T
he working of the Indian economic system gen-
erates large amounts of black money and dirty
money. The term ‘black money’ is used for the money
generated through tax evasion in normal business trans-
actions and the term ‘dirty money’ is used for money
earned through illegal or criminal means. Although the
term ‘money laundering’ is strictly used for laundering
of ‘dirty money’ and not money generated through tax
evasion, for the purpose of our understanding the term
‘money laundering’ shall be used for laundering of both
dirty money and black money.
Main Tools of Money Laundering
Both forms—dirty money and black money—primarily
generate large amounts of untaxed cash. Those possessing
10
Companies as a Tool for Money
Laundering