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Essay on Effects Of Money Laundering on Society

Introduction :

Money laundering is the process of concealing the source of money obtained by illegal means such as embezzlement, insider trading, bribery, drug trafficking or terrorist activity. The process of converting ‘illegal or unclean money’ into ‘legal or clean money’ is referred to as money laundering. Most financial companies have anti-money laundering (AML) policies in place to detect and prevent these activity. Money laundering is a very important step in the success of drug trafficking and terrorist activities.

  • Most people who financially support terrorist organi­zations do not provide the funds directly to terrorist groups. They send the money in roundabout ways by maintaining anonymity.
  • Dealing in large amounts of illegal cash is generally inefficient so criminals need a way to deposit the money in financial institutions so that it can be shown legal.
  • The process of money laundering usually involves three steps 1) placement 2) layering, and 3) integration. In the first step “dirty money“ is put into the legitimate financial system.
  • Layering conceals the source of the money through a series of transactions. In the final step, integration, laundered money is withdrawn from the legitimate account.
  • The rise of online banking institutions, online payment services and transfers with mobile phones have made detecting the illegal money transfer even more difficult. 
  • Money can also be laundered through online auctions and sales, gambling websites, and virtual gaming sites, where money can be converted into gaming currency, then back into real, usable “clean” money.
  • The newest form of money laundering  involves cryptocurrencies, such as Bitcoin. Cryptocurrencies are being used in drug trade, blackmailing and other criminal activities which impacts the society negatively.

Conclusion :

Money laundering damages financial institutions that are critical for economic growth, promoting crime and corruption that slow economic growth, reducing efficiency in the economy. Prevention of Money-Laundering Act forms the core of the legal framework to combat Money Laundering activities in India. Both international and domestic government need to come together to eliminate the problem of money laundering from our country.

Essay on Money Laundering in english

Introduction :

Money laundering is the process of concealing the source of money obtained by illegal means such as embezzlement, insider trading, bribery, drug trafficking or terrorist activity. The process of converting ‘illegal or unclean money’ into ‘legal or clean money’ is referred to as money laundering. Money laundering is a grave financial crime that is usually employed by white collar and street level criminals. Most financial companies have anti-money laundering (AML) policies in place to detect and prevent these activity.

  • Money laundering is a very important step in the success of drug trafficking and terrorist activities. Most people who financially support terrorist organi­zations do not provide the funds directly to terrorist groups.
  • They send the money in roundabout ways that allow them to fund terrorism by maintaining anonymity. Dealing in large amounts of illegal cash is generally inefficient and dangerous so criminals need a way to deposit the money in legitimate financial institutions so that it can be shown legal or clean.
  • The process of money laundering usually involves three steps 1) placement 2) layering, and 3) integration. In the first step “dirty money“ is put into the legitimate financial system.
  • Layering conceals the source of the money through a series of transactions. In the final step, integration, laundered money is withdrawn from the legitimate account.
  • The rise of online banking institutions, online payment services and transfers with mobile phones have made detecting the illegal money transfer even more difficult. 
  • Money can also be laundered through online auctions and sales, gambling websites, and virtual gaming sites, where money can be converted into gaming currency, then back into real, usable, and untraceable “clean” money.
  • The newest form of money laundering involves cryptocurrencies, such as Bitcoin. Cryptocurrencies are being used in drug trade, blackmailing schemes and other criminal activities due to their relative anonymity as compared to other conventional form of money.
  • Governments all over the world have stepped up their efforts to combat money laundering, with regulations that require financial institutions to put systems that detect and report suspicious activities. 
  • According to the United Nations (UN) on Drugs and Crime, global money laundering transactions account for around 800 billion dollars to 2 trillion dollars annually.
  • Money laundering damages financial institutions that are important for economic growth, promoting crime and corruption that slow economic growth and thus reducing efficiency in the economy. 

