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Scam on money laundering & woman harassment.

Women harassment at work place

Duties of employer.— Every employer shall—
(a) provide a safe working environment at the workplace with shall include safety from the
persons coming into contact at the workplace;
(b) display at any conspicuous place in the workplace, the penal consequences of sexual
harassments; and the order constituting, the Internal Committee under sub-section (1) of section 4;
(c) organise workshops and awareness programmes at regular intervals for sensitising the
employees with the provisions of the Act and orientation programmes for the members of the Internal
Committee in the manner as may be prescribed;
(d) provide necessary facilities to the Internal Committee or the Local Committee, as the case
may be, for dealing with the complaint and conducting an inquiry;
(e) assist in securing the attendance of respondent and witnesses before the Internal Committee or
the Local Committee, as the case may be;
(f) make available such information to the Internal Committee or the Local Committee, as the
case be, as it may require having regard to the complaint made under sub-section (1) of section 9;
(g) provide assistance to the woman if she so chooses to file a complaint in relation to the offence
under the Indian Penal Code (45 of 1860) or any other law for the time being in force;
(h) cause to initiate action, under the Indian Penal Code (45 of 1860) or any other law for the time
being in force, against the perpetrator, or if the aggrieved woman so desires, where the perpetrator is
not an employee, in the workplace at which the incident of sexual harassment took place.

Money laundering in business.

Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean.

1.1 How is Money Laundering done? The usual modus operandi

A case of money laundering- ostensibly – appears to be an above-board legit financial transaction, however, the criminality underneath is hidden usually by a three stage process:

  1. The first stage is when the crime money is injected into the formal financial System. This is called ‘placement’;
  2. In the second stage, money injected into the system is layered and spread over various transactions with a view obfuscate the tainted origin of the money. This process is called ‘layering’;
  3. In the third and the final stage, money enters the financial system in such a way that original association with the crime is sought to be obliterated so that the money can then be used by the offender or person receiving as clean money. This is called ‘Integration’.

1.2 Common forms and methods of money laundering

Structuring, Bulk Cash Smuggling, Cash Intensive Businesses, Trade-based laundering, Shell companies and trusts, Round-tripping, Bank Capture, Gambling, Real Estate, Black Salaries, Fictional Loans, Hawala, False invoicing are some of the common methods of money laundering.

Indian Legal Regime on Money Laundering

In India, the specific legislation dealing with money laundering is the Prevention of Money-Laundering Act, 2002 (for short ‘PMLA’). The law was enacted to combat money laundering in India with the following objectives :

  • To prevent and control money laundering;
  • To provide for confiscation and seizure of property obtained from laundered money; and
  • To deal with any other issue connected with money-laundering in India.

Apart from the provisions of PMLA, there are other specialized provisions such as RBI / SEBI / IRDA Anti-Money Laundering regulations. Many of these authorities are bound to provide suspicious transaction reports, which are, in-turn, analyzed by Financial Intelligence Units established by the Central Government.

WHAT IS THE LEGAL DEFINITION OF MONEY LAUNDERING?

3.1 Money Laundering

The offence of ‘Money Laundering’is defined under Section 3 of the PMLA, which, for ease of understanding, can be deconstructed as:

Whosoever:

  • directly or indirectly,
  • attempts to indulge, or
  • knowingly assists, or
  • knowingly is party, or
  • is actually involved in any process, or
  • activity connected,

with the Proceeds of Crime, including its:

  • Concealment,
  • Possession,
  • Acquisition or use; and
  • Projecting or Claiming it as Untainted Property

shall be guilty of offence of Money-Laundering.

It is clear that the section is most widely worded and almost any kind of dealing with the proceeds/fruits of crime, is brought within the purview of the section and made culpable.

3.2 ‘Proceeds of Crime’

An understanding of the phrase ‘Proceeds of Crime’is crucial to the understanding of the crime of Money Laundering. The offence of money laundering (defined u/s 3 and punished u/s 4 PMLA) is attracted only when the laundered property falls within the definition of ‘proceeds of crime’.

To understand what is meant by ‘Proceeds of Crime’, one has to turn to Section 2(u) of PMLA, which provides that – ‘proceeds of crime’ means and includes:

  • Any property derived or obtained
  • Directly or indirectly
  • By any person
  • as a result of criminal activity
  • relating to a ‘scheduled offense’ or
  • the value of any such property

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