Why in the news?
The Union Home Ministry has issued an alert regarding the international syndicate being run to convert black money into white.
Key points:
- The nationwide raids have revealed that accounts of 'mules' and other illegal digital payment gateways are being operated.
- These are used to legalize illegal money obtained through cyber crimes.
The ministry made several revelations:
As per the information received from the police agencies of the states and the analysis done by the Indian Cyber Crime Coordination Center, the following points have been identified-
- Current account and savings account are searched through social media, especially Telegram and Facebook.
- These accounts belong to fake companies/enterprises.
- These mule accounts are operated from abroad.
- Using these accounts, illegal payment gateways are created, which are given to receive the money deposited on the following illegal platforms-
- Fake investment scam sites for criminal syndicates
- Offshore betting and gambling websites
- Fake stock trading platforms etc.
- As soon as illegal money is received from crime, it is immediately transferred to another account.
- For this, the bulk payout facility provided by banks is misused.
- Bulk payout means making payments to many people at the same time.
- The payment gateways identified under the campaign include-
- PeacePay
- RTX Pa
- PoccoPay
- RPPay; etc.
- It is believed that these gateways provide money laundering as a service.
- They are operated by foreign nationals.
Mule Account:
- These are used for illegal activities.
- Illegal money is deposited or transferred in these accounts.
- These accounts are used in the following activities-
- Money laundering
- Illegal betting
- Forex trading
- Tax evasion; etc.
- A money mule is a person who transfers illegally earned money on behalf of another person.
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Advice given to citizens by Indian Cyber Crime Coordination Centre (I4C):
Indian Cyber Crime Coordination Centre (I4C):
- Started on 10 January 2020, it is an initiative of the Ministry of Home Affairs, Government of India to deal with cyber crime in the country in a coordinated and comprehensive manner.
Black Money:
- It refers to money on which income and other taxes have not been paid.
- Thus it is money earned through illegal means.
- It is accumulated by criminals, smugglers, and tax evaders.
Money Laundering:
- This process is used to hide the origin of illegally obtained money.
- It involves making illegal money appear as legitimate through a series of transactions.
- Converting black money into white money