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Money Laundering

OVERVIEW OF

Part I

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Let start’s with

Quiz?????

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1.Which year the Money Laundering Act was enforced in India???

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Prevention of Money Laundering Act 2002

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Money Laundering

Illegal/Dirty Money Legal/Clean Money

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Stages of Money Laundering

• Placement

• Layering

• Integration

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High Risk countries• Countries linked to terrorist financing

• Drug producing nations

• Countries with high degree of public corruption

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Effects of Money Laundering

• Increased crime and corruption

• Weakening Financial Institutions

• Loss of Tax Revenue

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Tax Payers In India

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INDIA vs U.S

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HIGHEST TAX PAYERS IN INDIA

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Top 5 Tax Paying countries

In world

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Top 5 Tax Paying Countries

TAX RATE

1. Aruba - 58.9%

2. Swedan - 56.6%

3. Denmark - 55.5%

4. Netharland- 52%

5. Belgium - 50%

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Why Swiss bank sweet to Black money?

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Basel AML Index Scores and Rankings 2015

Rank Countries Risk1. Iran 8.592. Afghanistan 8.483. Tajikistan 8.26

79 India 5.7763 China 6.05103 U.S 5.18113 Austraila4.94152 Finland 2.53

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AML

• A set of procedures laws or regulations designed to stop the practice of generating income through illegal actions

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Anti-Money Laundering Regulations

The U.S : USA Patriot Act (2001)■ Europe : Third European Directive (2003)■ China : Law of the People’s Republic of

China on Anti-Money Laundering (2006)

■ Japan : The Act on the Prevention of Criminal Proceeds (2007)

■ India : Prevention of Money Laundering Act (2002)

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Meaning Of KYC

• Sources of funds

• Nature of customers’ business

• Who your customer’s customer are???

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Benefits of KYC

• They help to protect banks’

• They provide an essential part of sound risk management system

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AML Efforts• Creating anti-money laundering regulatory and enforcement

organizations in countries and regional groupings

– Financial Action Task Force (FATF), UN, Egmont Group

– Financial Crimes Enforcement Network (FinCEN)

– Office of Foreign Assets Control (OFAC)

– Bank Secrecy Act (BSA) and the USA PATRIOT Act of

2001

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ILLEGAL WAYS TO TRANSFER MONEY

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Conclusion

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Thanking you