SHELL COMPANIES for money laundering, tax evasion, hiding kickbacks, layering PART 29 -- CAPT AJIT VADAKAYIL

THIS POST IS CONTINUED FROM PART 28, BELOW----

http://ajitvadakayil.blogspot.in/2017/03/shell-companies-for-money-laundering_27.html

Strawbuyer/Fictitious Bidder--- The debtor sells assets to a court-approved buyer and the assets are secretly resold at a profit pursuant to a previous agreement with a third party. 

Where fictitious bidding is suspected, creditors should require a statement to the effect that the buyer is bidding for himself or have him state the purpose of the purchase. False statement prosecutions have been brought where this statement is false.

Examples Of Straw Buyer/Fictitious Bidder---- Kickbacks: An insider agrees to sell assets to a purchaser who agrees to pay the insider a kickback. The purchase price disclosed in the motion to sell is less than the price agreed upon by the insider and the purchaser. When the sale is completed, the debtor receives the difference between the court-approved price and the undisclosed sale price.

Straw Sales:--- Insider wants to conceal his purchase of estate assets because he wants to orchestrate the sale to allow him to buy the assets for a depressed price. A fictitious purchaser or nominee is used to acquire the assets. Once the sale is consummated, the assets are transferred to the insider for a fee. Insider and purchaser do not disclose the relationship to the court. Oftentimes, both parties will make affirmative statements claiming there are no connections or agreements between them.

Red Flags/Common Characteristics:---

· Pre-existing, undisclosed relationship between the debtor and the straw buyer.

· Sale terms are structured to prefer one bidder.

· Inadequate or no effort to locate other purchasers. Advertising not placed in appropriate newspapers or journals to reach potential purchasers.

· Unusually high bid-protection or break-up fees.

· High price offered, but broad terms allow the purchasers substantial setoff rights.

· Purchaser is represented by counsel with close ties to debtor’s counsel.

· Debtor interferes with potential purchasers’ due diligence efforts.

· Short notice request on sale because of “emergency” situation.

Serial Filers---- The debtor, typically an individual, files numerous cases to take advantage of the automatic stay to prevent eviction, foreclosure and collection on other debts. The petitions usually contain false social security numbers, variations of the debtor's name or fictitious names.

Chapter 7 and Chapter 13 cases are filed interchangeable in USA.

Most bankruptcies filed in the Unites States are either Chapter 7 or Chapter 13 cases. 

Whether a Chapter 7 or Chapter 13 bankruptcy is the right choice for you depends on your income, assets, debts, and your financial goals. 

Chapter 7 is a liquidation bankruptcy designed to wipe out your general unsecured debts such as credit cards and medical bills. To qualify for Chapter 7 bankruptcy, you must have little or no disposable income. If you make too much money, you may be required to file a Chapter 13 bankruptcy (discussed below).

When you file for Chapter 7 bankruptcy, a trustee is appointed to administer your case. In addition to reviewing your bankruptcy papers and supporting documents, the Chapter 7 trustee’s job is to sell your nonexempt property to pay back your creditors. 

If you don’t have any nonexempt assets, your creditors receive nothing. As a result, Chapter 7 bankruptcy is typically for low-income debtors with little or no assets who want to get rid of their unsecured debts. 

Chapter 13 is a reorganization bankruptcy designed for debtors with regular income who can pay back at least a portion of their debts through a repayment plan. If you make too much money to qualify for Chapter 7 bankruptcy, you may have no choice but to file a Chapter 13 case. However, many debtors choose to file for 

Chapter 13 bankruptcy because it offers many benefits that Chapter 7 bankruptcy does not (such as the ability to catch up on missed mortgage payments or strip wholly unsecured junior liens from your house).

In Chapter 13 bankruptcy, you get to keep all of your property (including nonexempt assets). In exchange, you pay back all or a portion of your debts through a repayment plan (the amount you must pay back depends on your income, expenses, and types of debt). For this reason, Chapter 13 is commonly referred to as a reorganization bankruptcy. 

Typically, Chapter 13 bankruptcy is for debtors who can afford to make monthly payments to get caught up on missed mortgage or car payments or pay off nondischargeable debts such as alimony or child support arrears.

Red Flags/Common Characteristics:-----

· Debtor has filed a high number of cases in a short period of time

· Debtor does not disclose prior bankruptcy cases

· Debtor uses different counsel to file each case

· Chapter 13 cases never completed because of failure to fund-plan

· Debtor had been prohibited from filing a case

Again---Bankruptcy Fraud Warning Signs:----

1. Concealment of assets

2. Serial bankruptcy cases

3. Failure to keep usual business records

4. Incomplete or missing books and records

5. Conduct well outside ordinary business or industry standards and  practices

6. Unusual depletion of assets shortly before the bankruptcy filing

7. Recent departure of debtor's officers, directors or general  partners

8. Unanswered questions or incomplete information on debtor’s  schedules and statement of financial affairs

9. Frequent amendments to schedules, statements of financial  affairs and monthly operating reports

10. Inconsistencies among recent financial statements, tax returns  and debtor's schedules and statements of financial affairs

11. Absence of knowledgeable officers to testify at the meeting

12. Inability to contact principals of debtor at debtor’s stated location

14. Frequent dealings in cash rather than recorded transactions

15. Sudden depletion of inventory post-petition without plausible  explanation

16. Inflated salaries, payments of bonuses or cash withdrawals by officers, directors, shareholders or other insiders

17. Transfer of property to insiders, shareholders and relatives shortly before bankruptcy

18. Payoff of loans to directors, officers, shareholders, relatives or other insiders shortly before filing.

19. Transactions with non-debtor subsidiaries, parent companies or affiliated corporations owned by the same or related persons or entity

20. A history of prior litigation or post-petition litigation involving breech of contracts, fraud misrepresentations, etc

21. Complicated corporate structures and relationships.

22. Creditor confusion concerning corporate structure.

23. Fire, theft or loss prior to or after filing. ( this always happens in India )

24. Failure to pay withholding and sales tax.

25. Startup of a similar business near the time of bankruptcy filing.

Capt. Ajit VadakayilMarch 28, 2017 at 7:48 AM

http://timesofindia.indiatimes.com/city/mumbai/michael-ferreira-gets-bail-after-sc-stays-qnet-multilevel-marketing-cases/articleshow/57864143.cms

SUBRATA ROY , INDIAs LARGEST EMPLOYER AFTER RAILWAYS HAS BEEN JAILED AND HIS BAIL SET TO THOUSANDS OF CRORES ..

YET THIS CRIMINAL FELLOW MICHAEL FERREIRA IS FREE ?

DID HE NOT KNOW THAT HE WAS DUPING PEOPLE ?

http://ajitvadakayil.blogspot.in/2013/03/amway-merchants-of-pipe-dreams-capt.html

It is a FRAUD when your income is based mainly on the number of people you recruit, and the money those new recruits pay to join the company — not on the sales of products to consumers

You’re required to buy lots of inventory

You’re forced to buy other things you don’t want or need just to stay in good standing with the company

THEY HOLD SEMINARS TO PICK ON THE GREED OF PEOPLE --BY SHOWING RAGS TO RICHES STORIES.. THE PEOPLE ARE BRAINWASHED TO GET STARS IN THEIR EYES

MONEY IS SQUEEZED OUT OF NEW INVESTORS TO PAY OFF OLD ONES


A Pyramid Scheme ( Ponzi ) is a multi-level marketing (MLM) program that cannot support itself because earning money, and/or advancing within the system depends on recruiting other people into the operation, rather than selling a product or providing a service.


The words “Ponzi” and “Pyramid” are often used interchangeably but, as evidenced by the examples provided, they are different – the principal difference being that a Ponzi scheme has only one “official” promoter.

Otherwise, they have much in common. Both are fraudulent “investment schemes” promising unrealistic returns on investment capital, both typically encourage investors to reinvest their profits, both depend upon new investors to satisfy their obligations to prior investors, both are continually insolvent and both are against the law.

The victims of a Ponzi Scheme are innocent victims, but the victims of Pyramid Schemes victimize others in that they directly promote the criminal enterprise

Avoid any program they must pay to join where they are promised a commission based upon their success in recruiting investors or a “downline.”

Avoid plans requiring the purchase of expensive products and marketing materials (often called tools).

Beware of shills - "decoy" references paid by a plan's promoter to lie about their earnings through the plan. You can see them at seminars .

Remember the old adage that if something seems too good to be true, then it probably is. People that promise instant riches are often scammers just looking to make a quick buck.

http://www.mid-day.com/articles/michael-ferreira-qnet-scam-first-person-account-billiards-champion-mumbai/17659167

capt ajit vadakayil
..

Five years ago Triple Sri Ravishankar fooled the students of IIT  Kanpur with some bullshit oil drops.

Triple Sri called for a volunteer to come up on stage for a “patented” magic oil surprise demonstration.

One of the students from the back rows of the auditorium was chosen to share the dais.

The chosen volunteer, a male student wearing a black t-shirt with horizontal white stripes, was asked to extend his arm parallel to the floor, clinch his fist and resist the pulling down of his arm. 

Triple Sri  gripping the volunteer’s arm near the wrist, was able to pull down his arm easily over and over again, much to the amusement  of the naïve audience. 

He then produced from his pocket a small vial containing some oil.

The volunteer was then asked to rub and spread this oil over his arm. After the volunteer took a step back and a deep breath to relax, the whole exercise was repeated again – except this time Triple Sri with his gargantuan paunch struggled quite hard to pull down the volunteer’s arm, amazing the vast audience.

The volunteer, visibly impressed and believing that he had in fact become stronger in a matter of seconds after the application of the oil, went onto fall at the feet (cultural practice of surrender) of the extraordinary messiah Triple Sri.

