Money laundering - increasingly risky in India

According to report, digital currency in India is predicted to open the door for cyber Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term

The report, by Pune-based Indiaforensic, 'Laundering in Cyber World - The Digital Currency Way', has shown that India can expect a rise in money laundering as digital currency becomes more widely used and available, worldwide. It also speaks about the desperate need for training and preparation that law enforcement in India is currently lacking – ill equipped to come up against an international Internet population filled with savvy and experienced cyber criminals.

"This new techniques of money laundering (using digital currency) includes opening accounts with low cost and little known payment gateways, buying digital currencies, purchasing stolen data, setting up online shops with payment gateways, using the bank accounts of money mules to transfer so earned money to different countries," said the report. It expresses concern for the anonymous, uncontrolled currencies that without a centralized body to regulate and protect, makes criminality easy as pie for opportunists who can transfer funds undetected and undocumented.

The report references the dirty work of Arthur Budovsky Belanchuk and his company, “Liberty reserve”, arrested in May for several crimes, including child pornography and drug trafficking, both funded by money transferred through Liberty Reserve’s identity free payment service from which a number of e-commerce merchants benefitted.

And according to Mayur Joshi, Indiaforensic head, "The liberty reserve case shows that data thefts, hacking attacks and online scams are replacing traditional crimes and digital currency is now at the centre of laundering operations."