From Diamonds to Deception: Exploring Money Laundering as a White-Collar Crime through a Criminological Analysis of the Nirav Modi Scam

This article examines the concept of white-collar crime through the lens of the high-profile Nirav Modi fraud case in India. It delves into the theoretical underpinnings of white-collar crime, tracing its origins to Edwin Sutherland's seminal work and exploring its manifestations in corporate and occupational contexts. The intricate dynamics of money laundering, a prevalent facet of white-collar criminality, are also scrutinized. The article dissects the modus operandi of the Nirav Modi scam, shedding light on the collusion between bank employees and Modi's companies to defraud Punjab National Bank of nearly $1.8 billion through unauthorized bank guarantees. Employing the Fraud Triangle and Fraud Diamond theories, it probes the motives, opportunities, and rationalizations that enabled this audacious fraud. Furthermore, the far-reaching aftermath of the scandal is examined, spanning stock market turmoil, regulatory reforms, and legislative developments in the Prevention of Money Laundering Act. Finally, the article explores criminological perspectives on white-collar crime prevention, underscoring the need for a multifaceted approach encompassing victim education, deterrence, and stringent oversight measures.