Following the thundering applause from his gullible audience, Mr. Ravishankar went on to urge stronger volunteers to come forth.

The next male volunteer also went on to fall at the feet of Mr. Ravishankar after his new found strength.

The frenzy in the arena attracted a male "skeptic" from the audience to volunteer.

He was visibly unimpressed by the arm pull down test and the claim of instantaneous improvement of strength and vigor following the application of a few drops of oil. 

The skeptic boldly asked for permission to perform the same test on his own test subject on the dais.

While the skeptic readied his subjects, Triple Sri changed his track and launched into a astounding theory for his precious oil.

He spAke    “one drop of poison can destroy the body.  Can it not destroy?  One drop of poison can destroy the immune system.  No?   HOOO ?  No ?  The reverse can also happen – one drop of nectar can also strengthen your body.”

The stupefied audience gaped in awe.

What happened afterwards was most hilarious .  

The “test subjects” chosen by the “skeptic” gave testimonies to the audience that they felt “something different,” and the skeptic had to agree, on the microphone, that he was convinced of the power of the messiah and his great oil.

The gullible IIT Kanpur audience could NOT stop clapping.   

These are the same folks AAP’s Kumar Vishwas recites mindless non-veg Hindi poetry ( CHOO LAA  is this poetry, is he a poet  ? ) and gets these rustic North Indians in raptures.

Below: Watch the IIT professors laughing like mad donkeys who have seen fresh shit.  CHOOT LUND KAVITA  .  This is what IITs are worth !  KYA BAAT HAI..  WAH WAH WAH... 

Some Shakthi Drops, was sold for 25 Euros in 30ml vials on Art of Living’s EU website.

Triple Sri uses the reaction principle to trick all.  Push , relax a muscle and then pull.

Triple Sri’s oil which gives rocket boost in immunity and muscle strength is not even pseudo science – it is sheer fraud.

Below: Shakti drops applied on hand can not only stabilise your brain balance , it can be used for HAJAAAAR things -- ISMEIN MAA KI MAMTA HAI-- BAAP KI PEEPTA BHI HAI 

Capt. Ajit Vadakayil

October 20, 2014 at 4:55 PM

ALL READERS--

I HAD FOOLED A FEMALE IN THE GYM USING THE SAME METHOD OF TRIPLE SRI, TWO YEARS BEFORE HE DID IT.

SO I KNOW.

she used to OVER exercise and was extravagantly proud of her figure- wearing spandex tights flaunting her CAMEL TOE .

I WORE A BRACELET AND THIS GIRL WANTED TO KNOW WHAT IT IS .

since this girl was VERY vain,i decided to fool her and said --it balances my left and right brain lobes.

and then i made her stand on one leg-- destabilised her with my finger.

then i made her wear my bracelet.

by now the entire gym of 20 people were watching us in a circle.

then i pretended to try and push her off with both my hands -- there is trickery in this ( parallelogram law of forces ) .

i could not ( TEE HEEEEE !)--she was sort of WOW !

and all wanted to buy that bracelet off my hand-- any amount ,, kuch bhi-- and some of them were very rich.

TRIPLE SRI just used magic ( sic ) Shakti oil.

capt ajit vadakayil

..


Below: This fellow Triple Sri is younger to me- 

-- see his face , see my face !!

Narendra Damodardas Modi gave the chap a Padma Vibhushan ( India's second highest award ) in 2016 --

-- probably for saying Hinduism sponsors homosexuality--and Lord Ayyappa was produced by anal sex between Shiva and Vishnu .  

Vajpayee was the first PM to actively sponsor homosexuality and anal sex in India.   Now Modi is following up.

Lord Ayyappa ( Vishnu's ninth avatar ) commands this planet's largest pilgrimage --twice the size of Maha Kumbh Mela.

Homosexuality has never been considered a crime in Hindu culture. In fact, Lord Ayyappa was born of Hari-Hara (Vishnu & Shiva). #Sec377

— Sri Sri Ravi Shankar (@SriSriSpeaks) December 11, 2013

Homosexuality-not a crime in any Smriti. Everyone has male & female elements. According to their dominance,tendencies show up & may change.

— Sri Sri Ravi Shankar (@SriSriSpeaks) December 11, 2013

Nobody should face discrimination because of their sexual preferences. To be branded a criminal for this is absurd.

— Sri Sri Ravi Shankar (@SriSriSpeaks) December 11, 2013

Published Date: Dec 12, 2013 03:19 pm | Updated Date: Dec 12, 2013 03:19 pm

While Finance Minister Arun Jaitley's Budget speech in February suggested that steps will be taken to make donations to political parties more transparent, there is a provision in the Bill that will do just the opposite. 

