Over Rs 1,800 cr routed, trade-linked laundering sees rise

Tags: News
There has been a rise in cases of trade-linked money laundering with the revenue intelligence agency having detected over Rs 1,800 crore which was laundered through various fraudulent means in the country during 2013-14.

As many as 296 such cases were registered by Directorate of Revenue Intelligence (DRI) officials in the last fiscal, involving a cumulative amount of Rs 1,817 crore.

According to DRI, during 2012-13, about 251 cases of suspected trade-based money laundering were registered, involving a total amount of about Rs 1,130 crore.

Eleven persons were arrested in 2013-14, as against five in 2012-13, for their role in this new form of money laundering through misuse of various government-run schemes (like foreign or preferential trade agreements) to promote trade, official sources said.

The black money was also being routed through wrong declarations of imported and exported goods, among others, they said.

The Central Economic Intelligence Bureau (CEIB), the lead agency coordinating efforts against financial crimes, is working with DRI to trace the persons behind these cases, the sources added.

"Trade-linked money laundering has emerged as a new modus operandi for routing illegal money. We have alerted all field formations to check any suspicious consignments. Besides, we are coordinating with Customs Overseas Intelligence Network (COIN) officials to keep a check on it," a CEIB official said.

Financial intelligence agencies also detained 21 people under the stringent Conservation of Foreign Exchange and Prevention of Smuggling Activities (COFEPOSA) Act in the last financial year.

Smugglers and foreign exchange racketeers are detained for a period of one year under COFEPOSA Act, 1974, with a view to preventing them from engaging in prejudicial activities in future.

About 17 persons were detained under COFEPOSA Act during 2012-13.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must not exempt listed SMEs from its mandatory disclosure norms

    The Securities and Exchange Board of India (Sebi) has amended clause 49 of the listing agreement, which lays down the obligation of companies toward t

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Skills education can boost industry

India’s manufacturing industry matters a great deal for the economic ...

Rajgopal Nidamboor

How synchronous empathy helps us

All of us are in an undulating ‘hypnotic’ state. A ...

Gautam Gupta

In fashion, why quality must exceed quantity

Every time there’s a fashion week in India, my friends, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture