Money Laundering in India

Over $1 trillion is being laundered every year by drug dealers, arms traffickers and other criminals in India, according to a report by audit and consulting firm KPMG .The report comes close on the heels of the murky cash-for-vote controversy that erupted in parliament during the trust vote July 22, reflecting the country’s parallel economy. Quoting from the 2008 International Narcotics Control Strategy Report, prepared by the US department of state, KPMG said India’s emerging status as a regional financial centre and informal cross-border money flows are the main contributors to growing money laundering in the country.
“Some common sources of illegal proceeds in India are narcotics trafficking, illegal trade in endangered wildlife, trade in illegal gems (diamonds), smuggling, trafficking in persons, corruption, and income tax evasion. India continues to be a drug-transit country,” the US narcotics survey has said.KPMG feels that in future, the major challenge for the finance sectors like banking, brokerage houses and insurance companies would be combating money laundering and terrorist financing. “According to Indian observers, funds transferred through the hawala market are between 30-40 per cent of the formal market,” the report said, and noted that RBI estimated official remittances to the country to be around $28.2 billion.

1 comment:

Unknown said...

excelent post!!

i have been following the activity in india with this regard for quite some time.... it is state-sponsored laundering in india!!

if anyone has any doubts... dig the Sahara-RBI settlement done just before the govt. recently survived due to support from a major political party!!