Money Data Available for Asking
Money: A Global Problem
Indians and NRIs
partners in crime
total amount of black money globally is estimated between $2.1 and 2.5
trillion. This is roughly about seven per cent of the world's GDP, says
Aman Agarwal, professor of finance at the Indian Institute of Finance, New
Sood has quoted a Swiss Banking Report: Indians, with $1.4 trillion, have
more black money than the next four largest depositors put together:
Russians at $470 billion, Britons at $390 billion, Ukrainians at $100
billion and Chinese at $96 billion.
have variously estimated black money in between five and 48 percent of the
GDP, with economist Shanker Acharya putting the figure at 20 percent and
Arun Kumar at 40 percent.
Indians and NRIs are partners in this crime: Politicians, businessmen,
babus and criminals.
us bring back our money," says M.R. Venkatesh, an NRI in the US.
"It is one of the biggest loots witnessed by mankind - the loot of
the 'aam aadmi' (common man) since 1947 by his brethren occupying public
offices. What is even more depressing is that this ill-gotten wealth of
ours has been stashed away abroad into secret bank accounts located in
some of the world's best known tax havens. And to that extent, the Indian
economy has been stripped of its wealth."
has this happened? In an exclusive interview with the Economic Times,
- some NRIs in the US transferred money by 'hawala' 10 years ago after
India's nuclear tests at Pokhran because they feared that they may be
pressurised to leave the US.
Indian workers in Arab countries cannot transfer money back home due to
local laws. So 'hawala' is the only route -- by handing cash to local
'agents' for delivery to their families in India. They also buy gold and
diamonds to bring to India.
NRIs in Eastern Africa faced tight exchange control regulations
until mid-1990s so they sent their cash to Britain and the US as 'a
lifeboat'. They deposited it in banks or purchased properties with this
NRIs from Britain used the 'hawala' route to send money to their families
for a better exchange rate and less hassles with banks for their
9/11, a new element of financing terrorist operations has crept in --
black money transfers, in addition to financing drugs. Terror groups are
using 'wire money transfer' channels and credit cards to send money for
is global fight against money laundering and the financing of terrorist
activities. The International Monetary Fund (IMF) continued to deepen its
engagement in the global fight against money laundering and the financing
Egmont Group is an international organization of more than 100 Financial
Intelligence Units (FIUs) dedicated to information exchange, and to
assisting FIUs worldwide to improve their operations.
Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC,
created in July 2000, is Canada's financial intelligence unit, a
specialized agency created to collect, analyze and disclose financial
information and intelligence on suspected money laundering and terrorist
Indian government set up the Financial Intelligence Unit - India (FIU-IND)
in 2004 for receiving, processing, analysing and disseminating information
relating to suspect financial transactions.
banks and finance companies are bound every month to inform FIU-IND about
all cash transactions of over Rs.1 million and its equivalent in foreign
currencies; all cash transactions below Rs.1 million and its equivalent in
foreign currencies; all cash transactions in forged or counterfeit
currency notes and all suspicious transactions.
unit has unearthed an impressive number of underhand dealings as detailed
in its annual report and has been granted more powers to track down more.
Now Indian outlets of foreign wire transfer services and casinos have also
been ordered to report their transactions every month.
and finance companies now implement strict rules to identify everyone who
operates or opens an account with them. Agarwal has advocated this
concept, ‘Know Your Customer’, for some time. He has also devised a
CD-ROM Principle for India's Black Money where C stands for pay Cash Carry
Certificates; D for Delays, Deficiencies and Denial of certificate; and
ROM for Rest on Mat as cases are never taken up and gather dust!
Agarwal, "Unfortunately, the least respect for law and the maximum
violation of law is the order of the day by some people in authority - as
they are charged with the responsibility of enforcing laws on mafia
groups, gangs, and/or nexus of the two. The former enjoys the
constitutional security and the later is outside the framework of the law.
A common man does not question either of them."