A Study on “Benefits of Anti – Money Laundering in India”
By
E.Srinivasan RollNo:EMSL14044 EMP ID: M0958 LIBA-Intern Maveric-System Ltd
Benefits of Anti – Money Laundering in India
Synopsis
1. Introduction
2. Project Description
3. Objective of the Study
4. Process of Money Laundering
5. Effects of Money Laundering
6. Cases of Money Laundering
7. Emergence of AML
8. Prevention of ML in India
9. Benefits of AML in India
10. Recommendations
11. Conclusion
1. INTRODUCTION
Money laundering is the process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived from a legitimate source. This illegal activities were predominant in developing countries such as India,
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It appears to come from a legal transaction. At this point, the criminal can use the money without getting caught. It's very difficult to catch a launderer during the integration stage if there is no documentation during the previous stages.
4.2 Methods adopted to launder money The various measures adopted all over the world for money laundering are discussed below
• Structuring deposits or smurfing large amount of money is broken into smaller, less-suspicious amount.
• Overseas banks underground or alternative banking Money launderers send money through various "offshore accounts" in countries that have bank secrecy laws, which allows criminals to proceed all their intents and purposes. It allows customers to make many number of bank transfers to and from offshore banks.
• Shell companies These are fake companies started particularly to launder money. They take in dirty money as "payment" for supposed goods or services but actually provide no goods or services. Then they create the carry out the legal transactions with the falsified documents.
• Investing in legitimate
The author of the book "419" is Canadian author Will Ferguson. In the book, the author examines the common form of fraud, whose peak came 80 years with the advent of mass mailings of letters by mail, and then, by the Internet. Usually the fraudsters asks the mail recipient help in multi-million dollar money transactions, promising that he will have a percentage from this money. If the recipient agrees to participate, he gradually defrauds the increasingly large sums of money, allegedly for taxes, bribes to officials, making deals, etc. Often during extortion, fraudsters use psychological pressure. I think the title of this book came from Nigerian criminal code for fraud 419. Today, the scale of the crime syndicate are amaze, and with the advent of the Internet, they have further increased. Letters from Nigeria today are worldwide, and they are millions. Although many of you will think this is funny, but only in the United States according to police estimates each year they make around 100 million dollars, with a clear growth tendency.
Not identified, but certainly plausible with the internal control processes described is the "death by a thousand cuts". Sachdeva and Mulvaney were in position to put through small transactions that may not be detected. This is a cash larceny scheme.
For Tenth National Bank, we have reason to believe that the client intercepted the paper confirmation. After we sent the paper confirmation to the bank, we received an email from Lou Jennings stating that the bank forwarded the confirmation directly to their office instead of sending it to the audit team. In addition, Mr. Jennings provided login credentials and a link to the bank’s website, which did not appear to be reliable. As per the video, “How to Fight Confirmation Fraud”, presented by the founder of confirmation.com, Brian Fox, a fictitious website can be created easily. Our skepticism toward the reliability of the website is based on the unresponsiveness of most of the links on the site; the only link that works is the login button. In addition the website appeared dated and rudimentary. Another factor we found quite strange is that the website only offers paper statement deliveries, which we find highly unusual since paper statements are easier to modify. Furthermore, based on the tracking provided by USPS, the letter is still in the shipping process with no indication that Tenth National Bank has officially received the request for confirmation. This further supports our theory that Lou Jennings intercepted the Tenth National Bank confirmation letter. In our o...
The Mexican drug cartels have been smuggling drugs across the boarder of Mexico to the United States of America for decades. The Mexican drug cartels are a drug smuggling criminal organization. In other words they run a narcotic drug business. * In my research, I will be discussing about the money being laundered by the Mexican drug cartels from the U.S. to Mexico. The cartels need to launder their money in order to be able to take their drug money back to their country of Mexico.
