A legislation aimed at preventing and controlling money laundering comes into force Friday with special powers to the enforcement agencies to confiscate and seize property.

The Prevention of Money-Laundering Act also requires all cash transactions of Rs.1 million ($22,000) and more in foreign exchange to be furnished to the Financial Intelligence Unit of the government.

The financial system, including banks, financial institutions, brokers, housing finance firms, chit funds and merchant bankers, are required to maintain financial records of their overseas transactions in a prescribed format.

The act provides that whosoever directly or indirectly attempts to indulge or assist in any activity connected with the proceeds of a crime and projects it as untainted property shall be guilty of offences under money-laundering.

The legislation identifies some offences under other enactments like the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, the Arms Act and the Wild Life Protection Act to determine what constitutes money laundering.

To combat the menace of money laundering, the government is also entrusting the work relating to investigation, attachment of property of crime relating to the offences to the Directorate of Enforcement, an official statement said.