Money Laundering and Banking Bills 2012 turned into Law with Presidents Assent

Jan 12, 2013 11:14 IST

The President of India Pranab Mukherjee in second week of January gave his assent to the Prevention of Money Laundering (Amendment) Bill, the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2012 and Banking Laws (Amendment) Bill, 2012 to make it a law of the land.

The Parliament in its winter session approved the Prevention of Money Laundering (Amendment) Bill 2012 that needed to enlarge its definition of money laundering offences so that it can curb the practice of funding the terrorists operations. The Bill sought removal of 5 lakh rupees as fine in existence under the act and proposed a provision of taking away of the profits of the crime even under situation, where the conviction was not proved but the offence of money laundering happened and the property in question that is involved in the offence. The Bill was passed by the Lok Sabha during the winter session on 29 November 2012.

The Parliament improved the law from the year of its making in 2002 in the years 2005, 2009 and 2012. The Amendment Bill was introduced in the Lok Sabha by the then Finance Minister Pranab Mukherjee in the December 2011 and was further sent to the Parliamentary Standing Committee on Finance.

Banking Laws (Amendment) Bill, 2012 would be shaping the way ahead to corporate houses to enter the field of Banking this is one of the key reform legislation. The Banking Bill was passed in the Indian Parliament once the government dropped its clause of controversies that allowed banks to trade in commodity in future.

The Banking Laws (Amendment) Bill 2011 was introduced and passed by both the Houses of Indian Parliament during its winter session of 2012 for amendment of the Banking Regulation Act, 1949, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980.

To strengthen the provisions of bad debts by the financial institutions and banks the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill 2012 was passed.

The Union Cabinet on 13 October 2011 approved the introduction of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011 in the next session of Parliament. This bill was further passed by the Lok Sabha on 10 December 2012.

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