Money Laundering and Its Fall-out - REGULATION OF MONEY LAUNDERING: INDIA - ...Resurgent India
With growing financial strength, India is becoming more vulnerable to money laundering activities, despite its strict foreign exchange laws, which make it difficult for criminals to launder money.
Governments across the globe have been taking measures to increase the scrutiny of AML/CFT processes and controls, to fight Financial crimes. Individuals and firms are required to comply with minimum standards; failure to keep up with the changing requirements can lead to penalties and legal consequences.
This presented is aimed at AML/CTF practitioners who would need quick reminders of the basics of AML. Tools are not very useful if the underlying basics are unknown.
Money Laundering and Its Fall-out - REGULATION OF MONEY LAUNDERING: INDIA - ...Resurgent India
With growing financial strength, India is becoming more vulnerable to money laundering activities, despite its strict foreign exchange laws, which make it difficult for criminals to launder money.
Governments across the globe have been taking measures to increase the scrutiny of AML/CFT processes and controls, to fight Financial crimes. Individuals and firms are required to comply with minimum standards; failure to keep up with the changing requirements can lead to penalties and legal consequences.
This presented is aimed at AML/CTF practitioners who would need quick reminders of the basics of AML. Tools are not very useful if the underlying basics are unknown.
it was a project assignment by our banking teacher related to an article published in dawn news paper kindly give your suggestions fa first time try :)
money laundering and corruption
,
what is money laundering
,
suspicious transaction means such transaction:
,
what are some of the challenges
,
why and how to combat money laundering
,
money laundering
,
money laundering process
,
mlpa-2012
,
incentives to launder
Money laundering is the process of concealing the origin of money obtained from illegitimate sources by passing it through complex sequence of financial transactions and making it appear to be originated from legal activity.
Illegal arm sales, terrorism funding, smuggling, drug trafficking, insider trading, fraud schemes, bribery etc. are some examples of illegal activities prohibited by law.
In simpler terms, money laundering means cleaning of dirty money.
Process of Money Laundering
Placement – Placing illegal cash proceeds with banks and other financial institutions onshore and offshore in smaller denominations.
Layering – Creating complex layers of financial transactions to make it difficult to trace the origin of money. The transactions might be channelled through purchase & sales of financial securities.
Integration – Integrating the money into legal system by investing into business, real estates and luxury assets.
Methods of Money Laundering
Structuring / Smurfing – It is a method of placement where the illegal money collected is broken into smaller deposits to place at different banks. This is done to avoid any suspicion of origin of money.
Shell Companies – This involves creation of fake companies that are registered and exist in papers but hold neither physical location nor operational activities are done.
Bulk Cash Smuggling – This involves smuggling cash to foreign countries to deposit illegal money in offshore bank which hold greater secrecy; generally countries considered as tax haven.
Round Tripping – Shipping back the money deposited in offshore financial institutions as foreign direct investment.
Act -
Financial Action Task Force – Formed in 1989 by G7 countries to develop and ensure an international response to combat money laundering. The objectives of the FATF were to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
PMLA (Prevention of Money Laundering Act) 2002 – The act passed to stop money laundering and punish those involved directly or indirectly in illegal activity. As per this act whoever commits money laundering shall be punishable with imprisonment of about 3 to 10 years and shall also be liable to pay fine.
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Anti Money Laundering's regulation: current aspects and future forecastsclaudiotarulli3
Presentazione della Tesi "Anti Money Laundering's regulation: current aspects and future forecasts" presentata per il Master in "Antiriciclaggio e Compliance" presso la European School of Banking Management.
Anti-money Laundering:-
The process of disguising the proceeds of crime in an effort to conceal their illicit origins and legitimize their future use. Its main objective is to conceal true ownership and origin of the proceeds, a desire to maintain control, a need to change the form of the proceeds.Techniques used can be simple, diverse, complex, but secret.
Threads Of money Laundering. I am Introducing a very big Issue, a big problem of our Country. I have written many ways to be out of the situation. So guys If you have chosen this topic be careful and Hit like and Download my PPT.
What is money Laundering? Prevention of money laundering act in india brief details
Examples of money laundering
How bad is money laundering
How can get money from Hawala?