The Bill introduces electoral bonds, which make it more convenient to donate without being noticed.

http://www.realityviews.in/2017/03/legally-now-companies-can-pay-unlimited.html

Here is an excerpt from Jaitley addressing the media, explaining in his own words this debatable concept and revealing how easy it would be to give money anonymously:

"The system involves the following steps. The donor and the donee will get tax exemptions provided the returns are filed by the political party. Donations of four kinds are encouraged: Donate by cheque, digital mode, cash donation limited to Rs 2,000 per person, and lastly there is a provision of electoral bonds which requires an amendment to the RBI Act. A notified bank will be issuing those bonds. Any donor can buy those bonds using cheque or digital money. These bonds can be given to the political party. Every recognised political party will have to notify one bank account in advance to the Election Commission and these can be redeemed in only that account in a very short time. These bonds will be bearer in character to keep the donor anonymous."

The RBI and I-T Act will be amended so that no parties have to keep records of the donor in the case of electoral bonds. There will no longer be a cap on the amount of donations an individual can give as long as it is given by cheque or digitally.

Jaitley also rejected a suggestion for making PAN and Aadhaar mandatory for cash donations to make it more transparent, saying it was not feasible, particularly in rural areas.

Bringing down the cash donation limit to Rs 2,000 from Rs 20,000 will not change much as people will just get ten times the receipts they used to get earlier. 

Cash donations be completely stopped.

US government stopped selling bearer bonds in 1982 in a bid to increase transparency. 

They allow large sums of money to be moved around easily, with full anonymity. A bearer bond is a bond or debt security issued by a business entity such as a corporation, or a government. As a bearer instrument, it differs from the more common types of investment securities in that it is unregistered – no records are kept of the owner, or the transactions involving ownership. 

Whoever physically holds the paper on which the bond is issued owns the instrument. This is useful for investors who wish to retain anonymity. Recovery of the value of a bearer bond in the event of its loss, theft, or destruction is usually impossible. 

Bearer bonds have historically been the financial instrument of choice for money laundering, tax evasion, and concealed business transactions in general. In the United States all the bearer bonds issued by the U.S. Treasury have matured. They no longer pay interest to the holders

Before the bond market developed, India had a number of bearer bonds, usually called debentures when issued by a company. But the last major one launched by the government was in 1981, ( BY Indira Gandhi ) as an income disclosure scheme.

The face value of the bond was Rs10,000 and maturity was for 10 years. Anyone could buy the bonds without inviting any scrutiny from the government. 

The income tax department was prohibited from harassing buyers and the bond could be even bought with anonymity. “No person who has subscribed to or has otherwise acquired Special Bearer Bonds shall be required to disclose, for any purpose whatsoever, the nature and source of acquisition of such Bonds,” the Special Bearer Bonds (Immunities And Exemptions) Act, 1981, read. 

Add to it, “no inquiry or investigation shall be commenced against any person under any such law on the ground that such person has subscribed to or has otherwise acquired Special Bearer Bonds.”

In an income tax raid, other assets could be seized but not the special bonds, which could be bought through foreign currencies also. At the time of maturity, buyers would get Rs12,000 as face value. If one had purchased these bonds in 1981 for Rs10,000, he could redeem it in 1991 for Rs12,000.

It was a clean amnesty scheme and was lapped up by investors. A substantial amount of these could have been converted to legal money through the special bond scheme. The rider was that the money could be considered as “white” only after the bonds matured in 1991.

 Compared to this scheme, the income disclosure schemes announced by the present government, where black money could be converted into white by paying 50 per cent taxes, looked tame.

Another famous bearer bond, issued in 1987 through post offices, was the Indira Vikas Patra. The bond was eventually scrapped.

Generally, in the Indian context, you find the word debenture and bonds being used interchangeably.

A debenture is a debt instrument which is not backed by any specific security; instead the credit of the company issuing the same is the underlying security. Corporate treasury use this as a tool to raise medium- to long-term funds. The funds raised become part of the capital structure but not share capital of the company.

Bonds, however, in India are typically issued by financial institutions, government undertakings and large companies. The interest rate is assured and is paid at a fixed interval, i.e. on an annual or semi-annual basis. On maturity, the principal is repaid. 

Bond is a form of loan. The holder of the bond is the lender and the issuer of the bond is the borrower.

Capt. Ajit VadakayilMarch 28, 2017 at 5:10 PM

DONALD TRUMP--

BE ON THE SAME PAGE WITH PUTIN AND MODI ( ABOLISH CARBON TAX ) BEFORE G20 AT HAMBURG IN THE FIRST WEEK OF JULY 2017...

SIFT THE FOCUS FROM CARBON DI OXIDE TO METHANE AND NITROUS OXIDE..

METHANE WILL KILL THIS PLANET.. IT IS A TIME BOMB CURRENTLY TICKING AWAY....

Cut through the bullshit--

Carbon tax is a price instrument.. while Cap-and-trade is a quantity instrument

ONLY JEWS MAKE MONEY OUT OF THIN AIR BY SITTING ON THEIR ASSES..

