The concept of two parallel economies in India an many other developing countries has been existent since quite some times.
What is Money Laundering and its impact ?
The word "Laundering" is used for cleaning dirty clothes. Money Laundering refers to the conversion or laundering of money which is illegally obtained, in oredr to make it appear to originate from a legitimate source.
The financial Action Task Force (FATF) defines money laundering as "the procesessing of criminal proceeds to disguise their illegal origin".
Indian anti money laundering law encompasses the money generated from numerous different crimes, viz. drug trafficking, racketeering, embezzlement, etc. Apart from these activities, black money is also generated by businessmen, by completing off the book transactions in orer to evede various taxes and levies.
Money Laundering deprives the government of some much needed tax revenue, thereby raising the burden of honest law abiding citizens. Also development suffers, because of lack of fund. Beside, due to the rapid movements of large amounts of money, financial institutions may become destabilized, thus in turn threatening savings and retirement fund accounts with these institutions.
Gain and share your knowledge by participating in Yahoo Online GD for
more details check the below link:
http://www.managementparadise.com/f...online-archive-gd/203925-yahoo-online-gd.html
What is Money Laundering and its impact ?
The word "Laundering" is used for cleaning dirty clothes. Money Laundering refers to the conversion or laundering of money which is illegally obtained, in oredr to make it appear to originate from a legitimate source.
The financial Action Task Force (FATF) defines money laundering as "the procesessing of criminal proceeds to disguise their illegal origin".
Indian anti money laundering law encompasses the money generated from numerous different crimes, viz. drug trafficking, racketeering, embezzlement, etc. Apart from these activities, black money is also generated by businessmen, by completing off the book transactions in orer to evede various taxes and levies.
Money Laundering deprives the government of some much needed tax revenue, thereby raising the burden of honest law abiding citizens. Also development suffers, because of lack of fund. Beside, due to the rapid movements of large amounts of money, financial institutions may become destabilized, thus in turn threatening savings and retirement fund accounts with these institutions.
Gain and share your knowledge by participating in Yahoo Online GD for
more details check the below link:
http://www.managementparadise.com/f...online-archive-gd/203925-yahoo-online-gd.html