Conclusion :

It creates unpredictable changes in demand of the money, as well as causing large fluctuations in international capital flows & exchange rates. Prevention of Money-Laundering Act (PMLA), 2002 forms the core of the legal framework to combat Money Laundering activities in India. Both international and domestic organizations need to come together by strengthening data sharing mechanisms to eliminate the problem of money laundering from our country.

Money Laundering Vs Virtual Currencies in India

Introduction :

Bitcoin is a digital currency that is widely known for its creator’s anonymity. It is a kind of virtual currency which was launched as an open source software in 2009. Its creator whose identity to this day remains unknown, goes by the name Satoshi Nakamoto. Since its inception, virtual currency, has grown in both its popularity and its use. It is the first decentralized digital currency, as the system works without a central bank or single administrator. Bitcoin is often referred to as a “virtual currency” or “cryptocurrency.”

  • All transfers of bitcoin are verified and recorded on a public ledger known as the block chain. It is an electronic or digital currency that works on a peer-to-peer basis.
  • Like currency notes, it can be sent from one person to another. The beauty of this cryptocurrency is that if you receive a bitcoin from another, you can be as sure of the payment as you would on receiving physical currency notes, with the same anonymity ascribed to it.
  • This anonymity is lacking in other forms of digital payment such as online banking or e-wallets. You can send bitcoins digitally to anyone who has a bitcoin address anywhere in the globe.
  • One person could have multiple addresses for different purposes. Receivers can get to spend them within minutes of receiving the coins.
  • It is to be noted that cryptocurrency transactions are settled immediately without any third-party approvals.

Conclusion :

With recognition at universal level, cryptocurrencies can be accessed by everyone. As India moves to digitize much of its financial services and parts of its consumer market, cryptocurrencies offer a new, dynamic addition to the Digital India project.

Money Laundering Vs Cashless Economy – Making Indian economy Digital

Introduction :

A cashless economy means the liquidity in the system is exchanged between two parties through either plastic currency or through digital currency i.e online payments. With the advent of blockchain technology, bitcoins have given a whole new meaning for a cashless economy. The concept of bitcoin talks about a decentralized system of finance, but that is not the point of discussing in this particular essay on cashless India.

  • Hence, let us come back to the crux of this essay on cashless India, which are the pros and cons of the digital payment system.
  • Cashless Economy promotes electronic payment methods which improves transparency and accountability.
  • Tax collection increases as all the transaction takes place through bank accounts. It can also mitigate corruption and black money as all transactions can be traced easily.
  • It also saves time and prevents theft and burglary of cash and endorses paperless environment friendly as it will save a huge amount of money spent on printing and maintenance of currency.
  • With so much technological revolutions happening around, it will be impossible to find someone without a smartphone in this 21st century.
  • Almost every Indian has a smartphone. Hence the ease of transaction through fintech platforms such as Paytm, google pay or phonepe are easier than ever before.
  • The hassles of carrying hard cash( with possible viruses on it) is eliminated. The government of India has produced platforms such as UPI (Unified Payments Interface) for hassle-free cashless transactions.
  • But it is seen that the small businesses still use cash as they cannot afford digital infrastructures. Hackers and Cyber Crimes are a huge threat to cashless economy.
  • There is lack of internet connectivity in rural areas in our nation which makes it difficult to commence the concept of the cashless economy in every region
  • India is lacking robust and widespread internet connection in all parts of the country which becomes a huge hurdle in practicing cashless economy.

Conclusion :

The cashless economy has its own sets of merits and demerits. The concept of cashless economy is very useful for eliminating black money from the nation. The lack of sufficient infrastructure and illiteracy is one of the major hindrances in the path of the cashless economy. It is important for the government to address the issues related to achieving a proper cashless economy by providing financial education to the people along with better internet services.

Money Laundering Vs Technological Development in India

Introduction :

India is emerging as a superpower in the world. Being a fast-developing nation, the country is making its way through the hurdles to gain a bright future in terms of science and technology. Indian society is quite eager to accept technology into their day-to-day life. The modern age is the age of science, technology, knowledge and information.

