Technology has played an important role that has helped launderers, successfully indulge in money laundering process through online banking facilities and electronic funds transfer. However, it is technology again that has restricted such individuals from money laundering with the new innovations in the IT industry. The Acts are not that impressive, but the implications are serious/ India has become vulnerable in money laundering activities and RBI's panel has given recommendations to all in the banking sector and the financial institutions to contain money laundering by investing in technology.
Money Laundering is the practice of converting illegally obtained funds into legally obtained funds in order to mask one's own possession and the source of such funds. This activity is not new; in simple terms it can be stated as converting criminal money into white money. The practice of money laundering is very old, though the use of the term `Money Laundering' is of recent origin. Individuals, groups, officials and corporations may employ various money laundering techniques, but the objective always remains the same-to hide the source of money. Some despicable, anti-social and vested interest groups produce huge sums of money through their nefarious activities by indulging in crimes like drug trafficking, financial crime and cross-border crimes.
Money laundering is carried out under cover and it shies away from being highlighted. The goal is hiding the destination of the resources with the objective of either to escape from taxes, fund terrorist activities or hide illegal activities. Money laundering might not belong to anyone, but may just involve or benefit those indulging in it like, accountants, bank employees, and lawyers. In the long run, criminals may target larger financial institutions to launder money. Earlier, large volumes of money, multiple transactions involving large number of customers went unnoticed. Now, as the metro financial institutions have invested in technology to identify skeptical activities, criminals are shifting towards smaller financial institutions to carry out money laundering activities. |
