BHAVIK JAIN 18067 Cyber and IT final draft.docx ‘Sources Overview 17% evn @ ener © THe ents cote maize @ ett eu meaner © emtonaenznone7 © ne et dona tchded search reposts Nene Exch om document Belogaphy cuetes Etched souroes Nene turnitin £) vow/abewsvedstae Nov 24,2021 23698 words 20973 characte 13% 2% <1% <1% <1% <1%Chapter 1 - Introduction Financial crime is a field yet not completely known to the general public. It is significant to follow the developments in the field of financial crisis to save yourself from committing any such crime in future. It is an established fact that everyone in India is aware ofthe plight of Vijay Mallya and Nirav Modi and how important it isto get them extradited to India for the financial frauds they have committed against the government, It is in this regard, that we need to be aware of the offences they committed, ‘The internet is one of the quickest developing spaces of specialized framework development. Today, information and communication technologies (ICTs) are inescapable and the pattern towards digitization is developing. The interest is because internet and PC networks have of PC innovation into items that have typically worked without prompted the reconei like vehicles and buildings. Electricity supply, transportation foundation, military administrations, and coordination ~ essentially all advanced administrations rely upon the utilization of ICTs. Although the improvement of new advances is centred prineipally around fulfilling buyer needs in western nations, non-industrial nations can likewise profit with new technologies. With the accessibility of significant distance, remote correspondence advances, because of its follow-up state, for example, WiMAXS and PC frameworks that are presently accessible quite liberally and affordably, a lot more individuals in agricultural nations ought to ‘have simpler admittance to the Internet and related items and services. re impact of ICTS on society goes a long way past setting up a fundamental data foundation ‘The accessibility of ICTs is an establishment for advancement in the creation, accessibility, and Utilization of organization-based services. E-mails have dislodged customary letters; online web portrayal is these days more significant for o rganizations than printed exposure materials, and Intemet-based correspondence and telephone administrations are becoming quicker than landline communications, * The accessibility of ICTs and new organization-based administrations offer ‘various benefits for society as @ general rile, particularly for agricultural nations. The better * Singhal Yast nancial crimes and fos needed to void them np: blog pleads fnancil- Rathore Vanshka Daw elated fo Gail rns in ad, ps estes con Bs elated to-ancil mes inn st accessed ISNovember, 2021@npacts the growth and economic development of the country in multiple ways. It weakens the stability ofthe country and affects intemational reputation * There is an observation of the unequal distribution of resources among the population; the abundance of black money, ie. the money not accounted for during the calculation of national ncome in a financial year and creation of parallel economy with people investing in fictitious sources that are not registered with the government, as some major impacts of financial offences ‘on the national economy. Also, there are some more impacts which need clear attention at the earliest- stagnation of ‘government “development projects actoss the country weakens the citizens’ trust in the efficiency of the government and a steep rise in the corruption level”. (Chapter 3 Internet gambling Web games and betting are one of the quickest developing regions on the Internet. Reports show that online games have been utilized to perpetrate wrongdoings, including the trade and show of child pomography, fraud, betting in virtual online casinos, and slander (for example leaving offensive or hostile messages). The guideline of betting over and outside the Intemet differs between countries, a provision that has been misused by guilty parties, just as legitimate organizations and gambling clubs. The impact of various guidelines is clear in Macau. In the wake of being returned by Portugal to China in 1999, Macau has gotten one of the world’s ‘greatest betting objections. With assessed yearly incomes of USD 68 billion every 2006, it started to lead the pack from Las Vegas (USD 6.6 billion). Macau’ prosperity comes from the ‘way that betting is unlawful in China and a huge number of speculators make a trip from Mainland China to Macau to gamble. The internet permits individuals to dodge betting restrictions. Online clubs are generally accessible, the vast majority of them facilitated in nations ‘with liberal laws or no guidelines on Internet betting. Clients can open records on the web, move cash, and mess around. The online club can likewise be utilized illegal tax avoidance and exercises financing