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The evolving threats of money laundering supported by the emerging technologies need to be addressed with the equally advanced Anti-Money Laundering mechanisms. Elucidate.

Topic: Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges, basics of cyber security; money-laundering and its prevention.

6. The evolving threats of money laundering supported by the emerging technologies need to be addressed with the equally advanced Anti-Money Laundering mechanisms. Elucidate.(250 words)

Reference:  ifc.org

Why the question:

The question is based on the theme of money laundering and the need for technology driven anti-money laundering mechanism.

Key Demand of the question:

Discuss first evolving threats of money laundering and the need to address them.

Directive:

Elucidate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction:

Start with what Money laundering is.

Body:

Money laundering is concealing or disguising the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources. It is frequently a component of other, much more serious, crimes such as drug trafficking, robbery or extortion.  

Discuss the use of technology to Money laundering.

Explain the steps taken by government of India to prevent money laundering.

Suggest the need to develop advanced Anti-Money Laundering mechanisms.

Conclusion:

Conclude with way forward.