Tuesday, December 14, 2010

Money Laundering - An overview

Criminal enterprises today supports a huge global economy, with a gross domestic product estimated at as high as five percent of world GDP. The World Bank puts the proceeds of crime, in recent years, at US$800 billion to US$1 trillion annually a degree of economic leverage trumped by only a few of the world's most developed nations. Money laundering is the process by which large amounts of illegally obtained money (from drug trafficking, terrorist activity or other serious crimes) is given the appearance of having originated from a legitimate source.
Money laundering at its very essence is not a single act but is in fact a process that is accomplished in three basic steps. These steps can be taken at the same time in the course of a single transaction, but they can also appear in well separable forms one by one as well. The steps are:- Placement; Layering; and Integration. Owning a bank is a classic means to launder huge sums of money. In Russia and some East European States, banks can be readily purchased for very little money- though few of them have electronic banking access to SWIFT
The ravages of transnational crime are apparent everywhere terror, addictive and debilitating drugs, the ubiquity of combat rifles and handguns, political corruption, smuggling, tax evasion, trading in women and children, counterfeiting of goods and currency, and much more. Money laundering the methodology by which ill-gotten gains are legitimized is the visible link at which such crime can be most effectively attacked.
Using the Indian experience to particularize the issues, the investigations are being made w.r.t the forces that determine the various means of money laundering and its opposition in today's globalized world. Indian newspapers frequently report the money laundering scams perpetrated by the Political leaders and some of the prominent stars are the chief ministers of UP, Punjab and Kerala. UP chief minister Ms. Mayawati as per the Indian Express reports used some innovative techniques to launder the money by avoiding the tax in legitimate manner. She accepted the donations from persons who were road side heroes. When CBI raided these guys were found in no position to donate huge sums for political motives.
Thus money launderers are acting as vicious sources to launder their dirt and present it as the brain storming exercises for the judiciary and the legal experts.

Ramakant Gaur.
Advocate
Supreme Court of India
09810004702

2 comments:

  1. Thank you admin for sharing this useful material, I would like to add on Mr. Kislay Pandey, a Money Laundering Advocate in India

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  2. Hi,

    This was a really wonderful post. thanks for providing this info. Thanx :)

    Money laundering Lawyer

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