  • New inventions in the field of science and technology are emerging from Indian students and experts, making the country to gain limelight in the world.
  • Modern gadgets are introduced in every walk of life, making life easier and solving many problems. The growth of technology today is sure to experience a boom for the country in future in almost all the sectors such as education, infrastructure, electricity, aviation, medicine, information technology and other fields.
  • They are well equipped and staffed to secure the people of the nation. But there is no room for complacency in this field and we are yet a developing country.
  • In the field of agriculture, our scientific and technological researches have enabled us to be self-reliant and self-sufficient in food grains. In the field of defense also our achievements have been quite laudable.
  • The successful production of such missiles as Prithvi and Nag testify to the high capabilities and achievements of our scientists.
  • Science and technology are inter dependent, these are two completely distinct fields of study. Science contributes to technology in several ways.
  • It is the knowledge of science that gives way to new and innovative ideas to build different technological tools.
  • The research and experiments conducted in science laboratories lead to the designing of various technological techniques and devices.
  • Knowledge about science also helps in understanding the impact of technology on the environment and the society. Technology on the other hand extends the agenda of science.

Conclusion :

When the ideas are put to use, the scientists are inspired and motivated to research and experiment further to come up with newer ideas. We have been successful in producing night-vision devices required for our indigenous tanks. Obviously, technology has been used effectively as a tool and instrument of national development and yet much remains to be achieved in order to make its benefits reach the masses.

Money Laundering Vs Cyber Crimes in India

Introduction :

In technically driven society, people use various devices to make life simple. Globalization results in connecting people all around the world. The increasing access to and continuous use of technology has radically impacted the way in which people communicate and conduct their daily lives. Cyber-crime is a crime in which computer is used as an object of crime to commit an offence.

  • It may range from hate speeches, child pornography, accessing personal information, bank frauds, credit and debit card information thefts to spreading different kinds of viruses and worms throughout the world.
  • In cyber-crime a computer is used as a weapon of crime by an individual, an organized group or even a country. The most common types of cyber-crimes are hacking, spanning and infecting computers with virus and worms.
  • Hackers access a person’s personal information over the internet such as his credit card and bank account numbers. A person may lose his whole bank balance in a second and may fall into heavy debt instantly. Cyber Crime are categorized into four major types.
  • These are Financial, Privacy, Hacking, and Cyber Terrorism. The financial crime they steal the money of user or account holders. Likewise, they also stole data of companies which can lead to financial crimes.
  • Also, transactions are heavily risked because of them. Every year hackers stole lakhs and crores of rupees of businessmen and government.
  • Privacy crime includes stealing your private data which you do not want to share with the world. Moreover, due to it, the people suffer a lot and some even commit suicide because of their data’s misuse.
  • In, hacking they intentional deface a website to cause damage or loss to the public or owner. Apart from that, they destroy or make changes in the existing websites to diminish its value.
  • Another type of cyber-crimes is theft. Artistic works like books, music and movies are downloaded and circulated thereby infringing upon a person’s copyright materials.

Conclusion :

Cyber bullying has become a common practice causing serious repercussions, insanity and even deaths. Another typed of serious crime is defamation. It takes a whole life to earn respect but a dirty mind and an internet connection to wipe it away in a second. In this great world, virtues and vices march hand in hand. With every boon comes a bane. the numerous advantages of every inventions shouldn’t be marred by its abuses and misuses. Why not be a little vigilant both in the world and web?

Money Laundering Vs Digital India – Empowerment & Safety Issues

Introduction :

Digital India is a campaign launched by the Government of India to ensure that Government services are made available to citizens electronically by improved online infrastructure and by increasing Internet connectivity in the field of technology. The digital economy refers to an economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies.

  • The motto for the campaign is “Power to Empower” and it was launched on 1 July 2015 by PM Narendra Modi.