What is punishment for Hawala in India
Money Laundering The Juxtaposition of Laws for Comparative Analysisijtsrd
Money laundering is a problem that has become increasingly pervasive in recent times and a major concern for governments around the world. It is a process of concealing the proceeds of illegal activities as legitimate income. It is a serious crime that has implications for national security, economic stability, and financial integrity. Money laundering is a global problem, and countries have developed various legal frameworks to prevent, detect, and prosecute it. This research journal will provide a comparative analysis of money laundering laws in the United States, Saudi Arabia, and India. Further, this paper will also examine whether India needs to make changes to its money laundering laws. Siddesh Dasari "Money Laundering: The Juxtaposition of Laws for Comparative Analysis" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd56291.pdf Paper URL: https://www.ijtsrd.com.com/humanities-and-the-arts/other/56291/money-laundering-the-juxtaposition-of-laws-for-comparative-analysis/siddesh-dasari
it was a project assignment by our banking teacher related to an article published in dawn news paper kindly give your suggestions fa first time try :)
money laundering and corruption
,
what is money laundering
,
suspicious transaction means such transaction:
,
what are some of the challenges
,
why and how to combat money laundering
,
money laundering
,
money laundering process
,
mlpa-2012
,
incentives to launder
Money laundering is the process of concealing the origin of money obtained from illegitimate sources by passing it through complex sequence of financial transactions and making it appear to be originated from legal activity.
Illegal arm sales, terrorism funding, smuggling, drug trafficking, insider trading, fraud schemes, bribery etc. are some examples of illegal activities prohibited by law.
In simpler terms, money laundering means cleaning of dirty money.
Process of Money Laundering
Placement – Placing illegal cash proceeds with banks and other financial institutions onshore and offshore in smaller denominations.
Layering – Creating complex layers of financial transactions to make it difficult to trace the origin of money. The transactions might be channelled through purchase & sales of financial securities.
Integration – Integrating the money into legal system by investing into business, real estates and luxury assets.
Methods of Money Laundering
Structuring / Smurfing – It is a method of placement where the illegal money collected is broken into smaller deposits to place at different banks. This is done to avoid any suspicion of origin of money.
Shell Companies – This involves creation of fake companies that are registered and exist in papers but hold neither physical location nor operational activities are done.
Bulk Cash Smuggling – This involves smuggling cash to foreign countries to deposit illegal money in offshore bank which hold greater secrecy; generally countries considered as tax haven.
Round Tripping – Shipping back the money deposited in offshore financial institutions as foreign direct investment.
Act -
Financial Action Task Force – Formed in 1989 by G7 countries to develop and ensure an international response to combat money laundering. The objectives of the FATF were to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
PMLA (Prevention of Money Laundering Act) 2002 – The act passed to stop money laundering and punish those involved directly or indirectly in illegal activity. As per this act whoever commits money laundering shall be punishable with imprisonment of about 3 to 10 years and shall also be liable to pay fine.
Thank you for watching
Subscribe to DevTech Finance
Anti Money Laundering's regulation: current aspects and future forecastsclaudiotarulli3
Presentazione della Tesi "Anti Money Laundering's regulation: current aspects and future forecasts" presentata per il Master in "Antiriciclaggio e Compliance" presso la European School of Banking Management.
Anti-money Laundering:-
The process of disguising the proceeds of crime in an effort to conceal their illicit origins and legitimize their future use. Its main objective is to conceal true ownership and origin of the proceeds, a desire to maintain control, a need to change the form of the proceeds.Techniques used can be simple, diverse, complex, but secret.
Threads Of money Laundering. I am Introducing a very big Issue, a big problem of our Country. I have written many ways to be out of the situation. So guys If you have chosen this topic be careful and Hit like and Download my PPT.
What is money Laundering? Prevention of money laundering act in india brief details
Examples of money laundering
How bad is money laundering
How can get money from Hawala?
What is punishment for Hawala in India
Money Laundering The Juxtaposition of Laws for Comparative Analysisijtsrd
Money laundering is a problem that has become increasingly pervasive in recent times and a major concern for governments around the world. It is a process of concealing the proceeds of illegal activities as legitimate income. It is a serious crime that has implications for national security, economic stability, and financial integrity. Money laundering is a global problem, and countries have developed various legal frameworks to prevent, detect, and prosecute it. This research journal will provide a comparative analysis of money laundering laws in the United States, Saudi Arabia, and India. Further, this paper will also examine whether India needs to make changes to its money laundering laws. Siddesh Dasari "Money Laundering: The Juxtaposition of Laws for Comparative Analysis" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd56291.pdf Paper URL: https://www.ijtsrd.com.com/humanities-and-the-arts/other/56291/money-laundering-the-juxtaposition-of-laws-for-comparative-analysis/siddesh-dasari
OFAC Name Matching and False-Positive Reduction TechniquesCognizant
Exploration of Office of Foreign Asset Control (OFAC) compliance and strategies to avoid false positives (and negatives), covering watch lists such as specially designated nationals (SDN), customer due diligence,data mining, probabilistic techniques and anti-money-laundering (AML) software.
