GS3 · 10 marks · 150 words

Cyber-enabled financial crime has emerged as the new frontier of global money laundering. Discuss. How can the government address this issue?

Answered by 4 toppers · CSE 2024–2025

Cyber SecurityMoney Laundering

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 4 answers · about 190 words · 25% drew a diagram.

Opening

  • No separate opening2 of 4
  • A figure1 of 4
  • A direct answer1 of 4

Body

  • Points3 of 4
  • Points and prose1 of 4

Close

  • A way forward3 of 4
  • A summary1 of 4

The toppers’ answers

Simrandeep KaurAIR 15 · CSE 2025 · 187 wordsTheir whole copy

Opening · a figure

Globally money-laundering cause loss of 2-3% to global GDP (IMF). Cyber-enabled financial crimes create more scopes of anonymous placement, layering & integration of black money into market.

Body · points

Cyber-enabled Money Laundering

  1. Anonymous transactions through cryptocurrency.
  2. Identity thefts for initiating series of layering.
  3. Dark Web - hub of unregulated crimes.
  4. Nexus with fintech startups. e.g. Paytm case of Money laundering.
  5. Financial frauds. e.g. - Loss of Rs 177 crore due to Phising in FY24.
  • WazirX - cryptocurrency :- cyber attack

Government measures needed.

  1. Skilled Personnel - Cyber Swatchta Kendras.

  2. Rajesh Panth Committee Recommendations ↓ security in initial stages e.g. Samadhaan for MSMEs ↓ insurance against integrated chip route ↓ SCADA security for critical infrastructure

  3. Empowering of NIA, ED to check money laundering. e.g. Fake currency cells

  4. Global Initiatives for best practices → FATF & Interpol FIRE to seize assets → extradition policies → Global Minimum tax (15%) to check tax havens.

Close · a summary

FATF has given status of 'Regular Follow up' to India for its good strengthened measure. Its necessary to follow the chain & uncover the syndicates of Money laundering.

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