Q12.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.

Money laundering is the process of concealing the illicit origins of illegally obtained funds, making them appear legitimate.

• Cryptocurrencies provide anonymity and rapid cross-border transfers.
• AI/ML create complex, untraceable transaction patterns.
• Dark web facilitates illicit transactions.
• Instant digital payments enable quick fund movement.

• Enables cross-border capital movement and complex financial networks.
• Facilitates use of offshore havens and regulatory arbitrage.

National Level

• PMLA (2002), FIU-IND, ED.
• KYC norms, digital forensics, inter-agency coordination.

International Level

• FATF recommendations, Egmont Group.
• UN Conventions (UNCAC, UNTOC), bilateral cooperation, information sharing.

The evolving nexus of technology and globalisation with financial crime demands a multi-pronged, collaborative approach. Addressing regulatory gaps and jurisdictional issues is crucial for effective deterrence.