Question Q.10GS2GS3
Money laundering undermines the integrity of the financial system and threatens national security. Elaborate: How effective has Prevention of Money Laundering Act, 2002 (PMLA) been in directing the problem of money laundering in the country?
Main Body
Money laundering is the activity of converting Black money in a way to show that the original source of it is legitimate source. Support of money laundering: I. Integrity of financial system 1. Reflects poor financial policing 2. Initiates black moneymore parallel economy - Organized crime - United Revenue II. National security: 1. Thrives organized crimes, illegal activities eg. Drug Trafficking
2. More vulnerable to security challenges like terrorism through organized crime linkages Effectiveness of PMLA, 2002: Enforcement through ED, for preventing money laundering, attachment, seizure of properties 1. Lack of Raids core for political reasons eg. on leader of opposition 2. High corruptionheightened in poor conviction but high voice 3. Failed to check black money - Paul committeeblack money is (6-12% GDP) can be 4. Empowerment / provisions / penalties are strong but enforcement is weak
To curb the menace of money laundering, structured reforms beyond legal reforms due needed.
157 words1 paragraphs
Conclusion
To curb the menace of money laundering, structured reforms beyond legal reforms due needed.
14 words
Topper
CHEJARLA ASWANI KUMAR
AIR 2562025
Subject & Paper
GS2GS3
Topic
Internal Security
Money-Laundering & its Prevention
Money-Laundering & its Prevention
Writing Stats
171
Total words
1
Paragraphs
analytical
Tone