Banking Law Project : Money Laundering

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Banking Law Project MONEY LAUNDERING Submitted to : Rohit Kumar Dharua BA.LLB, Section “B” , 1383067 Contents INTRODUCTION 2 MONEY LAUNDERING IN INDIA 2 METHODS OF MONEY LAUNDERING 4 PUNISHMENT FOR MONEY LAUNDERING 5 STEPS TO PREVENT MONEY LAUNDERING 5 INTRODUCTION Money laundering is the generic term used to describe 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 . In other words it is a practice which engages in specific financial transactions, in order to conceal the identity, source or destination of money. It is the main operation of underground economy. The Interpol General Secretariat Assembly in 1995 defined money laundering as: “Any act or attempted act to conceal or disguise the identity of illegally obtained proceeds, so that they appear to have originated from legitimate sources”. BASIC CONCEPT: Money laundering is the process, by which, large amounts of illegally obtained money is given the facade of having a legitimate source. Earlier the concept of money laundering was associated with organized crime alone. However in recent times, the ambit of money laundering operations has dramatically increased. The concept of money laundering originated in the U.S.A. It started with the attempt to disguise the ill-gotten wealth, obtained from trading in alcoholic beverages. American mobster Meyer Lansky
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