PROJECT ON BANKING AND NEGOTIABLE INTRUMENTS

_________________________________________________________________

Money Laundering and E-Payments: Emerging

Challenges

Submitted By:

Tanmay Meshram

Semester IX, B.A. LL.B. (Hons.)

Hidayatullah National Law University

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 TABLE OF CONTENTS

CONTENT PAGE NUMBER

Acknowledgement 3
Introduction 4-5
Money Laundering 6-7
Electronic Money 7-8
Money Laundering Via E-Payments 9-10
Provisions in Indian Law to Curb Money 10-11
Laundering
Recommendations 12-15
Conclusion 16-17
Bibliography 18-19

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 ACKNOWLEDGEMENT

It is our privilege to present a research work on the topic Money Laundering and E-Payments.

Words perhaps would fail to express our deep sense of gratitude and indebtedness to Mrs. Kiran
Kori, Faculty of Law. Had it not been for her critical and penetrating analysis as an architect this
research project work would not have taken this precise shape.

Herein, it is difficult to acknowledge all the people who have contributed to the success and
completion of this project. Hence, we would like to thank all our friends, family members,
authors and resourceful bloggers who helped us frame ideas through stimulating discussions.

Finally, we are grateful to each and all who helped me in this project work for their forbearance
during the days and nights this work was being done.

Tanmay Meshram
IX Sem
Roll No.:161

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 INTRODUCTION

During the age of global challenges alternative payment systems are relevant and carry more
importance. One amongst such systems is the system of electronic payments also known as
electronic money. At present moment a large number of people use electronic money around the
globe. Taking its assistance we can buy most of those goods and services that we generally buy
in lieu of cash or through bank card. Right now there are electronic payment systems online that
provides the users all those services that one usually receive in banks be it savings and money
transfers, credit loans, cash withdrawals etc. In reference to the development of systems of
combating money laundering or terrorism financing in various states, criminals and wrongdoers
look for tougher ways to legalize their criminal profits, one of them being usage of electronic
money.
An intentionally committed offense that suggests the transfer and conversion of assets of an
illicit origin is known as Money Laundering. The motive of this action comprises of disguising
or concealing the true origin, location, nature, disposition, movements and transfer or ownership
of assets financing terrorist actions.1Many activities and typologies used for money laundering or
terrorist financing have been identified by the Financial Action Task Force (FATF) organization.
Several activities are carried out by means of electronic payment systems, whereby monetary
values are transferred over internet or telecommunication networks. Electronic purse, internet
software, smart cards, mobile devices, debit and credit cards serving as customers instruments
are applied as payment instruments.2For financing of illegal activities the suitability of an
electronic payment system depends to a great extent on factors such as anonymity, mobility, etc.
Series of transactions from collection of money to money withdrawal in order to conceal the

1
Directive 2001/97/EC of the European Parliament and of the Council of 4 December 2001 amending Council
Directive 91/308/EEC on prevention of the use of the financial system for the purpose of money laundering,
Official Journal of the European Communities,http://europa.eu.int/eur-
lex/pri/en/oj/dat/2001/l_344/l_34420011228en00820082.pdf (Last accessed on September 27,2014).
2
John Madinger and Sydney A. Zalopany, Money Laundering.A Guide for Criminal Investigators (Boca Raton, FL:
CRC Press, 1999).

