TaxTMI 
TaxTMI 
Crypto Currency and Money-Laundering
X X X X Extracts X X X X
X X X X Extracts X X X X
....rypto Currency and Money-Laundering<br>By: - Commissioner CESTATHyderabad<br>Other Topics<br>Dated:- 27-8-2022<br><br>By L. Venkateswara Rao Money Launderers across the world aim at disguising illegally their earned money and attempt to make it appear untainted. The amount of money laundered per annum is estimated to be about 0.5% of the world GDP. In the modern times, usage of Crypto-Currency in money-laundering is increasing exponentially. In this article, it is proposed to examine and analyse the money laundering activities adopted by the criminals using crypto currency and its impact on the economy. 2. The proceeds generated out of commission of crime are "crime proceeds" and these are also known as "Proceeds of Crime" (POC). The criminals after generation of the "Proceeds of Crime" will disguise its true origin and attempt to project it as untainted. This process is known as money-laundering. (i) The process money laundering generally involves the following three stages: - * * Placement: - In this stage the money launderer, introduces the illegal funds into the financial systems by breaking up large amount of cash into less conspicuo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....us smaller sums which are directly deposited into a bank account. * Layering: - The money launderer engages in a series of continuous conversions or movement of funds within the financial system by way of numerous accounts, so as to hide their true origin and to distance them from their criminal source. The Money Launderer may use various channels for movement of funds, like a series of Bank Accounts, sometimes spread across the globe. * Integration: - In this stage, the launderer ensures that the funds reached the legitimate economy after getting mixed with the legitimate money earned though legal sources of income. The launderer may invest the funds into several activities like - real estate, business ventures etc. 3. The objective of Prevention of Money Laundering Act, 2002 which came into effect from 01.07.2005, is to prevent money laundering and to provide for confiscation of property derived from, or involved in, money laundering and for matters connected there with and incidental thereto. Section 3 of the PMLA defines the offence of Money-Laundering as - "Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or is actually involved in any process or activity connected with the [1]["Proceeds of Crime"] including its concealment, possession, acquisition or use and projecting or claiming] it as untainted property shall be guilty of offence of money-laundering. An explanation to the above section has been inserted vide amendment dated 01.08.2019 clarifying that a person involved in one or more of the following processes or activities connected with "Proceeds of Crime" namely: - (a) concealment; or (b) possession; or (c) acquisition; (d) use; or (e) projecting as untainted property; or (f) claiming as untainted property is also guilty of the offence of money-laundering. "Proceeds of Crime" (POC) is defined under section 2(1)(U) of PMLA as - any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property [2][or where such property is taken or held outside the country, then the property equivalent in value held within the country [3][or abroad]. 4. Virtual currencies like Bitcoin, Ethereum have emerged as popular payment methods and gained acceptance globally. Vi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rtual currencies offer an innovative, cheap and flexible payment methods. The unique and unfamiliar business models of virtual currencies threw a stiff challenge to the regulators. The anonymity associated with these transactions naturally will encourage the criminals, to use virtual currencies to launder "Proceeds of Crime" derived out of commission of offences like smuggling, drug related offences, cyber-crimes, human trafficking etc. Many criminals use Crypto Currencies to complete their operations and Bitcoin is a popular choice. Criminals use various methods to take advantage of the anonymity crypto currencies to cover up the origin of illicit funds. 5. Money laundering using crypto currencies and Non-Fungible Tokens (NFTS) - (which are block chain based digital items whose units are designed to be unique, unlike traditional crypto currencies) are considered to be easier for criminals to launder crypto currencies like Bitcoin via online exchanges and convert to cash, through online transactions across the world. This process will eliminate the requirement of moving money physically from one place. Further, it also provides for risk-free tra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nsfer of illicit funds. Above all, crypto currencies provide a great degree of anonymity, as public addresses used in these transactions are not registered in any individual's name. Even though, all the transactions completed using crypto currencies are recorded publicly on the block chain, only the person who conducted the transactions can access the account and wallet. This modus operandi therefore makes it difficult for the investigators to link crypto currencies transactions to a single entity/person. 6. Methods adopted by criminals to launder money: - Criminals adopt various strategies to hoodwink the authorities and to avoid detection of money laundering using Crypto Currencies. Some of the methods used by them are as follows: - (a) Crypto mixing: - Crypto mixing is also known as tumbling. In this modus operandi, the criminals will mix illicit and clean digital assets from several addresses together before re-distributing them to new destination wallets or addresses. The process of mixing different digital assets increases anonymity, and help criminals to hide their identity before transferring funds to legitimate businesses. (b) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Peer-to-Peer Crypto Networks: - Criminals use these de-centralised networks to transmit funds to a different Crypto ATM. These ATM's allow people to purchase Bitcoin via debit cards. Some ATM's offer the facility to trade crypto currencies for cash as well. In many cases, KYCs are poorly enforced. These ATM's frequently change their locations and addresses to other country's crypto exchanges where the KYCs are poorly enforced or not enforced at all. These exchanges help individuals in converting crypto currency into fiat currencies in order to purchase high-end items. (c) Dark Exchanges: - These are unregulated cryptocurrency exchanges which does not implement KYC (Know Your Client) and will not enforce anti-money laundering Laws. They operate without identity checks of the customers. In these exchanges, one type of cryptocurrency is repeatedly exchanged for another as a dark exchange and it can slowly clean the chain. The process helps the criminals to transfer it to an external crypto currency wallet without using a mixing service. (d) Gambling websites: - Gambling platforms often accept payment in crypto currencies. Money....