With reference to the Money laundering, sometimes a term “Dirty Money” is used. How “Dirty Money” is different from “Black Money”?
1. While stashing black money is a criminal act, Dirty Money (Money Laundering) is a civil crime
2. Usually, source of Dirty money is known, but source of black money is not known
Which among the above statements is / are correct?
|Dirty Money versus Black Money
Money laundering is the process by which large amounts of illegally obtained is given the appearance of having originated from a legitimate source. So basically, all the ways to convert the black money into white money are Money laundering. But in Money laundering, the black money must involve a predicate crime such as the violation of Indian Penal Code, IPC, Narcotics, Prevention of Corruption Act and Human Trafficking. This is because in India, stashing black money is simply a civil crime involving tax evasion, money laundering has criminal dimensions related to black money. That is why, we use the term Dirty Money in this context.
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