What is the impact of emerging technologies on money laundering? What measures are necessary to address the issues arising out of it? (Answer in 150 words)

Money laundering is the technique of converting illicit proceeds of crime to legitimate money. It has taken new size and form with emerging tech. Impact of emerging tech on money laundering: a) Positive impact: (1) Ability to use multiple layering transactions using big data (2) AI/ML tool are being used to predict money laundering transactions (3) Perplexities in digital transactions (4) Cryptocurrency used as a pass for transferring proceeds of crime. (FT: Ransomware actually as crypto as ransom) (2) Use of dark web to perform illicit transactions. (3) Access to tools like big data and AI providing finance multiplier to smaller unsettle transactions. Stringent punishments to increasing digitalization

reducing chances of money laundering: b) Negative impact: (1) Cryptocurrency used as a pass for transferring proceeds of crime. (2) Use of dark web to perform illicit transactions. (3) Access to tools like big data and AI providing finance multiplier to smaller unsettle transactions. Stringent punishments to increasing digitalization punishments: Measures to be taken: Rigorous (20% TDS in India) Regulations: Oversight to monitor transactions Standards for emerging technology, Increasing diactivation punishments to PNMTA for new tech Intetnational cooperation strengthened Financial Responsibility of TP and ML Empowering agencies and ICF FD Hence emerging tech is the latest frontier of economic terrorism.