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-launderers use cryptocurrency to buy Credit, Virtual Chips, or In-Game Currency on these platforms and cash out after a few transactions on the websites. Once the website pays out the money in an account, it becomes legally earned or it becomes untainted. (e) Virtual Currency Payment Products and Services: - The money launderers offer a variety of services including the use of virtual currency in order to anonymise the illicit transactions of criminals. The virtual currency exchanges are used as un-licensed or un registered Money Value Transfer Service Providers to exchange criminals proceeds in the form of Virtual currency to fiat currency. Complicit Virtual Currency Providers also utilise shell companies to electronically transfer fiat currency into, out of, these exchanges. (f) Nested Services: - This service operates within one or more exchanges. Some exchanges have tax compliance standards for nested services and these are exploited by criminals to launder money. When nested services complete a transaction, it appears on the block chain ledger under the exchanges address instead of the nested services or individual address. Over-T....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he-Counter (OTC) brokers are the most common type of examples for nested services. (g) When criminals use OTC, they can anonymously trade large sums of cryptocurrency with the OTC's facilitating direct trades which are secure and quick. The OTC brokers are paid a commission for finding counter parties for a transaction. Once the parties agree on the terms of transfer, the assets are transferred through the OTC broker. (h) Anonymizing Service: - As the transactions of crypto currencies are recorded on the block chain, they can be generally traded on the original source. To overcome this problem, criminals use anonymizing services to hide the source of their funds, thereby disrupting the link between crypto currencies transactions. Participating in an initial coin offering using one coin to buy a different coin (buying Ethereum with Bitcoin) is one way to hide the origin of a digital currency using a major crypto exchange. (i) Integration: - When Bitcoin or another cryptocurrency has been successfully laundered and it has reached the integration stage, it becomes difficult to connect it with criminal activity. While the money is no longer dire....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctly related to a crime, money launderers still need a way to explain how they had obtained it. To legitimize dirty cryptocurrency, criminals create on online company that accepts Bitcoins as payment to justify the income. They can transform dirty Bitcoin into clean, legal money by doing this. (j) Wash Trading: - Wash trading, means executing a transaction in which the seller is on both sides of the trade in order to present a misleading picture of an asset's value and liquidity, is another area of concern for NFT's. In the case of wash trading, the aim of the criminals would be to make one's NFT appear more valuable than it really is by "selling it" to a new wallet which is controlled by the original owner. As many NFT trading platforms allow users to trade by simply connecting their wallet to the platform, with no identification checks, wash trading would be easy with NFT's. 7. The characteristics of virtual currencies and the potential Anti Money Laundering / Countering the Financial Terrorism (AML/CFT) risks perceived by the FATF are as follows: - * the anonymity provided by the trade in virtual currencies on the internet and the limited identificat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion and verification of participants. * the lack of clarity regarding the responsibility for AML/CFT compliance. 8. The 2022 Crypto Crime Report, [4]stated that the crypto currency-based crime hit a new all-time high in 2021, with illicit addresses receiving $14 billion over the course of the year, up from $7.8 billion in 2020. The report also stated that crypto currency usage is growing faster than ever before. The crypto currency chainalysis indicated that total transaction volume grew $15.8 trillion in 2021, up 567% from 2020 totals. Overall, going by the amount of the crypto currency sent from illicit addresses to addresses hosted by services, cyber criminals laundered $8.6 billion worth crypto currency in 2021. This represents 30% increase in money laundering activity over 2020. These numbers only count for funds derived from "Crypto-Currency-Native" crime, meaning cyber-criminal activity such as dark-net market sales, or ransomware attacks in which profits are virtually always derived in crypto currency rather than fiat currency. Overall, cyber criminals have laundered $33 billion worth of crypto currency since 2017. It is difficul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t to measure how much fiat currency is derived from offline traditional crimes like drug trafficking and the extent converted into crypto currency and laundered. 9. As regards the usage of crypto currency in India, the Internet and Mobile Association challenged the legality of RBI circular dt. 05.04.2018 in the Hon'ble Supreme Court. In the said circular, the RBI directed that the entities regulated by the RBI not to deal with or provide services to any individual or business entity dealing with or selling Virtual Currencies and to exit relationship, if they already had one, with such individuals. The Hon'ble Supreme Court in decision dt. 4th March, 2020 in the matter of INTERNET AND MOBILE ASSOCIATION OF INDIA VERSUS RESERVE BANK OF INDIA - 2020 (3) TMI 364 - SUPREME COURT allowed the writ petition and set aside the impugned RBI circular. Accordingly, "the Crypto Currency and Regulation of official Digital Currency" Bill 2021 was introduced seeking to create a facilitative frame work for creation of official Digital Currency in the Lok Sabha. The bill is yet to be passed. 10. As regards the cases booked, on alleged money laundering through crypt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o currency, [5]the Enforcement Directorate issued show cause notice to an exchange which failed to trace the real beneficiary who had laundered more than Rs. 2800 crores using crypto currency in two transactions. The agency found receipt of Rs. 880 crores and transfer of Rs. 1400 crores worth crypto currencies but none of the transactions had the details of beneficiary. In the above case, the criminals have converted the 'Proceedings of Crime' stashed in India in rupees into crypto currency 'Tether' and then transferred the same to 'Binance Wallets', a crypto wallet service provider where the illegal money was converted into dollars with ease for being laundered back into the legal banking system using Shell Company. The Enforcement Directorate sleuths claimed that this exchange had provided the conversation of Indian rupees into crypto currency and kept all these transactions in secrecy and none of these transactions are available on the block chain for any investigation. 