Medha AnandAIR 13 · CSE 2023 · 199 wordsTheir whole copy
Opening · a definition
Money Laundering refers to the induction of illegal black money into the money supply to make it white while avoiding tax authorities gaze.
Global solutions to Money Laundering
Body · points
A UN convention led to countries evolving their anti money laundering Act. India evolved Prevention of Money Laundering Act, 2002.
Money laundering involves layering, placing and integrating requiring international support to carry it.
Ways like Hawala, connection to drug trafficking, organized crimes require international cooperation.
Financial Action Task Force (FATF)'s main aim is to prevent money laundering.
- Vienna convention also ensures that countries come forward to curb it.
Ways to curb it -
- stringent laws - Recently SC upheld stringent provisions of PMLA. Ex- (a) ECIR (FIR types) not to be made available to accused (b) Burden of proof lies on accused and "twin conditions" for bail have been reinstated. (c) self incrimination allowed. (d) Proximate offences will also be counted as offences.
- International cooperation to cut cross border money laundering.
- FATF to frequently declare its grey and black lists.
Close · a summary
Money laundering is directly related to organized crimes, drug and human trafficking and thus required to be curbed to ensure economic peace and progress.