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origin, nature or disposition of money is popularly known as the multi-process character of
money laundering which is usually prevalent for terrorist financing.3
Only, if the money specified leaves the business cycle successfully, i.e. without revelation of its
illicit origin, the money launderer can utilize the anonymous funds or generally accepted money
currencies operative as medium of exchange for any intended purpose which may include
terrorism financing. The stepwise introduction, movement via several business cycles and cash
transaction systems, followed by legal use of the laundered money is termedplacement, layering
and integration of assets in the money laundering cycle.4 Firstly the placement phase wherein
assets from unlawful and criminal activities are mostly deposited on a bank account, invested in
finance products or smuggled. Secondly, the layering phase entails transfer of the placed assets
amongst several accounts in diverseinstitutions and various other business participants with the
aim to conceal the identity of the true owner or the person trading in. Besides, the illegally
trading persons try to avoid different legal restrictions.5
The laundered money and the techniques to achieve it are frequently used for terrorist financing.
The preparation, logistics and procurement of objects for terrorist actions often require a cross-
border transfer of funds to the state of destination. Due to the reason of strict border control,
direct importing of cash will be avoided and more sophisticated practices will be applied for
immediate and complex transfer of funds through the means of existing legal and illegal transfer
systems and financial instruments.
High performance, anonymity of transfer, high security of communication i.e. confidentiality,
cross-border payment possibility, cost efficiency and mobility are most important characteristics
of E-payment systems. Thus, the electronic payment systems are relatively suitable for
conducting money laundering operations in every stage of the money laundering cycle.
This project aims to analyze the possible techniques for money laundering and terrorism
financing, which can be carried in accordance with electronic payment systems. Moreover, we
have listed and analyzed solutions to reduce the threat and menace of illegal money transfers
with electronic payment systems.

3
Madinger and Zalopany, Money Laundering.A Guide for Criminal Investigators.
4
Ibid.
5
Krzysztof WODA, Money Laundering Techniques with Electronic Payment Systems, p.28,
file:///C:/Users/Ashish/Desktop/03_Woda.pdf

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 MONEY LAUNDERING

The word launder in general terms means informal transfer of money of illegally obtained
money. Money laundering means the concealment, conversion, or integration of tainted money
or transfer or property knowing that such property is derived from serious crime. In other words,
any action for the purpose of concealing or disguising illicit origin of the money or property is
money laundering. It also involves evading, assisting or saving a person involved in such crime
from legal consequences. Money laundering is clearly defined in The Prevention of Money
Laundering Act, 2002: Whoever directly or indirectly attempts to indulge or knowingly assists
or knowingly is a part or is actually involved in any process or activity connected with the
proceeds of crime and projecting it as untainted property shall be guilty of money-laundering.
In laymen language money laundering is the process of introducing black money or illegitimate
money into the economy and using it for legitimate purpose.

Some features of Money Laundering are:

It involves huge amount of illegitimate money which is obtained from serious crime like
drugs, trafficking, armaments, etc.
It is carried out by highly trained professionals usually by an international crime
syndicate having vast resources in man, material, and latest technologies.
Some national or international banks are usually involved in this web. It is a multi trillion
dollar business and deeply affects the economy of any nation.
It involves everyone ranging from politicians, business houses to terrorists. Narcotic drug
traders, smugglers, extortionists, gamblers, bootleggers, mercenary killers, brothel
owners, etc.

The process of money laundering is usually multi-staged. It involves:

- Collection of illegal money.

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 - Hiding the money by smurfing i.e., depositing the money is small amount in number of
banks or transferring the money to foreign banks. The launderers call it Placement,
Covering or Layering.
- Conversion of black money to white money is done mostly through fake business and
companies. This process is called Conversion or Cleaning.
- Money is retransferred to its owner, to the place of origin as white money. This process is
called Integration or Legitimization.6

ELECTRONIC MONEY

The idea of electronic money first came to the mind of an American mathematician David
Chaum in 1970s. At that time it was just thought of a method of paying money through prepaid
cards having information about the amount. This helped people as now they werent supposed to
carry huge rolls of money with them to pay bills and instead had to carry just one card. This
mechanism seems like one of bank cards for the final consumer. However, it is not the right
approach to it, because a lot of mechanisms are the basis of this system. It uses the so-called
blind signature which physically carries the details about the total amount of money, while the
credit cards are the apparatus that permit the bank account to be used remotely. As the internet
has grown over time electronic money has stopped being just a tool of prepaid payments and
entered a new virtual world away from its specific material embodiment. At the present moment
it has become the most famous way of online shopping and trading.7

Few salient features of electronic money are:

Accessibility: Each user can open an electronic payment account and use its services,
doesnt matter which country he belongs to.
Mobility: The location of the account holder is immaterial. He just needs to have internet
and a computer. No matter if he lives in a village, city or a metro.