11. In a paper released on "crypto currencies", recently, the Financial Action Task Force (FATF) mentioned that many of these exchanges are so designed to avoid regulatory law enforcement....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... scrutiny and help the criminals to distribute, store and launder the proceeds. In one such case mentioned by the FATF in its study, an entity "Liberty Reserve", having its own crypto currency called "Liberty Dollars", was busted by the U.S. Enforcement agencies. The money transferer in this case operated on massive scale with over a million users worldwide and made 5.5 crore transactions which were found to be illegal. In 13th December last year, the Enforcement Directorate officials arrested one person from Bhavnagar, Gujarat, who was found to be transferring a large amount of 'Proceeds of Crime' from illegal online betting to Chinese national out of the country converting Indian rupees into crypto currency. Further, on 5th August, 2022 the [6]Enforcement Directorate stated that it has frozen Rs. 64.67 Crore worth bank deposits of one of India's prominent crypto currency exchanges "WazirX" as a part of an ongoing money laundering probe against some fraud smart phone-based loan dishing apps backed Chinese funds. 12. On a detailed analysis of the facts relating to the money laundering activities through crypto currencies and the modus operandi adopted by th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e criminals to accomplish the same, it would appear that the menace which is considered to be a country specific may turn out to be one having global ramifications since illegally acquired funds are being moved from one country to the other and so on. It is therefore felt that stringent laws in the lines of Anti Money Laundering Law (AML) should be framed to regulate the entities involved in crypto currency dealings. The president of Financial Action Task Force (FATF), which develops and promotes policies to protect the global financial systems against money laundering, terrorist financing has stated that ensuring citizens to remain safe from the harm caused by criminal activity including money laundering and terrorist financing should remain a priority for all Governments around the world. The FATF has already stepped into towards exploring the challenges and opportunities of new technology to make the fight against money laundering and terrorist financing more effective. 13. The U.S. President already signed an Executive Order on 9th March, 2022 outlining the first ever, whole-of-government approach to address the risks and harnessing the potential benefits of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....digital assets and their underlying technology. The order lays out a national policy for digital assets across six key properties; consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation. The National Policy calls for two pronged approach (i) that the Department of the Treasury and other agency partners to assess and develop policy recommendations to address the implications of the growing digital asset sector ad changes in financial markets for consumers, investors, businesses and equitable economic growth and (ii) by encouraging the Financial Oversight Council to identify and mitigate economy-wide (i.e. systemic) financial risks posed by digital assets and to develop appropriate policy recommendations to address any regulatory gaps. 14. By taking a cue out of the global experience, we may mull the idea of taking concerted action to prevent the money laundering offence using crypto currency by making suitable regulatory laws stipulating utmost adherence to KYC norms and providing for stern action against offenders. This can....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... be achieved by gearing up our investigating agencies like Enforcement Directorate, Customs, Income Tax etc. by imparting appropriate training to the officials, coordinating with other countries by exchanging intelligence, information and modus operandi adopted by the criminals, formulation of stringent laws to regulate money laundering using crypto currency and stern enforcement of the AML Laws including initiating prosecution against offenders in deserving cases. [The author is an Additional Commissioner in CESTAT, Hyderabad and the views expressed are strictly personal.] [1] Substituted for "Proceeds of Crime and project projecting" by the prevention of Money-Laundering (Amdt.) Act, 2012 (2 of 2013), dt. 03.01.2013 w.e.f. 15.02.2013, vide S.O. 343 (E) at 08.02.2013. [2] Inserted by Finance Act 2015 w.e.f. 14.05.2015. [3] Inserted by Finance Act, 2018 (Act of 13 of 2018) dt. 29.03.2018 w.e.f. 19.04.2018 vide USR 383(E) dt. 19.04.2018. [4] https://go.chainalysis.com [5] [5] https://timesofindia.indiatimes.com [6] www.thehindubusinessline.com ============= Document 1 रजिसà¥à¤Ÿà¥à¤°à¥€ सं० डी० à¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
....¤²à¥¦- (g)04/0007/2003-13 REGISTERED NO. DL-(N)04/0007/2003-13 सतà¥à¤¯à¤®à¥‡à¤µ जयते ant à¤à¤¾à¤°à¤¤ राजपतà¥à¤° The Gazette of India सं० [3] No. 3] असाधारण EXTRAORDINARY à¤à¤¾à¤— II PART II खणà¥à¤¡ 1 Section 1 पà¥à¤°à¤¾à¤§à¤¿à¤•à¤¾à¤° से पà¥à¤°à¤•à¤¾à¤¶à¤¿à¤¤ PUBLISHED BY AUTHORITY नई दिलà¥à¤²à¥€, शà¥à¤•à¥à¤°à¤µà¤¾à¤°, जनवरी 4, 2013 / पौष 14, 1934 (शक) NEW DELHI, FRIDAY, JANUARY 4, 2013/PAUSA 14, 1934 (SAKA) इस à¤à¤¾à¤— में à¤à¤¿à¤¨à¥à¤¨ पृषà¥à¤ संखà¥à¤¯à¤¾ दी जाती है जिससे कि यह अलग संकलन के रूप में रखा à¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ा सके। Separate paging is given to this Part in order that it may be filed as a separate compilation. MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 4th January, 2013/Pausa 14, 1934 (Saka) The following Act of Parliament received the assent of the President on the 3rd January, 2013, and is hereby published for general information. THE PREVENTION OF MONEY-LAUNDERING (AMENDMENT) ACT, 2012 (No. 2 OF 2013) [3rd January, 2013.] An Act further to amend the Prevention of Money-laundering Act, 2002. BE it enacted by Parliament in the Sixty-third Year of the Republic of India as follows:- 1. (1) This Act may be called the Prevention of Money-laundering (Amendment) Short title Act, 2012. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 15 of 2003. and commence- ment. 2. In section 2 of the Prevention of Money-laundering Act, 2002 (hereinafter referred Amendment to as the principal Act), in sub-section (1),- (i) after clause (), the following clause shall be inserted, namely:- "(fa) "beneficial owner" means an individual who ultimately owns or con....