terrorism, If wrongdoers utilize online clubs that don’t keep records or are situated in nations without tax evasion enactment, it is hard for law-requirement organizations to “Five questions on Fianancial crimes in Indai tips: www? delotte comin n/pages/governance-rsk-and- compliance icles risk-angle-financial-crine html, lac accessed 15 Novernber, 2021decide the beginning of assets. It is hard for nations with betting limitations to control the utilization or exercises of online gambling clubs. The intemet i legitimate limitations on access by residents to web-based gambling. There have been a few sabotaging a few nations" administrative endeavours to forestall cooperation in web-based gambling, for example, the US Intemet Gambling Prohibition Enforcement Act of 2006 looks to restriet illicit web-based betting by indicting monetary administrations suppliers on the off ehance that they do repayment of ‘exchanges related to unlawful betting. The developing number of sites offering unlawful betting is a concer, as they ean be utilized to evade the denial of betting in power in some countries. If adminis don't disallow web-based betting, itis hard for nations that condemn the activity of Internet betting to keep their residents from utilizing these services. Example from public enactment The Council of Europe Convention on Cybererime doesn’t contain a preclusion of web-based betting trations work from places that Wn itlustation of a public methodology in such a manner is Section 284 of the German Penal Code: ‘The arrangement expects to restrict the dangers of addiction to betting by characterizing ‘methods for the association of such games. It doesn't unequivocally zero in on Internet-related shots in the dark, however incorporates them as well 12. in such a manner, it condemns the activity of unlawful betting, without the authorization of the capable public power. Likewise, it condemns any individual who (deliberately) makes gear accessible that is then utilized for ‘unlawful gambling. This eriminalization goes past the results of helping and abetting, as guilty parties can confront higher sentences. To stay away from criminal examinations, the ‘administrator of illicit betting sites can truly move their activities to nations that don’t condemn ‘unlawful gambling, Such a move to areas is quite difficult for law implementation organizations ‘on the grounds that the way that a worker is situated outside the area of a country doesn’t overall influence the conceivable outcomes of clients inside the nation to get to it, In request to work on 5 Beonomie Offences, ‘ngps:/nerb goin sites/defal fles‘rime_in_indiatable_adtional_table_chapter_repors'Chapter%4209- 1811.16 2015 pdf last accessed 16 Novesiber, 2021the capacity of law-requirement offices to battle against unlawful betting, the German Government has stretched out the criminalization to users. ® Based on Section 285, law-authorization offices can arraign clients who take part in illicit betting ‘and can start examinations even where administrators of tosses of the dice can’t be indicted, in case they are situated external Germany; Participation in an Unauthorized Game of Chance Whoever partakes in a public shot in the dark (Section 284) will be rebuffed with detainment for not over a half year or a fine of not more than one hundred eighty-day because of the b-day rates. On the off chance that guilty parties use betting destinations for tax evasion exercises, the ID of wrongdoers is frequently difficult. Vac itustrtion ofan approach to forestall iit beting and illegal tax avoidance exercises isthe ‘United States Unlawful Intemet Gambling Enforeement Act of 2005. Before the finish of the 270-day time frame starting on the date of the institution of this subchapter, the Secretary, in counsel with the Board of Govemors of the Federal Reserve System and the Attomey General, will recommend guidelines requiring each assigned instalment framework, and all members in that, to recognize and forestall confined exchanges through the foundation of arrangements and techniques sensibly intended to distinguish and forestall limited ‘exchanges in any of the accompanying ways ? 8) The foundation of strategies and methods that (A) permits the instalment fiamework and any individual engaged with the instalment framework to recognize confined exchanges through ‘codes in approval messages or by different means; and (B) block limited exchanges recognized because ofthe arrangements and methods created according to subparagraph (A). Light, Roy. “The Gambling Act 2005: Regulatory Containment and Market Cont." The Moderu Lave Review, vol. 70, no. 4, (Modera Law Review, Wiley], 2007, pp. 626-83, hip:/wwwjstororg/stable/4843187. * shams rst: Qasr con/verview-f nia rine in-naking secon bap indafrensiceolovervew-o ner inmking-ectrcf et rend 16 November mt) The foundation of approaches and methodology that forestall the acknowledgment of the items or