EXAMPLE OF MONEY LAUNDERING.
PrintListen to this Article
An example of money laundering - taken from the movie, "Shivaji- the boss"-
This is a well known and highly appreciated movie of Rajnikanth that attracted the worldwide recognition due to the outstanding concept of the director and the script writer. The protagonist of the movie comes to know about the vast amount of the black money hidden by the leaders and the ministers in various forms. After getting hold of that money through physical infliction on the guilty, he starts dissipating them to the foreign banks in the tax-haven countries. From those banks, he distributes the money to various people residing in various countries in small packets. After all the money has been distributed to the relatives and others in small packets, he asks all of them to send the money back through internet transfer in the name of "Shivaji foundation and trusts". In this way, he has all the required documents and the smallest details of the transactions that occurred thorough the bank account of his trust. He utilizes the same money for building schools, hospitals, colleges, roads and other developmental activities. But do you really think that this could be possible in the real world. When you shall hear about the uses of the money generated through money laundering, you shall be intensely terrified.
Another example can be seen in the case of trading business. In order to avoid tax such as sales tax and VAT, the firms are able to get false invoices for their purchase from another firm. The other firm is only a firm-on-paper without any real transaction. After the invoice has been made, the owner of the false firm pays the amount of the invoice to the owner of the former firm as hard cash. He charges some commission on it. The owner of the real firm deposits the same into his bank and get the invoice cleared as there is enough money in his bank account to be transferred to the owner of the paper firm. Thus, the owner of the paper firm gets his money back and also, the owner of the real firm is able to get the cheque honored. In this way, the banks do not get any clue as to the illegal acts of these people.
Category : Finance | Comments : 1 | Hits : 694
General believe lies among several goes saying Stock Market is very unstable, tempestuous, uncertain, gamble and nobody likes taking risks in terms of hard earned money. But the truth lies in fact It has given Extraordinary returns to discipline Investors who understood the power of compounding at Early age and shown good character in investing even in extra ordinary circumstances and shown patience perseverance and has mastered the Art of Regular Investing. In the words of Warren Buf...
IS INDIAN ECONOMY SINKING ? ITS IMPACT ON COMMON MAN AND FINANCIAL TIPS As per the World bank Forewarn the global economy is going to shrink by 5.2% this year resulting into a global economic crisis deepest recession catastrophe ever in decades. We cannot deny the fact that Indian economy is under devastating & catastrophic change and is witnessed sinking due reasons below – 1. Contraction in markets, 2. Supply chain crisis, 3. Lack of demand, 4. Credit growth is declining ...
“Capital crunch in business” – 10 possible ways of refinancing your business- “ART OF FUND RAISING” Leave a Comment / Uncategorized / By CA Jatin Rat Getting battle ready for post covid 19 world is the real test of time and could rack one brain to extreme unseen possibilities of life as nothing is going to remain same as earlier. Series of changes will be witnessed including the life style changes, changes in standard of living, changes in gove...
After Demonetization period, substantial number of Digital Transactions increases but still in India people hesitate to do transaction in Digital payment mode. Digi Dhan and Lucky Grahak Yojana during Demonetization period motivated to do more and more and transaction in Digital mode. Mode of Digital Payments: - NEFT: - NEFT stands for National Electronic Fund Transfer. One can transfer money by using Name of Beneficiary, IFSC, and Bank Account No. of Beneficiary. Money gets cr...
Funding against Letter of Credit (Discounting of Letter of Credit) A letter of credit is a written promise by a bank to pay for goods a buyer purchases from a seller. Discounting is a way a seller gets paid immediately even if the buyer wants a longer term for payment. Letter of Credit: Sellers may request that a buyer obtain a letter of credit from a Bank / FI prior to shipping goods. This is done to protect the seller against non-payment for the merchandise. This letter states the ban...
Comments
Rupali
27-Jun-2012 , 05:16:30 amGud Example