What is money laundering?
Money laundeing is the process and method of disguising illegal sources of money and made to be known as it is from legal sources. Money laundering can also be known as 'black or illicit money'. Thus, government has come up with strict payments by cheques only and cash payments upto rs.20,000 is allowd. It is next to impossible to stop it but all the practitioners of it can be made aware by attacking the biggest money launderers.
Under the provisions of existing anti-money laundering legislation, the India's Enforcement Directorate (ED)has pursued 1,269 cases as on 12th august, 2011. Here are certain cases of money laundering which you may be aware of.
The recent one is that of Rajat Gupta former Indian-American Goldman Sachs directot, who was charged for security fraud by a US federal court. Mr. Rajat Gupta was accused of leaking corporate secrets about the bank to his friend Raj Rajratnam, the head of the galleon Group hedge fund. Rajaratnam was sentences to 11 years in prison in october for orchestrating a huge insider trading conspiracy.
In January 2011, a close associate of former Jharkhand chief minister Madhu Koda -Vikas Sinha was alleged for vioalations of Money Laundering Act. Sinha (according to sources) along with other aides of former chief minister, was involved i investing laundered money to the type of more than rs.600 crores in india on behalf of Koda and his associates are facing inquiries by various probe agencies like Enforcement Directorates, IT departments, CBI regarding alleged illegal investments and hawala transactions in India and abroad.
Going back in 2009, Satyam scam which revolved around Ramalinga Raju. The Registrar of Companies report that the management of the company the directors and senior officials sold the shares at large scale. On investigation it wasrevealed that the Satyam books were overstated by rs.5000 to rs.6000 croes, leading to an inflated stock price that helped the top management to make money.
This is how money laundering takes place there are numerous methods and numerous ways involved in money laundering which is different according to different human minds.
Money laundeing is the process and method of disguising illegal sources of money and made to be known as it is from legal sources. Money laundering can also be known as 'black or illicit money'. Thus, government has come up with strict payments by cheques only and cash payments upto rs.20,000 is allowd. It is next to impossible to stop it but all the practitioners of it can be made aware by attacking the biggest money launderers.
Under the provisions of existing anti-money laundering legislation, the India's Enforcement Directorate (ED)has pursued 1,269 cases as on 12th august, 2011. Here are certain cases of money laundering which you may be aware of.
The recent one is that of Rajat Gupta former Indian-American Goldman Sachs directot, who was charged for security fraud by a US federal court. Mr. Rajat Gupta was accused of leaking corporate secrets about the bank to his friend Raj Rajratnam, the head of the galleon Group hedge fund. Rajaratnam was sentences to 11 years in prison in october for orchestrating a huge insider trading conspiracy.
In January 2011, a close associate of former Jharkhand chief minister Madhu Koda -Vikas Sinha was alleged for vioalations of Money Laundering Act. Sinha (according to sources) along with other aides of former chief minister, was involved i investing laundered money to the type of more than rs.600 crores in india on behalf of Koda and his associates are facing inquiries by various probe agencies like Enforcement Directorates, IT departments, CBI regarding alleged illegal investments and hawala transactions in India and abroad.
Going back in 2009, Satyam scam which revolved around Ramalinga Raju. The Registrar of Companies report that the management of the company the directors and senior officials sold the shares at large scale. On investigation it wasrevealed that the Satyam books were overstated by rs.5000 to rs.6000 croes, leading to an inflated stock price that helped the top management to make money.
This is how money laundering takes place there are numerous methods and numerous ways involved in money laundering which is different according to different human minds.