disturbed areas                                         |                                                                     || other offences specified in section 25                            |                                                                     || 26                                                                 | to do any act in contravention of any provisions of section 3, 4,   || 10 or 12 of the arms act, 1959 in such manner as specified in sub- |                                                                     || section (1) of section 26 of the said act                         |                                                                     || to do any act in contravention of any provisions of section 5, 6,  |                                                                     || 7 or 11 of the arms act, 1959 in such manner as specified in sub-  |                                                                     || section (2) of section 26 of the said act                         |                                                                     || other offences specified in section 26                            |                                                                     || 27                                                                 | use of arms or ammunitions in contravention of section 5 or use     || of any arms of ammunition in contravention of section 7 of the     |                                                                     || arms act, 1959                                                    |                                                                     || 28                                                                 | use and possession of fire arms or imitation fire arms in certain   || cases                                                             |                                                                     || 29                                                                 | knowingly purchasing arms from unlicensed person or for             || delivering arms, etc, to person not entitled to possess the same |                                                                     || 30                                                                 | contravention of any condition of a licence or any provisions of    || the arms act, 1959 or any rule made thereunder                    |                                                                     | paragraph 3 offences under the wild life (protection) act, 1972| section       | description of offence                                                ||---------------|-----------------------------------------------------------------------|| 1             |                                                                       || [51 read with | hunting of wild animals]                                             || section 9     |                                                                       || 51 read with  | contravention of provisions of section 17a relating to prohibition    || section 17a   | of picking, uprooting etc, of specified plants                      || 51 read with  | contravention of provisions of section 39 relating to wild            || section 39    | animals, etc, to be government property                             || 51 read with  | contravention of provisions of section 44 relating to dealings in     || section 44    | trophy and animal articles without licence prohibited                || 51 read with  | contravention of provisions of section 48 relating to purchase        || section 48    | of animal etc, by licence                                           || 51 read with  | contravention of provisions of section 49b relating to prohibition    || section 49b   | of dealings in trophies animal articles, etc, derived from scheduled || animals      |                                                                       | paragraph 4 offences under the immoral traffic (prevention) act, 1956|   section | description of offence                                             ||-----------|--------------------------------------------------------------------||         5 | procuring, inducing or taking person for the sake of prostitution ||         6 | detaining a person in premises where prostitution is carried on   ||         8 | seducing or soliciting for purpose of prostitution                ||         9 | seduction of a person in custody                                  | paragraph 5 offences under the prevention of corruption act, 1988| section                                              | description of offence                                               ||------------------------------------------------------|----------------------------------------------------------------------|| 7                                                    | public servant taking gratification other than legal remuneration    || in respect of an official act                       |                                                                      || 8                                                    | taking gratification in order, by corrupt or illegal means, to       || influence public servant                            |                                                                      || 9                                                    | taking gratification for exercise of personal influence, with public || servant                                             |                                                                      || 10                                                   | abetment by public servant of offences defined in section 8 or       || section 9 of the prevention of corruption act, 1988 |                                                                      || 2                                                    |                                                                      || [13                                                  | criminal misconduct by a public servant]                            | "paragraph 6 offences under the explosives act, 1884| section   | description of offence           ||-----------|----------------------------------|| 9-b       | punishment for certain offences || 9-c       | offences by companies           | "paragraph 7 offences under the antiquities and arts treasures  act, 1972| section      | description of offence                                          ||--------------|-----------------------------------------------------------------|| 25 read with | contravention of export trade in antiquities and art treasures || section 3    |                                                                 || 28           | offences by companies                                           | "paragraph 8 offences under the securities and exchanges board of india act, 1992| section       | description of offence                                             ||---------------|--------------------------------------------------------------------|| 12a read with | prohibition of manipulative and deceptive devices, insider trading || section 24    | and substantial acquisition of securities or control              | "paragraph 9 offences under the customs act, 1962|   section | description of offence           ||-----------|----------------------------------||       135 | evasion of duty or prohibitions | "paragraph 10 offences under the bonded labour system (abolition) act, 11976| section        | description of offence                                    ||----------------|-----------------------------------------------------------|| 16             | punishment for enforcement of bonded labour              || 18             | punishment for extracting bonding labour under the bonded || labour system |                                                           || 20             | abetment to be an offence                                | "paragraph 11 offences under the child labour (prohibition and regulation) act, 1986| section                         | description of offence                                          ||---------------------------------|-----------------------------------------------------------------|| 14                              | punishment for employment of any child to work in contravention || of the provisions of section 3 |                                                                 | "paragraph 12 offences under the transplantation of human organs act, 1994|   section | description of offence                                           ||-----------|------------------------------------------------------------------||        18 | punishment for removal of human organ without authority         ||        19 | punishment for commercial dealings in human organs              ||        20 | punishment for contravention of any other provision of this act | 1[paragraph 13 offences under the juvenile justice (care and protection of children) act, 2000| section                                      | description of offence                                     ||----------------------------------------------|------------------------------------------------------------|| 23                                           | punishment for cruelty to juvenile or child               || 24                                           | employment of juvenile or child for begging               || 25                                           | penalty for giving intoxicating liquor or narcotic drug or || psychotropic substance to juvenile or child |                                                            || 26                                           | exploitation of juvenile or child employee]               | 1[paragraph 14 offences under yhe emigration act, 1983|   section | description of offence   ||-----------|--------------------------||        24 | offences and penalties] |offences under the passports act, 1967sectiondescription of offence12offences and penalties] 1[paragraph 16 offences under the foreigners act, 1946| section   | description of offence                                    ||-----------|-----------------------------------------------------------|| 14        | penalty for convtravention of provisions of the act, etc || 14b       | penalty for using forged passport                        || 14c       | penalty for abetment]                                    |offences under the copyright act, 1957sectiondescription of offence63offence of infringement of copyright or other rights conferredby this act63aenhanced panelty on second and subsequent convictions63bknowing use of infringing copy of computer programme68apenalty for contravention of section 52a]offences under the trade marks act, 1999sectiondescription of offence103penalty for applying false trade marks, trade descriptions, etc104penalty for selling goods or providing services to which falsetrade-mark or false trade description is applied105enhanced penalty on second or subsequent conviction107penalty for falsely representing a trade mark as registered120punishment of abetment in india of acts done out of india] "paragraph 19 offences under the informaiton technology act, 2000| section   | description of offence                                      ||-----------|-------------------------------------------------------------|| 72        | penalty for breach of confidentiality and privacy          || 75        | act to apply for offence or contravention committed outside || india    |                                                             | "paragraph 20 offences under the biological diversity act, 2002| section                | description of offence                        ||------------------------|-----------------------------------------------|| 55 read with section 6 | penalties for cotravention of section 6, etc | "paragraph 21 offences under the protection of plant varieties and farmers' rights  act, 2001| section                  | description of offence                                                ||--------------------------|-----------------------------------------------------------------------|| 70 read with section 68  | penalty for applying false denomination, etc                         || 71 read with section 68  | penalty for selling varieties to which false denomination is applied || 72  read with section 68 | penalty for falsely representing a variety as registered             || 73 read with section 68  | penalty for subsequent offence                                       | "paragraph 22 offences under the environment protection  act, 1986| section                | description of offence                             ||------------------------|----------------------------------------------------|| 15 read with section 7 | penalty for  discharging environmental pollutants || 15 read with section 6 | penalty for handling hazardous substance          | "paragraph 23 offences under the water (prevention  and control of pollution) act, 1974| section   | description of offence                                 ||-----------|--------------------------------------------------------|| 41(2)     | penalty for pollution of stream or well               || 43        | penalty for contravention of provisions of section 24 | paragraph 24 offences under the air (prevention and control of pollution) act, 1981| section   | description of offence                                         ||-----------|----------------------------------------------------------------|| 37        | failure to comply with the provisions for operating industrial || plant     |                                                                | paragraph 25 offences under the supression of unlawful acts against safety of maritime navigation and fixed platforms on continental shelf act, 2002| section                         | description of offence                                           ||---------------------------------|------------------------------------------------------------------|| 3                               | offences against ship, fixed platform, cargo of a ship, maritime || navigational facilities, etc"; |                                                                  | "part c"an offence which is the offence of cross border implications and is specified in:—(1) part a; or (2) part b without any monetary threshold; or (3) the offences against property under chapter xvii of the indian penal code"———— a billfurther to amend the prevention of money-laundering act, 2002————(shri pranab mukherjee, minister of finance)gmgipmrnd—3349ls(s3)—19-12-2011