GS3 · 15 marks · 250 words

Establishing linkages between globalisation and money laundering, discuss the initiatives taken at the national and international levels to combat it.

Answered by 5 toppers · CSE 2022–2025

Money LaunderingOrganised CrimeTrade and Foreign Investment

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 5 answers · about 200 words · 80% drew a diagram.

Opening

  • A definition80%
  • A figure20%

Body

  • Points and prose60%
  • Points40%

Close

  • A way forward60%
  • No separate close20%
  • A summary20%

The toppers’ answers

AnanyaAIR 13 · CSE 2025 · 206 wordsTheir whole copy

Opening · a definition

Globalisation refers to the interconnectedness between countries on economic, social and cultural spheres. Money laundering refers to the illicit accumulation of money which is often diverted for various organised crimes.

Body · points and prose

Linkage: Globalisation and Money Laundering

  1. Globalisation increase cross border flow of illegal money ↳ promotes money laundering.

  2. Globalisation → led to technological Advancment ↓ Creation of Dark web

Diagram
Globalisation -> Tech Advancement -> Dark web -> Money laundering/Narcotics issues

  1. Globalisation → more easy money transactions secretly ↓ Tax evasion → used for money laundering.

  2. Globalisation → Social media promotion ↓ Easy recruitment of people (for money laundering acts).

  3. Globalisation → Radicalisation / Religious Indoctrination easy ↓ Promote money laundering for terrorism by recruiting Over Ground workers.

Initiatives

National

  1. Legal steps → PMLA 2002 for preventing money laundering.

  2. Establishment of Enforcement Directorate.

  3. Promoting Digitisation → to check on money laundering.

International steps

  1. Establishment of FATF (Financial Action Task Force).

  2. Categorisation of countries based on lists by FATF →

  • Black list (eg) Iran
  • Grey list (eg) Pakistan

  1. Base Erosion and Profit Shifting prevention by G7, G20 countries.

  2. Global minimum tax (proposed by G20 countries).

Close · a vision

Preventing money laundering can lead to a fruitful ecosystem for development of 'New India' as well as the world.

More on Money Laundering

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

All GS3 questions on Money Laundering