WHAT IS MONEY LOUNDERING ?

MONEY LOUNDERING

Money laundering is an illegal economic activity. The process by which a part or all of the assets are converted or invested in a legal place in order to hide the source of the illegal assets or to make the income earned from the invested assets appear to be legal is called money laundering. It is a criminal offense. Generally, when money from one sector is transferred to another sector, and that money is transferred to another sector, it becomes difficult to find the original source. As a result, it is not possible for law enforcement to find the illegal source. Meaning, money laundering is a process of legalizing or providing transparency to illegal or black money through a transaction cycle. In other words, by hiding the source of the collected money, the funds are gradually counted as legal income through the transfer process. That is, the process of legalizing all the money that comes through various illegal means by transferring it through banks through DD, TT, MT or opening accounts in different names and later investing it elsewhere is called money laundering. Money laundering is a type of financial crime that is committed to conceal the source of income from illegal economic activities and to evade taxes on income earned through legitimate financial activities.

Anti-money laundering (AML) refers to a set of policies and practices to ensure that financial institutions and other regulated entities prevent, detect, and report financial crimes, and in particular money laundering activities.