“First conviction for the crime of money laundering in India.” Looks like India is growing in a lot of aspects. Another interesting thing in understanding the crime of money laundering is the concept of Hawala transactions.
Lets say X studies in Europe, while his parents are in India. X needs immediate money and X’s father Y in India has loads of black money. Now, because of the black money he cannot wire him through an authorized medium.
So, he approaches a Hawala agent in India and hands over the money. The Hawala operator now contacts his counterpart in Europe and asks him to hand over the money to X. In between, the agent in India and Europe earns a commission out of this transaction.
This is illegal because lot of black money transactions are involved in this system and this where the PMLA (Prevention of Money Laundering in India Act) comes into the picture.
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