Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (150 words) [2021]
Emerging technologies and globalisation have significantly contributed to money laundering. With the advancement of technology, the use of more sophisticated methods of money laundering have increased. This includes the usage of online banking, virtual currencies, and even online marketplaces to transfer and hide illicit funds. Globalization has also made it easier to move money across borders and create offshore accounts to launder funds.
In order to tackle the problem of money laundering, both India and internationally, various measures have been taken. At the international level, FATF (Financial Action Task Force) has been established to develop and promote policies to fight money laundering and other related crimes. At the national level, India has implemented the PMLA (Prevention of Money Laundering Act) 2002 and the Benami Transactions Act, 1988 to prevent money laundering activities. Additionally, the Government of India has also established the Financial Intelligence Unit (FIU) to monitor and gather financial intelligence to identify suspicious activities. Banks are also required to adhere to strict KYC (Know Your Customer) norms and maintain customer records to detect any suspicious transactions.
