White-Collar Crimes in India: Laws, Penalties, and Enforcement

Laws and Penalties

India has enacted several laws to combat white-collar crimes such as bribery, corruption, money laundering, and corporate fraud. Here are some key points:

Prevention of Money Laundering Act (2002)

• Imprisonment: Up to 7 years
• Attachment of property: Involved in money laundering

Prevention of Corruption Act (1988)

• Imprisonment: Up to 5 years
• Fines: For corruption, bribery, and gratification

Companies Act (2013)

• Imprisonment: Up to 10 years
• Fines: For corporate fraud

Indian Penal Code (1860)

• Imprisonment: Up to 3 years
• Fines: For criminal breach of trust and cheating

Extraterritorial Laws

Indian companies with international operations are subject to extraterritorial laws. Here are some key points:

Foreign Corrupt Practices Act (FCPA)

• Applies to Indian entities with US parent companies or operations in the US
• Enforces anti-bribery and accounting provisions

UK Bribery Act (UKBA)

• Extends its jurisdiction beyond the UK’s borders, making it applicable to Indian companies with business dealings with UK-based entities
• Prohibits bribery of foreign officials

Enforcement

Enforcement organizations like the CBI and ED monitor and investigate white-collar crimes. Here are some key points:

Monitoring and Investigation

• Authorities may initiate suo moto action on the basis of enforcement actions by US authorities in FCPA matters
• Investigations can be lengthy and complex, requiring a robust compliance program and proactive risk management strategies.

Conclusion

India’s white-collar crime laws have evolved to combat financial and corporate crimes. Businesses operating in India can tackle these challenges by prioritizing a robust compliance program and proactive risk management strategies.