New risk areas in Banking [All you need to know about modern banking system]

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...

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 : 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...