Dhananjay Choudhary – Money Laundering is one of the complicated concepts that are quite difficult to understand. In this article, we will try to explain you the concept of money laundering with an example. To understand it better, let us first look at the basic definition of money laundering. Money Laundering is basically moving the illegal money from one point to another by showcasing it as an income or profit from a business or an activity. This includes a series of financial transactions which is to make the trail and make it further difficult to trace the source of illegal money.
The money can be used for illegal activities and the scope is not restricted to one country. It happens on an international scale. Each and every country has laws to deal with it and the punishment is severe. This is also true for the Indian laws that are established to prevent money laundering.
Talking about an example, Mahesh (Fictitious Name) stole money a large amount of money from his office. He stole this money in the form of cash. Now, he would surely want to go undetected with the money so what he does is that he breaks that money into small amounts and deposits it in various accounts over a period of time. In India, you might be aware of the fact that government requests the details of cash deposits over Rs 50,000. So, Mahesh breaks the amount in less than Rs 50,000 to avoid any reporting or any investigation.
The above-mentioned example is one of the simplest ways to understand money laundering however, in today’s world, thing is not as simple as they look on paper. There are various ways used to launder money and this may include trade-based laundering, cash-based laundering, laundering via shell companies, casino laundering any many such ways
It is quite important to stay away from Money Laundering as the punishments are strict in India. The best possible solution to this is to seek consultation from someone who is an expert. A lawyer can help you with all the details and he can also help you in making sure that the business unit you work in is compliant to the Prevention of Money-laundering Act. One such person you can approach for guidance is Dhananjay Chaudhary – Koda Associates and he can really help you with all the details as he works on such complicated cases along with his team.