Money laundering is a big threat to the country’s economy and security

– Claimed in research paper: Criminals adopting new avenues
-Government of India put 884 companies on high alert
– At stake was property worth 50 billion rupees
Satyam Singh

SS Bureau/ New Delhi
Money laundering is proving to be a major threat to the economy and security of a country. Through this terrorist organizations are making their plans successful. This has been revealed through a research paper prepared by Satyam Singh, a student (BA LLB) of Amity Law College, Noida. According to the research paper, India has adequate legal system to deal with money laundering, but it still needs more amendments. This research paper focuses on highlighting the cases of money laundering in India.
The research paper states that despite many pre-existing laws, money laundering is prevalent in abundance all over the world and a major reason for this is that it is often combined with other types of crimes like human trafficking, drug smuggling, robbery etc. grouped or combined. The main purpose of all these illegal actions is to raise huge amounts of money through wrong means and use money laundering as a means of legalization. An estimated number of 884 companies in India were put on high alert for their involvement in money laundering, with assets worth Rs 50 billion. They are being investigated under the Prevention of Money Laundering Act (PMLA 2002).
According to the research paper, when money laundering is done on a large scale, it can be devastating enough to destroy the already weakening economy of a country. An increase in the presence of unaccounted cash can lead to inflation, a decrease in the value of a currency both nationally and internationally, it can lead to an influx of interest and exchange rates. Alternatively, withdrawing large sums of money in the eyes of the government may prove disastrous for the country’s economy. These large sums act as an impetus for criminal activity that not only destabilizes the local economy, but also causes mis-allocation of resources, undermining the confidence of foreign investors, making it difficult for them to enter the country. The investment potential is reduced.
See the highlights of the research paper here:-

 

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