Money Laundering And Abuse Of The Financial System

Priyanka Singh, LL.M (Criminal Law), Amity Law School, Amity University, Jaipur

ABSTRACT

Every year, vast sums of money are collected through illicit means. These unlawfully obtained monies require a process known as washing in order to look properly obtained and useable. Although it is impossible to quantify the exact magnitude of money laundering, the International Monetary Fund estimates that the global total might be between two and five percent of the world's gross domestic product. The banking system is the primary means through which criminals launder their unlawful funds. The credibility of international financial institutions is jeopardized by money laundering. It weakens the financial system, exposing all nations involved in the international financial system to danger. The purpose of this study is to explain the connection between money laundering and the financial system. It looks at money laundering from the standpoint of the financial sector, specifically banks.

Keywords: Money Laundering, Financial Institutions, Illegal