~Money Laundering~💛

MONEY LAUNDERING is a process of criminal disguise it's illegal origin. When a person or a criminal activities generates a substantial profit either individual or group involved in such activities give a route to the funds to safe heavens by disguising the sources , changing form or moving the funds to a place where they will be less likely to attract attention.

There Are Several Varieties Of Money laundering  :-

Terrorism

Illegal arms

Sales

Financial crimes

Smuggling

Organized crimes 

Drug trafficking

Prostitution rings

Embezzlement

Insider trading

Bribery

Computer fraud

Also produce large profit to create an incentive to legitimise the illegal gains through money laundering.

STAGES OF MONEY LAUNDERING

1) PLACEMENT

2) LAYERING

3) INTEGRATION

PROCESS OF MONEY LAUNDERING

PLACEMENT :- The launderer brings his legal profit into the financial system by breaking the large amount of cash into small conspicuous that are then directly deposited into the bank accounts or by purchasing a series of monetory instruments which are later collected and deposited into accounts at another location.

LAYERING :- In this stage, the launderer engages in a series of conversion or movement of the funds to distance them from their source so the funds simply wire throught a series of accounts at various banks across the globe.

INTEGRATION :- After successful processing a criminal profit throught the first two stage, the launderer moves them to integration in this the funds re-entre the legitimate economy . 

THE LAUNDERE MIGHT CHOOSE TO INVEST THE FUNDS INTO REAL ESTATE ,LUXURY ASSETS OR BUSINESS VENTURES.

PUNISHMENT FOR MONEY LAUNDERING :-

Section 3 of the act states that whosoever directly or indirectly is indulge in the activity connected with crime including its concealment , possession, acquisition, projecting or claiming it's untained property shall be guilty of offence of money laundering.

Section 4 provides that any person who commits the offence of money laundering is punishable with rigorous imprisonment for the term which shall not be less than three(3) years but which may extend upto seven(7) years and also liable to the fine. The proceeds of crime involved in money laundering relates to any offence specified Under the narcotic drugs bad psychotropic substance Act ,the punishment may extend to rigorous imprisonment for ten years.