{"id":40810,"date":"2019-01-21T18:31:33","date_gmt":"2019-01-21T13:01:33","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=40810"},"modified":"2019-01-21T18:31:33","modified_gmt":"2019-01-21T13:01:33","slug":"detecting-the-movement-of-illegitimate-funds-is-a-challenging-task","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/detecting-the-movement-of-illegitimate-funds-is-a-challenging-task\/","title":{"rendered":"Detecting the movement of illegitimate funds is a challenging task"},"content":{"rendered":"<p><a href=\"https:\/\/www.hindustantimes.com\/analysis\/detecting-the-movement-of-illegitimate-funds-is-a-challenging-task\/story-t4939cOqZcQ1yoOU3vmAEM.html\"><strong>Detecting the movement of illegitimate funds is a challenging task<\/strong><\/a><\/p>\n<p><strong><u>Money Laundering:<\/u><\/strong><\/p>\n<ul>\n<li>Money laundering is a process of converting illegitimate money into legitimate money to avoid law enforcement agencies scrutiny<\/li>\n<\/ul>\n<p><strong><u>Illegitimate Money and Money Laundering: <\/u><\/strong><\/p>\n<ul>\n<li>Illegitimate money drives the world of crime and <strong>money laundering is oxygen line which assist illegitimate money to thrive<\/strong><\/li>\n<\/ul>\n<p><strong><u>Forms of Illegitimate Money:<\/u><\/strong><\/p>\n<ul>\n<li><strong>Black Money<\/strong>: resulting from tax evasion<\/li>\n<li><strong>Pink Money<\/strong>: resulting from drug trafficking<\/li>\n<li><strong>Red Money<\/strong>: resulting from crime acts<\/li>\n<\/ul>\n<p><strong><u>Stages of Money Laundering:<\/u><\/strong><\/p>\n<ul>\n<li><strong><u>Placement:<\/u><\/strong> refers to first use of illegitimate money which is in form of <strong>cash<\/strong>. For Eg. depositing illegitimate cash in bank or giving loan<\/li>\n<li><strong><u>Layering:<\/u><\/strong> refers to <strong>creation of paper trail<\/strong> to conceal origin of illegitimate money. For Eg. taking loan against bank deposit and buying property A (first layer) and then after some time sell property A and buy property B (second layer) and so on. Profits generated is used to pay loan making difficult for law enforcement agency to unravel source of money<\/li>\n<li><strong><u>Integration:<\/u><\/strong> refers to stage where number of layers leads to illegitimate money getting integrated into the financial system<\/li>\n<\/ul>\n<p><strong><u>Difficulties in Money Laundering Detection:<\/u><\/strong><\/p>\n<ul>\n<li>Cases where money laundering reach advance layers in layering stage and in integrating stage<\/li>\n<li><strong>Cases where money laundering structures involve various countries (tax havens), making it cumbersome and time consuming to trace the original ownership of money<\/strong><\/li>\n<\/ul>\n<p><strong><u>Effects of Money Laundering:<\/u><\/strong><\/p>\n<ul>\n<li>Negatively Impact legitimate business, law abiding citizen, global economy<\/li>\n<li>Costs <strong>nation&#8217;s economic progress, security and social justice<\/strong><\/li>\n<\/ul>\n<p><strong><u>International&#8217;s Efforts to counter Money Laundering:<\/u><\/strong><\/p>\n<ul>\n<li>1988: <strong>United Nations convention (Vienna convention) to prevent drug-related money laundering<\/strong>: includes international cooperation to fight money laundering and relaxation in bank secrecy law to curb criminal use of financial system<\/li>\n<li>1989: <strong>Basel Committee on Banking Supervision<\/strong> decided that banks should assist law enforcement agencies in tackling money laundering<\/li>\n<li>1989: <strong>Financial Action Task Force (FATF)<\/strong> a intergovernmental body created for development and promotion of national and international policies to combat money laundering and terror financing. <strong>India became its member in 2010<\/strong><\/li>\n<li>1995: <strong>Egmont Group<\/strong>, consisting of Financial Intelligence Units (FIU) of 155 countries to enforce the international cooperation. <strong>India joined it in 2007<\/strong><\/li>\n<\/ul>\n<p><strong><u>India&#8217;s Effort to counter Money Laundering:<\/u><\/strong><\/p>\n<ul>\n<li>2005: <strong>Prevention of Money Laundering Act 2002 (PMLA)<\/strong>: primary agency responsible for enforcing the act is the <strong>Directorate of Enforcement<\/strong><\/li>\n<li>2004: <strong>Financial Intelligence Unit (FIU)<\/strong> : responsible for collecting intelligence from the financial sector and sharing it with investigative agencies<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Detecting the movement of illegitimate funds is a challenging task Money Laundering: Money laundering is a process of converting illegitimate money into legitimate money to avoid law enforcement agencies scrutiny Illegitimate Money and Money Laundering: Illegitimate money drives the world of crime and money laundering is oxygen line which assist illegitimate money to thrive Forms&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/detecting-the-movement-of-illegitimate-funds-is-a-challenging-task\/\">Continue reading <span class=\"screen-reader-text\">Detecting the movement of illegitimate funds is a challenging task<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-40810","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700774625,"cached_date":1704874179},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/40810","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=40810"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/40810\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=40810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=40810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=40810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}