Impact of anti-money laundering on socio-economic growth and entrepreneurial activities in Pakistan

Abstract

A money laundering operation is one in which illegally obtained money is converted or "laundered" into money that appears to have been obtained legally. Internationally, money laundering is being used to conceal criminal activity, including drug and arms trafficking, terrorism, and extortion. Simply put, this is the process of converting black money into white money. As the researcher had intended to limit the paper to national contexts, this was not possible since any instance of money laundering would involve transferring the money through multiple countries to obscure the source of the money. Moreover, any instance of money laundering would have a hint of international flavour since money laundering typically involves transferring it through several countries. The paper is divided into three parts by the researcher. The first part of the article explains the history of money laundering, its three steps, and the consequences. The second part is devoted to establishing international development and control mechanisms to address this problem and analysing India's position on money laundering. The researcher concludes his third part by offering a few suggestions for the implementation of anti-money laundering laws that would be more effective.