Money Laundering Act

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THE PREVENTION OF MONEY-LAUNDERING (AMENDMENT)ACT, 2009 NO. 21 OF 2009 [6th March, 2009.] An Act further to amend the Prevention of Money-laundering Act, 2002. BE it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:@ 1. ! Short title and commencement. ! 1. Short title and commencement. – (1) This Act may be called the Prevention of Money-laundering (Amendment) Act, 2009. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. @ 2. % Amendment of section 2. ! 2. Amendment of section 2. - In section 2 of the Prevention of Money-laundering Act, 2002 (hereinafter referred to as the principal Act), in sub-section (1),(i) after clause (d), the following clause shall be inserted, namely:- '(da) ''authorised person'' means an authorised person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999;'; (ii) after clause (j), the following clause shall be inserted, namely:- '(ja) ''designated business or profession'' means carrying on activities for playing games of chance for cash or kind, and includes such activities associated with casino or such other activities as the Central Government may, by notification, so designate, from time to time;'; (iii) in clause (l), for the words ''a non-banking financial company'', the words ''an authorised person, a payment system operator and a non-banking financial company'' shall be substituted; (iv) in clause (q), after the words and figures ''Reserve Bank of India Act, 1934'', the words ''and includes a person carrying on designated business or profession'' shall be inserted; (v) after clause (r), the following clauses shall be inserted, namely:- '(ra) ''offence of cross border implications'', means- (i) any conduct by a person at a place outside India which constitutes an offence at that place and which would have constituted an offence specified in Part A, Part B or Part C of the Schedule, had it been committed in India and if such person remits the proceeds of such conduct or part thereof to India; or (ii) any offence specified in Part A, Part B or Part C of the Schedule which has been committed in India and the proceeds of crime, or part thereof have been transferred to a place outside India or any attempt has been made to transfer the proceeds of crime, or part thereof from India to a place outside India. Explanation.-Nothing contained in this clause shall adversely affect any investigation, enquiry, trial or proceeding before any authority in respect of the offences specified in Part A or Part B of the Schedule to the Act before the commencement of the Prevention of Money-laundering (Amendment) Act, 2009; (rb) "payment system" means a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement

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service or all of them. Explanation.-For the purposes of this clause, "payment system" includes the systems enabling credit card operations, debit card operations, smart card operations, money transfer operations or similar operations; (rc) "payment system operator" means a person who operates a payment system and such person includes his overseas principal. Explanation.-For the purposes of this clause, ''overseas principal" means,- (A) in the case of a person, being an individual, such individual residing outside India, who owns or controls or manages, directly or indirectly, the activities or functions of payment system in India; (B) in the case of a Hindu undivided family, Karta of such Hindu undivided family residing outside India who owns or controls or manages, directly or indirectly, the activities or functions of payment system in India; (C) in the case of a company, a firm, an association of persons, a body of individuals, an artificial juridical person, whether incorporated or not, such company, firm, association of persons, body of individuals, artificial juridical person incorporated or...
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