Global Financial Integrity (GFI) has reported that India claims the third spot out of 135 countries with highest trade-related black money. Grand corruption, commercial tax evasion, and transnational crime are the primary origins of these illicit financial flows as a drug cartel was discovered to be using trade-based money laundering techniques to buy exotic cars and export them to the drug source country for sale. The first five countries of all the 135 developing countries rated in the trade-related illicit financial flows between 2008-2017 are China, Mexico, India, Russia and Poland. GFI’s senior economist Rick Rowden said one of the big problems leading to huge amounts of trade that are not being properly taxed is the practice of misinvoicing and this makes nations lose billions of dollars to uncollected trade taxes.
India has third highest trade-related money laundering
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