Combating the Peril of Money Laundering
you were to conduct a survey in our country asking What is Money
visualisation of the Lay man will not be far different than the one
shown in this picture. The general guesses from most people would be
that it must be something related to drying, washing or may be dry
cleaning of the currency notes. This is rather the human tendency
about the world's very big crime.
some extent correct but layman don't know much of this world's third
largest industry. As per IMF reports the turnover of this industry
could be somewhere around $1.5 trillion. However common man does not
pay attention because primarily it seems to be a victimless crime.
It has none of the issues associated with a vanishing of the money
from economy or performance of the government or organisations
involved in the same and yet, money laundering can only take place
after a predicate crime (such as a Drug trafficking or the stock
market frauds) has taken place.If the person on the street is
the banker he might throw the three letters "KYC" to
express his knowledge.
laundering is the process by which large amounts of illegally
obtained money (from drug trafficking, terrorist activity or other
serious crimes) is given the appearance of having originated from a
in simple terms it is the Conversion of Black money into white
money. This takes you back to cleaning the huge piles of cash.
Indian newspapers frequently report the money laundering scams
perpetrated by the Political leaders and some of the prominent stars are the chief ministers of UP, Punjab and Kerala. UP chief minister
ms. Mayawati as per the Indian Express reports used some innovative
techniques to launder the money by avoiding the tax in legitimate
manner. She accepted the donations from persons who were road side
heroes. When CBI raided these guys were found in no position to
donate huge sums for political motives.
Indian star in the laundering Business is Ketan Parekh.It is
believed that he shifted the proceeds of money received from the BoI
pay order scam to various tax heavens and ultimately in the Swiss
Banks.These transactions are believd to be just the tip of the
done successfully, it allows the criminals to maintain control over
their proceeds and ultimately to provide a legitimate cover for
their source of income. Money laundering plays a fundamental role in
facilitating the ambitions of the drug trafficker, the terrorist,
the organised criminal, the insider dealer, the tax evader as well
as the many others who need to avoid the kind of attention from the
authorities that sudden wealth brings from illegal activities. By
engaging in this type of activity it is hoped to place the proceeds
beyond the reach of any asset forfeiture laws.For last few decades the Money Laundering techniques have evolved. Year 2015 was marked with the trade based money laundering activities in India.
You may also:
- If you are interested in taking up the courses offered by Indiaforensic on the subject of Money Laundering please click here
- We have designed certification in Dodd Frank Act, kindly click here to try the mock test on Dodd Frank Act
- Foreign Account Tax Compliance Act plays a significant role, if you would like to know more about the certifications offering in FATCA in India kindly click here to know more.
- Money Laundering Updates for the Certified Anti Moneylaundering Experts click here to know more.