X X X X Extracts X X X X
X X X X Extracts X X X X
....trols 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:- '(ha) "client" means 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;'; of section 2. THE GAZETTE OF INDIA EXTRAORDINARY (iii) after clause (i), the following clauses shall be inserted, namely:- [PART II- '(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; (ib) "dealer" has the same meaning as assigned to it in clause (b) of section 2 of the Central Sales Tax Act, 1956;'; (iv) clause (ja) shall be omitted; (v) for clause (/), the following clause shall be substituted, namely:- "(D) "financial institution" means a financial institution as defined in clause (c) of section 45-1 of the Reserve Bank of India Act, 1934 and i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncludes 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, (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; or (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; or (iv) a recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 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 w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ords "transfers in any manner" shall be substituted; (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; (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; (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; 74 of 1956. 2 of 1934. 15 of 1992. 74 of 1952. 42 of 1956. 16 of 1908. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 32 of 1994. 2 of 1974. (sb) "precious metal" means gold, silver, platinum, palladium or rhodium or suc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h 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:- "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;'; (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;'. 3. 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 substituted. 4. In section 4 of the principal Act, the words "which may extend to five lakh rupees" shall be omitted. 5. In section 5 of the principal Act, for sub-secti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on (1), the following sub-section shall be substituted, namely:- "(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; and (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, he 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: Provided 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 that Schedule, before a Magistrate or court for taking cognizance of the scheduled offen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce, as the case may be, or a similar report or complaint has been made or filed under the corresponding law of any other country: 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 money- laundering 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,- (i) in sub-section (1), after the words and figure "section 5, or, seized", the words "or frozen" shall be inserted; Amendment of section 3. Amendment of section 4. Amendment of section 5. Amendment of section 8. Amendment of section 9. 4 THE GAZETTE OF INDIA EXTRAORDINARY (ii) in sub-section (3),- [PART II- (a) in the opening portion, for the words and figures "record seized under section 17 or section 18 and record a findin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g to that effect, such attachment or retention of the seized property", the words and figures "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; (c) for clause (b), the following clause shall be substituted, namely:- "(b) become final after an order of confiscation is passed under sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (24) of section 60 by the Adjudicating Authority"; (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 sub-section (IA) of section 17, in such manner as may be prescribed: Provided that if it is not practicable to take possession of a property....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... frozen under sub-section (14) 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:- "(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 Government. (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 it. (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 p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roperty 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,- (i) in the opening portion, for the words, brackets and figures "sub-section (6) of section 8", the words, brackets, figures and letter "sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (24) of section 60" shall be substituted; (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 inserted. 4586FIN SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 8. 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, figures and letters "sub-section (5) or sub-section (6) or sub-section (7) of section 8 or section 58B or sub-section (24) of section 60" shall be substituted. 9. F....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or section 12 of the principal Act, the following section shall be substituted, namely:- "12. (1) Every reporting entity shall- (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; (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; (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; (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 five years from the date of transaction between a client an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the reporting entity. (4) The records referred to in clause (e) of sub-section (1) shall be maintained for a period of five 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.". 10. After section 12 of the principal Act, the following section shall be inserted, namely:- "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 Act. (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 specify. (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, (i) in sub-section (1), for the words, brackets and figures "call for rec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ords 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 Amendment of section 10. Substitution of new section for section 12. Reporting entity to maintain records. Insertion of new section 12A. Access to information. Amendment of section 13. 6 THE GAZETTE OF INDIA EXTRAORDINARY entity, under this Chapter" shall be substituted; [PART II (ii) after sub-section (1), the following sub-sections shall be inserted, namely:- "(14) 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) shall be borne by the Central Government."; (iii) for sub-sectio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n (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 Char....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tered Accountants Act, 1949.". 