Money laundering is the process of transforming the proceeds of crime into ostensibly legitimate money or other assets. However, in a number of legal and regulatory systems, the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing and evasion of international sanctions. This is a process whereby the origin of funds generated by illegal means is concealed (drug trafficking, fraud, gun smuggling, corruption, etc.)
BEHIND CLOSED DOORS: THE SECRET WORLD OF MONEY LAUNDERINGMd Arman
Money laundering is a global issue that significantly threatens the
integrity of financial systems and economies worldwide. This paper
presents a theoretical description of money laundering and outlines
the structured activities involved in the process. Additionally, it
explores the electronic methods employed in money laundering,
highlighting the various functions carried out using electronic gadgets
and the internet. The author emphasizes the importance of
understanding the characteristics, reasons, and negative impacts of
money laundering on businesses and economies to gain a clear
perspective on the issue. Money laundering is a criminal act in most
countries, and economically developed nations have established
strong barriers against it. However, the practice persists, and the paper
examines how launderers circumvent these barriers and employ
innovative, illegal methods to convert their illicit money into
legitimate funds. The study found that money launderers employ
various techniques to evade detection and prosecution, including
layering, integration, and placement. Electronic money laundering is
also a growing concern, with online platforms, digital currencies, and
anonymous payment systems providing new avenues for launderers
to conceal their activities. This paper provides an overview of money
laundering and its detrimental effects on the global economy. It
underscores the need for continued efforts by governments, financial
institutions, and law enforcement agencies to combat this menace.
Additionally, it highlights the importance of vigilance and developing
innovative strategies to detect and prevent money laundering.
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
The Offshore Financial Centres - Conceiling the beneficial ownerFrank Erkens
Faced with the threat that the public may lose its confidence in the financial world, the international community has decided to uncover the numerous disguises used by criminals. This two-part series focuses on a number of important disguises, and the initiatives taken to resolve the problem of the concealment of beneficial owners. In the first part, we will look at the Offshore Financial Centres. This two-part series centres around the US legislative proposal HR3886. The aim of this legislative proposal is to facilitate the identification of the beneficial owner. Of course, the question remains whether this aim will be achieved or whether, as it appears now, the problem will simply relocate.
1. Anti-money (AML) is a term mainly used in the financial and legal industries to describe the
legal controls that require financial institutions and other regulated entities to prevent or report
money laundering activities.
mostfinancial institutionsglobally,andmanynon-financial institutions,are requiredtoidentifyand
reporttransactionsof a suspiciousnature tothe financial intelligence unitinthe respective country.For
example,abankmustperform due diligence byverifyingacustomer'sidentityandmonitortransactions
for suspiciousactivity.Todothis,manyfinancial institutionsutilizethe servicesof special software,and
use the servicesof companiessuchasC6 to gatherinformationabouthighriskindividualsand
organizations.UnitedStates federal lawrelatedtomoneylaunderingisimplementedunderthe Bank
SecrecyAct of 1970 as amendedbyanti-moneylaunderingactsupto the present.
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Written Anti MoneyLaunderingProcedures
Each registered intermediary should adopt written procedures toi
mplement the anti money laundering provisions as envisaged under the
Anti Money Laundering Act, 2002.Such procedures should include inter
alia, the following three specific parameterswhich are related to the overall
Client.
Due Diligence Process’:
a. Policy for acceptance of clients
b. Procedure foridentifying the clients
c. Transaction monitoring and reporting especiallysuspicious transaction
reporting.
CustomerDue Dilligence
The customerdue diligence (“CDD”)measures comprisethe following:
a)Obtaining sufficientinformation in order to identify persons who
beneficially own or control securities account. Wheneverit is apparent that
the securities acquired or maintained through an account are beneficially
2. owned by a party other than the client, that party should be identified using
client identification and verification procedures.The beneficialowner is the
natural person or persons who ultimately own, control or influence a client
and/or persons on whose behalf a transaction is being conducted.It also
incorporates those persons who exercise ultimate effective controlover a
legal personor arrangement.
b) Verify the customers identify using reliable, independentsource
documents,data or information.
c) Identifybeneficialownership and control, i.e. determine which
individual(s) ultimately own(s) or control(s) the customerand/or the
personon whose behalf a transaction is being conducted.
d) Verify the identity of the beneficialowner of the customer and/or the
personon whose behalf a transaction is being conducted,corroborating the
information pr ovided in relation to (c).
