Cyber Money Laundering in India, with Reference to Global Money Laundering Laws

Know your customer, Credit card, Stored-value card


Money is like fire, an element as little troubled by moralizing as earth, air and water. Men can employ it as a tool or they can dance around it as if it were the incarnation of a god. Money votes socialist or monarchist, finds a profit in pornography or translations from the Bible, commissions Rembrandt and underwrites the technology of Auschwitz. It acquires its meaning from the uses to which it is put.

Benjamin Franklin said,
“Money has never made man happy, nor will it; there is nothing in its nature to produce happiness. The more of it one has the more one wants”.


• According to Capt. Raghu Raman, “Five types of crimes are now converging. Cyber crimes such as identity theft, illegal access to e-mail, and credit card fraud are coming together with money laundering and terrorist activities. Large amounts of money is now stored in digital form. Now you can transfer money through electronic and online gateways to multiple accounts.” • In the beginning, laundering money was a physical effort. The art of concealing the existence, the illegal source, or illegal application of income, and then disguising that income to make it appear legitimate required that the launderer have the means to physically transport the hard cash. The trick was, and still is, to avoid attracting unwanted attention, thus alerting the Internal Revenue Service (IRS) and other government agencies involved in searching out ill-gotten gains. In what could be described as the “low-tech” world of money laundering, the process of cleaning “dirty money” was limited by the creative ability to manipulate the physical world. Other than flying cash out of one country and depositing it in a foreign bank with less stringent banking laws, bribing a bank teller, or discretely purchasing real or personal property, the classic approach was for a “smurf” to deposit cash at a bank. • Cyber laundering is a new way to hide the proceeds of crime and the...
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