In the past few decades, Money Launderers in India have used various techniques to change the color of the dirty money obtained from corruption or as the proceeds of organized crime. Action by the enforcement directorate in the past few weeks reveals the impact of these laundering activities on legitimate businesses. Case study of Deepak Talwar reveals how his criminal activity caused damage to the once profit-making PSU of India, which is now struggling to become profitable.
In response to the rising issue of money laundering, the Indian government has undertaken significant efforts over the last five years to curb this menace. One major decision was the demonetization of high-value currency notes. This move led to a dramatic change in how Indian citizens conducted financial transactions.
During the demonetization period, regulators required financial institutions to report bank accounts with large deposits to financial intelligence units to detect suspicious activities. However, demonetization was just the beginning. This caught cash hoarders off guard, leading many businesses to deposit money in shell company accounts to exchange currency notes. When this deceptive tactic was uncovered, the government forced many companies to shut down, classifying them as shell companies. The amounts of money deposited in these accounts were staggering.
The Indian government became proactive in combating a financial system that was previously susceptible to money laundering activities. Real estate purchases in India were often made with a significant component of cash. After demonetization, the real estate sector suffered setbacks as the proceeds of crime that once flowed into it came to a halt.
Demand for CAME
The demand for anti-money laundering experts in India surged due to these developments. However, there were limited programs addressing global regulations, such as the Bank Secrecy Act, in their curriculum. Certified Anti Money Laundering Expert (CAME), designed for Indian professionals, experienced a massive boost in demand as anti-money laundering experts were sought after across the country.
Indiaforensic, a prominent organization, offers a course on Money Laundering tailored for the Asian scenario of laundering and hawala transactions. This course focuses on the transaction aspect of money laundering rather than just the Know Your Customer (KYC) aspect. It is particularly crucial for compliance and law enforcement professionals battling money laundering and hawala transactions globally.
The importance of anti-money laundering measures gained momentum following the 9/11 attacks on the World Trade Center. In response, the United States and the Bush administration initiated a war against terror, making money laundering a significant concern. While some critics argue its importance has diminished for the White House, in India, Anti-Money Laundering has become a matter of tremendous significance. In 2002, the Prevention of Money Laundering Act was passed in India to address this issue.
Evolution of CAME
The CAME certification course primarily focuses on identifying suspicious transactions. Its course material includes a comprehensive repository of money laundering cases in India. In many instances, legitimate and illegitimate funds are mixed to complicate the investigation of crimes. CAME experts are essential in addressing such challenges. The Anti-money laundering manual serves as an exhaustive resource for professionals fighting hard to combat money laundering. It adheres to guidelines set by the Financial Action Task Force. As money laundering continues to evolve, the role of Certified Anti Money Laundering Experts (CAME) becomes increasingly vital in safeguarding financial systems and upholding the integrity of the financial landscape.