12. For section 14 of the principal Act, the following section shall be substituted, new section for namely:- Substitution of section 14. No civil or criminal proceedings against reporting entity, its directors and employees in certain cases. Substitution of new section for section 15. Procedure and manner of furnishing information by reporting entities. Amendment of section 17. "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.". 13. For section 15 of the principal Act, the following section shall be substituted, namely:- "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.". 14. In section 17 of the principal Act,- (i) in sub-section (1), (a) in clause (iii), after the word "money-laundering,", the w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ord "or" shall be inserted; 38 of 1949. 2 of 1974. 2 of 1974. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY (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; (d) for the proviso, the following proviso shall be substituted, namely:--- "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 th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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:- "(IA) 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: Provided that if, at any time before its confiscation under sub-section (5) or sub-section (7) of section 8 or section 58B or sub-section (24) 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:- "(4) The authority seizing any record or property under sub-section (/) or freezing any record or property....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... under sub-section (14) 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 (14), before the Adjudicating Authority.". 15. In section 18 of the principal Act, in sub-section (1), for the proviso, the following Amendment proviso shall be substituted, namely:- "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 th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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."; of section 18. 8 THE GAZETTE OF INDIA EXTRAORDINARY [PART II- Substitution of 16. For sections 20 and 21 of the principal Act, the following sections shall be for section 20 substituted, namely:- new sections and section 21. Retention of property. Retention of records. "20. (1) Where any property has been seized under section 17 or section 18 or frozen under sub-section (14) 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 be. (2) The officer authorised by the Director shall, immediately after he has passed an order for retention or c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ontinuation 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 (/), 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 period. (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....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 it. (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 (24) 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 Act. 21. (1) Where any records have been seized, under section 17 or section 18 or frozen under sub-section (14) 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 be. (2) The person, from whom r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecords 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 period. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY (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 sub-section (7) of section 8, the Adjudicating Authority shall direct the release of the records to the person from whom such records were seized. (6) Where an order releasing the records has been made by the Court under sub-section (6) of section 8 or by the Adjudicating Authority under section 58B or sub-section (24) of section 60, the Director or any other officer authorised by him in this behalf may withhold the release of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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.". 17. 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 inserted. 18. 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 and figure "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 substituted. 19. For section 24 of the principal Act, the following section shall be substituted, namely: "24. In any proceeding relating to proceeds of crime under this Act,- (a) in the case of a person charged with the offence of money-laundering under section 3, the Authority or Court shall....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., unless the contrary is proved, presume that such proceeds of crime are involved in money-laundering; and (b) in the case of any other person the Authority or Court, may presume that such proceeds of crime are involved in money-laundering.". Amendment of section 22. Amendment of section 23. Amendment of section 24. Burden of Proof. of section 26. 20. In section 26 of the principal Act, in sub-section (2), for the words "banking Amendment company, financial institution or intermediary", the words "reporting entity" shall be substituted. 21. In section 44 of the principal Act, in sub-section (1),- (i) for clause (a) the following clause shall be substituted, namely:- "(a) an offence punishable under section 4 and any scheduled offence connected to the offence under that section shall be triable 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"; (ii) in clause (b), for the words "cognizance of the offence for which the accused is committed to it for trial", the words and figure "....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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:- "(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 Amendment of section 44. 10 THE GAZETTE OF INDIA EXTRAORDINARY [PART II- 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.". 22. In section 50 of the principal Act, in sub-section (1), in clause (b), for the words of section 50. "banking company or a financial institution or a company,", the words "reporting entity" Amendm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent Amendment of section 54. shall be substituted. 23. In section 54 of the principal Act, (1) 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:- "(d) members of the recognised stock exchange referred to in clause (f) of section 2 and the officers of the stock exchanges recognised under section 4 of the Securities Contracts (Regulation) Act, 1956; (iii) after clause (h), the following clauses shall be inserted, namely:- "(ha) officers of the Insurance Regulatory and Development Authority established under section 3 of the Insurance Regulatory and Development Authority Act, 1999; (hb) officers of the Forward Markets Commission established under section 3 of the Forward Contracts (Regulation) Act, 1952; 2 of 1974. 42 of 1956. 41 of 1999. 