Information is easier to produce and harder to control in this dynamic era. Digital India consists of three core components they are-

  • Development of secure and stable digital infrastructure.
  • Delivering government services digitally.
  • Universal Digital Literacy.
  • The facilities which will be provided through this initiative are Digital Locker, e-education, e-health, e-sign and national scholarship portal. Digi Locker is an initiative under Digital India program.
  • Digital Locker facilities will be provided to citizens to store their important documents like PAN card, Passport, Mark sheet and Degree certificates.
  • The term digital economy also refers to the convergence of computing and communication technologies on the Internet and other networks.
  • This convergence enables all types of information (data, audio, video) to be stored, processed, and transmitted over networks to many destinations worldwide.
  • Digital India wants to enlighten all types of people in India digitally and to provide the citizens with the best public services.
  • The commercial broadband and IT Indian companies also supported it. It also helps bridge the gap in the employment of youth between developed and undeveloped areas.
  • The domestic e-government system is reliable as it prevails fiber optic road, public interest access, mobile connectivity everywhere, electronics revolution, e-government, job information, IT, post-harvest management program, and electronic devices.
  • Digital India initiative aims to enhance the process and delivery of different government services through e-Governance and payment gateways, UIDAI, EDI (Electronic Data Interchange) and mobile platforms.

Conclusion :

The main objective was to improve the country’s people’s access to technology. The government has worked to enhance accessibility to the internet and to make it much easier for regional and underserved parts of the country to connect. A plan to communicate countryside to high-speed Internet was one of the initiatives. Government intends to make all information easily available to the citizen through online hosting of data. Digital India campaign is a great initiative to integrate digital technology for better future. 

Money Laundering Vs Internal Security Challenges in India

Introduction :

Internal security is the security that lies within the borders of a country. It ensures the maintenance of peace, law & order and protection of sovereignty within territory of a country. Internal security is different from external security. External security is considered as the security against aggression by a foreign country. Maintaining the external security is the responsibility of the armed forces of the country such as the Indian Army, Indian Navy and Indian Air Force in India.

  • While internal security comes under the purview of the police, which can also be supported by the Central Armed Police Forces (CAPF) as per the requirement.
  • In India, the internal security matters are governed by Ministry of Home Affairs (MHA). If we look at the past, India’s internal security problems have multiplied because of linguistic riots, inter-state disputes and ethnic tensions.
  • Our country was forced to redefine its inter state boundaries due to linguistic riots in 1956. After that, the rise of Naxalism was also seen as a threat to internal security in India.
  • At the time of independence, our country was under-developed. The country adopted the equitable and inclusive growth model for growth and development.
  • This situation was exploited by various people or groups to pose a very dangerous challenge to the country’s internal security in the form of Naxalism and Left-Wing Extremism.
  • Cyber security is the latest challenge that our country is facing these days. We could be the target of a cyberwar which can harm our security at any time.
  • The growth in the use of internet has also shown that social media could play a vital role in spreading fake news and violence and thus can become a threat to our internal security. 
  • Border management is also important in reducing the threats to our internal security. A weak border management can result in infiltration of terrorists, illegal immigrants and smuggling of items like arms, drugs and counterfeit currency.

Conclusion :

In the Global Terrorism Index 2020, India has been ranked at 8th place in the list of countries most affected by terrorism. India continues to deal with terrorist activity on different fronts like terrorism related to territorial disputes in J&K and secessionist movement in Assam. India needs to implement all of its national powers in a coordinated manner to address its security issues and this will happen only when we give national level importance to internal security in India.

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Abhilash Kumar

The author Abhilash Kumar

Abhilash Kumar is the founder of “Studyguru Pathshala” brand & its products, i.e. YouTube, Books, PDF eBooks etc. He is one of the most successful bloggers in India. He is the author of India’s the best seller “Descriptive Book”. As a social activist, he has distributed his books to millions of deprived and needy students.

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