Lok Sabha Question No. 311 (STARRED), answered on 2018-03-16
Subject: Corporate Crimes
Ministry: FINANCE
Asked by: OM BIRLA

## 311. SHRI OM BIRLA:

Will the Minister of FINANCE be pleased to state:

- (a) the details of the total number of corporate crimes that have been analysed by the Government's Financial Intelligence Unit during the last three years current year;
- (b) whether the Government plans to introduce any policyllegal framework for tackling the problems of increasing economic offences where the offenders flee the country after committing the crime;
- (c) if so, the details including the salient features and if not; the reasons therefor; and
- (d) whether the Government also plans to establish a special court to deal with the matters of economic offences which involve investigation by the said Unit and if s0, the details thereof and if not, the reasons therefor?

## ANSWER

## FINANCE MINISTER (SHRI ARUN JAITLEY)

(a) to (d): A statement is laid on the Table of the House.

## MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LoK SABHA STARRED QUESTION No\_

## To BE ANSWERED ON FRIDAY; THE MARCH, 2018 PHALGUNA 26, 1939 (SAKA) 16TH

## Corporate Crimes

Statemant referred to in\_parts Lo (d) of the Lok\_Sabha Starred Questicn 311 for answer on 16-03-2018\_reqarding Corporite Crimes' by Shri OMBIRLA

- (a) The Financial Intelligence   Unit-India (FIU-IND) collect; analyse and disseminate financial intelligence, inter-alia, on terrorist financing and money laundering: FIU-India obtains certain threshold based reports and Suspicious Transactions Reports (STRs) from various reporting entities prescribed under Prevention of Money Laundering Rules; After analysis of these the additional information available in FIU India database;, FIU India disseminates these to the concerned law enforcement agencies (LEAs) for further investigations
- STRs analysedldisseminated probably may lead to detection of financialleconomic   offenceslirregularities. But to ascertain whether these STRs are related t0 corporate crimes is matter of investigation

FIU India is an administrative FIU and   investigation is not its mandate, therefore , investigating into domestic or international financial transactions is not the domain of FIU India. STRs disseminated are investigated upon by various LEAs.

- (b) and (c): A budget announcement was made by the Government in the Budget 2017-18 that there have been instances time offenders, including economic offenders, fleeing the country to escape the reach of law and that the Government would introduce legislative changes %r even a new law to confiscate the assets of such persons till submit to the jurisdiction of the appropriate legal forum. Accordingly, the Fugitive Economic Offenders Bill; 2018 ("the Biil") has been introduced in Lok Sabha on 12th March, 2018 The Bill would help in laying down measures t0 offenders from evading the process of Indian law by remaining outside the jurisdiction of courts in India and to preserve the sanctity of the rule of law in crime and properties of the fugitive economic offender with a view t0 make him submit to the jurisdiction of courts in India: they
- (d) new Court has not been created under the Bill. The Special Court; which   dlecides on the declaration of an individual as a fugitive   econoric offender and orders confiscation of properties under the Bill, would be a Court of Session   designated as a Special under the  provisions of the Prevention of Money-laundering Act; 2002. have been stipulated under the Bill to ensure that proceedings under the Bill are expeditiously completed