administrations of the installment framework regarding a limited exchange. (b) In ‘endorsing guidelines under subsection (a) the Secretary will (1) distinguish sorts of arrangements ‘and techniques, including nonexclusive models, which would be considered, as material, to be sensibly intended to recognize, block, or forestall the acknowledgment of the items or ‘adiministrations as for each kind of limited exchange; (2) to the degree useful, grant any member in an installment framework to pick among elective method for distinguishing and obstructing, or in any case forestaling the acknowledgment of the items or administrations of the installment framework or member regarding, confined exchanges ;Sand (3) consider absolving confined exchanges from any necessity forced under such guidelines, if the Secretary finds that it isn’t sensibly reasonable to distinguish and hinder, or in any ease, forestall such exchanges. (c) A monetary exchange supplier will be viewed as in consistence ‘ith the guidelines recommended under subsection (a), if (1) such individual depends on and ‘conforms tothe approaches and methodology of an assigned installment arrangement of which it is a part or member to (A) distinguish and block confined exchanges: or (B) in any case forestall the acknowledgment ofthe items or administrations ofthe installment framework, part ‘or member regarding limited exchanges: and (2) such approaches and techniques of the assigned installment framework follow the necessities of guidelines recommended under subsection (a) (d) Am individual that is dependent upon a guideline endorsed or request gave under this subchapter and blocks, or in any case will not respect an exchange (1) that is confined; (2) that such individual sensibly accepts to be a limited exchange; or (3) as an individual from an assigned installment framework independence ‘on the strategies and methods of the installment framework, with an end goal to follow ‘guidelines recommended under subsection (a), will not be responsible to any gathering for such activity, (€) The prerequisites of this segment will be authorized solely by the Federal practical controllers and the Federal Trade Commission, in the way given in area $05(a) of the Gramm- Leach-Bliley Act. Levi, Michael, “THE MEDIA CONSTRUCTION OF FINANCIAL WHITE-COLLAR CRIMES.” The Britis Journal of Criminology wal. 46, no. 6, Oxfrd University Press, 2006, pp. 1087-57, nap: jtor.op stable/23639476.Chapter 4 @riminal punishments (a) Whoever disregards segment 5363 will be fined under title 18, or detained for not over S ‘years, or both, (t) Upon conviction of an individual under this part, the court may enter a perpetual order charging such individual from setting, getting, or in any case, making wagers for bets or sending, getting, or welcoming data aiding the putting down of wagers for bets. ‘The demonstration aims to address the difficulties and dangers of (cross-line) Intemet gambling. The act contains two significant guidelines. In the first place, it denies acknowledgment of any monetary instrument for unlawful Intemet betting by any individual ‘occupied with the matter of wagering or betting. This arrangement doesn’t control activity ‘embraced by the client of Internet betting locales or monetary institutions. An infiingement of this forbiddance can prompt criminal sanctions. Second, it requires the Secretary of the Treasury and the Board of Govemors of the Federal Reserve System to endorse guidelines that require monetary exchange suppliers to recognize and impede limited exchanges regarding unlawful Intemet betting through sensible approaches and methods. This subsequent guideline applies not exclusively to people occupied with the matter of wagering or betting, however to all monetary foundations overall. Dissimilar to the acknowledgment of monetary instruments for unlawful Intemet betting by people occupied with the matter of wagering or betting, monetary establishments don’t overall face criminal responsibility. Concerning the worldwide effect of the ui right now being explored. ° .. possible contentions with the General Agreement on Trade in Services (GATS) are ‘Chapter 5 Intemet gambling scenario in India India has a confounded and extensive history with gaming. Archaeologists have discovered dice produced using 3D squares of sandstone and earthenware that date back to the Indus Valley ‘uman advancement in 3300 BC, and there is proof that the Indus Valley individuals were ‘occupied with cockfighting and wagering, A portion of the antiquated Indian legends likewise has a solid reference to gaming * wath gal stats oF gambling regulations ainia-in-202, hp hindutatines comand post whats-the-legal-statu-of gambling regulatins-i-inds-in-2021-101623671 189683 html, ast accessed 17 ‘November, 2021Betting during Diwali (an Indian strict celebration) has strict meanings and is considered favourable. The courts in India perceive betting on Diwali if