Mandatory disclosure of assets needed: Bhushan

Aam Aadmi Party leader and advocate Prashant Bhushan has proposed a slew of steps in the legal framework to curtail the flow of black money in the economy, including the introduction of a new legislation, or an amendment to an existing law such as the Prevention of Money Laundering Act, requiring all Indian citizens to disclose their assets and bank accounts in India and abroad.

In a letter on Monday to the Prime Minister Narendra Modi, Bhushan said that such a law would require citizens to annually disclose a full list of their assets and liabilities, including their stakes in companies or trusts registered abroad. “Any income or assets that are not disclosed in the required form would be deemed to be “proceeds of crime”, and included as ‘predicate offences’ defined under the UN Convention Against Corruption. This would enable the law enforcement agencies to recover the said assets under provisions of the Prevention of Money Laundering Act, or the provisions of the UNCAC allowing for seizure and confiscation of assets that are proceeds of crime,” the letter said.

He has also suggested that instruments such as participatory notes and anonymous investments by funds or shell companies need “to be disallowed with immediate effect”. “Every time a company invests in stocks or other financial instruments in the Indian stock exchange or elsewhere, the relevant authority must be able to determine the exact ownership of the investment…”