{"id":160749,"date":"2022-01-11T20:50:29","date_gmt":"2022-01-11T15:20:29","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=160749"},"modified":"2022-01-11T20:50:29","modified_gmt":"2022-01-11T15:20:29","slug":"answered-discuss-how-emerging-technologies-and-globalization-contribute-to-money-laundering-elaborate-measures-to-tackle-the-problem-of-money-laundering-both-at-national-and-international-levels","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/answered-discuss-how-emerging-technologies-and-globalization-contribute-to-money-laundering-elaborate-measures-to-tackle-the-problem-of-money-laundering-both-at-national-and-international-levels\/","title":{"rendered":"[Answered] Discuss how emerging technologies and globalization contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels."},"content":{"rendered":"

Money laundering\u00a0is\u00a0disguising the identity of illegally obtained money\u00a0so that it would appear to have originated from legitimate sources. Money laundering is\u00a0generally used by\u00a0criminals\u00a0to disguise their illicit funds,\u00a0terrorists\u00a0to dodge tracking\u00a0or\u00a0tax\u00a0evaders.<\/span>\u00a0<\/span><\/p>\n

Emerging technologies contribute to money laundering in following ways:\u00a0<\/strong><\/p>\n

    \n
  1. Use of\u00a0cryptocurrencies\u00a0and\u00a0alternate finance\u00a0that are unregulated by governments<\/span>\u00a0<\/span><\/li>\n
  2. Encrypted conversations\u00a0facilitate exchange of information about money laundering\u00a0<\/span>\u00a0<\/span><\/li>\n
  3. Large volume of digital transactions\u00a0at\u00a0online market places\u00a0is used to\u00a0disguises the structured chunks of layered money.<\/span>\u00a0<\/span><\/li>\n
  4. Identity\u00a0theft\u00a0through\u00a0hacking of credit card information etc. Is used to layer illegitimate money under\u00a0untraceable\u00a0identities.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    Globalization contributes to money laundering in following ways:\u00a0<\/strong><\/p>\n

      \n
    1. Placement of money in\u00a0global financial system\u00a0creates problems of coordination between\u00a0multiple jurisdictions.<\/span>\u00a0<\/span><\/li>\n
    2. Tax haven\u00a0countries like Cayman Island, Panama etc.\u00a0have\u00a0structured their economies around\u00a0assistance\u00a0in tax evasion.<\/span>\u00a0<\/span><\/li>\n
    3. Distribution of\u00a0assets across countries\u00a0prevents\u00a0punitive action by authorities.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

      Following national and international measures have been enacted to tackle money laundering:\u00a0<\/strong><\/p>\n

        \n
      1. Prevention of Money Laundering Act (PMLA), 2002\u00a0established the legal framework to prevent money laundering. It criminalizes money laundering as\u00a0a cognizable, non-bailable offence.<\/span>\u00a0<\/span><\/li>\n
      2. The\u00a0Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976\u00a0and\u00a0Narcotic Drugs and Psychotropic Substances Act, 1985\u00a0provides for the penalty of property derived from\u00a0smuggling or\u00a0illegal traffic in narcotic drugs.<\/span>\u00a0<\/span><\/li>\n
      3. Financial Intelligence Unit \u2013 India (FIU-IND)\u00a0coordinates\u00a0efforts of national and international\u00a0intelligence, investigation and enforcement\u00a0agencies\u00a0against\u00a0money laundering<\/span>\u00a0<\/span><\/li>\n
      4. RBI regulations and KYC norms\u00a0issued from time to time try to keep up with evolving threats and methods of money laundering.<\/span>\u00a0<\/span><\/li>\n
      5. The\u00a0Vienna Convention\u00a0makes it obligatory for\u00a0signatory states to criminalize the laundering of money from drug trafficking.<\/span>\u00a0<\/span><\/li>\n
      6. The\u00a0financial action task\u00a0force\u00a0(FATF)\u00a0sets standards and promotes effective implementation of legal, regulatory and operational measures against\u00a0money laundering; terror financing.<\/span>\u00a0<\/span><\/li>\n
      7. The\u00a0OECD\u00a0forum has adopted\u00a0convention against money laundering.\u00a0It supports\u00a0appropriate safeguards,\u00a0access to\u00a0tax administration\u00a0in\u00a0suspicious transaction\u00a0based on information received from\u00a0FIUs.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

        Money Laundering is a global menace which require global effort to curb it. Mutual cooperation among Nations, financial institutions along with use of technological counter-measures such as big data and artificial intelligence is required to curb the menace of money laundering.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

        Money laundering\u00a0is\u00a0disguising the identity of illegally obtained money\u00a0so that it would appear to have originated from legitimate sources. Money laundering is\u00a0generally used by\u00a0criminals\u00a0to disguise their illicit funds,\u00a0terrorists\u00a0to dodge tracking\u00a0or\u00a0tax\u00a0evaders.\u00a0 Emerging technologies contribute to money laundering in following ways:\u00a0 Use of\u00a0cryptocurrencies\u00a0and\u00a0alternate finance\u00a0that are unregulated by governments\u00a0 Encrypted conversations\u00a0facilitate exchange of information about money laundering\u00a0\u00a0 Large volume… Continue reading [Answered] Discuss how emerging technologies and globalization contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-160749","post","type-post","status-publish","format-standard","hentry","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":218,"cached_at":"","cached_date":1700117899},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=160749"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160749\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=160749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=160749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=160749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}