it happens among companions and ‘ot in a public spot. On account of Nimmagadda Raghavalu and Others v. Obscure, the Madras High Court held that Betting isn’t an offence and it becomes one just when it happens in atypical gaming house or public spot. The simple reality that at times individuals used to play a game of cards and maybe ‘for cash doesn’t make it a typical gaming house. The assumption of betting on Diwali isn’t so exceptionally solid as the betting at different occasions . ... An individual just permitting the tion of his home to card sharks during Diwali celebration with no thought of requesting rent and so on, can't be supposed to keep a typical gaming house. Betting on Diwali day ought not 10 be viewed as an offence.Chapter 6 - Money Laundering Money laundering is the process of converting illegal money proveeds into the legal ones by ‘wiping out it’s criminal origin through a series of multiple transactions bouncing through shell companies and limited partnerships creating an untraceable web of purchase orders and ‘transaction reports thus ultimately scrubbing the ill-gotten money and making it useful for the ultimate beneficiary. In simplest terms, it is the cleaning of illegally obtained funds of a dirty origin allowing them to be used within the legal economy. "According to the United Nations Office on Drugs and Crime a whopping $ 2 trillion are laundered every year, ‘The U.S Custom and Border Protection" defines money laundering as “the legitimization of proceeds from the illegal activity”. ‘The International Monetary Fund’? (IMF) defines money laundering as ¢ “process in which assets generated or obtained by criminal activities are concealed or moved to create a link between the crime and the assets which is difficult to understand.” Although there is no clear definition of Money Laundering in India, Section 3 of Prevention of Money Laundering Act, 2002 reads as whosoever directly ot indirectly attempts to indulge or Amowingly assists or knowingly is a party or is actually involved in any process or activity ‘connected with the [proceeds of crime including its concealment, possession, acquisition or use ‘and projecting or claiming] it as untainted property shall be guilty of offence of money- laundering, * noun 2 tilin is ough estimate acording to a report bythe United Nations Ofice on Drugs and Crime ( United Nations Office commited to prevent and eradicate major iteraational crimes lke Drug traficking ‘Organized Crime. Comption and Terrorism). The amount is coasiered as 5¥% of world Gross Domestic Production, ‘Due to its very natu, itis Very dificult ro track down the exact amount of money laundered slobaliy on an anaual ‘basis legal money is tained into legal economy bypassing all he relevant autores, nancial insittons and law enforcement The US Custom and Border Protection is a federal agency of United States Government responsible for its internal affairs and border control and security "Fgh g ainst-Money-L aunderng-te-Financing-of-Terorism, tunps- wf org en/ About Factsheets Sheets 201608 01/1631 Fight-Against-Money-Launderng-the- ‘Financing-of Tesrorism lst accessed 17 November, 2021‘Anti money launderingPaws in India “Money laundering in India is known by the name Hawala System, Is the most popular method of transferring money without any regulatory authority in Indi, The money is not physically transfered but digitally transfered to other person operating Hawala system just like the sender Often in India the illegal money is transfered through this system overseas. Below are the legally enforcing statutes used to detect and prevent money laundering in India” + Prevention of Money Laundering Act, 2002 ~ This act was introduced by the Central government of India to prevent the money laundering ‘and seizure of property obtained by way of money laundering. It was enacted on 17th January 2003 and enforced on Ist July 2005. Crimes like white collar crimes, corporate and financial frauds, drug trafficking or smuggling and even cross border erimes (iff anyhow connected to India) come under the ambit of PMLA Act, 2002, Entities like financial institutions, banks, and other related organisations are kept in check by the government, Various crimes that often lead to ‘money laundering or precedes money laundering are also taken care of. Punishment preseribed in the act includes a jail term (rigorous imprisonment) of minimum 3 years to maximum 7 years, + Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2018 “This was introduced to curb black money and foreign assets of an Indian citizen, if he is suspected of hiding that property for tax evasion or other illegal financial gain, It was enacted on May 2015 and enforced on Ist April 2016. Generally, this Act applies when any Indian citizen is ‘having monetary gain from foreign asset or account, The amount when transferred and converted into INR makes the owner of property liable to pay taxes on it according to the laws provided. If ‘one tries to conceal any foreign gains, he may be held liable under this Act. Penalty for having ‘undisclosed property is sum equal to three times the tax computed plus basietaxes."