Money Laundering

This is one fascinating aspect of the capital markets!!

There are always people who are exploring ways of increasing their incomes without letting others know....... it may be the taxman or the wife or the over cautious parent!! There are always businessess which need to generate "black" money to be able to pay off those corrupt officials in governments the world over...... yes, they are present in each and every country and at each and every level of the administration..... and there always will be the ever watchful regulator wanting to know more about the wealth which is evading taxes!!

So... the money launderers come in with their skills of generating "white" capital as and where required and provide this service at a cost (estimated at around 30%, just a little less than what the taxman would have taken, but unlike the taxman, the launderer doesn't ask any questions!!)

Now, some questions which have always intrigued me are :- what is the profile of the money launderer?? how do they execute their transactions??? since a large part of their work involves cash management, how do they manage to undertake large transactions where a huge amount of currency notes are involved physically??? how does the system view money laundering??

In my subsequent posts in this section of the blog, i shall try to answer these questions and raise many more!!