New methods of money laundering revealed: Home Ministry

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 Pay
  • PoccoPay
  • RPPay; etc.
• It is believed that these gateways provide money laundering as a service.
  • They are operated by foreign nationals. 

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