6
Dr. B.R. Sharma, Bank Frauds - Prevention and Detection, Universal Law Publications, New Delhi, 3 rd Ed., Pg.
365.
7
Dr. B.R. Sharma, Bank Frauds - Prevention and Detection, Universal Law Publications, New Delhi, 3 rd Ed.,Pg.
392.

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 Simplicity: It is not very technical to use and doesnt require any specific skills or
qualification. Just the installation of an electronic wallet will start the things.
Speed: The payment done by this method is very fast and happens within seconds. It is
the most instantaneous way of making payments.
Time saving: The biggest benefit of using this service is that it saves a lot of time. One
can use this service and make payments through his house and doesnt have to queue
around any reception counter or office.

Kinds of Electronic Money

In the present world scenario electronic money can be divided in to two kinds. The first one is
electronic money based on cards and the other one is electronic money based on the internet.
Electronic money based on cards used a card with chip installed in it. This chip contains all the
information about electronic money. Through this sort of card the customer can pay at specific
trade spots which are made for this very purpose. Examples of the same are VISA, Mastercard,
etc.
The electronic money based on the Internet system has no physical object for performing the
transaction. All payments happen online without transfer of any physical objects. The electronic
money systems dont possess electronic cash which would be taken by all as an equivalent.8

8
EAG, Risks of Electronic Money Misuse for Money Laundering and Terrorism Financing,
http://www.eurasiangroup.org/emoney_eng_2010.pdf,

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 MONEY LAUNDERING VIA E-PAYMENTS

With all the benefits that can be derived out of these services there also exists a pertinent danger
of its misuse in the form of Money Laundering. Considering the technological advancements it
has electronic payment can be very vulnerable to people seeking to transfer illicit money without
showing the source of its generation. Here are some ways that show how electronic money is
vulnerable to money laundering:
This service transfers large sum of money from one nation to other in very less time.
Now suppose if a drug dealer living in Australia has to make payments to his business
partners living in Brazil, it becomes really tricky for him to travel with such huge amount
of cash. He can be suspected and can fall into the hands of custom officers at airport. It
will also save time and money that occur due to travelling. Also transferring such huge
amounts on international platform using bank services is very dangerous as some nations
have very strict currency legislations and requires the banks to obtain NOC from the
government before performing such transfers. Electronic payments happen instantly and
do not suffer with these disadvantages.9
The transferring system does not have a personal contact with the client receiving
money. This type of transfer is clearly based on the personal knowing of the transferor
and the recipients. Otherwise if payment is done via a banking institution then the client
has to come to the bank to complete the process of transfer and this risks the identity of
the client to be disclosed before the Bank. When using electronic payment system the
clients do not have to leave any important information either about them or about the
transactions they perform.10

9
DNA India, Here is all you need to know about prevention of money laundering,
http://www.dnaindia.com/money/report-here-s-all-you-need-to-know-about-prevention-of-money-laundering-act-
1982230,
10
Research on Money Laundering Crime under Electronic Payment Background,
http://ojs.academypublisher.com/index.php/jcp/article/viewFile/0601147154/2539,

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 Another vulnerability that the criminals take advantage of is that this system of money
transfer makes legal investigation very slow or ineffective. Since it is based to be used
online it takes a complete international character. The victim can belong to one
jurisdiction, the criminal can be residing in other and the system used can be installed in
some third country. So when a victim of such money fraud registers his complaint before
the financial intelligence agency of its nation that agency has to approach the similar
agency of the country where the criminal resides. Also the agency has to request the
financial intelligence agency of the nation where the system of electronic money is
installed.

PROVISIONS IN INDIAN LAWS TO CURB MONEY LAUNDERING

Financial intelligence Unit (FIU)

The Financial intelligence Unit (FIU) works in the ambit of the legal frame drafted by the
Prevention of Money Laundering Act, 2002. FIU does the basic tasks of receipt, investigation
and dissemination of information according to the universal benchmark set up by the Financial
Action Task Force (FATF) and Egmont Group of FIUs.11

As prescribed under the Prevention of Money Laundering Act, FIU gets detailed reports on cash
transfers, suspicious transactions, counterfeit notes and the funds received and transactions done
by Non- Profit Organizations. These reports are submitted by agencies like financial institutions,
capital market intermediaries, banks, personal locker managers. FIU creates and maintains a
database of all these information and share with various watchdogs.

