Anti-Money Laundering(AML)/Combating Financing Terrorism(CFT) - India in the Global Context

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...

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...