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Money Laundering Typologies Research in 21st Century - India Perspective-2

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This is in continuation to   Money Laundering Typologies Research in 21st Century - India Perspective-1 Corruption Corruption is a deep-rooted menace that undermines governance, distorts public policy, and erodes trust in institutions. It hampers economic growth, disproportionately affects the poor, and diverts critical resources meant for public welfare. In India, the impact of corruption is far-reaching—spanning sectors such as infrastructure, natural resources, and public procurement—creating systemic inefficiencies and facilitating the growth of illicit economies. The financial gains from corrupt practices are often laundered through complex networks, making enforcement a challenging but crucial task.  Govt. Sector Linkages The Enforcement Directorate (ED) plays a central role in combating corruption by targeting its financial backbone. As the agency responsible for investigating offences under the Prevention of Money Laundering Act (PMLA), the ED focuses on tracing...
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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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