Page 147 - SMUGGLING IN INDIA REPORT FOR 2020-2021

Trade Based Money Laundering
Overvaluation and undervaluation of exports lead to transfer of disproportionate money from one country to another. Apart from the Customs duty angle, these malpractices result in unaccounted money getting legitimised as proceeds of trade.
CHAPTER 7: COMMERCIAL FRAUDS-EXPORTS 101
In one such case, DRI apprehended a mastermind operating and managing various firms for money laundering, through trade in precious and semi-precious stones. These Benami firms were being used to overvalue the import of rough precious stones from related entities overseas to send excess outward remittances.
Invisible Presence, Visible Results
DRI, being the apex intelligence agency, has been very effective and diligent in curtailing the menace of export frauds. The unearthing of unique modus operandi in export frauds is a testament to DRI’s dedicated action. The investigations by DRI are marked by quality, consistency and integrity. Not only do these investigations expose the fraudsters, but these also serve as a deterrent for others. DRI strives to strike an equilibrium between trade facilitation and fraud detection by way of specific interdictions, thus living up to its legacy of “invisible presence and visible results”.