Pmla and the rules notified there under came into force with effect from july 1, 2005. Pranab mukherjee in the loksabha on december 27, 2011. This is a threat to the world economy, because of the fact that the black money is being used. Prohibition act 2011,4 the later repealing the money laundering. Shivaram, senior advocate, has hailed demonetisation as a great move and a bold step to reduce the black money circulation in our country. Terrorism financing offences extend to any person who solicits, acquires, receivesi possesses or makes available funds.
Terrorist financing, money laundering, and tax evasion. The above laws attempts to deal with uncertanites and realities confronting the nation today. This act amends the money laundering prohibition act, no. Enacted by the national assembly of the federal republic of nigeria. Money laundering 79 authority concerning the activities of the unit as the authority may determine. Nigerian companies are taxed under the companies income tax act cita. An insight into the money laundering prohibition act core. All insurers and reinsurers shall display visibly in all their operation centres nationwide the provisions of the money laundering prohibition act 2004 regarding their duty to file cash transaction reports ctrs and suspicious transaction reports strs with the nigeria financial. Taxes compliance crime lead to black money lead to money laundering and to benami transactions 8. An act to repeal the money laundering prohibition act, 2004 and enact the money. However, once an income asset is taxed under any one law. Money laundering, according to the act is, when any person in or outside nigeria directly or indirectly. Examining the performance of financial intelligence units provides a thorough analysis of the financing phenomenon from the raising of funds to government agencies efforts to interdict them to measuring and. Antimoney laundering and combating the financing of.
Its primary function as a regulatory institution precludes it from most of the provisions of the money laundering prohibition act, 2011 mlpa, terrorism prevention act, 2012 tpa and the central bank of nigeria anti money laundering combating the financing of terrorism regulations, 20 cbn amlcft regulations. Abstract money laundering is an international issue since from the beginning of its evolution. This act expanded the scope of the money laundering prohibition act 2004 the 2004 act 1 by not only targeting financial. In a bid to install and improve on an anti money laundering regime in nigeria and fight the financing of terrorism, the money laundering prohibition act 2011 the 2011 act was enacted. Money laundering prohibition act, 2011 laws of the. Nigeria is classified as an emerging market and is rapidly approaching middle income status, with its abundant supply of resources, welldeveloped. Duty to repot1 international transfer of funds and securities.
Critical analysis of prevention of money laundering act. Download pdf terrorist financing and money laundering. Anti money laundering strategy and way forward arunkumar dharmapuri mba, pgdft, treasury dept, pfizer inc. An overview of the money laundering prohibition act 2011. The act amends the money laundering act, no 11 of 2011 to expand the scope of. It also aims to determine the level of effectiveness of the preventive measures in the bill. It came on the statute book as the prevention of moneylaundering act, 2002 15 of 2003. Section 4 of the 2011 money laundering prohibition act provides that banking secrecy or the preservation of customer confidentiality shall not be invoked as a ground for objecting to the measures set out in subsection 1 and 2 of this section or for refusing to be a witness to facts likely to constitute an offence under this act.
Prohibition and prevention of money laundering amendment. The money laundering prohibition act, 2011 has repealed the money laundering prohibition act, 2004 by providing for, among other things, that no person or body corporate shall, except in a transaction executed through a licensed financial institution, make or accept cash payments of a sum exceeding n5,000,000 five million naira or its equivalent in the case of an individual, or n10,000. Commencement enacted by the national assembly of the federal republic of nigeria. Prevention of money laundering act, 2002 complete details. Pdf establishing the link between money laundering and tax. The money laundering prohibition act 2011 and the amendment to the act in 2012 that guides all entities on transferring money. Murphy further argued that tax evasion by wealthy individ uals andor. Duty to report international transfer of funds and securities. Money laundering act, 2002 shall respectively be the. The money laundering and prohibition act was enacted in 2004, but was appealed by the money laundering prohibition act 2011. Benami transactions prohibition bill, 2011 was referred to the standing c ommittee on finance on september 2011. Commencement enacted by the national assembly of the federal republic of nigeria part 1 prohibition of money laundering 1. Cita exempts from tax the profits of companies engaged in certain public benefit activities, so long as the profits are not derived from trade or a business undertaking.
Black money law whether persons acting in concert are subject to benami law. Benami law recent trends and impact on corporate structures. The prevention of moneylaundering bill having been passed by both the houses of parliament received the assent of the president on 17th january, 2003. Chartered accountants, audit firms, tax practitioners, casinos. General legal forms association with incorporated trustees an association of persons, which appoints one or more trustees and pursues registration under part c of the companies and allied matters. Most importantly, apart from providing more stringent provisions for penalty and prosecution, for the first time, this law has included the offence of wilful attempt to evade tax etc. Money laundering prohjbltlon act, 2011 a bill for an act to repeal the money laundering prohibition act, 2004 and enact the money laundering prohibition \ct.
