Money Laundering

Money Laundering is the process of concealing the sources of illegally earned money and the person who does this is called money launderer. People used it to convert, Black money into white by violating different acts. Banks, financial institutions and intermediaries are obligated, by law to keep an eye on such transactions, to detect the money launderers.

For example:-In India, if a suspected case of money laundering is spotted financial institution needs to inform the financial intelligence Unit India (FIU-IND), an enforcement agency.

A resent case of HSBC

The US Senate charged HSBC with active money laundering. The bank failed to control suspicious flows of billions of dollars through its accounts and didn’t respond promptly after being warned about a huge swell in dollar cash transactions at the bank.

The report notes a lot of danger signs within HSBC’s compliance office: lack of resources, a huge back log of complaints, a vast number of suspect transactions and high turnover in compliance office. As, the compliance officers are chosen based on the IT skills. Banks do not care about their character and courage of doing work.

These all are serious questions on the bank’s safety & reliability.

So, the governments should have to make serious laws and acts to control the money laundering.