Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels.
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Write a timed answer in the appCurrent affairs to use in your answer
Drug trade to be uprooted by the end of 2029, says Home Minister · 23 September 2026 · Covers one part · use it in the example
Gives a current example of technology (darknet, crypto) being used to move drug money and of investigative responses.
- The third national conference of ANTF chiefs held technical sessions on darknet and cryptocurrency investigations into drug networks.
- Recommend financial investigation to dismantle drug trafficking networks.
- International cooperation with neighbours and the UNODC complements domestic tools such as the NDPS Act, 1985 and the NCB.
FATF warns that hawala networks are going digital, using stablecoins and AI · 8 September 2026 · Answers it directly · use it in the body
Use the FATF digital hawala report to show how encrypted apps, stablecoins and AI speed up laundering, then list India's legal tools and international measures.
- A FATF report finds nearly 70% of surveyed jurisdictions have detected new technologies in underground banking; balances between hawala operators are increasingly settled in stablecoins.
- AI tools automate splitting transactions, routing them through mule accounts and converting cash into crypto, while virtual IBANs and payment service providers move funds through the formal system.
- India's response: FEMA, 1999 and PMLA, 2002 enforced by the ED; virtual digital asset businesses are PMLA reporting entities since March 2023; FATF placed India in 'regular follow-up' in June 2024.
Policing report: one in eight faced cybercrime, poor victims paid more bribes for redress · 30 September 2026 · Covers one part · use it in the example
Use it to show how digital fraud generates illicit proceeds that move fast through the banking system, and the national coordination needed to freeze and trace them.
- NCRB recorded 1,01,928 cybercrime cases in 2024 (up 17.9%), with fraud the motive in 72.6%; SPIR 2026 found 54% of cybercrime victims suffered financial fraud.
- Slow freezing of mule accounts lets money vanish; The Hindu's analysis argues bank-police coordination on freezing fraudulent accounts should be an enforceable procedure.
- National institutions: the Home Ministry's Indian Cyber Crime Coordination Centre (I4C), the cybercrime.gov.in portal and the 1930 helpline support State police, since police is a State subject.
Also related
- Bankers' Books Evidence Act, 2026 to replace the 1891 law from 1 October 2026
Money-laundering and fraud cases rely heavily on bank records; the 2026 Act's rules on admitting digital and cloud records bear directly on how such evidence is proved in court.