5/22/2016

GovernmenttakesvariousstepsinlasttwoyearstocurbthemenaceofBlackMoneybothwithinandoutsidethecountry

PressInformationBureau
GovernmentofIndia
MinistryofFinance
10May201611:21IST

GovernmenttakesvariousstepsinlasttwoyearstocurbthemenaceofBlackMoneybothwithinandoutsidethe
country.

ThepresentGovernmenthastakenvariousdecisionsandstepstocurbthemenaceofblackmoneybothwithinandoutsidethecountryin
lasttwoyears.Someofthemajordecisionsandactionstakeninthisregardaregivenbelow:

1.Sustained steps taken for curbing black money:

(a)AnewBlack Money Acthasbeenenactedwithstrictpenaltyprovisions.

(b)SpecialInvestigationTeamhasbeenconstitutedwhichischairedbyexSupremeCourtJudgeJusticeM.B.Shahvide
notificationdated29thMay,2014..Manyrecommendations of SIThavebeenimplemented since then.
(c)AnewIncomeDisclosureSchemeisformulatedfordomesticblackmoney.
(d)Enhancedenforcementmeasureshaveresultedinunearthing of tax evasionofapproximatelyRs 50,000 Croreof
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
previousyears).
(e)Prosecutionhasbeenlaunchedin1466casesasagainst1169casesintheprevioustwoyears(25%increase).

2.Amendments made in Prevention of Moneylaundering Act, 2002, vide Finance Act, 2015 :

ThedefinitionofproceedsofcrimeunderPMLAhasbeenamendedtoenableattachmentandconfiscationofequivalentassetin
Indiawheretheassetlocatedabroadcannotbeforfeited.
Section8(8)hasbeeninsertedinPMLAprovidingforrestoringconfiscatedpropertyorpartthereof,onthedirectionsofSpecialCourt
toclaimantswithalegitimateinterestintheproperty,whomayhavesufferedaquantifiablelossasaresultoftheoffencesofmoney
laundering.
Section132ofCustomsActwhichdealswithoffencerelatingtofalsedeclaration/documentsinthetransactionofanybusiness
relatingtoCustomshasbeenmadepredicateoffenceunderPMLAtocurbtradebasedmoneylaundering.
Theoffenceofwillfulattempttoevadeanytax,penaltyorinterestreferredtoinsection51oftheBlackMoney(UndisclosedForeign
IncomeandAssets)andImpositionofTaxAct,2015hasbeenmadeascheduledoffenceunderPMLA.

3.Recent Notification under PMLA

InconnectionwithriskmitigationinDNFBPSector,RevenueDepartmenthastakensomesteps,whicharedescribedasbelow:

InsuranceBrokerhasbeennotifiedon15.4.2015underSection2(1)(sa)(vi)ofPMLAaspersoncarryingondesignatedbusinessor
profession.
Registrar or Subregistrar has been notified on 17.4.2015 under Section 2(1)(sa)(ii) of PMLA as person carrying on designated
businessorprofession.

4.Foreign Exchange Management Act (FEMA), 1999 has been amended videFinanceAct,2015.Theamendmentsprovide
forseizureandconfiscationofvalueequivalent,situatedinIndia,incaseanypersonisfoundtohaveacquiredanyforeign
exchange,foreignsecurityorimmovableproperty,situatedoutsideIndia,incontraventionofSection4ofFEMA.

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