'Cross-border money launderers can now be tackled'
Neeta Potnis, Partner, Deloitte Haskins and Sells, heads the firm’s anti-fraud and forensic practice in India. She spoke on how the new amendment to the Prevention of Money Laundering (Amendment) Act will help rein in offenders. Excerpts:
What are the key changes that the amendment will bring about?
The Prevention of Money Laundering (Amendment) Act (PMLA) 2009, which became effective from June, ensures that financial intermediaries such as Western Union & International Payment gateways, including VISA and MasterCard, have been brought under the ambit of the Act. Casinos, too, have been brought under the reporting regime of the enforcement authorities. This will mean greater monitoring of sectors where fake currencies are rampant.
Dealing with cross-border fake currency operations has been a problem area.
The amendment has taken this factor into account and offences of cross-border implications have been brought under the Act’s ambit. This will enable authorities to investigate cases wherein the offences have been committed outside India for which proceeds are remitted to India or for offences committed in India where proceeds are transferred outside India.
Have enforcement agencies been sufficiently empowered to take action against offenders?
Yes. Earlier, the PMLA required a final report by the police on completion of investigation for the Enforcement Directorate to begin a search operation. Now the ED can search the premises of an offending party immediately after the police have filed a preliminary enquiry report.