!> + Benami Transactions (Prohibition) Act, 1988 — ‘The main purpose behind this act was to criminalize the transactions often involving concealing of identity of ultimate beneficiary through purchasing and selling assets using fake names. ¥ Prevention of Money Laundering Act, 2002 lack Money (Undisclosed Foreign lacome and Assets) and Imposition of Tax Act, 2015Generally, the transactions in this involve real estate properties. Since such transactions involve ‘huge amount of money, it can lead to black money problem in our country if the source of money is not legitimate. The term Benami Transaction is defined as a transaction where one person pays for property but the property is transferred to or held by somebody else. The act was ‘commenced on 19th May, 1988. ' Chapter 7 - Legality of Satine’ Gambling in India? ‘When it comes to gambling, the legal landscape in India is quite complex because the country has 27 autonomous states, This means that the legal status of the online gambling industry throughout the country varies between the different states. The gambling industry in India is regulated on a state and national level. New report about the regulation in India provides detailed information about the current aw that govern the gambling industry. If we have to discuss the regulations on a national level, we would outline three main pieces of legislation, including The Public Gambling Act of 1867, The Prize Competition Act of 1955, and “The Information Technology Act of 2000. As you ean see, all of them were enacted years ago, ‘when the online gambling industry was not even on the horizon.” ‘What the Laws Say “Under The Public Gambling Act of 1867, all forms of gambling are forbidden. Some people claim that this act pertains to both online and offline gambling. However, at the time when the ‘Act came into foree, the Intemet was still not invented.” The Prize Competition Act restricts all forms of prize competitions in which the prize pool exceeds one thousand rupees per month. Even though The Information Technology Act of 2000 can be applied to online gambling, it does not state that this form of entertainment is illegal. Currently, India lacks adequate regulations to address the unprecedented growth of the online ‘gambling industry. Even though online gambling is illegal in most Indian states, no one has ever ‘been prosecuted for playing at a web-based casino, * Benami Transactions (Prohibition) Act, 1988‘Sikkim is the only state in India that implemented cut-and-clear online gambling regulations. Under the Sikkim Online Gaming (Regulation) Act of 2008, casino fans can play various table ‘games online. When it comes to land-based casinos, only Sikkim and Goa host a limited number of gambling establishments ‘ony ontine Gambling Should Be Regulated in Tad? India’s confusing gambling laws are harmful to the country’s economy. The flourishing ‘gambling industry could generate millions of dollars to Indian coffers. Instead, the money goes to offshore gambling sites that target Indian players. What is more, the country has no authority to protect players’ interests and resolve possible disputes between players and casino operators. ‘By regulating the online gambling industry, India will curb illicit gambling activities and boost ‘the economy. What is more, the country will be able to better estimate the percentage of people affected by gambling problems and help them tackle the issue. Generally speaking, India makes a distinction between luck-based and skill-based games. Simply put, games of skills are those that rely on a person's knowledge in the game. However, ‘no game relies entirely on luck or skills. There is no denying that some games are more ‘dependent on skill or luck, but every game includes both elements. Hence, such a distinction is ‘ot well justified and that is one ofthe reasons wiy India should overhaul its gambling laws. "7 ‘The Future of the Online Gambling Industry in India Many industry experts claim that the online gambling industry in India will continue flourishing, and we fully agree with this, The only problem is that some Indian states refuse to leave the past behind and embrace the future. For example, Andhra Pradesh recently published ‘an Ordinance, announcing that the state will never regulate the online gambling industry. ‘On a more positive note, many other states examine the opportunity to regulate the online ‘gambling industry. “According to our humble opinion, if a single state dares to take some steps toward regulating the industry, many others will follow its example.” Online Gambling Law in India, hups:/wwrw thenewsmnut com/artilealine-gambling-gr0¥ ‘need progressive Law-154752, last accessed 18 Novernber, 2021 india-shows-