Regulators connect to check money laundering
|
|
Money laundering could easily rank high up in the list of headaches for most governments around the globe. Money laundering is a process in which funds from illegitimate sources are sought to be passed off as those from legitimate sources. Like others, the Indian government, too, is working hard to tackle this menace. Compulsory quoting of permanent account numbers for cash deposits above Rs 49,999 is one of the many measures to check money laundering. Capital market regulator Sebi making PAN mandatory and the sole document for all dealings in financial market is another measure. Internationally, too, regulators have joined hands towards the elimination of money laundering. In fact, the International Organisation of Securities Commissions (Iosco) had brought out a consultation report way back in October 2005 on anti-money laundering. Iosco has adopted the principle that regulators should require securities (including derivatives) market intermediaries to have in-place policies and procedures designed to minimise the risk of the use of an intermediary’s business as a vehicle for money laundering. The Financial Action Task Force on Money Laundering (FATF) has issued 40 recommendations on combating money laundering and financing of terrorism and Iosco has accepted this guidance. Iosco is also actively monitoring the ongoing work of the FATF. More : economictimes.indiatimes.com |