74 of 1952. (hc) officers and members of the recognised association recognised under section 6 of the Forward Contracts (Regulation) Act, 1952; 74 of 1952. (hd) officers of the Pension Fund Regulatory and Development Authority; (he) officers of the Department of Posts in the Government of India; (h) Re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gistrars or Sub-Registrars appointed by the State Governments under section 6 of the Registration Act, 1908; (hg) registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988; (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; (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. 16 of 1908. 59 of 1988. 38 of 1949. 23 of 1959. 56 of 1980. 45 of 1860. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 24. After section 58, the following sections shall be inserted, namely:-- Insertion of new sections 58A and 58B. to release the "58A. Where on closure of the criminal case or conclusion of a trial in a criminal Special Court court outside India under the corresponding law of any othe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r country, such court finds that the offence of money-laundering has not taken place or the property in India property. is not involved in money-laundering, the Special Court may, 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. 58B. 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.". 25. In section 60 of the principal Act, (i) in sub-section (1), for the words and figures "property under section 5 or where an Adjudicating Author....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ity 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 (14) 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),- (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:- "(24) Where 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 und....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er 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.". Letter of request of a contracting authority for confiscation or release the State or property. Amendment of section 60. 26. In section 63 of the principal Act, after sub-section (3), the following sub-section Amendment shall be inserted, namely:- "(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.". of section 63. 12 THE GAZETTE OF INDIA EXTRAORDINARY [PART II- Substitution of new section for section 69. Recovery of fine or penalty Amendment of section 70. Amendment of section 73. 27. For section 69 of the principal Act, the following section shall be substituted, namely:- "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 pena....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lty, 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.". 28. In section 70 of the principal Act, the Explanation shall be numbered as Explanation I thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:- "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.". 29. In section 73 of the principal Act, in sub-section (2),- (i) after clause (a), the following clause shall be inserted, namely:- "(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:- "(ee) the manner of seizing or taking ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....possession of property attached under section 5 or frozen under sub-section (14) of section 17 or under sub-section (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 (), the following clauses shall be substituted, namely:- "() 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 section 12; (i) the manner of identifying beneficial owner, if any, from the clients by the reporting entities under clause (d) of sub-section (17) of section 12; (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:- "(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;". 43 of 1961. \4586FIN SEC. 1] THE GAZ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ETTE OF INDIA EXTRAORDINARY 30. In the Schedule to the principal Act,- (i) for Part A, the following Part shall be substituted, namely:― "PART A PARAGRAPH I OFFENCES UNDER THE INDIAN PENAL CODE (45 OF 1860) 13 Amendment of the Schedule. Section Description of offence 120B Criminal conspiracy. 121 121 121A 255 257 258 259 260 302 304 307 308 327 329 364A Waging or attempting to wage war or abetting waging of war, against the Government of India. Conspiracy to commit offences punishable by section 121 against the State. Counterfeiting Government stamp. Making or selling instrument for counterfeiting Government stamp. Sale of counterfeit Government stamp. Having possession of counterfeit Government stamp. Using as genuine a Government stamp known to be counterfeit. Murder. Punishment for culpable homicide not amounting to murder. Attempt to murder. Attempt to commit culpable homicide. Voluntarily causing hurt to extort property, or to constrain to an illegal act. Voluntarily causing grievous hurt to extort property, or to constrain to an illegal act. Kidnapping for ransom, etc. Offences relating to extortion. Offences relating to r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....obbery and dacoity. Dishonestly receiving stolen property. 384 to 389 392 to 402 411 412 Dishonestly receiving property stolen in the commission of a dacoity. 413 414 417 418 Habitually dealing in stolen property. Assisting in concealment of stolen property. Punishment for cheating. 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. 421 Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors. 14 THE GAZETTE OF INDIA EXTRAORDINARY [PART II- Section 422 423 424 467 295 471 472 and 473 475 and 476 481 482 483 484 485 486 487 488 489A 489B Description of offence Dishonestly or fraudulently preventing debt being available for creditors. Dishonest or fraudulent execution of deed of transfer containing false statement of consideration. Dishonest or fraudulent removal or concealment of property. Forgery of valuable security, will, etc. Using as genuine a forged document or electronic record. Making or possessing counterfeit seal, etc., wi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th intent to commit forgery. Counterfeiting device or mark. Using a false property mark. Punishment for using a false property mark. Counterfeiting a property mark used by another. Counterfeiting a mark used by a public servant. Making or possession of any instrument for counterfeiting a property mark. Selling goods marked with a counterfeit property mark. Making a false mark upon any receptacle containing goods. Punishment for making use of any such false mark. Counterfeiting currency notes or bank notes. Using as genuine, forged or counterfeit currency notes or bank notes. PARAGRAPH 2 OFFENCES UNDER THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES ACT, 1985 (61 OF 1985) Description of offence Contravention in relation to poppy straw. Section 15 16 17 18 19 20 21 562822222 23 Contravention in relation to coca plant and coca leaves. Contravention in relation to prepared opium. Contravention in relation to opium poppy and opium. Embezzlement of opium by cultivator. Contravention in relation to cannabis plant and cannabis. Contravention in relation to manufactured drugs and preparations. 24 24 Contravention in relation to psychotropic substances. Il....
