Money Laundering Meaning

“IT has been said that the love of money is a root of all evil. The want of money is so quit as truly”i . the word Laundering as the name suggest is used for cleaning the. dirty clothes. In case of “Money Laundering it is basically conversion or Laundering the Money obtained from illegal source to make it appear to originate from a legitimate source.

Money as we all know is an object or record that is readily accepted as payment for good and services and also as repayment of debts in a country. Money is generally. considered to have 4 main important function which are a medium, a measure, a standard, a store. Black Money is originated from many evils like corruption, Black marketing, Smuggling, .Drug Trafficking, Tax Evasion, etc,.

The developed

Analysis of money laundering, in terms of criminal market, holds that secrecy has value”.xii

People will pay for secrecy because its costs less than disclosure. To the person in possession of money deriving from illegal sources, the dangers of disclosure related to the possibility of prosecution and imprisonment. The process of money laundering holds on the prospect of gaining lasting secrecy for the information dealing with provenance. of the money.

“Money .laundering is the practice of processing criminal proceeds to disguise their illegal origin.”xiii Here the term money laundering originated in the twentieth century, the practice of disguising ill-gotten gains pre-dates recent history and indeed traces its. roots back to drawn of banking itself.

“Money laundering is the concealing or the disguising of the source of illegal obtained funds with the objective them through. vehicles that will give the funds the appearance of legitimacy.”xiv

“Money laundering is the process by which one conceals the existence, source, or use of illegitimate income, and then disguises that income to make it appear. legitimate. The purpose of money laundering is to free the illegitimate income’s in the legitimate

The system of the term ‘money laundering’ is shrouded in obscurity. Apocryphally, it originated in the United States when one of the mafia gangs disguised their gains from gambling and other criminal activities as income of running of laundries, which on investigation by the IRS were. found to be non-existence or inoperative much in the fashion of some politicians claiming to derive their wealth from cattle farming or agriculture. xxviii

In India parliament has enacted the prevention of money laundering act, 2002 to give effect to the resolution adopted by the general assembly of the United Nation on the political declaration and global programmes of action February 1990 which calls upon the member states to enact. laundering and programmes.

In 1996 minister of finance, government of India, appointed an inter-ministerial committee to look into all aspects of money laundering and to suggest suitable legislation, if necessary. The committee in its report suggested enactment of a comprehensive legislation to deal with this.