The Anatomy Of Money Laundering

Dr. Anuradha Girme, (Assistant Professor New Law College, Bharati Vidyapeeth (Deemed to be) University

Aakanchha Ray, LL.M. (2nd Year) IVth Semester, New Law College, Bharati Vidyapeeth (Deemed to be) University, Pune

ABSTRACT

India’s promising status as a financial hub and its system of informal cross- border money flows have made the country vulnerable to money laundering. Dealing with money laundering is one of the most important tasks of the financial sector. Money laundering has always been the topic of discussion nationally and internationally. Money laundering refers to the conversion of money earned from illegal sources into legitimate sources. The origin of such income may arise from drug trafficking, corruption, embezzlement, gambling, or any other activities that put society at a loss the very moment they get underway. Money laundering typically consists of three stages: Placement (i.e., removing the money from any involvement in the crime directly), Layering (i.e., splitting the test to thwart pursuit), and Integration (i.e., using legitimate transactions to hide illegal money). It is cause for concern for both developed and developing countries. Several financial institutions and government bodies have implemented Anti-Money Laundering (AML) solutions to fight investment fraud, such as The Prevention of Money Laundering Act (PMLA)i, 2002, passed by the Indian government. These implementations, directly or indirectly, aim to curb and combat money laundering activities.

This article endeavors to find out the recent incidents pertaining to money laundering and the challenges that it is posing to society. Examples would be news channels displaying how the ED (Enforcement Department) has registered cases of money laundering on politicians, celebrities, businesspersons, etc. from different states and raided many of their premises. And also, in this article, we are going to discuss the process of money laundering, and finally, we will be discussing the consequences of money laundering and counter-financing terrorism.

Keywords: Money Laundering, Terrorism, Crime, Financial, Illegal, Case, Fraud, Investigation, Trafficking