Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (150 words) [2021]
Emerging technologies and globalisation have significantly contributed to money laundering. With the advancement of technology, the use of more sophisticated methods of money laundering have increased. This includes the usage of online banking, virtual currencies, and even online marketplaces to transfer and hide illicit funds. Globalization has also made it easier to move money across borders and create offshore accounts to launder funds.
In order to tackle the problem of money laundering, both India and internationally, various measures have been taken. At the international level, FATF (Financial Action Task Force) has been established to develop and promote policies to fight money laundering and other related crimes. At the national level, India has implemented the PMLA (Prevention of Money Laundering Act) 2002 and the Benami Transactions Act, 1988 to prevent money laundering activities. Additionally, the Government of India has also established the Financial Intelligence Unit (FIU) to monitor and gather financial intelligence to identify suspicious activities. Banks are also required to adhere to strict KYC (Know Your Customer) norms and maintain customer records to detect any suspicious transactions.
![Sunil is a young civil servant and has a reputation for his competence, integrity, dedication and relentlessness in pursuit of difficult and onerous jobs. Considering his profile, he was picked up by his bosses to handle a very challenging and sensitive assignment. He was posted in a tribal-dominated district notorious for illegal sand mining. Excavating sand from river belts and transporting it through trucks and selling them in the black market was rampant. This illegal sand mining mafia was operating with the support of local functionaries and tribal musclemen who in turn were bribing selected poor tribals and had kept the tribals under fear and intimidation. Sunil being a sharp and energetic officer immediately grasped the ground realities and the modus operandi followed by the mafia through their devious and dubious mechanism. On making inquiries, he gathered that some of their own office employees are in hand and glove with them and have developed close unholy nexus. Sunil initiated stringent action against them and started conducting raids on their illegal operations of the movement of trucks filled with sand. The mafia got rattled as not many officers in the past had taken such strong steps against the mafia. Some of the office employees who were allegedly close to the mafia informed them that the officer is determined to clean up the mafia’s illegal sand mining operations in that district and may cause them irreparable damage. The mafia turned hostile and launched a counter-offensive. The tribal musclemen and mafia started threatening him with dire consequences. His family (wife and old mother) were stalked and were under virtual surveillance and thus causing mental torture, agony and stress to all of them. The matter assumed serious proportions when a muscleman came to his office and threatened him to stop raids etc., otherwise, his fate will not be different than some of his predecessors (ten years back one officer was killed by the mafia) [2021]](https://www.iasexpress.net/wp-content/uploads/content-views/cvp_default_image-600x300.png)
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