DRI, SEBI, ED on alert, trade-based money laundering increases by 65 per cent - The Sikh Times
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DRI, SEBI, ED on alert, trade-based money laundering increases by 65 per cent

The Securities and Exchange Board of India (SEBI) has decided to check for possible money laundering activities in capital market.
Off late, the Securities and Exchange Board of India (SEBI) has tightened its belt by enhancing surveillance to check for possible money laundering activities in capital markets, to stop any attempts by listed companies and intermediaries to launder investors’ money or bring in foreign funds for polls or other illegal activities.

Interesting aspect here is, election or no election, money laundering activities are showing an upward trend in India. The official data till 30 April 2013 available with indiatoday.in shows money laundering has increased significantly every year, over the past few years.

The number of money laundering investigations increased from 798 on 31 December 2009 to 1405 on 15 December 2011, to 1510 on 31 August 2012, to 1530 on 30 November 2012, and 1561 on 30 April 2013. Even prosecution cases have increased.  “From 2009 to 2013, more than 1500 cases of money laundering have come before us, out of that 65 per cent cases are trade-based money laundering,” a senior DRI officer said.

When non-shell companies are used, a commission of 0.1 percent of the value of transaction is paid. Profits are laundered to safe havens,” DRI official said. According to DRI, AEL group is one such company which laundered money to the tune of Rs 49,000 crore via this modus operandi, against which, showcause notices have been sent and investigation is still on.

Even the Enforcement Directorate (ED) has sent a few showcause notices to IT companies suspecting TBML. Senior ED officials also admit that TBML cases are on the rise and they are keeping a close tab on it.

Now, investigating officers have raised an alarm on increasing TBML in the country. An officer says, “Due to rising TBML, country is losing revenue, parallel economy of black money is working on ground and damaging the financial institutions. Unfortunately, our enforcement agencies are also ill-equipped to curb it.”

Revenue officials have sought strong penal measures, streamlining of multiple export incentives schemes, special fast track economic offence courts, an integrated approach towards TBML, and international cooperation.

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