14 October 2019 - 10:37,
by ITM Group of Institutions
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A session an anti-money laundering was conducted by Ms. Suchismita, who has held various positions in the field of Risk management and Risk Control with previous organizations like Citicorp Services India( Ex-employee) and HCL Technologies
(Ex-Employee). She has pursued her PGDM from K.J.Somaiya College, Mumbai. The guest session was conducted on 7th September 2019.
Money laundering process involves the conversion of dirty money to clean money through certain legitimate channels. The main faces behind the faces are mobsters, terrorists, drug traffickers, corrupt politicians. Session started with such a shocking and curious facts of 09/11 and 26/11 incident that leads to other points covered.
Key points covered:
- Money laundering process:
- Money laundering stages
- Placement: This critical stage evolves how dirty money into financial state.
- Layering: Separation of illicit proceeds from their source by layers of financial transactions.
- Integration: Funds back to the criminals through legitimate source.
- Socio cultural:Increase in criminal activity, encourages illicit schemes, more drugs & drug related crime, de-morale in legitimate business corporation leading to collapses thereby resulting in pension loss for workers.
- Economy:Sudden inflow of money into a sector creates false demand thereby resulting in officials framing / adjusting economic policies based on the new demand. The dirty money will then suddenly disappear without any predictable economic cause resulting in that financial sector collapse.
- Loss of tax revenue:Tax evasion, diminishes Government Tax revenue therefore indirectly harming the honest tax payers.
- Reputation risk of the country: Hindrance in the development & economic growth. FIIs may hesitate to do transactions setting limits there causing reduction legitimate global opportunities.
- Social cost: Rise in Government expenses & Budgets due to the demand for law enforcement and other expenditures like Healthcare.
- Anti-money laundering stages :
- Prevent Know your customers by doing customer identification program, customer due diligence, risk-based approach with enhancing due of periodic review.
- Detect Transaction monitoring of client against expected activity to identify unusual behaviour.
Responsible for overseeing the effective development and implementation of the institution’s AML program.
- High risk of Anti-money laundering:
- High risk countries Drug Producing countries, countries with high corruption, countries linked to terrorism financing.
- High risk clients The private money transmitters, the money changers, real estate brokers, the casino gambling,NGO.
- Services of high risk Wire transfer, the private banking, correspondent banking, Electronic Banking services internet Credit / Debit cards.
In the End after some short question answer session, she had shown Anti -money laundering careers option such as AML Transaction monitoring, compliance officer, internal auditor.