What is Money Laundering?

• Money laundering is the name given to the process by which illegally

obtained funds are given the appearance of having been legitimately
obtained.
• According to Swiss Bank :
Money laundering is a process whereby the origin of funds generated
by illegal means is concealed.
• Eg. Drug trafficking, guns smuggling,corruption,terrorism,etc
Objectives of Money Laundering
• Money laundering is performed systemically, making it difficult to
identify how much money is involved.

• Hide
• Move
• Invest
Stages of money laundering
• There are 3 stages in money laundering
Placement
Layering
Integration
Money Laundering Techniques
• Bulk Cash Smuggling
• Structuring
• Cash intensive business
• Trade based laundering
• Shell companies
• Bank capture
• Real estate laundering
• Casino laundering
Causes of Money Laundering
• Absence of legislation
• Evasion of tax
• Increase in profit
• To make black money appear white money
• Limited risk of exposure
Effects of Money Laundering on Economy
• Economic distortion and instability
• Money laundering facilitates corruption and crime
• Loss of control of economic policy
• Undermining the integrity of financial market
• Evasion of Tax
Effects of Money Laundering on Society

• Concentration of power to criminal

• Undermines democracy
Anti Money Laundering Laws
Prevention of Money Laundering Act,2002
Financial Action Task Force
Other Money Laundering Regulations
• The Money Laundering Control Act of 1986
• The 1988 anti drug abuse act
• The money laundering suppression Act of 1994
• The Money Laundering and financial crime strategy Act of 1998
Recent Money Laundering Cases
• Vijay Mallya
Recent Money Laundering Cases
• Palaniappan Chidambaram – INX Media Case.