Can ED come to you too?

The role and power of Enforcement Directorate (ED) has been well demonstrated in recent months.

Multiple raids conducted by ED, throughout the country, to extract the black money and dig into the cases of Money laundering to check and curb this corrupt practice.

Does ED come to you too? does your activities, done intentionally or unintentionally falls under the Money Laundering category? What it actually is? All these questions may keep striking your mind from time to time.

So, let us have a brief overview on this overwhelming topic which has gained pace equally in developed and developing countries, let’s find out.

As the name speaks of itself, laundering grammatically means the act of washing, starching or ironing. It is often used in terms of clothes but why is it used with word money? The answer lies in the whole activity. It can be said that money laundering is what money laundering does. It is its wider definition.

Actually, it can be explained under following major categories:

  1. Income from illegal sources such as gambling, lottery wining, drug trafficking, human trafficking and bribery.
  2. Other Organized corporate crimes. For example- a) rotating money from one company to another without any goods or service in return b) cybercrime – earning through data leakage, malware attacks c) funds embezzlement d) taking money through legal sources but in different bank accounts to avoid taxes.
  3. Terrorism Financing.
  4. Hiding sources of income by dealing in cash. Demonetization is one of the way to counter this. We all remember how high amount Rs. 2,000/- notes kept at homes (which were previously unaccounted) got submitted in banks.
  5. Purchasing financial assets by proceeds of crime to hide their source.
  6. Any source of income which seems to be legitimate but is actually not.

By now, you must have got why “money” word is used with “laundering”.

 It means trying to wash away either the source of earning or the amount of earning.

So keep a check on your activities to keep the ED away.

Anupam Jaiswal
Anupam Jaiswal
Anupam Jaiswal is a Certified professional, corporate trainer, motivational speaker and a business coach. He is the founder of Multiple ventures including AJ Leadership academy and Shrie Campus LLP. Anupam is having 20+ years of a rich experience of working with corporate, institutions and government bodies. He also acted as a CS and compliance office in a Mumbai based listed company and headed ICSI, Lucknow chapter as secretary and chairman. and now in whole time practice, and consultants to corporate including Success My Business.

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