Know your Customer (KYC) Guidelines

The objective of KYC guidelines is to protect the banks from being used as a tool for money
laundering and terrorist funding activities. To prevent these things from happening RBI has
instructed all the banking institutions to prepare a framework to know their customers, i.e. to
know all important particulars about their customers before opening their accounts. These
guidelines were introduced by the Reserve Bank of India in 2002. It involves ascertaining the

11
(FATF), XII Report on Money Laundering Typologies 2000-2001, http://www.fatf-gafi.org/,

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identity of the customer at the time of opening the account or soon after that. In case of
individuals the identity should be established from officially valid documents like Voter ID
issued by the Election Commission, Passport, PAN Number and Driving License..12

Know your Clients Financial Status

The banker must know the clients financial status, his business or job and all his addresses
including his permanent address. Plus the recent photograph of the customer should be regularly
upgraded in the banks database. If the client happens to be a company or firm then the
companys incorporation documents, partnership documents, resolutions of the directors of the
company. The account holders must be real persons and not pseudonyms. It mandates that the
banker must keep records of all transactions exceeding ten lakh rupees. And if there are a lot of
similar series of transaction in a particular month below 10 lakh then also the banker has to
maintain the records. These records must be produced to the authorities specified by the Central
Government.13

2013 Amendments in Prevention of Money Laundering Act

Proper definition of Activities of Terrorism wasnt there in the 2002 Act, nevertheless the
same was incorporated in 2010 as Transaction involving financing of the activities relating to
terrorism includes transaction involving funds suspected to be linked or related to, or to be used
for terrorism, terrorist acts or by a terrorist, terrorist organization or those who finance or are
attempting to finance terrorism. Until 2010, the legislation allowed defending identity of
beneficial owners who could be represented by counsels and accountants. However, it has been
wrapped up as a part of the latest changes made to the act in 2013. The past clauses of the Act
missed the powers for proper legal action. Hence, the compass was broadened in 2013 to
inculcate concealment, ownership, acquirement or use of property, and showing or claiming it as
clean property. Commodity brokers for future have also been incorporated in the Act.14

12
GSR.44(E), http://rbidocs.rbi.org.in/rdocs/content/pdfs/68781.pdf,
13
Ibid.
14
The Prevention of Money Laundering Act, 2012, http://indiacode.nic.in/acts-in-pdf/022013.pdf,

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 RECOMMENDATIONS

Inspite of the fact that Electronic money is a new concept; countries have framed legislation so
as to regulate electronic money conversion. Certain recommendations are put forth after
analyzing the existing experience in order to combat money laundering and terrorism financing.

System clients identification

The system of electronic money has a few peculiarities, despite the simplicity of the process. An
opportunity for simpler identification for the system's clients is available. The conditions for it
would be to restrict the totalsum of transferred money from one account during a fixed span of
time.15Moreover, the clients of the system like the corporate entities have to go through a
comprehensive identification process. Considering the fact that electronic money does not
undertake a frequent personal contact of the user with the system, it is really important to
discover such an identification mechanism which would provide credible information about the
client and at the same time would not complicate an electronic money user's life. Attaching
electronic wallets to the user's bank card can be classified as one such mechanism.16

Payments refusal without payment function

Electronic money is means of payment for goods, work and services, implying that it could be
used to complete transactions which has to be regulated on a compulsory basis. For instance, one
can get a 0% loan or purchasesecurity papers or precious metals with the help of e-money. To
divulge these transactions successfully it is imperative to have payment designation function.

Restrictions introduction for transfer totals

15
Eurasian Group on Combating Money Laundering and Terrorism Financing , Risks of Electronic Money Misuse
for Money Laundering and Terrorism Financing file:///C:/Users/Ashish/Desktop/emoney_eng_2010.pdf
16
Ibid.

