AIR 403 · CSE 2024 · GS3 · 56 pages

Vandita: GS3 answer copy

20 answers by Vandita, as written in the test. Each question opens a page with how other toppers answered it.

The questions

The answers

Question 1 · 10 marks · 140 words written

Discuss the different methods used in money laundering. Elaborate measures taken by the Indian government to counter money laundering in India.

Opening · a definition

The act of converting black money into white money using layering of transactions is Money Laundering. METHODS OF MONEY LAUNDERING

Body · points and prose

oney Laundering

  • (1) loss of tax to government
  • (2) used in illegal activities like arms and drug smuggling
  • (3) threat to national security
  • (4) terror funding

METHODS OF MONEY LAUNDERING

  • (1) Shell companies in tax havens. (eg) parent companies with no independent functioning located in Hawaii
  • (2) Hawala transaction transnational movement of money through channels.

③ False purchase of assets at over valuated prices

eg) buying property in foreign countries at 30 times more than real worth.

④ Fake donations in NGO & charities eg) 30% of Indian NGO ecosystem support money laundering.

×

MEASURES BY GOVERNMENT

① Stringent PMLA - Prevention of Money Laundering Act - burden of proof on accused

② Exceptional powers of Enforcement Department - under Ministry of Finance - GPC norms donot apply

③ Boast to digital payment ecosystem - Digitalisation of economy, GST filing, CBDC are all attempts to curb money laundering.

Close · no separate close

None written.