What is money laundering? (What is Money Laundering?)

our country money laundering A lot of controversies are coming out regarding this. For this reason, the hawala money in the country money laundering The word is becoming very popular. By the way, in the country in the year 1990 money laundering There were a lot of cases and the names of various leaders along with the persons associated with it also came to the fore. It is said that the first mafia groups of USA ‘Money Laundering’ used the word. These mafia collected a lot of money from wrong activities like extortion, gambling etc. and also showed this money in the right source. In this article you will be given the details of money laundering in our country.

money laundering

Money laundering, which is called ‘money-laundering’ in Hindi, is the act of concealing the source of money in an illegal way. This type of process can be used to legitimize the proceeds of crime. This type of money is obtained from criminal activities like narcotics, corruption, audit and other types of illegal activities and tax evasion. To do money laundering in such a way, black money is used or invested in such works that even no investigating agency can detect it.

rounderr

This is the person who does the work of rigging money and after doing the process of money laundering, he works to deliver the money earned through illegal means to the real owner in legal currency.

There can be various routes to legalize black money and these routes can be in a technical form from easy to difficult. Various regulatory and government authorities in the world or their national economy also declare the estimate of the amount of legalized black money in the tax year.

Steps in the Money Laundering Process

The money laundering process is completed in three stages –

placement

In this, the work of bringing the cash of money to the market is done. In this work, money launderers are obtained through illegal means in the form of cash in financial institutions such as banks or other types of formal and informal financial institutions.

layering

Now in the second step there is ‘layering’ to hide the money. Under this, the launderer hides the real income by rigging the account book or by showing wrong transactions. Launderers deposit the money in other investment instruments such as bonds, stocks and travelers checks or in bank accounts abroad. These accounts are usually located in countries that do not cooperate with anti-money laundering operations.

integration

This is the last step in the money laundering process. In this rounderr Works to bring back the money sent or spent abroad. This type of money is usually repatriated by investing in a company, buying real estate, buying luxury items.

Different Methods of Money Laundering

Fake Company (Shell Company)

We often hear about shell companies in the news media. In this type of companies no capital is actually invested. And in reality there is no work or even production in these companies. On many occasions, these companies do not even have any structure at the ground level and are just paper companies. The black money of these shell companies is reaching the real owner. Shell company method is the most famous method of money laundering.

investment in property

Many times it happens that a person is given land by the government at a low cost. The government does this for some special reason, but this type of work also happens in the work of money laundering. In this, they buy expensive land, houses, shops by showing them less value on paper. In this way this land tax has to be paid.

deposit in banks

In the last few decades, this work was seen happening very fast. In another famous process, to do money laundering, people collect money through many means and deposit it in a country in which the government of any other country does not have the right to check the said bank account. Such bank accounts are also called ‘safe haven’. A country ‘Switzerland’ is also an example for this type of work, which deposits black money of the people of India and these accounts have not yet been investigated. Similarly, Panama also came in the limelight because black money of big personalities was deposited in the bank accounts there.

Also read: EPF Withdrawal: How to withdraw money online from PF account and rules

Activities Involved in Money Laundering

• Money laundering involves various processes and the most prominent of these is the creation of a ‘shell company’.
• By the way, shell companies also look like other companies, but in reality these companies are neither doing any production nor do they have any property in their name.
• These shell companies are prepared only on paper and they do not exist in reality.
• Although the person involved in money laundering shows huge transactions on the balance sheet of this company.
• In the name of these companies, work is also done to take advantage of exemptions from the government under various sections. And their income tax return is also not filed.
• By such fake and illegal activities, they also collect a lot of black money.
• To escape from the hands of government investigating agencies, these people prepare fake certificates.
• Apart from this, money laundering is also done by buying a big house, shop and mall etc. by showing less value on paper.
• By using all these methods, they collect ‘black money’ through tax evasion.

Money-laundering laws in the country

The PMLA Act (Prevention of Money Laundering) has been created to prevent the illegal act of money laundering. Apart from this, there is a law to confiscate property in this work. Under this act, the government or the concerned organization has the right to confiscate the money and property earned through illegal means. Institutions like ED and CBI investigate a case like this.

Punishment in PMLA Act

If found guilty, the accused person can be sentenced to 3 to 7 years. Apart from this, fine will also have to be paid. Adding law sections can lead to 10 years of imprisonment with fine.

money laundering questions