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Money Laundering Typologies Research in 21st Century - India Perspective-1

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The ED targets prevalent money laundering methods, informed by risk analysis and financial intelligence. Key typologies include: Trade-Based Money Laundering : Mis-invoicing or false documentation in international trade to disguise flow of illicit funds. Shell Companies : Fictitious entities used to layer proceeds, obscuring ownership. Real Estate Investments : Illicit funds integrated into the legitimate economy through property purchases. Cash-Intensive Businesses : Retail or construction sectors exploited to mix illegal cash with legitimate earnings. These crime typologies are addressed through close collaboration with FIU-IND and other law enforcement agencies like the Central Bureau of Investigation (CBI) and the use of advanced data analytics, enhancing the ED’s detection capabilities. Regional Risk Analysis  The FIU-Ind's each of the Regional Office is tasked with analyzing region-specific risks, considering: Prevalent crime types (e.g., drug trafficking, finan...
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Virtual Digital Assets & Service Providers - AML/CFT Obligation

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  KYC Obligation-Revision Jan 2026 In legal parlance, crypto currency is called Virtual Digital Asset (VDA) and the exchanges that trade them are called VDA Service Providers (VDA SPs). The Financial Intelligence Unit,(FIU-Ind) operating under the Ministry of Finance, Govt of India has classified all virtual digital asset service providers as “reporting entities” under the Prevention of Money Laundering Act, 2002. The designation took effect following a notification issued on March 7, 2023. Crypto exchanges, wallet providers, and related platforms, whether based in India or offshore, are now subject to the same compliance standards as banks and other regulated financial institutions, according to the new framework. All virtual digital asset service providers must register with FIU-IND to legally operate in the country. Platforms that fail to register face enforcement action, including financial penalties and potential criminal liability. The rules apply to centralized exchanges, cu...
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Red Flags in Insurance Business- India Perspective

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  The Guidelines on Anti-Money laundering /Counter Financing of Terrorism (AML/CFT) were issued under Section 34 of the Insurance Act, 1938 on 31st March 2006. The Guidelines were made applicable to general insurance companies in the modified form effective from 1st January 2007. These were revised from time to time subsequent to respective amendments in PMLA 2002 Key Obligations for Insurance Companies Customer Due Diligence : Verify identities (KYC)at policy issuance, during claims, and for significant transactions, especially with large single premiums or unusual funding sources. Transaction Monitoring:  Continuously watch transactions for suspicious patterns indicative of money laundering or terrorism financing. Record Keeping:  Maintain client records and transaction details for five years after the business relationship ends. Reporting:  Report suspicious transaction reports(STRs) and cash transactions (CTRs) above thresholds to FIU-IND Designated Di...
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