Money Laundering: Phase-Wise Presentation – Dhananjay Choudhary Koda Law Firm

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Money laundering has become a distinct vice, which amounts to concealment of the original source of the money fraudulently acquired, typically through transfers encompassing legitimate businesses or financial institutions. It contributes to an extreme unlawful act as the money involved is often used in nefarious practices such as extremism.

In such a scenario, acknowledging the idea of money laundering is also relevant since it will help you to forestall some kind of tight spot afterward. According to the available details, money laundering entails three phases viz., Placement, Layering, and Integration. We are now going to discuss the mentioned stages that involve money laundering.

  • Placement: This stage refers to the amount of money in question, which is placed in real-time within a circulatory cycle with respect to a specific financial institution. Actually, this stage is simply about transferring the money or cash concerned from the primary source.

There are different ways wherein money is put, and it is not only confined to financial institutions. It can be managed through a casino, a shop outlet, or just through business entities. There are several ways in which security brokers, bank complicities, currency smuggling, currency exchanges, and even the purchase of assets can come under this purview.

  • Layering: As and when the element of placement has been dealt with, the next step would be to layering the money involved. The intention behind this method is to make it impossible to trace the source of funds and to make any other money-laundering operation intricate to discover.

However, there are numerous trails triggered alongside the transaction on this level, which makes tracking the transfer very challenging. For instance, the individual can choose to purchase goods, which can be smuggled effortlessly, such as gold or diamonds, and that can be relisted in any market in exchange for cash. The other alternative is to take advantage of negotiable instruments such as draft or money order.

Integration: It would be the final stage of money laundering and exploiting the virtues of banking structure or by some other means such that the money is re-injected into the mainstream economy. The general concept, in this case, is to demonstrate that the money is raised as the result of a normal business operation. Other strategies can be used to bring the money back into the market, including fake loans, property deals, forged import invoices, etc.

Thus, the real scenario of money laundering comprises the above three phases, and you need to be well aware of the complexities of this parallel economy for benefit. The best possible way is to reach out to Dhananjay Choudhary- Koda Associates, the most reliable consultancy firm in the Indian sub continent, if you need any consulting services about money laundering to make sure that your company duly complies with the Prevention of Money Laundering Act, promulgated in the year 2002.

Dhananjay Choudhary is a prominent Delhi High Court lawyer who not only deals with money laundering lawsuits but also offers widespread advisory services in terms of money laundering and fraudulent financial activities.

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