QUESTION 24
GS3
10 marks
Money laundering poses a serious security threat to a country’s economic sovereignty. What is its significance for India and what steps are required to control this menace?
WRITE IN
7 min
200 words
What the examiner wants
Explain why money laundering threatens India's economic sovereignty and what controls are needed.
What is its significance; StepsAnswer exactly what the question asks.
Demand-wise check
- 1Threat: funds terror and insurgency, distorts markets, erodes tax base, round-tripping via tax havens≈35 words
- 2Channels: hawala, shell companies, trade mis-invoicing, real estate, crypto≈35 words
- 3Steps: PMLA 2002, ED, FIU-IND, FATF membership (2010), Black Money Act 2015, beneficial ownership disclosure≈35 words
- 4Needed: inter-agency coordination, information exchange, faster trials≈35 words
Open in about 30 words and close in about 30.
Answer plan
Process (placement-layering-integration)ThreatChannelsStepsGaps
Where marks usually go
- No legal framework
- Not linking to security
Draw this
- Flowchart: placement (hawala, cash) → layering (shell firms, mis-invoicing) → integration (real estate), with PMLA/FIU checks
Value addition
- CaseVijay Madanlal Choudhary (2022) upheld key PMLA provisions.Supreme Court, 2022
- ReportFATF mutual evaluation (2024) placed India in 'regular follow-up'.FATF, 2024
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Aniket Ranjan · AIR 48 · Page 19 ↗Reviewed PYQ reference
- Shakti Dubey · AIR 1 · Page 21 ↗Same syllabus reference
- Mayank Purohit · AIR 33 · Page 11 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 47 ↗Same syllabus reference
Links open original public sources. MainsBuddy does not host these answer sheets.
Next: plan for one minute, write it in 7 minutes, then get it checked.