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E-money provides for no constantcontact between the user and the system and a high speed
money transfers between the clients. Hence, it is reasonable to agree upon and set up a limit for
the total amount of transferred money among different user groups.17

Data direction to a competent authority

In order to combat the situation of money laundering and terrorism financing through the use of
E-money, it is essential to inform and update the corresponding state authorities about
dealingsand transactions performed with electronic money. Also, it should be examined whether
the transactions performed with e-money are subject to compulsory control.18This would permit
to receive a lot of information, but will also create an additional load for the scheme of electronic
money as it will make it more expensive to avail and use.

Licensing of the activities of electronic money system

Since e- money is directly engaging inand tackling such a significant field of state machinery i.e.
money conversion, and with the advancement of the Internet the array of its activity keeps
expanding, it appears to be essential to implement licensing of e-money issue. The kinds of
licenses could be different. It could be a license of a credit and finance establishment, or a
separate license, allowing to perform transactions with e-money only.19Evidently, this measure
would not just mitigate risks from the viewpoint of money laundering and terrorism financing,
but will also help in making this field more reliable and transparent. It provides the information
about difficultand complex use of the noted measures in order to substantially mitigate risks of e-
money used for money laundering and terrorism financing.

Moreover, the measures for regulating, restricting and combating money laundering can be
classifiedas organizational, legislative, and technical. The regulatory measures at national and
international level are classified as the legislative measures. Various criterions and

17
Ibid.
18
2003 National Money Laundering Strategy (U.S. Treasury: The Office of Terrorism and Financial Intelligence
(TFI), 2003), http://www.treas.gov/offices/enforcement/publicationsml2003.pdf
19
Eurasian Group on Combating Money Laundering and Terrorism Financing , Risks of Electronic Money Misuse
for Money Laundering and Terrorism Financing file:///C:/Users/Ashish/Desktop/emoney_eng_2010.pdf

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recommendations were established worldwidelike the Forty Recommendations of The Financial
Action Task Force (FATF), Risk Management Principles for Electronic Banking of the Basel
Committee on Banking supervision, which define the actualand concrete measures against
money laundering or for discovery, revelation and detection of suspicious activities. 20
However, the regulatory resolutionswill be ineffective so far as countries exist without regulation
of the money laundering activities. The FATF organization issues within certain time intervals a
list of the non-cooperating countries and territories, which actsas a shelter and protection for
many criminal networks.21 Such a list of the non-cooperating countries and territoriesserves as
an important indication for the assistance of supervisory authorities investigating possible
connectionand involvement of suspected persons in criminal wrongdoings. Unfortunately such a
list signifying non-cooperating countries and territories is more often only informative and fails
in restricting the dimension of money laundering.22Probably a regulatory answer for this problem
would be an administrative restriction of the economic relations with such a non-cooperating
country. However efficiency of such restrictions or sanctions seems unrealistic due to the
unlimited communication possibilities of the Internet.
The organizational measures comprises of various methods for examining and checking all
transactions that exceed a threshold value or calculation methods like the net value/ worth,
measurement of the difference between assets and liabilities of a suspected person and its
subsequent increase has to be a consequence of legal income, some supervision systems like
Suspicious Activity Reports filed by Bank or financial institutions in the U.S. and EU, and early
warning systems of potential fraud risks according to the risk management methodology.23
Organizational measures and solutions also comprise of keeping records of all the
transactionsand customers data at the system providers. Detection and traceability of transfers
and net traffic often serves as a major problem for the supervisory authorities due to the reason

20
Krzysztof WODA, Money Laundering Techniques with Electronic Payment Systems, p.44,
file:///C:/Users/Ashish/Desktop/03_Woda.pdf (Last accessed on September 25,2014).
21
The Financial Action Task Force on Money Laundering (FATF), Annual Review of Non-Cooperative Countries
or Territories, 2 July 2004, http://www.fatfgafi.org/dataoecd/3/52/33922473.PDF
22
Krzysztof WODA, Money Laundering Techniques with Electronic Payment Systems, p.45,
file:///C:/Users/Ashish/Desktop/03_Woda.pdf
23
National Money Laundering Strategy, 2003. (U.S. Treasury: The Office of Terrorism and Financial Intelligence
(TFI), 2003), http://www.treas.gov/offices/enforcement/publicationsml2003.pdf (Last accessed on September 25,
2014).