A carbon tax imposes a tax on each unit of greenhouse gas emissions and gives firms .

The tax is set by assessing the cost or damage associated with each unit of pollution and the costs associated with controlling that pollution. Getting the tax level right is key: too low and firms and households are likely to opt for paying the tax and continuing to pollute, over and above what is optimal for society. Too high and the costs will rise higher than necessary to reduce emissions, impacting on profits, jobs and end consumers.

By contrast, a cap-and-trade system sets a maximum level of pollution, a cap, and distributes emissions permits among firms that produce emissions. Companies must have a permit to cover each unit of pollution they produce, and they can obtain these permits either through an initial allocation or auction, or through trading with other firms.

Since some firms inevitably find it easier or cheaper to reduce pollution than others, trading takes place. Whilst the maximum pollution quantity is set in advance, the trading price of permits fluctuates, becoming more expensive when demand is high relative to supply (for example when the economy is growing) and cheaper when demand is lower (for example in a recession). A price on pollution is therefore created as a result of setting a ceiling on the overall quantity of emissions.

In certain idealized circumstances, carbon taxes and cap-and-trade have exactly the same outcomes, since they are both ways to price carbon.

However, in reality they differ in many ways.

With cap-and-trade, it has often been the case that permits are given out for free initially (known as "grandfathering"). This means cheaper compliance for industry in the early stages of the scheme, because they only pay for any extra permits bought from other firms – not for the initial tranche of permits given to them to cover most of their emissions under 'business as usual'.

This approach is obviously popular with industry and explains why grandfathering has been used, since it helps get firms to accept controls on emissions in the first place. By contrast, with a tax there is an immediate cost for businesses to pay on every unit of greenhouse gas produced, so there is a bigger initial hit to the balance sheet. Grandfathering is BULLSHIT.

Under a tax, the price of emitting a unit of pollution is set, but the total quantity of emissions is not. Therefore a tax ensures everyone knows the price being paid (at least for the immediate future) for each unit of carbon dioxide emitted, but uncertainty remains about the actual quantity of emissions.

Conversely, cap-and-trade provides certainty about the quantity of emissions (it cannot exceed the cap), but uncertainty about the cost of achieving these reductions. If the level of environmental damage is more sensitive, then it is important to be sure what the quantity of emissions is, which points to cap-and-trade. Conversely if the cost of reducing pollution is more highly sensitive to changes in emissions, it is better to be sure about the cost of cutting emissions, pointing to a tax.

Nothing is done to reduce carbon as big polluters buy their way around paying this tax with credits and raise product prices to cover that cost, and we wind up paying for their continued polluting of the environment.

THE FREE DENIZENS OF THIS PLANET HAVE WOKEN UP..

WE WONT ALLOW JEWS LIKE ARNAUD MIMRAN TO MAKE MONEY OUT OF THIN AIR ANYMORE.. CO2 IS A USEFUL AND LIFE SUSTAINING GAS

CONTINUED TO 2--

1. 
   Capt. Ajit VadakayilMarch 28, 2017 at 5:10 PM

   CONTINUED FROM 1-
   
   INDIA WILL CONTINUE BURNING COAL. 

   WE WONT ALLOW JEW ROTHSCHILD BRANDED APCO MODI WHO HAS WRITTEN A BOOK ON CLIMATE CHANGE ( MUNGERILAL KA RANGEEN SAPNE ) TO MOTHBALL COAL..

   
   JEW Arnaud Mimran Mimran declared that he donated $200,000 to Benjamin Netanyahu . Netanyahu baby has called the Mimrans a respectable Jewish family.
   
   Six of Mimran’s codefendants were French Jews who were tried in absentia, having fled to Israel before the trial began.
   
   French authorities cracked down on a carbon-trading scheme that cost the European Union €5 billion – including €1.6 billion in France – according to Europol.
   
   The EU ETS was a simple “cap-and-trade” system. Under it, EU member states set a cap on the amount of carbon companies in specific sectors could produce. This could then be traded on the European market as emission allowances.
   
   Companies that did not use their entire allowance could sell the surplus, while those that had exceeded the limit could buy more. It was also possible to purchase international credits from emissions-saving projects abroad.
   
   http://bigstory.ap.org/article/e64252ec6aa645559a8076ef99a376eb/netanyahu-donor-convicted-france-over-vast-tax-scam
   

   Arnaud baby purchased emission allowances on the European market from abroad, using a complex network of SHELL companies and OFFSHORE accounts in Latvia, Cyprus and Hong Kong.

   
   Because the allowances were purchased outside of Europe, they were not subject to the European Union’s 19.6 percent value-added tax (VAT). Front men acting as brokers then resold the allowances in Europe, taxes included. But instead of handing the VAT over to the authorities, they pocketed the cash to use in future trades.
   
