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Money Laundering..........

CA Parag Shukla (Practicing Chartered Accountant) (153 Points)

11 June 2010

Please describe about the "Money Laundering" with relevant examples.........

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Akhil Gupta (Manager F&A) (856 Points)
Replied 11 June 2010

What is Money Laundering?

Money laundering is the practice of engaging in financial transactions in order to conceal the identity, source, and/or destination of money, and is a main operation of the underground economy.

In the past, the term "money laundering" was applied only to financial transactions related to organized crime. Today its definition is often expanded by government regulators (such as the United States Office of the Comptroller of the Currency) to encompass any financial transaction which generates an asset or a value as the result of an illegal act, which may involve actions such as tax evasion or false accounting. As a result, the illegal activity of money laundering is now recognized as potentially practiced by individuals, small and large businesses, corrupt officials, members of organized crime (such as drug dealers or the Mafia) or of cults, and even corrupt states, through a complex network of shell companies and trusts based in offshore tax havens.

I found some files on money laundering in our caclub, am pasting the links of those files with name:

A GREAT PRESENTATION ON MAONEY LAUNDERING PPT file /share_files/money-laundring-presentation-17917.asp

A Practical Guide to reporting and maintenance of information as specified by the Prevention of Money Laundering Act, 2002

/share_files/a-practical-guide-to-reporting-and-maintenance-of-information-as-specified-by-the-prevention-of-money-laundering-act-2002-20798.asp

Frauds and its linkage to Money Laundering /share_files/fraud-its-linkages-to-money-laundering-27064.asp.

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