Critical Analysis on Money Laundering in Banking Sector

  • G. Sanjay and R. Vijay Akash
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  • G. Sanjay

    Student at Tamilnadu Dr. Ambedkar Law University (SOEL), India

  • R. Vijay Akash

    Student at Tamilnadu Dr. Ambedkar Law University (SOEL), India

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In further development of banking sector gives raise to crimes. Banking is prime institution which regulates all activity and flow of money in all the countries. It acts as a mediator and monitoring institution of money transactions. How crime take place in banking sector? Because money is the priority motive of perpetrators and banks work only with money. Banks is not only victimized because of theft, robbery, debt by fraudsters, it also affected by perpetrators who try to disguise their ill gained money from organized crime to show as legitimate money to tax authorities and not to be filed under any criminal activities. The activity of changing the ill gained money to legitimate source of money is known as money laundering and it is been federal international crime involving large group of countries around the globe. Money laundering is of easy way to convert their money through injecting it to bank by making small deposits and making them flow through normal money and returning back it to launders. This crime does not seem to be affecting any person or banks, then why it been a sever issue, no this money laundering act looks like an easy way changing money, money laundering is the back bone of organized crime. if there is no option for money laundering perpetrators cannot change their source of income as legitimate one and they will be odd one out and can be easy to be caught by appropriate authority. Money laundering should be eliminated in every country and the existing laws should be amended and diversified with special law enforcements and agencies without any consideration. Anti – money laundering program should be implemented at various countries and regions In this article, we are going to study about how money laundering take place in banking sector, laws governing Anti -money laundering and law enforcements, History of money laundering, current statistical report, future prevention of money laundering in banking sector is possible and to what extent.


Research Paper


International Journal of Law Management and Humanities, Volume 6, Issue 5, Page 1760 - 1775


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