Effects of Hundi on Money Market

Presented By
MUSUNNA GALIB ID-
06
JANNAUL FERDOUS
ID-07
JINAT ANJUM ID-
32
ABDUL MALAK ID-
 Trying to hide the source
earnings by conducting a
number of transactions.
The transactions take place
Money
in the following manners .
laundering 1. Putting the money
into
2. bank account
3. Purchasing property
4. Making payment of
loan
5. By conducting
frequent
transaction.
Sources of
money
laundering
includes
Drug trafficking
.
Human
trafficking
Smuggling
Money laundering Hundi
take place
•Banks
•Stock brokers
•Insurances
•Tax firms
•Accounting firms
•Audit services
 •Alternative remittance
system
•Was developed in India
Hundi •have no legal status
•Not covered under the
Negotiable Instruments
Act, 1881
•Involves trusts and
extensive use of
connection
CASE 1

Faurk
Lina

Mitul

Robin
A real Case
 •Most of the clients
involved in hundi are
the victim of
Findings circumstances
from the •They have no
intention to commit
case the crime. Just they
are not getting
alternatives.
•Lengthy procedures
of formal channel are
indirectly induces the
NRB’s to go for hundi.
 •An integral part of
financial market
•Medium for the
redistribution of short term
loanable funds
Money •financial instruments with
high liquidity and very
Market
short maturities are
traded.
•Performs short-term
borrowing and lending like
•selling deposits
•Discounting deposits
•Treasury bills
•Commercial papers etc.
Participant of Money
Market
 Components
of money
market

Inter-bank Call money

Bill market
market market
Behinds its popularity
 Cost Effective

Less legal
Constraint •Receiver would not go
to bank.
Convenient •No bank account is
Delivery needed
Faster than Bank
Behinds its popularity
 Cost Effective

Less legal
Constraint •No identification
Convenient number
•No work permit required
Delivery

Faster than Bank

Behinds its popularity
 Cost Effective

Less legal
Constraint •It is effective even in
Convenient remote area.
•Home delivery services.
Delivery

Faster than Bank

Behinds its popularity
 Cost Effective

Less legal
Constraint
•Just a phone to a agent of
Convenient Bangladesh makes the
services instantly
Delivery

Faster than Bank

Effects of hundi on Money
Market
Effects of hundi on Money Market
(cont.)
Thanks to
all