X X X X Extracts X X X X
X X X X Extracts X X X X
....legal import into India, export from India to transhipment of narcotic drugs and psychotropic substances. External dealings in narcotic drugs and psychotropic substances in contravention of section 12 of the Narcotic Drugs and Psychotropic Substances Act, 1985. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY Section 25A 27A 29 15 Description of offence Contravention of orders made under section 9A of the Narcotic Drugs and Psychotropic Substances Act, 1985. Financing illicit traffic and harbouring offenders. Abetment and criminal conspiracy. PARAGRAPH 3 Section 3 4 5 Section 10 read with section 3 11 read with section 3 13 read with section 3 OFFENCES UNDER THE EXPLOSIVE SUBSTANCES ACT, 1908 (6 OF 1908) Description of offence Causing explosion likely to endanger life or property. Attempt to cause explosion, or for making or keeping explosives with intent to endanger life or property. Making or possessing explosives under suspicious circumstances. PARAGRAPH 4 OFFENCES UNDER THE UNLAWFUL ACTIVITIES (PREVENTION) ACT, 1967 (37 OF 1967) Description of offence Penalty for being member of an unlawful association, etc. Penalty for dealing with funds of a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n unlawful association. Punishment for unlawful activities. 16 read with Punishment for terrorist act. section 15 16A 17 Punishment for making demands of radioactive substances, nuclear devices, etc. Punishment for raising fund for terrorist act. Punishment for conspiracy, etc. 18 18A Punishment for organising of terrorist camps. 19 20 â 2 ཊུ ཀླུ ལྠ༈༠21 38 18B Punishment for recruiting of any person or persons for terrorist act. Punishment for harbouring, etc. Punishment for being member of terrorist gang or organisation. Punishment for holding proceeds of terrorism. Offence relating to membership of a terrorist organisation. 39 40 Offence relating to support given to a terrorist organisation. Offence of raising fund for a terrorist organisation. 16 THE GAZETTE OF INDIA EXTRAORDINARY [PART II Section 25 26 26 27 28 22 29 30 PARAGRAPH 5 OFFENCES UNDER THE ARMS ACT, 1959 (54 OF 1959) Description of offence 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 pro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of, 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. 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. 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. 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. Use of arms or ammunition in contravention of section 5 or use of any arms or ammunition in contravention of section 7 of the Arms Act, 1959. Use and possession of fire arms or imitation fire arms in certain cases. Knowingly pur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....chasing arms from unlicensed person or for delivering arms, etc., to person not entitled to possess the same. Contravention of any condition of a licence or any provisions of the Arms Act, 1959 or any rule made thereunder. PARAGRAPH 6 OFFENCES UNDER THE WILD LIFE (PROTECTION) ACT, 1972 (53 OF 1972) Section Description of offence 51 read with section 9 51 read with Hunting of wild animals. section 17A Contravention of provisions of section 17A relating to prohibition of picking, uprooting, etc., of specified plants. \4586FIN SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 17 Section 51 read with section 39 51 read with section 44 51 read with section 48 51 read with section 49B Section 5 6 8 9 Section 7 8 9 10 13 Description of offence Contravention of provisions of section 39 relating to wild animals, etc., to be Government property. Contravention of provisions of section 44 relating to dealings in trophy and animal articles without licence prohibited. Contravention of provisions of section 48 relating to purchase of animal, etc., by licensee. Contravention of provisions of section 49B relating to prohibition of dealings in trophies, anima....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ls articles, etc., derived from scheduled animals. PARAGRAPH 7 OFFENCES UNDER THE IMMORAL TRAFFIC (PREVENTION) ACT, 1956 (104 OF 1956) Description of offence Procuring, inducing or taking person for the sake of prostitution. Detaining a person in premises where prostitution is carried on. Seducing or soliciting for purpose of prostitution. Seduction of a person in custody. PARAGRAPH 8 OFFENCES UNDER THE PREVENTION OF CORRUPTION ACT, 1988 (49 OF 1988) Description of offence Public servant taking gratification other than legal remuneration in respect of an official act. Taking gratification in order, by corrupt or illegal means, to influence public servant. Taking gratification for exercise of personal influence with public servant. Abetment by public servant of offences defined in section 8 or section 9 of the Prevention of Corruption Act, 1988. Criminal misconduct by a public servant. PARAGRAPH 9 OFFENCES UNDER THE EXPLOSIVES ACT, 1884 (4 OF 1884) Description of offence Section 9B Punishment for certain offences. 9C Offences by companies. 18 THE GAZETTE OF INDIA EXTRAORDINARY [PART II Section 25 read with section 3 28 PARAGRAPH 10 OFFENCES UNDE....
X X X X Extracts X X X X
X X X X Extracts X X X X
....R THE ANTIQUITIES AND ARTS TREASURES ACT, 1972 (52 OF 1972) Description of offence Contravention of export trade in antiquities and art treasures. Offences by companies. PARAGRAPH 11 Section OFFENCES UNDER THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 12A read with section 24 24 Section 135 Section 16 18 20 (15 OF 1992) Description of offence Prohibition of manipulative and deceptive devices, insider trading and substantial. Acquisition of securities or control. PARAGRAPH 12 OFFENCES UNDER THE CUSTOMS ACT, 1962 (52 OF 1962) Description of offence Evasion of duty or prohibitions. PARAGRAPH 13 OFFENCES UNDER THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976 (19 OF 1976) Description of offence Punishment for enforcement of bonded labour. Punishment for extracting bonded labour under the bonded labour system. Abetment to be an offence. Section 14 PARAGRAPH 14 OFFENCES UNDER THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986 (61 OF 1986) Description of offence Punishment for employment of any child to work in contravention of the provisions of section 3. SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY PARAGRAPH 15 OFFENCES UNDER THE TRANS....
