Deepak GodaraCSE 2024 · 248 wordsTheir whole copy
Opening · a figure
As per IMF, money laundering contributes to 3.5% of Global GDP posing a huge threat to economic stability of nations.
Body · points
Process of ML:
Placing → Layering → Integration
Black money → [Box] → [Box] → [Box] → main economy
(Shell Company)
Emerging & Disruptive Technologies
- Cryptocurrency is new M.L method contributing to 2% of it. (Bitcoin & Ethereum) ↳ Anonymity of owner & No backing of Banks.
- Big Data Analytics and Shell companies Helps to find methods of shell companies to invest.
- Use of AI Algorithms to avoid tax systems ↳ Round Tripping, Safe Havens.
- Dark web and Deep web using TOR The onion ring are new organised crimes, assassination, cartels, smuggling routes.
National Level Measures
- Institutional level → ED (Enforcement Directorate) → Vijay Madanlal Choudhary case expanded powers. Laws → PMLA 2002, FEMA 1999, COFEPOSA 1974 ↳ FIU IND Financial Intelligence unit.
- Legislative → PMLA (Prevention of Money Laundering Act) 2002 ↳ Burden of proof on accused. ↳ Seizure of Assets, goods. ↳ Cryptocurrency also covered under it.
Special Structural → Shell Company Task force ↳ 'Operation Clean Money' Capacity Building of staffs of ED, police Centre-state coordination, NATGRID
International Level
- FATF (Financial Action Task Force) Paper on cryptocurrency → Black/Grey Listing
- WEF, OECD crypto Asset reporting framework
- EU MiCA (Markets in Crypto Assets)
- IMF → Division for money laundering
- OECD → Minimum Tax
- DTAA & MoU's among Mauritius, Singapore.
- G-20 → Crypto and money laundering Task force.
Close · a framework
Hence, by these steps money laundering can be reduced leading to active SDG-17 (cooperation).
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