What is Money Laundering - INFORMATION ABOUT MONEY LAUNDERING

#1. INFORMATION ABOUT MONEY LAUNDERING.

What is Money Laundering - INFORMATION ABOUT MONEY LAUNDERING Cases of money laundering are being exposed due to corruption in India, due to which India has to face a lot of financial loss. The term money laundering is used to legitimize money earned illegally. The government does not have any account of this type of money, the government has made many strict rules to stop it. On this page, what is MONEY Laundering (Money Laundering), the law for money-laundering in India is being told.

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#2. ORIGIN OF THE WORD MONEY LAUNDERING

The term 'money laundering' originated in the United States of America. In America, the mafia used to extort from other people and collect huge amount of money from illegal gambling, smuggling. After this, he used to present the money to the government in a legal way. For this the word money laundering was used there.

#3. When was the term money laundering first used (WHEN WAS THE WORD "MONEY LAUNDERING" FIRST USED)?

In the 1980s in the United States, illegal money began to be converted into legal form on a very large scale. The term 'money laundering' was used in the US Senate for this type of money.

#4. MONEY LAUNDERING IN INDIA

In India too, the work of legalizing illegal money used to be secretly done. But in the 1990s, "Money Laundering" is known as the term Hawala transactions.

#5. DEFINITION OF MONEY LAUNDERING

The conversion of illegally earned income into legitimate form is called money laundering. In this, the investigating agency also fails to find out the source of income that has been legally changed. The person who launders his illegal money in this way is called a "LAUNDERER".

#6. STEPS OF MONEY LAUNDERING

There are mainly three stages of money laundering.

• Placement
• LAYERING
• INTEGRATION
• Placement

This is the first stage of money laundering, in which the person earning illegally deposits the income through wrong means.

#7. LAYERING

In this stage the person hides his real income. For this, he shows less or wrong flow of money. He hides his money in bonds, stocks, and traveler's checks or abroad. There are many countries in the world that do not cooperate in money laundering, such people hide this type of money in this country, such as Switzerland etc.

#8. INTEGRATION

In this phase the money spent from outside or from other sources again comes back to that person legally. This money comes back through investment in a company, buying real estate, buying luxury goods etc.

#9. WAYS OF MONEY LAUNDERING

Money laundering person creates many fake companies to make his money appear as legitimate, such companies are also called "shell companies". Transactions worth crores are shown in the balance sheet of these companies, which do not actually happen. It does not pay income tax. If someone checks these, they are given wrong information. This company runs only on paper, in reality they do not exist. In other ways, individuals buy movable and immovable property with illegal income, whose value is shown to be very low, so that tax can be saved.

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#10. Laws for money-laundering in India

The law for money-laundering in India was made in the year 2002, it was passed in the name of Prevention of Money-laundering Act, 2002 (PREVENTION OF MONEY LAUNDERING ACT, 2002). So far three amendments have been made in this Act. These amendments have been done in 2005, 2009 and 2012. In this act, illegal transactions have been brought under the purview of the law.

Here we have provided you information about money laundering, if you have any kind of question related to this information, or want to get any other information related to it, then you can ask through the comment box. We are wait for your feedback and suggestions.