The present Government has taken various decisions and steps to curb the menace of black money both within and outside the country in last two years. Some of the major decisions and actions taken in this regard are given below:
- Sustained steps taken for curbing black money:-
(a) A new Black Money Act has been enacted with strict penalty provisions.
(b) Special Investigation Team has been constituted which is chaired by ex-Supreme Court Judge Justice M.B. Shah vide notification dated 29th May, 2014.. Many recommendations of SIT have been implemented since then.
(c) A new Income Disclosure Scheme is formulated for domestic black money.
(d) Enhanced enforcement measures have resulted in un-earthing of Tax Evasion of approximately Rs 50,000 Crore of inDirect Taxes and undisclosed income of Rs 21,000 Crore (Prov.). The value of goods seized on account of smuggling activities has increased to Rs 3,963 Crore in the last two years (32% increase over corresponding two previous years).
(e) Prosecution has been launched in 1466 cases as against 1169 cases in the previous two years (25% increase).
- Amendments made in Prevention of Money-laundering Act, 2002, vide finance Act, 2015 :
- The definition of proceeds of crime under PMLA has been amended to enable attachment and confiscation of equivalent asset in India where the asset located abroad cannot be forfeited.
- Section 8(8) has been inserted in PMLA providing for restoring confiscated property or part thereof, on the directions of Special Court to claimants with a legitimate interest in the property, who may have suffered a quantifiable loss as a result of the offences of Money Laundering.
- Section 132 of Customs Act which deals with offence relating to false declaration / documents in the transaction of any business relating to Customs has been made predicate offence under PMLA to curb trade based money laundering.
- The offence of willful attempt to evade any tax, penalty or interest referred to in section 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 has been made a scheduled offence under PMLA.
- Recent Notification under PMLA
In connection with risk mitigation in DNFBP Sector, Revenue Department has taken some steps, which are described as below:
- insurance Broker has been notified on 15.4.2015 under Section 2(1)(sa)(vi) of PMLA as person carrying on designated business or profession.
- Registrar or Sub-registrar has been notified on 17.4.2015 under Section 2(1)(sa)(ii) of PMLA as person carrying on designated business or profession.
- foreign exchange management Act (FEMA), 1999 has been amended vide Finance Act, 2015. The amendments provide for seizure and confiscation of value equivalent, situated in India, in case any person is found to have acquired any foreign exchange, foreign Security or immovable property, situated outside India, in contravention of Section 4 of FEMA.
