The Central Economic Intelligence Bureau (CEIB) is looking into the ingenious modus operandi of the money laundering cartels operating under the guise of legitimate overseas businesses. Sources said the suspicious trade-based racket has brought several companies under the Centre’s scanner.
“At least four companies were used to transfer Rs 325 crore abroad under the pretext of doing business. However, it emerged that these companies are not active and were never involved in any trade,” Sources said.
According to an official, the Directorate of Revenue Intelligence (DRI) had earlier examined the books of the suspected firms and warned the CEIB about large-scale money laundering activity to camouflage the illicit proceeds.
He said that dummy accounts were used to deposit and transfer huge amount of money.
In one instance, several hundred crores were detected in 60 dummy accounts, which are being investigated by the CEIB sleuths.
“It’s confirmed that money is going abroad claiming legitimate trade but we have found it to be a complete farce. In fact, there is no trade in the practical sense,” he said.
Sources said that following the Centre’s crackdown on domestic money laundering rackets and detection of illegitimate offshore accounts by using the bilateral tax treaty with the various countries, the money launderers have devised a new method to conceal the transactions which is impossible to detect unless the books are thoroughly audited.
In order to tackle the menace, the Centre had amended the existing Prevention of Money Laundering Act (PMLA) in January with stricter punishment for offences under the act.
Although, India had signed agreements with various countries to exchange information regarding such activities, there are certain countries which do not effectively exchange information with India as an anti-avoidance measure.