X X X X Extracts X X X X
X X X X Extracts X X X X
....PLANTATION OF HUMAN ORGANS ACT, 1994 (42 OF 1994) Description of offence Section 18 Punishment for removal of human organ without authority. 19 Punishment for commercial dealings in human organs. 20 19 Punishment for contravention of any other provisions of this Act. PARAGRAPH 16 OFFENCES UNDER THE JUVENILE JUSTICE (CARE AND PROTECTION OF CHILDREN) ACT, 2000 Section 23 24 25 26 (56 OF 2000) Description of offence Punishment for cruelty to juvenile or child. Employment of juvenile or child for begging. Penalty for giving intoxicating liquor or narcotic drug or psychotropic substance to juvenile or child. Exploitation of juvenile or child employee. PARAGRAPH 17 OFFENCES UNDER THE EMIGRATION ACT, 1983 (31 OF 1983) Section Description of offence 24 Offences and penalties. PARAGRAPH 18 OFFENCES UNDER THE PASSPORTS ACT, 1967 (15 OF 1967) Section Description of offence 12 Offences and penalties. PARAGRAPH 19 OFFENCES UNDER THE FOREIGNERS ACT, 1946 (31 OF 1946) Description of offence Penalty for contravention of provisions of the Act, etc. Section 14 14B 14C Penalty for abetment. Penalty for using forged passport. 20 THE GAZETTE OF INDIA E....
X X X X Extracts X X X X
X X X X Extracts X X X X
....XTRAORDINARY [PART II- Section 63 63A 63B 68A Section 103 104 105 107 120 Section 72 75 Section PARAGRAPH 20 OFFENCES UNDER THE COPYRIGHT ACT, 1957 (14 OF 1957) Description of offence Offence of infringement of copyright or other rights conferred by this Act. Enhanced penalty on second and subsequent convictions. Knowing use of infringing copy of computer programme. Penalty for contravention of section 52A. PARAGRAPH 21 OFFENCES UNDER THE TRADE MARKS ACT, 1999 (47 OF 1999) Description of offence Penalty for applying false trade marks, trade descriptions, etc. Penalty for selling goods or providing services to which false trade mark or false trade description is applied. Enhanced penalty on second or subsequent conviction. Penalty for falsely representing a trade mark as registered. Punishment of abetment in India of acts done out of India. PARAGRAPH 22 OFFENCES UNDER THE INFORMATION TECHNOLOGY ACT, 2000 (21 OF 2000) Description of offence Penalty for breach of confidentiality and privacy. Act to apply for offence or contravention committed outside India. PARAGRAPH 23 OFFENCES UNDER THE BIOLOGICAL DIVERSITY ACT, 2002 (18 OF 2003) Descripti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on of offence 55 read with Penalties for contravention of section 6, etc. section 6. 14586FIN SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 21 PARAGRAPH 24 OFFENCES UNDER THE PROTECTION OF PLANT VARIETIES AND FARMERS' RIGHTS ACT, 2001 Section 70 read with section 68 71 read with section 68 72 read with section 68 (53 OF 2001) Description of offence Penalty for applying false denomination, etc. Penalty for selling varieties to which false denomination is applied. Penalty for falsely representing a variety as registered. 73 read with section 68 Penalty for subsequent offence. Section 15 read with section 7 15 read with section 8 PARAGRAPH 25 OFFENCES UNDER THE ENVIRONMENT PROTECTION ACT, 1986 (29 OF 1986) Description of offence Penalty for discharging environmental pollutants, etc., in excess of prescribed standards. Penalty for handling hazardous substances without complying with procedural safeguards. PARAGRAPH 26 OFFENCES UNDER THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT, 1974 (6 OF 1974) Section Description of offence 41(2) Penalty for pollution of stream or well. 43 Penalty for contravention of provisions of section 24. Section....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 37 PARAGRAPH 27 OFFENCES UNDER THE AIR (PREVENTION AND CONTROL OF POLLUTION) ACT, 1981 (14 OF 1981) Description of offence Failure to comply with the provisions for operating industrial plant. 22 THE GAZETTE OF INDIA EXTRAORDINARY [PART II-SEC. 1] PARAGRAPH 28 OFFENCES UNDER THE SUPPRESSION OF UNLAWFUL ACTS AGAINST SAFETY OF MARITIME NAVIGATION AND FIXED PLATFORMS ON CONTINENTAL SHELF Section 3 ACT, 2002 (69 OF 2002) Description of offence Offences against ship, fixed platform, cargo of a ship, maritime navigational facilities, 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 omitted. P.K. MALHOTRA, Secy, to the Govt. of India. PRINTED BY DIRECTORATE OF PRINTING AT GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 2013. GMGIPMRND-4443GI(S3)-07-01-2013.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....