The Lok Sabha today passed the Prevention of Money Laundering (Amendment) Bill, 2011 by a voice vote. Replying to the debate, Finance Minister P. Chidambaram clarified that money laundering is different from black money. Money laundering must involve a predicate crime such as the violation of Indian Penal Code, IPC, Narcotics, Prevention of Corruption Act and Human Trafficking. Stashing black money is simply a civil crime involving tax evasion, he said. Mr. Chidamabaram said there have been 37 prosecutions under the Prevention of Money Laundering (Amendment) Act, 2002. The cases are still being pursued, he added.

Earlier, initiating the discussion, Mr Nishikant Dubey of the BJP called for stringent provisions to check the menace of counterfeit currency. Mr Sanjay Nirupam of the Congress said the government has taken several steps to prevent money laundering since India became a member of the global Financial Action Task Force two years ago. Other members who participated in the debate, called for an effective mechanism to curb money laundering.