There are multiple crime television shows that are based on a true story or fiction. A well known television show is Law and Order Special Victims Unit, which deals with rape and assault cases. This particular episode deals with a domestic violence case between a retired football star, AJ Martin, and his girlfriend, Paula Bryant. I will be using the National Crime Victimization Survey, which is an interview with the members in a household about reported and unreported crime that occurred within the last six months. “NVCS provides information of characteristics of victims, including age, race, ethnicity, gender, marital status and household income” (Truman and Morgan). Official statistics like the NCVS would be used for comparing its demographics
These scams do not look like Ponzi scheme. Hidden scheme are also called pyramid scheme. These schemes are legal and “they often arise when business manipulates their operations to stay afloat when times are tough” (Basu, 2014 p.3). Even though this is a Ponzi they are hard to detect because they are “intertwined with perfectly legitimate activities” (Basu, 2014 p.3). Some “companies and governments indulge from time to time in what is called juggling” (Basu, 2014 p.3). This happen when a company does not what to liquidate a portion of an asset. This can cost the company to pay also more many back to the
The forms of bribery and embezzlement have been around longer than dirt. The earliest white-collar crime, that was documented, dates back to the 15th century in England. The law was forced upon society in 1473 in response to embezzlement, or also recognized as the Carrier’s Case. In this situation, a wool representative gave a man his trust in transporting. Unfortunately, the man ended up attempting to steal some of the wool for himself. Although, these terms were known around this time, the concept of the crime wasn’t well understood until around the 20th century ("History of White-Collar Crime”).
Money is the main source of power in the world, but in ways it can be viewed as good or bad depending on the situation. It has a negative connotation when mentioned by the word “acts”. “ Acts” means to perform a fictional role. Which shows that most things involving money are fake. Though humans associate being fake with being morally wrong,but its somehow acceptable if there is a greater power involved. Another definition for acts is to take action;do something. In this case to take an action can be either good or bad. There are many ways to come across money, but nobody cares if it is good or bad because it deals with a greater power.
...benefit economically from their activities on these markets. Countries with offshore centers that specialize in money-laundering reap significant benefits. Unlike the negative effects of the Mafia and organized crime, the positive effects are direct and quickly noticeable (Van Dijk 56). Even though it may seem like the revenue from all of the illegal activities helps the economy, it actually does not. There are profits but it does all lead back to negativity: corruption, lesser rule of law, risk of business, etc. The economy is actually slowed down and weakened rather than strengthened (Van Dijk 52).
Supporting these businesses is ‘Shell Services International’, a shared services organization offering transactional services and in-house consultancy." (Mahieu .C, 2001) "At the heart of these businesses is the principle that Shell companies in each country should be independent, operating as part of the local community. Each is run by people who understand the local environment. They have the authority and autonomy to make all normal business decisions." ( Shell.ca, 2005)
Embezzlement is described in the book Criminology Today by Frank Schmalleger as, ”The unlawful misappropriation for personal use of money, property or other thing of value entrusted to the offender’s care, custody, or control”. One well known embezzlement case was discovered in 2008, it was perpetrated by Ausaf Umar Siddiqui a Pakistani American, better known a...
Offshore banking is the action of having a bank account outside of the country of residence. Since its start, offshore banking has become a considerably lucrative business. Many of those who take part in offshore banking are looking for a secure location to place their income or seize the opportunity of having lower taxes. However, there are those who misuse the privilege of a foreign bank and use the business ventures for illegal actions rather than the original purpose of the dealings. Offshore banks seem to have an impartial acceptance of quite a few clients within the bank that create a lower standard of ethics in contrast to the ethics meant to be held—this includes those of a political position. Furthermore, this has the potential to be detrimental to the economy.
Fraud and white-collar crime are common forms of crimes that people commit in various aspects and positions in the corporate world. Fraud and white-collar crimes have similar meaning as they refer to the non-violent crimes that people commit with the basic objective of gaining money using illegal means. The cases of white-collar crimes have been increasing exponentially in the 21st century due to the advent of technology because fraudsters apply technological tools in cheating, swindling, embezzling, and defrauding people or organizations. White-collar crime is a complex issue in society because its occurrence is dependent on many factors such as organizational structure, organization culture, and personality traits. Thus, the literature review examines how organizational structure, organizational culture, and personality traits contribute to the occurrence of white-collar crimes.
This type of fraud has to do with shipping. Criminals send fake emails out from a company such as PayPal, saying that the money is being held until the victim replies to the email with a tracking number. When the victim gives the requested information, the criminal ignores the victim completely and takes their money.... ... middle of paper ... ...
As mentioned earlier money laundering is the process of hiding profits from illegal criminal activities. The major goal of these criminal activities is to make as large of a profit as possible. The money laundering process is very important to these criminals because it allows them to enjoy their profits without revealing the source. When one of these activities generates large profits, the group involved must find a way to disguise the funds without attracting attention towards themselves. The way they accomplish this is by moving the funds to an indiscrete place where they are less likely to attract lots of attention. This allows the group to keep the source of the profits hidden so that it is always available to them. Money laundering is usually done in countries in which they have few or very weak laws ...