Money Laundering
What is Money Laundering?
General impression is that "Money Laundering" term is used as it converts dirty money, commonly known as Black Money into clean money, commonly known as White Money. The word "Laundering" means washing/cleaning hence here also it is to switch Dirty Money into Clean Money.
Clean Money is money coming from legal sources while Dirty Money is money comes from illegal resources/activities. Dirty Money is also known as Number Two money and White Money is known as Number One money. Converting of Black Money into white money is call Money Laundering.
Origin of the Term
There is history behind the word "Laundering". Al Capone, notorious mafia in USA, obtained lot of money from criminal activities by establishing laundries all over USA. Laundry business is a cash business and he converted his cash money into legitimate money hence the name "Money Laundering" came in picture.
The problem became more acute when the money is used for wrong activities. To prevent such activities and conversion of Black Money into White Money, the Parliament Enacted the Act known by the name "Prevention of Money Laundering Act, 2002". Money Laundering generally is done through banking company, financial institutions, share market, Property Market, etc.
Prevention of Money Laundering Act
In "Prevention of Money Laundering Act, 2002" certain restrictions are imposed in cash transactions such as to follow certain procedures, maintain accounts, submitting informations. Provision of punishment for offence of Money Laundering is imprisonment upto 7/10 years beside imposing fine.
The tainted property is liable to be confiscation. The Act provides comprehensive framework to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto.
Our Services in Taxation
BAVM Legal team offers guidance to domestic and international clients on:
- GST Pre Audit: We do audit of the records, to minimise the objections raise by the Audit Team
- Appearance before the Adjudicating/Appellate Authorities, Tribunals, High Courts and Supreme Court
- Drafting and filing of Reply to Show Cause Notices before Quasi-Judicial Authorities
- Drafting and filing of Appeals and Writs before various forums
- Legal Opinion/Consultancy and Research on issues relating to areas of practice
- Dealing with old and pending matters before different forums under Service tax, Central Excise and Customs Act
We also help our clients at the time of Audit, departmental enquiries and get them registered with the respective departments, give guidelines for setting-up of new units and also visit to units, if required.