Money Laundering: The Menace of Indian Economy

Abstract

Money Laundering has become a serious global issue. Money launderers tend to choose developing countries with lower risk of detection due to their weak or ineffective Anti-money laundering (AML) programmes. Hence, due to importance of the AML systems in countering the money laundering, the purpose of this study is the analysis of legal framework of India to combat with money laundering. The study presents an overview of its consequences on Indian economy and society. There is no doubt that manifestation of black money in social, economic and political space of our lives has a debilitating effect on the institutions of governance and conduct of public policy in the country. Governance failure and corruption in the system affect the poor disproportionately. A serious operation of strictly enacting and enforcing anti-money laundering and anti-tax evasion laws is the only solution for combating and winning over the cancerous menace of illegal funds stashed abroad and within the country.