Money Laundering

Former Delhi Deputy CM Manish Sisodia was arrested by the Enforcement Directorate (ED) on Thursday (March 9) after about 8 hours of questioning in the money laundering case. The ED team probing the money laundering scam in the liquor policy had reached Tihar Jail for questioning Sisodia. On August 22, 2022, the ED registered a case of money laundering in the liquor scam on Sisodia and after 6 months of investigation, the CBI arrested him on February 26. The Delhi court on Monday sent him to judicial custody till March 20. Today we will tell you the details about money laundering, in which case Sisodia has been arrested. Let us know what is money laundering?

Know about Money Laundering

The word Money Laundering originated from the Mafia Group in America became a worrying matter in the year 1980s. These days there is a ruckus in the politics of India due to money laundering. Money laundering in India is known as transaction. During the year 1990, it came in the most discussion in India when the names of many leaders were revealed in it.

Money laundering is the showing of illegally earned black money in a legal manner. Money laundering is one way of hiding illegal funds. Through money laundering, this black money is invested in such works that even the investigating agencies are not able to trace its main source. The person who manipulates black money is called ‘launderer’. The process of money laundering involves three steps namely placement, layering and integration.

1. In placement, the launderer deposits his illegally earned money in cash in banks or other financial institutions.

2. Layering is related to hiding money. In this, the launderer falsifies his bank passbook and hides his real income by doing other suspicious transactions. The same launderer deposits his money in bonds, stocks and travelers checks or in his bank accounts abroad. This account is often opened in banks of countries that do not cooperate with anti-money laundering operations.

3. Money sent out through the integration process or money spent in the country comes back to the launderer as legal money. Such money often comes back through investing in a company, buying real estate, buying luxury goods, etc.

Ways to do money laundering

There are many ways to do money laundering, in which the most important is to create a fake company (shell company). These companies are just like a real company, but in reality neither any asset nor any production work takes place in it. These shell companies exist only on paper. By showing large transactions in the balance sheet of shell companies, the launderer takes loans in the name of the company and gets tax exemption from the government. Along with this, income tax returns are not filed and a lot of black money is accumulated through such fraudulent activities. In case, a third party comes to investigate, they are shown false documents as to the source and location of the funds to confuse the investigation.

There is also a way of money laundering when the launderer deposits his black money through many means in the banks of such countries, where the government of that country does not have the right to check his account. For example, it is believed that a lot of black money of Indian people is deposited in Swiss banks of Switzerland, which has been earned by money laundering.

Money-laundering law in India

In the year 2002, Money-laundering law was enacted in India. But it has been amended 3 times, which has been done in the years 2005, 2009 and 2012. The last amendment of the year 2012 got the assent of the President on January 3, 2013, which was implemented from February 15. The PMLA (Amendment) Act, 2012 has included concealment of money, acquisition of money, possession and use of money in criminal activities, etc. in the list of offences. ED investigates money laundering cases.

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