I always wanted to write about the financial crimes. It was my passion. However, I had very little time to contribute as I was all over the analytics. But today I got some time to write on Financial Crimes in Trade.
Introduction
The Indian economy is mostly based on commerce and business. Trade Based Money Laundering is regarded as a crucial part. As a result, the financial sector is particularly vulnerable to fraud. Financial fraud has become more common in India. In India, scams have ranged from digital to traditional trade-based.
Because of technological advancements, consumers can now access all possibilities via the internet. Technological improvements contribute to the growth of the financial sector.
The expansion of trade and business has resulted in new money laundering threats. Money laundering has become more prevalent in India and around the world.Hence, let us understand the Trade Based Money Laundering.
What is Free Trade Zone
A free-trade zone (FTZ) is a type of economic zone. It's a geographical area in which commodities can be imported, stored, handled, manufactured, or modified. They are exempt from customs charges. Therefore, this offers significant geographic advantages for trade.
Free Trade Zone In India
A Free Trade Warehousing Zone is a Special Economic Zone. It is where commerce and warehousing, as well as other related industries, take place. It is a deemed foreign territory within India's geography for tariff and trade purposes.
What is Money Laundering And Anti Money Laundering (AML)?
Since, Money laundering is the process of proving the source of money obtained through illegal means as legitimate revenue. It is tough to spend illegal earnings freely and quickly. Instead of depositing large sums of money in a single bank, thieves deposit little sums over time. Smugglers move unlawfully obtained funds to nations where money laundering is not a crime. As a result, this method washes money and allows criminals to cover their trials. Laundering money is a serious offense.
Anti-Money Laundering (AML) policies, rules, and laws are all part of the AML process. AML is