Abstract
With an emphasis on Indian regulatory regimes, this research study examines the complex dynamics of hidden transactions, ownership shifts, and money laundering inside global corporate networks. The necessity of comprehending their relationship is emphasized in the paper’s introduction, which provides an outline of these ideas and their importance for law enforcement and regulatory organisations. A thorough conceptual framework is developed, together with a discussion of pertinent theoretical stances and the definition and explanation of important words.
The section on regulatory framework offers a comprehensive examination of India’s Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA), emphasising their respective functions in managing money laundering, ownership transitions, and covert transactions within the framework of global commerce. The study then explores the role of nominee directors, shell companies, and offshore accounts in these activities, as well as case studies and examples showing how ownership transfers can assist covert transactions and money laundering.
The study also examines the difficulties regulators encounter in identifying and stopping these activities, as well as how hidden transactions and ownership shifts are used to launder money in global business networks. The effects of money laundering and covert transactions on the legal, business, and social sectors are also covered, along with the threats they bring to national security and financial stability.
The report finishes with a summary of regulatory difficulties and solutions, an assessment of the efficacy of regulatory bodies’ actions, and suggestions for improvement. It also offers suggestions for more research, lessons gained, and in-depth case studies.
Through its comprehensive analysis, this paper contributes to a deeper understanding of the complexities of financial crimes in international business networks and underscores the importance of robust regulatory frameworks and international cooperation in combating these activities.
Keywords: –Concealed transactions, Money laundering, Prevention of Money Laundering Act (PMLA), Foreign Exchange Management Act (FEMA)