In the present matter the high court of madras held that supplementary complaint can be filed based upon the further investigation, and after obtaining special permission for further investigation as provided for under the code of criminal procedure, 1973, under section 65 of the prevention of money laundering act, 2002 pmla the enforcement. The benami transactions prohibition bill, 2011 prsindia. Money laundering prohibition act, 2011 a bill for an act to repeal the money laundering prohibition act, 2004 and enact the money laundering prohibition act, 2011. Pdf no clear link has yet been made between tax evasion and money laundering although. Operational guidelines 2011 insurers and reinsurers. Words and expressions used but not defined in these rules shall have the same meaning as assigned thereto in the trusts act, 1882 il of 1882, the succession act, 1925 xxxix of 1925, the partnership act, 1932 ix of 1932, the income tax ordinance, 2001 xlix of 2001, the anti money laundering act, 2010. The benami transactions prohibition bill, 2011 was introduced by the ministry of finance in the lok sabha on august 18, 2011 to enact a new legislation to prohibit benami transactions. The money laundering prohibition act, 2011 has repealed the money laundering prohibition act, 2004 by providing for, among other things, that no person or body corporate shall, except in a transaction executed through a licensed financial institution, make or accept cash payments of a sum exceeding n5,000,000 five million naira or its. The definition of black money used in the white paper is in consonance with the definition used by the national institute of public finance and policy nipfpin its 1985 report on aspects of black economy, wherein it defined black income as the aggregates of incomes which are taxable but not reported to the tax. Pdf purpose this paper aims to critically examine the money laundering. Under growing attack over corruption and black money, the union cabinet on 21 st july, 2011, approved the proposal for the enactment of a new legislation in the form of the benami transactions prohibition bill, 2011 to replace the existing benami transactions prohibition act. Lo anti money laundering and combating inancing of terrorism. List of serious offences under second schedule of amla and respective law enforcement agencies leas. Prohibition and prevention of money laundering amendment act 2010.
Business act 2011 act 731 section 4 prohibition from carrying on money services business section 29 sale, leasing etc. Special court trial of offences relating to transactions in securities act, 1992. All designated nonfinancial institutions dnfi of whom nposngos are some, are required as part of the compliance requirements under the money laundering prohibition act 2011, to register with the special control unit against money laundering scuml. Overview of key sections of nigerias money laundering prohibition. It states that all transfers have to abide by the provisions. List of serious offences under second schedule of amla and. The prohibition of benami property transactions act, 1988. Its money laundering prohibition act enacted in 2011 prohibits the removal from nigeria of funds or the concealment of such funds that are the proceeds of an unlawful act, and it punishes the act by imprisonment of up to 10 years. In the benami transactions prohibition act, 1988 hereinafter referred to as the.
In this act, unless the context otherwise requires, a adjudicating authority means the adjudicating authority appointed under subsection 1 of section 6 of the prevention of money laundering act, 2002. The prevention of money laundering act 2002 is sought to be further amended by the prevention of money laundering amendment bill, 2011 hereinafter referred to as the bill, which has been introduced by the minister of finance, mr. Purpose this paper aims to critically examine the money laundering prevention and prohibition bill, 2016. This bill replaces the existing benami transactions prohibition act, 1988. A person who, after the commencem prohibition of money laundering ent of this act, engages in money laundering, shall be guilty of an offence and shall be. The prevention of moneylaundering amendment act, 2005. War against corruption and black money tax professionals must support the govt posted on november 25, 2016 by admin posted in judiciary, legislation 2 comments v dr. Personal income tax act 2004 personal income tax amendment act 2011 money laundering prohibition act 2011 iii. Financial markets antimoney laundering act fmgwg fma. Legal alert october 2011 money laundering prohibition act, 2011 2.
All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Income tax authorities and authorities under the prevention of money laundering act. An act to repeal the money laundering prohibition act, 2004 and enact the money laundering prohibition act, 2011. Federal act on the prevention of money laundering and terrorist. Money laundering prohibition act 2011 as amended, s 6, 2 and 10. Black income or asset may be taxable under one or the other. Prevention of money laundering act, 2002 is an act of the parliament of india enacted by the nda government to prevent money laundering and to provide for confiscation of property derived from money laundering. To prohibit holding property benami and restrict the right to recover or transfer such property. An act to amend the money laundering prohibition act no. Money laundering can be understood as a process employed by criminals to masquerade the possession and regulation of money derived from wide criminal activities and making the source of income legitimate. I c provide necessary assistance to the national executive committee.
Black money undisclosed foreign income and assets and imposition of tax act. Money laundering prohibition act 2011 as amended mlpa. Pdf the financial action task force fatf, the independent. Whistle blowers protection act, 2011 year corrected to 2014 by the second schedule of the repealing and amending act, 2015 is an act of the parliament of india which provides a mechanism to investigate alleged corruption and misuse of power by public servants and also protect anyone who exposes alleged wrongdoing in government bodies, projects and offices. Pdf the nigerian money laundering prevention and prohibition. Pdf a comparative study of the money laundering laws. War against corruption and black money tax professionals. Prevention of money laundering act, 2002 wikipedia.
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