Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of…

Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (Answer in 150 words)

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चर्चा कीजिए कि किस प्रकार उभरती प्रौद्योगिकियां और वैश्वीकरण मनी लॉन्ड्रिंग में योगदान करते हैं। राष्ट्रीय और अंतर्राष्ट्रीय दोनों स्तरों पर मनी लॉन्ड्रिंग की समस्या से निपटने के लिए किए जाने वाले उपायों को विस्तार से समझाइए। (150 शब्दों में उत्तर दीजिए)

The question as printed in the 2021 General Studies paper

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Model answer

Drafted with AI by UPSC Answer Check against this question's marking rubric, to the 150-word length. UPSC does not publish answers for Mains — this is one way to score well, not an official key. How we build rubrics and answers.

(a) Role of emerging technologies: Cryptocurrencies, mixers and blockchain pseudonymity provide opacity, dark web markets enable illicit trade, and automated, AI-driven transaction layering across many accounts evades detection.

(b) Role of globalisation: Frictionless cross-border capital mobility, offshore tax havens, shell companies and Trade-Based Money Laundering (TBML) through over- and under-invoicing let illicit funds move quickly across jurisdictions, often via hawala channels.

(c) National measures: The Prevention of Money Laundering Act (PMLA), 2002 is enforced by the Enforcement Directorate (ED), with FIU-IND analysing suspicious transactions, KYC/AML norms from RBI and SEBI, and virtual digital asset service providers brought under PMLA reporting in 2023.

(d) International measures: The Financial Action Task Force (FATF) recommendations (India's 2024 mutual evaluation placed it in the 'regular follow-up' category), the UN conventions against illicit drug trafficking (Vienna), organised crime (UNTOC) and corruption (UNCAC), the Egmont Group for financial intelligence sharing, and Mutual Legal Assistance Treaties support cross-border tracing and recovery. Harmonised virtual-asset regulation is needed to close regulatory lags.

How this answer will be evaluated

Framework: Situation > Analysis > Measures: legal, institutional, developmental > Assessment

What earns full marks: Precise tech examples, clear national/intl measures, balanced close.

Evaluation rubric

Each sub-part is marked on its own, against the marks and word limit printed on the paper.

The answer Explain tech/globalization role in laundering and measures at national/international levels. 10 marks · 150 words

discuss— intro → 3-4 dimensions → example → balanced close
Must cover
- Emerging techs (crypto, digital) aiding laundering
- Globalization (cross-border flows) aiding laundering
- National measures (PMLA, FIU, KYC)
- International measures (FATF, mutual legal assistance)
Loses marks
- Vague generalities without specific mechanisms
- Ignoring the 'emerging technology' aspect
- Confusing national and international measures
Earns more
- Mention of specific tech (e.g., blockchain)
- Mention of specific body (e.g., Egmont Group)
- Balanced view on challenges
- Clear distinction between national and intl
Extra mark
- Reference to specific recent case
- Mention of specific treaty (e.g., UNTOC)

What "Discuss" is asking you to do

Lay the issue out from more than one side — how it arose, what is claimed for it, what is held against it, and where it now stands. UPSC attaches discuss to broad topics with several live dimensions, so coverage of the dimensions earns more than the strength of your opinion.

Structure that answers it

Set the issue up → the case as it is made → the case against → the dimension both sides leave out → where the balance now lies

Where marks are lost

Listing facts with no thread between them, or arguing one side throughout and calling it a discussion.

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Model answer

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