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that customersdata and consequently their privacy issecured by the Internet Service Providers.
The ISP can also operate from non-cooperative countries.
Other suggested measures against potential money laundering activities, such as setting a
maximum loading value for a prepaid card, demand for bank involvement in each transaction or
restriction of the use to national level and prohibiting international payments, are neither realistic
(e-Commerce) nor innovative or efficient.
The technical solutions listed as followsembody the most interesting and, at the same time,
efficient part of the solution and approaches regarding authentication of users or traceability of
transactions:
Digital signatures and certificates based on the Public Key Infrastructure (PKI) This is a
hierarchical certification technology based on asymmetrical cryptography for authentication,
confidentiality and integrity of data, as well as for non-repudiation of electronic transactions. The
generation of key pairs and the confidential distribution of public keys with certificates are also
important for combating money laundering conducted by means of different electronic payment
systems due to the fact that it secures practically a worldwide authentication of the transaction
participants known as worldwide interoperability.24
Special cryptographic protocols such as for example the off-line paymentprotocol of Chaum25,
Fiat and Naor,26 developed on the basis of the blind signature for an anonymous off-line
payment procedure. In contrast to the online payment procedures, where the verification
processes and payments should be processed between the merchants and banks in real time, the
electronic checks and coins are collected in off-line payment protocols by the merchant first and
then are submitted in aggregated form at the bank of the merchant in the end of a given period. A
fraudulent case enhances enormously the probability of disclosure of customer identity.27

24
Krzysztof WODA, Money Laundering Techniques with Electronic Payment Systems, p.45,
file:///C:/Users/Ashish/Desktop/03_Woda.pdf (Last accessed on September 25, 2014).
25
David Chaum, SicherheitohneIdentifizierung: Scheckkartencomputer, die den GroenBruder der
Vergangenheitangehrenlassen - ZurDiskussiongestellt, Informatik-Spektrum10, no. 5 (1987): 262-277.
26
Krzysztof WODA, Money Laundering Techniques with Electronic Payment Systems, p.46,
file:///C:/Users/Ashish/Desktop/03_Woda.pdf
27
Ibid.

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 CONCLUSION

Despite being fairly new electronic money is the tool used for money laundering and terrorism
financing. With the development of high technology and, first of all, the Internet, electronic
money will also develop, so the risks of its use will grow. The key features that set up the basis
of such use are those features that make electronic money so attractive to the users: its wide-
spread use, accessibility, mobility and ease of use. Electronic money allows to transfer large
sums of money quickly for long distances without a physical contact of the user with the system.
Law enforcement agencies and financial intelligence departments of different states have many
examples of electronic money use for criminal purposes, including quite complex criminal
schemes. Taking into consideration the specifics of electronic money, for example, client
identifications, provision of information about performed operations to financial intelligence
department and others allow to substantially reduce the risks of their use for criminal purposes.

Based on the supported features, the gold currencies are often favored for potential application in
money laundering. Other electronic payment systems have characteristics attractive to money
laundering to a different degree. Being suitable for a single phase of money laundering, a
combination of different payment systems would enhance their suitability for the whole money
laundering process prepaid cards for the placement phase, mobile payment systems for the
layering phase and virtual gold currencies for the integration phase. The number of possible
combinations for illegal activities increases enormously when other traditional techniques are
involved (e.g., transfers through Hawala, intermediation of shell companies and nominees or
investment in legal financial products). Hence, money laundering is a complex and continuously
changing process; however, the dimension of illegal money activities can be limited by suitable
measures and approaches (primarily technical solutions) or detected by early warning and
supervision systems.28

28
Krzysztof WODA, Money Laundering Techniques with Electronic Payment Systems, p.55,
file:///C:/Users/Ashish/Desktop/03_Woda.pdf

