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HUMAN TRAFFICKING LINKAGE WITH MONEY LAUNDRING AND TERROR FINANCING Exploitation of weaker human beings by a stronger human being for profit purpose is the most heinous crime against humanity. It is in existence in the world since the time of ancient Greek & Romans to Portuguese, Spanish, Englishman & Arabs in medieval time. Human trafficking is a crime against a person because of violation of the victim's human rights as per international convention. Human Trafficking is a low risk high profit industry generating billions illicit profits every year. Human trafficking broadly means the trade of human beings, most commonly for the purpose of forced labour, sexual slavery or commercial sexual exploitation for the trafficker or others. It encompass the recruitment, transport, transfer, holding a person by threat, force, abduction, coercion, deception or fraud for exploitation for the purposes stated before. Accordingly, the process involves, action, means a...
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Beneficial Owner

Dear friends, Lets understand who are benefecial owners in an account . The menace of Money laundering is showing dangerous proportion and its magnitude in India was to the tune of 95 billion dollars in the year 2012-13. In recent past, incidents of laundering huge amount of money by remitting foreign currency  for purported Import of goods under Liberalized Remittance Schemes of the RBI through newly opened accounts have come to the notice at several Banks. Deficiencies in observance of FEMA Guidelines, proper follow up of remittance and desired due diligence in respect of the accounts used for remittance has resulted to this undesirable situation. As most of the accounts used in these cases of Money laundering are accounts opened in the name of Proprietorship, Partnership or Private Ltd. Companies,  the enhanced due diligence (EDD) on beneficial owners of account was a requisite . As these accounts are perceived as “High Risk” accounts, FATF, FIU-IND and RBI have desired tha...

Demonetization :Where currency reflects economic fundamentals

DEMONETIZATION : LEARNINGS Demonetization is an act of stripping a currency unit of its status as legal tender. This action is taken by various countries including United States Of America on different occasions to achieve different objectives. In the recent past India has witnessed an extensive demonetization exercise and more than 15 Lakhs currency notes of Rs. 500 & Rs. 1,000 denomination ceased to be legal tender.   This is not the first demonetization incident in India. Earlier, Rs, 1,000 and Rs 10,000 banknotes, which were in circulation, were demonetized in January 1946, primarily to curb unaccounted money.          The higher denomination banknotes in Rs 1,000, Rs. 5,000 and Rs 10,000 were reintroduced in the year 1954, and these banknotes (Rs 1,000, Rs 5,000 and                  Rs 10,000) wer...

BITCOIN :Transformed currency..They say ,its gold for nerds :)

Dear friends, The BREXIT incident has given a jolt to the World economy. While the demand for US treasuries and gold went up, stocks and bonds fell amid concern that the BREXIT could hurt the World’s economy. While Euro and other currencies felt upheaval, Pound fell to its lowest level in more than 30 years. The customers have suffered huge losses due to the currency fluctuations. This has once again triggered the discussions on utility of digital currencies as a viable option of transaction and investment. The most popular digital currency is Bit coin and lot of  people are buying Bit coins for pounds and Euros for safe keeping of their money. Bit Coin can be used to buy goods , services & currencies like Dollars,  Euros, Yen or Rupees, which are also traded digitally. The Bit coin is said to be created by a software engineer Mr. Satoshi Nakamoto as a digital currency for transaction & storage which is universal in nature and beyond the purview of any...

Ponzi Schemes: Protect yourself from scams by learning the structure behind these fraudulent investing arrangements

साथियों  ,                               धोखेबाज/घोटालेबाज हमेशा आम जनता को अपने जाल में फँसाने के नित नवीन साधन व उपाय ढूँढते रहते हैं. भोले-भाले निवेशकों को कम समय में अत्याधिक लाभ का लालच देने वाली अनैतिक योजनाओं, जिन्हें पोंजी योजना कहा जाता है,  निवेश का एक ऐसा ही साधन है. इन अभागे निवेशकों से इकठठा किए गए धन को जटिल लेन-देन की प्रक्रिया से गुजारकर वैध बनाने का प्रयास किया जाता है. एक इटालियन व्यक्ति कार्लोस चार्ल्स पोंजी जोकि देश परिवर्तन के बाद 1903 में अमरीका चला गया, के द्वारा पहली बहुप्रचारित ऐसी योजना चलाई गयी थी. उसके नाम पर इन योजनाओं को पोंजी योजना कहा जाने लगा. उसने डिस्काउंट रेट पर अन्तर्राष्ट्रीय जवाबी कूपन जारी करने के नाम पर जनता के साथ धोखाधड़ी की और 10550 व्यक्तियों से 9.8 मिलियन डॉलर की राशि इकठठा की. बीसवीं सदी के अन्त में  अन्तर्राष्ट्रीय जवाबी कूपन, विदेशी डाक भेजने का एक प्रचलित माध्यम था. यह डाक भेजने वाले को डाक टिकट शुल्क अदा करने का एक वाउचर था.  चार्ल्स पोंजी ने ज...

Prevention of money Laundering and international cooperation mechanism

Dear friends, Lets Connect on the issue of money laundering and how to counter it . PREVENTION OF MONEY LAUNDERING : INTERNATIONAL COOPERATION MECHANISM Detection & confiscation of money laundered by the economic offenders has always been a sensitive issue. It has always invited a lot of interest & attention of general public especially the middle & low income group. Bringing back the money laundered and stocked at foreign jurisdiction is a big priority of the Government as it directly affects the growth of the economy. However, this task is not so easy as it has to pass through various International Treaties and cooperations among the Countries. The FATF recommendations on cooperation between member countries lists out International aspects of Money laundering and terror financing, are  best practices and a basic  framework for establishing,  maintaining effective AML /CFT programme worldwide and International co-operation. Some methods for international coop...

Quick Know how of BIll Discounting

Dear friends, The Bill discounting business has always been a good source of generating income for the Bank. The facility is also beneficial for the business entities as it is a source of working capital finance for them while selling goods on credit. The facility of “Bill discount” differs from “Bill purchase” in terms of time involved in realization of proceeds. In case of “Purchase of Bills” the Bank can collect the payment immediately by presenting it before the drawee while in “Bill discounting”, the proceeds are realized after the agreed period i.e. date of maturity. That is why the charges in “Purchasing Bill” are lesser than in “Discounting the Bill” as in later case, it includes interest for period from discounting till the date of its’ maturity.   The Banks extend Bill discounting facility as an arrangement whereby, the sellers get proceeds of sales represented by bills from the Bank, before the agreed period of payment. Normally, the discounting of bills is allowed for t...