Essay on money laundering in India
All of us know that there are a lot of legal ways to earn a fortune in this world. Unfortunately, some people don’t want to share their earnings with a country that is why they look for an illegal way to do it. In such cases you don’t need to pay taxes, to record your earnings and other things that need a huge small sum of money. Simply put, money that was earned by illegal means calls laundered money.
The meaning came from the United States of America, where a notorious mafia tried to make their money legal. They got it by extortions, blackmailing and so on. They decided to do it through laundomats.
According to the money laundering statistics, India is one of the famous one in the whole world. Such a huge amount of money was laundered during the last decade.
The first stage of money laundering is placement. It means that a person dispose his cash depositing it in different banks or institution.
The second stage is layering. The main purpose of this stage is to alienate money from the first source in order to avoid anti-money laundering investigations.
The third one is integration. During this stage all the money are ‘clear’. They can be invested in real estate, companies and so on.
Nowadays, there are a lot of ways which are easier for people who launder money. Due to appearing of crypto currency you can do laundry more way easier.
The Parliament of India created a special act which is called the Prevention of Money Laundering Act, 2002. This act allows to confiscate real estate and other things that were bought with help of laundered money. The enormous investigation at that time revealed a lot of money-launders among politicians and other people on high posts. The Banks had to do records of actions on every account. These records should be maintained at least for ten years.
Unfortunately, there is no way to avoid a crypto-currency money laundering for today in India.