Before Understanding the term Anti-Money Laundering, we need to know about Money Laundering. Money Laundering is the process of making Illegal money that appears to have come from Legal Sources. Illegal money is the money obtained from Illicit activities or means. For Example- Money came from selling drugs. Now, there are a lot of sources of Illegal Money such as Tax Evasions, Printing & Using counterfeiting notes, Trafficking of Drugs/ Human/ Human Organs/ Arms & Ammunition, Poaching of Endangered species & selling their parts, and smuggling of goods.
“Anti-Money Laundering” is the process by which financial institutions set Laws to prevent Money Laundering. There are 3 steps involved in the Money Laundering process Placement, Layering, and Integration. Moreover, Financial Action Task Force (FATF) is an international body established in 1989 to work toward the objective of Anti-Money Laundering. Every country should have a Financial Intelligence Unit (FIU) to work against money laundering and related crimes.
Recently, India came across a lot of cases of Money Laundering such as the Enforcement Directorate (ED) seizing assets worth Rs. 96 Crore of Madhucon Group, Cases of Chinese mobile manufacturing companies like VIVO & XIAOMI, a Probe against Delhi minister Mr Satendra Jain, and many more other cases.
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