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Money laundering is one of the ongoing problems facing the international economy, and from
the evidence studied while researching this work, it can be seen that while the fundamentals of
this crime remains largely the same, technology has offered, and will continue to offer a more
sophisticated and circuitous means to convert ill-gotten proceeds into legal tender and assets. The
largely unchecked growth of the Internet presents what has been described as the "Armageddon
scenario of banking on the `Net - criminals could have money transferred without any audit
trail". There is a total absence of regulation of the Internet and it has been recognised that
authorities need to ensure that legislation keeps abreast of technology in order to understand and
pick up on any new techniques that professional money launderers may come up with.
There is also a growing realisation about the extent that money laundering and its relationship
with organised crime are interlinked. The huge profits that accrue to these criminals from such
areas as drug trafficking, international fraud, advance fee fraud, long firm fraud, arms dealing,
trafficking in human organs and tissue, etc., will be used not only to facilitate ongoing
operations, but to consolidate the wealth, prestige and respectability of those in control of the
criminal business. Drug trafficking remains the largest single generator of illegal proceeds:
Robinson (1994) stated that more money is spent world-wide on illicit drugs than on food.
However, non-drug related crime is increasingly significant.
3. The characteristics of organised crime are evident in money laundering:
it is a group activity, in that it is carried out often by more than one person;
it is a criminal activity which is long term and continuing;
it is a criminal activity which is carried out irrespective of national boundaries;
it is large scale; and
it generates proceeds which are often made available for licit use.
These characteristics define a very particular kind of serious criminal activity which, at its most
developed, is highly sophisticated and complex. The degree of organisation that is displayed in
money laundering is therefore of particular concern because of its scale, its capacity to exploit
and influence the legitimate business world and its capacity for internationalisation. These
concerns have led to concerted international action for a solution to combat this growing menace
called Money Laundering. This is particularly evident, not only in the formation of the FATF but
also in international agreements and legislation. In fact, a watershed in the fight against money
laundering was the publication of the FATF 40 Recommendations in 1990 - recently updated in
1996.
Conclusion
Money Laundering is a serious, highly sophisticated and global criminal activity. The degree
of organization displayed in Money Laundering is a major cause for concern of banks and
bank supervisors. Banks and other financial institutions can protect themselves against
Money Laundering by implementing an effective KYC Policy, knowing their customers,
checking the source of funds, monitoring the conduct of accounts, and by learning to
recognize suspicious/ irregular transactions.
Acknowledgements, Sources and References:
1. My article on "Money Laundering" published in the IBA Bulletin
2. The Web pages of the Financial Action Task Force
3. The Web pages of the BIS
4. The Web Pages of the Government of India
The old laws of the country did not really recognize the menace. There was very little check on
conversion of black money into white, the only check was chapter XXC of Income Tax Act, 1961 which
monitored acquisition of immovable property in major cities over the prescribed value and even this
provision was made inoperative since 1st July 2002.
4. FERA imposed restrictions on transfer money outside India and therefore it helped as a check to
transfer of tainted money. But to overcome this launderers used the non banking channels like
hawala. Also for a very long time India has been importing dirty money by over invoicing goods but
this has not helped in exporting dirty money as the taxes levied on imported goods negate the
viability of such dealings. Also there was no provision in Customs Act, 1962 up till 2003, to deal with
over invoicing of goods.
Since FEMA came into force on 3rd June 2000, all current account transactions are free from
restrictions except for those mentioned in three schedules to FEM (Current Account Transactions)
Rules, 2000. On the capital account side, there is a restriction of reporting of transactions mentioned
in schedules I and II and therefore it is very easy for launderer to launder money without even
touching the two schedules. Further Schedule III of the Act provides for cap on certain transactions
relating to expenses for education, medical treatment, donation etc. within which if money is to be
transferred abroad, no prior permission of RBI is required.
Other laws that had some role to play in prevention of money laundering are-
The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974.
The Benami Transactions (Prohibition) Act, 1988
The Indian Penal Code and Code of Criminal Procedure, 1973
The Narcotic Drugs and Psychotropic Substances Act, 1985
The Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988
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