Que. Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (150 words, 10 Marks)

UPSC CSE : 2021

Answer:

Approach:

Introduction

  • Recognize the connection between emerging technologies, globalization, and the rise in money laundering.

Body

  • Discuss the role of various emerging technologies and aspects of globalization in facilitating money laundering.
  • Identify and mention measures to counter money laundering.
  • Do substantiate with examples.

Conclusion

  • Conclude, reiterating the challenges posed by emerging technologies and globalization in money laundering and stress the importance of robust regulations, cooperation, and advanced technology usage in combating this financial crime.

Introduction:

Money laundering, the act of making illegal income appear lawful, has intensified with the rise of digital technologies and globalization. These advancements have eased cross-border transactions and enhanced anonymity, boosting such unlawful practices. According to the United Nations Office on Drugs and Crime (UNODC), global money laundering represents 2-5% of the world’s GDP, or around $800 billion to $2 trillion each year, posing a severe global concern.

Body:

Contribution of Emerging Technologies and Globalization to Money Laundering:

  • Cryptocurrency: Anonymity of transactions in cryptocurrencies like Bitcoin is often exploited for money laundering, for example in the 2020 Twitter Bitcoin scam.
  • Digital Payment Systems: Globalized digital payment systems can be misused for transferring illicit funds across borders, for example, in the Wirecard scandal.
  • Offshore Banking: Globalization has facilitated easier access to offshore banking, often used to hide illicit funds, for example, the revelations from the Panama Papers.

Globalization to Money Laundering

Measures to Tackle Money Laundering:

  • Regulation of Cryptocurrencies: Countries like India are considering regulating cryptocurrencies to curb money laundering.
  • Strengthening of AML Laws: Anti-money laundering laws are being bolstered globally.
  • International Cooperation: Global entities like Financial Action Task Force on Money Laundering (FATF) play a crucial role in setting anti-money laundering standards and promoting cooperation.
  • Use of AI: Governments and banks are leveraging AI for real-time fraud detection and risk assessment.

Conclusion:

While emerging technologies and globalization present challenges in the fight against money laundering, adopting stringent regulations, promoting international cooperation, and utilizing advanced technologies like AI can create robust defenses against this financial menace. Proactive and collective action is needed at both national and international levels to curb money laundering.

Know about Physics Wallah

Physics Wallah is an Indian online education platform, that provides accessible & comprehensive learning experiences to students of classes 6 to 12 and those preparing for JEE and NEET exams. We also provide extensive NCERT solutions, sample papers, NEET, JEE Mains, BITSAT previous year papers, which makes us a one-stop solution for all resources. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.

We Stand Out because

We successfully provide students with intensive courses by India's qualified & experienced faculties. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.

Our Key Focus Areas

Physics Wallah’s main focus is to create accessible learning experiences for students all over India. With courses like Lakshya, Udaan, Arjuna & many others, we have been able to provide a ready solution for lakhs of aspirants. From providing Chemistry, Maths, Physics formulae to giving e-books of eminent authors, PW aims to provide reliable solutions for student prep.

What Makes Us Different

Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others.

Aiming for UPSC?

Download Our App

# #
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">






    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.