   But the money needed to be laundered before it could be reinvested. This involved placing it in a bank in China, where it was then handed over to businesses or transformed into playing chips at casinos, among numerous other ploys.
   
   Capt ajit vadakayil
   ..

In financial regulation, a Suspicious Activity Report (SAR) or Suspicious Transaction Report (STR) is a report made by a financial institution about suspicious or potentially suspicious activity. 

The criteria to decide when a report must be made varies from country to country but generally is any financial transaction that does not make sense to the financial institution, is unusual for that particular client or appears to be done only for the purpose of hiding or obfuscating a transaction.

 The report is filed with that country's financial crime enforcement unit, which is typically a specialist agency designed to collect and analyse transactions and report these to relevant law enforcement units. 

Front line staff in the financial institution have the responsibility to identify transactions that may be suspicious and these are reported to a designated person that is responsible for the reporting the transaction. The financial institution is not allowed to inform the client or the parties to the transaction that a SAR has been lodged.

SARs include detailed information about transactions that are or appear to be suspicious. The goal of SAR filings is to help the government identify individuals, groups and organizations involved in fraud, terrorist financing, money laundering, and other crimes.

The purpose of a suspicious activity report is to report known or suspected violations of law or suspicious activity observed by financial institutions subject to the regulations (for example, the Bank Secrecy Act (BSA)). 

In many instances, SARs have been instrumental in enabling law enforcement to initiate or supplement major money laundering or terrorist financing investigations and other criminal cases. 

Information provided in SAR forms also presents FinCEN with a method of identifying emerging trends and patterns associated with financial crimes. The information about those trends and patterns is vital to law enforcement agencies and provides valuable feedback to financial institutions.

The Bank Secrecy Act specifies that each firm must maintain records of its SARs for a period of five years from the date of filing.

The report can start with any employee of a financial service. The employees are generally trained to be alert for suspicious activity, such as situations where people are trying to wire money out of the country without identification, or activity by someone with no job who starts depositing large amounts of cash into an account. 

Employees are trained to communicate their suspicion up their chain of command where further decisions are made about whether to file a report or not.

Many different types of finance-related industries are required to file SARs.

These include:---

depository institutions (for example, banks and credit unions)

securities and futures dealers (for example, stock brokers and mutual fund brokers)

money services businesses (for example, check cashing services, currency exchange bureaus, and money order providers)

casinos and card clubs

dealers in precious metals and gems (for example, jewelery dealers)

insurance companies

mortgage companies and brokers

Financial institutions undertake an investigation process prior to filing a SAR to ensure that the information reported is appropriate, complete, and accurate. This process will often include review by financial investigators, management and/or attorneys prior to filing.

To encourage complete candor and cooperation, there are disclosure and evidentiary privileges that protect SAR filers. First, an individual or organization is precluded from discovering the existence or contents of a SAR that includes the individual or organization's name. 

SARs filers are immune from the discovery process.  Second, SAR filers enjoy immunity for all statements made in their SARs, regardless of whether those statements were allegedly made in bad faith

A SAR has five sections each containing information about the filing institution or the activity in question:

Part I - Subject Information

Any name, address, social security or tax ID's, birth date, drivers license numbers, passport numbers, occupation and phone numbers of all parties involved with the activity.

Part II - Suspicious Activity Information

Date Range and codes for the type of Suspicious Activity

Part III - Information about Financial Institution where Activity Occurred

Part IV - Filing Institution Contact Information

Usually contains the contact information for the financial institution's compliance officer or equivalent and list of any law enforcement agency that has been contacted while investigating the activity..

Part V - Suspicious Activity Information - Narrative

A written description of the activity.

Penalties for non-compliance

Financial institutions and their employees face civil and criminal penalties for failing to properly file suspicious activity reports, including any combination of large fines, regulatory restrictions, loss of banking charter, or imprisonment.

Financial intelligence (FININT) is the gathering of information about the financial affairs of entities of interest, to understand their nature and capabilities, and predict their intentions. Generally the term applies in the context of law enforcement and related activities.

One of the main purposes of financial intelligence is to identify financial transactions that may involve tax evasion, money laundering or some other criminal activity. FININT may also be involved in identifying financing of criminal and terrorist organisations.

Financial intelligence can be broken down into two main areas, collection and analysis. Collection is normally done by a government agency, known as a financial intelligence organisation or Financial Intelligence Unit (FIU). 

The agency will collect raw transactional information and Suspicious activity reports (SAR) usually provided by banks and other entities as part of regulatory requirements. Data may be shared with other countries through intergovernmental networks.

Analysis, may consist of scrutinizing a large volume of transactional data using data mining or data-matching techniques to identify persons potentially engaged in a particular activity. SARs can also be scrutinized and linked with other data to try and identify specific activity.

FININT involves scrutinizing a large volume of transactional data, usually provided by banks and other entities as part of regulatory requirements. Alternatively, data mining or data-matching techniques may be employed to identify persons potentially engaged in a particular activity.