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India now has KYC Norms in place in both money market and capital markets. However, these
KYC Norm dont desist the Hawala transactions, as RBI cannot regulate them. Further, KYC
Norms become a mockery because of indifference shown by the implementing authorities. KYC
norms are followed in letters but the requirement is to follow it in spirits. Increased competition
in the market requires and gives motivation to the banks to lower their guards. Specifically, the
franchisees of banks that are authorized to open accounts.29

Combating money laundering is a dynamic process because the criminals who launder money
are continuously seeking new ways to achieve their illegal ends. Moreover, it has become
evident to the FATF through its regular typologies exercises that as its members have
strengthened their systems to combat money laundering the criminals have sought to exploit
weaknesses in other jurisdictions to continue their laundering activities.30

29
Vijay Kumar Singh, Controlling Money Laundering in India Problems and Perspectives, p.44,
http://www.igidr.ac.in/money/mfc-11/Singh_Vijay.pdf.
30
Vijay Kumar Singh, Controlling Money Laundering in India Problems and Perspectives, p.10,
http://www.igidr.ac.in/money/mfc-11/Singh_Vijay.pdf.

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BIBLIOGRAPHY

ARTICLES REFERRED:

John Madinger and Sydney A. Zalopany, Money Laundering. A Guide for Criminal
Investigators (Boca Raton, FL: CRC Press, 1999).
Madinger and Zalopany, Money Laundering. A Guide for Criminal Investigators.

BOOKS REFERRED:

Dr. B.R. Sharma, Bank Frauds - Prevention and Detection, Universal Law Publications,
3rd Ed., New Delhi.

STATUTES REFERRED:

The Prevention of Money Laundering Act, 2012.

WEBSITES REFERRED:

(FATF), XII Report on Money Laundering Typologies 2000-2001, http://www.fatf-

gafi.org/.
Directive 2001/97/EC of the European Parliament and of the Council of 4 December
2001 amending Council Directive 91/308/EEC on prevention of the use of the financial
system for the purpose of money laundering, Official Journal of the European
Communities,http://europa.eu.int/eur-
lex/pri/en/oj/dat/2001/l_344/l_34420011228en00820082.pdf.
2003 National Money Laundering Strategy (U.S. Treasury: The Office of Terrorism and
Financial Intelligence (TFI), 2003),
http://www.treas.gov/offices/enforcement/publicationsml2003.pdf

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 David Chaum, SicherheitohneIdentifizierung: Scheckkartencomputer, die den
GroenBruder der Vergangenheitangehrenlassen - ZurDiskussiongestellt, Informatik-
Spektrum10, no. 5 (1987): 262-277.
DNA India, Here is all you need to know about prevention of money laundering,
http://www.dnaindia.com/money/report-here-s-all-you-need-to-know-about-prevention-
of-money-laundering-act-1982230.
EAG, Risks of Electronic Money Misuse for Money Laundering and Terrorism
Financing, http://www.eurasiangroup.org/emoney_eng_2010.pdf,.
Eurasian Group on Combating Money Laundering and Terrorism Financing , Risks of
Electronic Money Misuse for Money Laundering and Terrorism Financing
file:///C:/Users/Ashish/Desktop/emoney_eng_2010.pdf.
GSR.44(E), http://rbidocs.rbi.org.in/rdocs/content/pdfs/68781.pdf
Krzysztof WODA, Money Laundering Techniques with Electronic Payment Systems,
file:///C:/Users/Ashish/Desktop/03_Woda.pdf.
Research on Money Laundering Crime under Electronic Payment Background,
http://ojs.academypublisher.com/index.php/jcp/article/viewFile/0601147154/2539.
The Financial Action Task Force on Money Laundering (FATF), Annual Review of
Non-Cooperative Countries or Territories, 2 July 2004,
http://www.fatfgafi.org/dataoecd/3/52/33922473.PDF.
Vijay Kumar Singh, Controlling Money Laundering in India Problems and
Perspectives, http://www.igidr.ac.in/money/mfc-11/Singh_Vijay.pdf.

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