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ney laundering is the illegal process of concealing the origins of money obtained illegally by passing it through a complex sequence of banking transfers or commercial transactions. The overall scheme of this process returns the money to the launderer in an obscure and indirect way.[1]
One problem of criminal activities is accounting for the proceeds without raising the suspicion of law enforcement agencies. Considerable time and effort may be put into strategies which enable the safe use of those proceeds without raising unwanted suspicion. Implementing such strategies is generally called money laundering. After money has been laundered, it can be used for legitimate purposes.
Law enforcement agencies of many jurisdictions have set up sophisticated systems in an effort to detect suspicious transactions or activities, and many have set up international cooperative arrangements to assist each other in these endeavors.
Prevention of Money Laundering Act, 2002 is an Act of the Parliament of India enacted by the NDA government to prevent money-laundering and to provide for confiscation of property
There are various indications of money laundering.
1. Incoming of funds in small amounts and adding up as grand deposit.
2. Sending of funds in small amounts with large number of transactions.
3. Using different identification for deposits into one account.
4. Seggergating a big amount in small amounts for deposit or withdrawal.
5. Channelizing funds into different acounts and finally depositing into one account.
6. Placing funds in the name of other people like employees and relatives.
Any source of fund that doesn't comply with the business ethics.