Many industrialized countries have regulatory reporting requirements for its financial organisations.

It may be possible for the FININT organization to obtain access to raw data at a financial organization. From a legal standpoint, this type of collection can be quite complex.

Examples of financial intelligence analysis could include:----

Identifying high-risk housing tenants on the basis of past rental histories.

Deterring tax payers trying to avoid their fiduciary obligations by moving wealth surreptitiously out of a tax-levying jurisdiction.

Discovering safe havens where criminals park the proceeds of crime.

Accounting for how a large sum of money handed to a targeted individual disappears

Checking to see if a corrupt individual has had any sudden and unexplained windfalls.

Detecting relationships between terrorist cells through remittances.

FIUs are normally not law enforcement agencies; their mission being to process and analyze the information received. If sufficient evidence of unlawful activity is found, the matter is passed to the public prosecution.

The FIU-IND or FIU is the regulatory arm of the Indian government that keeps track of all the suspicious transactions and/or cash transactions taking place across the country and devises strategies to counter money laundering.

The FIU maintains a national database of all transactions received from the reporting entities, and analyse it for discrepancies.

The agency also disseminates information to domestic and international intelligence/fraud investigation agencies, promotes awareness on the issue and suggests policy changes to counter it.

The Financial Intelligence Unit in India (FIU-IND) is responsible for analyzing and raising red flags for all money laundering activities in the country. But the FIU is dependent on receiving the information from other organizations who wade through several thousand financial transactions daily and report such cases.

All financial entities in the economic system are supposed to report the Cash Transaction Reports (CTRs) and Suspicious Transaction Reports (STRs) to the FIU under the Prevention of Money Laundering Act, 2002 (PMLA). 

The rules of PMLA apply to:---

•     Banks

•     Financial institutions such as chit funds, housing finance companies, payment system operators, nonbanking financial companies and the Department of Posts.

•     Financial intermediaries such as stock brokers, registrars, portfolio managers, investment advisors, underwriters etc.

•     Enforcement Agency

•     National Data Portal

Under the prevention of money laundering act all reporting entities need to submit reports to the FIU from time to time.The following reports need to be submitted monthly:---

1.   Cash Transaction Report (CTR):

a.   Cash transactions of value more than rupees ten lakhs or its equivalent in foreign currency.

b.   Number of transactions for a single account, which are valued at more than rupees ten lakhs within a month.

2.   Cross Border Wire Transfer (CBWT) / Electronic Fund Transfer

3.   Non-Profit Organization Transaction Report: Cash transactions of more than rupees ten lakhs involving a non-profit organization as recipient.

4.   Cross Border Transaction Report : All cross border wire transfers of value more than rupees five lakhs and above or its equivalent in foreign currency.

The reporting entities also need to submit the following cash transaction reports within 7 days of identification of a suspicious transaction:---

1.   Counterfeit Currency Report (CCR): Reporting of counterfeit currency.

2.   Suspicious Transaction Report (STR): All suspicious transactions irrespective of whether they are in cash or otherwise.

The IRIS FIU Reporting Solution, is a standalone desktop application for CTR, STR, NTR (Nil-CTR), CCR and Electronic Fund Transfer (EFT) reporting to FIU-IND. 

In India, over 60 reporting entities including banks, financial intermediaries and other financial institutions have used IRIS’ application to file their reports.  The easy to use application also validates the document against all business rules and schema checks required by the FIU.

The main function of FIU-IND is to receive cash/suspicious transaction reports, analyse them and, as appropriate, disseminate valuable financial information to intelligence/enforcement agencies and regulatory authorities . 

The functions of FIU-IND are:---

• Collection of Information: Act as the central reception point for receiving Cash Transaction reports (CTRs) and Suspicious Transaction Reports (STRs) from various reporting entities.

• Analysis of Information: Analyze received information in order to uncover patterns of transactions suggesting suspicion of money laundering and related crimes.

• Sharing of Information: Share information with national intelligence/law enforcement agencies, national regulatory authorities and foreign Financial Intelligence Units.

• Act as Central Repository: Establish and maintain national data base on cash transactions and suspicious transactions on the basis of reports received from reporting entities.

• Coordination: Coordinate and strengthen collection and sharing of financial intelligence through an effective national, regional and global network to combat money laundering and related crimes.

• Research and Analysis: Monitor and identify strategic key areas on money laundering trends, typologies and developments

A digital wallet refers to an electronic device that allows an individual to make electronic transactions. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store. An individual's bank account can also be linked to the digital wallet. 

They might also have their driver’s license, health card, loyalty card(s) and other ID documents stored on the phone. The credentials can be passed to a merchant’s terminal wirelessly via near field communication (NFC). 

Increasingly, digital wallets are being made not just for basic financial transactions but to also authenticate the holder's credentials. 

