GS3 · 10 marks · 150 words

Discuss how cryptocurrency and other emerging technologies contribute to the menace of money laundering and terror financing. What steps have been undertaken by the Government of India to tackle this issue?

Answered by 6 toppers · CSE 2023–2025

Money LaunderingCyber SecurityTerrorismBanking and Finance

Syllabus: Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges, basics of cyber security; money-laundering and its prevention.

How toppers approached it

From all 6 answers · about 160 words · 33% drew a diagram.

Opening

  • A figure33%
  • No separate opening33%
  • A date or context17%
  • A definition17%

Body

  • Points100%

Close

  • A summary67%
  • A way forward33%

The toppers’ answers

Raghav JhunjhunwalaAIR 4 · CSE 2025 · 129 wordsTheir whole copy

Opening · a figure

As per UNODC, money laundering amounts to over 2-5% of global GDP on per Annum basis.

Crypto & Tech: menace of ML & terror funding

Body · points

As per UNODC, money laundering amounts to over 2-5% of global GDP on per Annum basis.

Crypto & Tech: menace of ML & terror funding

  1. Rapidly Evolving tech

    • crypto mixers.
    • DMTs (Digital Micro Transactions)
    • Distributed control tech.

  2. minimal traceability due to decentralized control.

  3. lack of sovereign control on Asset + platforms (Deep web).

  4. Other Emerging methods a) video games transactions b) Dropshipping & E-commerce c) Digital Arrests & frauds online.

steps undertaken by GoI

  1. Strong legislation: PMLA, 2002 & ED

  2. Global cooperation NMFT conference, 2022.

  3. Strong policies & SOPs Ex: FIU-India to collate data points.

  4. Formalized Digital Economy

Diagram
GST └── Tax files / Bank A/c (Data Triangulation attempts)
  1. Strong Border controls [CBMS] underway
Diagram
W/F ├── 1 → consider signing PALERMO convention (cross border forensics) └── 2 → Improve Intelligence ├── capability └── coordination (Ex: [DNI] (USA))

Thus, M/L and terror funding must be comprehensively dealt with, for national security objective.

Close · a summary

[CBMS] underway Thus, M/L and terror funding must be comprehensively dealt with, for national security objective.

More on Money Laundering

Laundering and its prevention, hawala, benami and shell entities, the PMLA and the FATF, financial crime.

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