LAWS RELATING TO MONEY LAUNDERING: INDIAN PERSPECTIVE

Abstract

Money laundering is the processing of the proceeds of criminal acts to disguise their illegal origin. When a criminal activity generates substantial profits, the individual or group involved must find a way to control the funds without attracting attention to the underlying activity or the persons involved. Money laundering is the process by which criminals attempt to conceal the true origin and ownership of the proceeds of their criminal activities. If undertaken successfully, it also allows them to maintain control over those proceeds and to provide a legitimate cover for their source of funds. Money laundering is even a single process it can be explained in three different phases namely, placement stage, layering stage and integration stage. With its growing financial strength, India is vulnerable to money laundering activities even though the country's strict foreign exchange laws make it difficult for criminals to launder money. International Narcotics Control Strategy Report by Bureau for International Narcotics and Law Enforcement Affairs This Act came into force on 1^st July 2005with view to preventing money laundering. The Act is being a comprehensive in nature and it has been amended in 2005, 2009 and recently in 2011. Though in India various Anti-Money Laundering measures are there to curb money laundering they are not free from some loopholes or lacunas or problems