Money laundering is concealment of the existence, the illegal source, or illegal application of income to make it appear legitimate. Millions of rupees secreted out of the country as black money find their way back as white money through money laundering. It can have devastating consequences for the national economy, and fighting it should be a priority for all countries. As the government prepares to make money laundering a cognizable offense, it is imperative that the police and other law enforcement agencies understand the anatomy of the process. Money laundering has far-reaching consequences; it makes crime pay. It allows drug traffickers, smugglers, and other criminals to expand their operations. This drives up the cost of law enforcement and health care (e.g., treatment of drug addictions). It has the potential to undermine financial institutions because of the sheer magnitude of the sums involved. The potential for corruption increases with the vast amounts of illegally obtained money in circulation. References