Money Laundering And The Pertaining Legislation

Mohd. Yasin, School of Law, Galgotias University, Greater Noida

ABSTRACT

Money laundering is the illegal process of disguising the origins of illegally obtained funds, typically through complex financial transactions. This research aims to explore its impacts on India, analyze prevalent methods, and discuss preventive measures. Global cooperation and robust anti-laundering laws are crucial for effective control.

Introduction

Money laundering casts a long shadow over legitimate financial systems and destabilizing economies. At its core, it's the deceptive process of transforming "dirty" money, often from illegal activities like drug trafficking or terrorism, into seemingly clean funds. This hidden flow distorts markets, weakens institutions, and empowers criminal enterprises. Governments worldwide have tackled this complex challenge with legislation and dedicated agencies, but the evolving landscape of technology and financial innovation keeps launderers on their toes. From exploiting new payment methods to leveraging AI-powered obfuscation, criminals constantly adapt. Understanding the impact of money laundering is crucial for combating it effectively. Its tentacles reach far and wide, damaging the reputations of financial institutions, shaking the foundations of democratic structures, and even triggering financial crises. It discourages foreign investment and distorts policy-making, ultimately hindering a nation's economic and social progress. This battle against illicit financial activity demands constant vigilance and international cooperation.