money laundering act
sachin sethi
(Querist) 04 December 2010
This query is : Resolved
I want to know that whether it is necessary for a person running a finance company (private and under sole proprietorship) for the purposes of financing the vehicles,, to obtain the license under money laundering act,,to carry on his business,,for the purpose of finance company..
If yes then what is the procedure for obtaining a license as aforesaid in State of Haryana..whether the license is granted for a specific duration, specified area of doing the business...even after going through the relevant statute I could not figure out the procedure in this regard...Plz help me by mentioning the name of act/rules or provisions also
Sachin Sethi
malipeddi jaggarao
(Expert) 05 December 2010
Mr.Sachin - what you should look is "Money lending" not "Money laundering". Money laundering is a different proposition which is not applicable to your business of financing vehicles.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 05 December 2010
Yes it will come under money lending , if small scale no body will bother., otherwise financing the vehicles is covered under some or other clause of all money lending acts.
If on bigger scale you have to get permissions as NBFC.
M V Gupta
(Expert) 06 December 2010
Yes. You have to apply for licence under your state's Money lenders Act. Under the Punjab Money Lenders Act, 1938 the application lies to the Collector of the place where the business is conducted.If you do not have license you may find it difficult to recover your loans, as the Money Lenders Acts generally contain a provision barring jurisdiction of the Court to entertain any suits from unregistered and unlicensed money lenders. Better check with the Collectors Office of your area.