For example, a digital-wallet could potentially verify the age of the buyer to the store while purchasing alcohol. The system has already gained popularity , where digital wallets are known as "wallet mobiles"

A digital wallet has both a software and information component. The software provides security and encryption for the personal information and for the actual transaction. Typically, digital wallets are stored on the client side and are easily self-maintained and fully compatible with most e-commerce Web sites. 

A server-side digital wallet, also known as a thin wallet, is one that an organization creates for and about you and maintains on its servers. Server-side digital wallets are gaining popularity among major retailers due to the security, efficiency, and added utility it provides to the end-user, which increases their satisfaction of their overall purchase. 

The information component is basically a database of user-input information. This information consists of your shipping address, billing address, payment methods (including credit card numbers, expiry dates, and security numbers), and other information.

Digital Wallets can increase the security of the transaction since the wallet typically does not pass payment card details to the website (a unique transaction identifier or token is shared instead).

We are now seeing a new Digital India, where the emphasis is now on more and more digital transactions instead of cash transactions. However, with more digitisation, instances of e-wallet frauds are increasing.

http://www.thehindu.com/news/cities/Delhi/Five-arrested-for-e-wallet-fraud/article17303379.ece

When Prime Minister Narendra Modi appeared on television sets on 8 November 2016, and declared a war on black money through demonetisation of high-value currency notes, the space for digital transactions increased overnight. 

Without losing any time, fintech and e-payment companies ramped up their marketing efforts. Banks, too, entered the battle for eyeballs.

Unlike banking customers, e-wallet users do not have recourse to an ombudsman.

http://www.thehindubusinessline.com/specials/technophile/how-safe-is-your-favourite-ewallet/article9402284.ece

When the Reserve Bank of India (RBI) issued draft master directions on issuance and operation of prepaid payment instruments, the underlying theme was security and customer protection.

PAN or Aadhaar MUST become mandatory

So far, if you opened a new e-wallet, you did not have to provide any identity card details. You could just provide the minimum details such as mobile number, email ID and create a password to load money and transact.

As part of the Know Your Customer (KYC) process, e-wallet companies usually sent out a one-time password to verify your mobile number and once verified, you could start using it. In the draft norms, RBI wants you to provide a unique identification number an ‘officially valid document’.

RBI wants to avoid misuse of e-wallets for money laundering or fraud. The unique identification number could be in the form of PAN or Aadhaar number.  It is better o ask for  PAN or your Aadhaar details while opening an e-wallet.

RBI  wants e-wallet accounts to be converted into fully KYC-compliant accounts within 2 months of opening the e-wallet account.   If full KYC is not done, no further credit would be allowed. If you have any balance in the wallet, you will be allowed to use the balance.   

As of now, full KYC is not mandatory, up to a certain amount. In the draft guidelines, RBI has asked e-wallet companies to convert all the existing minimum detail, semi-closed, prepaid payment instruments (PPIs) into full KYC-compliant accounts by 30 June 2017. 

The companies are to communicate this to the customers and also give them a one-time option to transfer the existing balance to another wallet—of the same e-wallet issuing company or to a bank account—without any transaction limit. There will be no charge for such fund transfers. 

In case you have zero balance in your e-wallet for one year at a stretch, it will be closed automatically by your e-wallet service provider. You will be informed before the e-wallet is closed and will also be given the option to close the e-wallet or transfer the balance as per the applicable limits.

http://www.livemint.com/Industry/nLfw4ceoa66e5XENCKFPpN/Paytm-launches-ewallet-insurance.html 

When you look at the US banking system and US financial markets, the level of scrutiny and the types of activities that are monitored, there is surveillance on every activity of the economy.

Maturing economies such as India will benefit significantly from being able to model and evaluate some of the approaches of some of these more sophisticated economies have had to put into place.

Whether it is a suspicious activity report, that a retail or consumer bank is generating because of some behaviour of an individual, whether it is some sort of structuring activity that a bank is picking up through the form of analysing deposits, or whether it is the cash movement from account to account, these all have electronic monitoring on top of them.

Because of what you have experienced here in the form of currency take back and now the country being forced into a position where it has to rely upon a variety of electronic tools like electronic wallets and utilities.

The types of enforcement and compliance opportunities become much much higher. The pain of adopting that type of monitoring system is quite apparent in that most of the population is not used to that. But if Indians cant—who can ?

The use of public WiFi is now growing in India. In the past, there have been instances that unsecured WiFi have been misused by criminal elements.

Digitization of Indian economy will cause increase in cyber crimes and online banking frauds. 

It is very hard for the average individual to determine which hotspot to connect with. Some of them look legitimate, many of them are not, and are designed to steal highly valuable data.  

The consumer has to be extremely cautious and well educated, and that's a big question, as we are talking about tens and millions of people who have to understand it is not okay to click on one hotspot versus the other. 

At the same point, it is a good responsibility of the government to be able to provide it to people who could not afford it.  But, it is a double-edged sword.  The users have to be educated and trained in using Wifi.

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