Money Laundering Process — Prelims Strategy

Prelims Strategy

For Prelims, the strategy should focus on factual recall and conceptual clarity regarding the money laundering process. Aspirants must thoroughly understand the definitions of the three stages: Placement, Layering, and Integration, along with specific examples and techniques associated with each.

Key terms like 'smurfing,' 'hawala,' 'shell companies,' 'beneficial ownership,' 'predicate offense,' and 'reporting entity' are frequently tested. Focus on the core provisions of the Prevention of Money-Laundering Act (PMLA), 2002, including its definition of money laundering, the concept of 'proceeds of crime,' and the powers of the Directorate of Enforcement (ED).

Pay attention to the year of the Act and its significant amendments. Memorize the role and functions of the Financial Intelligence Unit-India (FIU-IND) and the Financial Action Task Force (FATF). Questions often involve identifying which stage a particular technique belongs to or testing knowledge of PMLA's features.

Practice MCQs that require distinguishing between the stages and identifying correct legal provisions. Vyyuha's Quick Recall mnemonic 'PLI-CASH' will be particularly useful for rapid revision of the stages and associated concepts.

Current affairs related to PMLA, FATF actions, and cryptocurrency regulation should also be tracked for direct questions.