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Money Laundering means conversion of
Black Money into White in the layman's terms. In more technical
terms it is disguising the nature of transaction to hide the source
of money. There are three stages involved in the Money Laundering
cycle.
Placement : Where the money is placed
into the financial institutions.
Layering: Creating a chain of
transactions to disguise the actual nature of transaction
Integration : Integrating the layered
funds back to the account of the beneficiary.
(Read more about these
schemes in the
Guide to Money laundering
published by Indiaforensic Research Foundation )
Every year world loses $1.5 trillion to
Money Laundering. It is the second biggest industry by size. The
fight to deter money laundering and terrorist financing has been a
high priority by law enforcement agencies and financial regulators
around the globe. Global awareness in the Banking and Financial
Industry have created the opportunity for the Indian Software
companies. The financial services sector, in particular, faces
significant reputation and regulatory risk should it be deemed to
have inadequate arrangements to prevent money laundering. IFCS
assists the companies and banks with the development of compliant
but cost-effective processes and controls to protect against
financial crime risk, including fraud, money laundering and market
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