THIS POST IS CONTINUED FROM PART 10, BELOW---
I WANTED TO TERMINATE THIS SERIES AT PART 4--
BUT, IF CAPT AJIT VADAKAYIL DOES NOT WRITE THIS , WHO CAN DO IT ?
EVEN TODAY ALL ARE SCRATCHING THEIR COLLECTIVE HEADS –
HOW CAN CALCUTTA BE THE GREATEST SHELL COMPANY ADDA IN INDIA ?
CHAKKAR KYA KAI , BHAIYYA ?
THE CALCUTTA MARWARI OPIUM DRUG RUNNING AGENTS WERE USED BY JEW ROTHSCHILD AS HAWALA OPERATORS .
A HUNDI was a financial instrument that developed in Rothschild’s raj for use in trade and credit transactions.
Hundi, an indigenous bill of exchange, to move money and goods across the length and breadth of undivided India.
Hundis are used as a form of remittance instrument to transfer money from place to place, as a form of credit instrument or IOU to borrow money and as a bill of exchange in trade transactions.
The Reserve Bank of India describes the Hundi as "an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order." The operation of the Hundi system has many parallels with the Hawala system
The hundi made it possible for a OPIUM dealer from Malwa to sell in Kolkata without taking cash and risk being waylaid during transit. He could, instead, have the buyer draw a hundi of equivalent amount in his favour and present it to the latter’s agent or drawee at Malwa, who would make the payment in cash.
Alternatively, the seller could transfer the hundi through endorsement to a lender, who would extend the loan at a discount to its value. The same hundi was, then, encashed at par by the lender.
The hundi, in other words, served both as a cashless remittance facility enabling long-distance inland trade and also a source of mobile credit, by virtue of it being freely transferable through successive endorsements before being finally presented to the drawee.
It was the lubricant that greased the wheels of commerce, by connecting some 1,700 nationwide produce mandis and 12 nodal money markets handling the bulk of discounting of these bills
130 years ago a dozen Opium drug running agents of Sassoon introduced FATKA or futures trading in Opium that registered meteoric growth at the baras (informal exchanges) of Kolkata’s Burrabazar market.
Today they substitute the word JUTE for OPIUM. You can hardly make a fortune with bullshit jute.
Bongs remember Keshram Poddar who used to live in a modest apartment in Kolkata's Burrabazar neighbourhood. The founder of the Tarachand Ghanshyamdas firm was Bhagwati Poddar. His son was Tarachandand his great grandson was Ghanshyamdas Poddar.
Their Marwari Parta system of daily cash-based accounting, enabled them to keep close tabs on business trends which even today's sophisticated ERP systems may not be able to match.
Almost 93% of the channel in Kolkata comprises Marwari and Jain crypto Jew businessmen.
THIS IS THE REASON WHY EVEN TODAY MORE THAN 93% OF SHELL COMPANIES ARE EMBEDDED IN CALCUTTA WITH AN ARMY OF IMPOVERISHED BONG ACCOUNTANTS AND LAWYERS ( MOST FAKE ) SERVICING THEM
TO CRACK THE CALCUTTA SHELL COMPANY RIDDLE, MODI MUST ASK FOR RETIRED BONG ACCOUNTANT LAWYER WHISTLE BLOWERS
THEY HAVE NO LOVE LOST FOR THEIR PAST MASTERS WHO TREATED THEM LIKE SHIT AND GAVE THEM A PITTANCE AS WAGES.
THEY HAVE AN AXE TO GRIND !
The legendary stinginess of a Marwari crypto Jew is a DNA thingy.
The "Purta System"(Costing) is invented by Marwaris. This system helps them to ensure profit. The whole of marwari community main source of income is from usury (interest) they give money on huge interest to small time borrowers.
130 years ago the Marwari Opium drug running agents of Sassoon an Rothschild introduced fatka or futures trading in Opium ( euphemism --raw jute) that registered meteoric growth at the Baras (informal exchanges) of Kolkata's Burrabazar market
These contracts – rarely resulting in delivery of the underlying goods, since most purchases and sales got cancelled against each other before maturity date
SHELL COMPANY LAYERING WAS USED BY CRAFTY INDIANS TO CHEAT ROTHSCHILD
ROTHSCHILD COULD BE CHEATED BUT NOT IN LARGE AMOUNTS—AND HE ROYALLY SCREWED WHOEVER DID THIS..
BOTH TAGORE AND RAM MOHAN ROY WERE PIR ALI MULSIMS.
Apart from the hundi and fatka, the Marwaris also pioneered trading in indigenous options (satta), giving the buyers the right, but with no obligation, to buy or sell a certain commodity at a specified future date and price. These could be teji (call) or mandi (put), with the premium paid by the buyer of the option known as nazrana
OPIUM NOT ONLY WENT TO CHINA—IT WENT TO BOSTON TOO –SUSTAINING THE RULING CLASS OF USA TODAY—THE BOSTON BRAHMINS
TODAY THE TERM “TEA PARTY “ HAS BEEN HIJACKED .
POOR PEA BRAINED HILLY BILLY YANKS -- TREATED LIKE MUSHROOMS BY THE JEWS - ALWAYS IN THE DARK , FED WITH BULLSHIT !
5 days ago a major fire broke out in the Amartalla lane of Burra Bazaar of Kolkata the Opium financial hub of Sassoon / Rothschild—having hundreds of shell companies. Fires break out often—most deliberate . Burnt shell companies tell no tales
The super rich Opium agents of Rothschild Seths , Mullicks and Basacks, flourished here. Today very few bongs know of Janardhan Seth, Shobharam Basack , Mukundaram Seth etc.
Shell companies may also be referred to as mailbox companies, front companies, personal investment companies or international business companies.
MCA21, the portal on which all corporate filings reside, is a GOOD starting point for tracking and mining data for companies sharing characteristics like common directors, same registered address, little or no business, occasional large transaction, etc, to create early warnings against shell companies.
MCA21 Mission Mode Project (MCA21) is the e-governance initiative from the Ministry of Corporate Affairs, Government of India. It is one of the 27 Mision Mode Projects of the National e-Governance Plan.
MCA stands for ministry of corporate affairs. MCA conceptualized an e-governance plan, one that would reflect India’s goals for the 21st century, and decided to create a website that would automate the process of registering a company, make things simple, uploading documents, downloading documents, pay and view.
Rather than compelling the business community to physically travel to MCA offices, MCA services are available at the place of their choice, be it their homes or offices.
Once money laundering and tax evasion by shell companies is detected, action must be swift and act as a severe deterrent to others. Entities with no commercial substance for, say 3 years, should be weeded out or frozen immediately.
Promoters and gatekeepers like bankers, accountants, auditors, valuers, etc, who facilitate shell operations, should be punished under the tough Prevention of Money Laundering Act and under the stringent provisos of the Companies Act 2013.
Long jail term must be compulsory. Fines serve as zero deterrent to these rich criminals
Investments in India can broadly be classified into two categories—Foreign direct investment (FDI) and investment made by foreign institutional investors (FIIs). In both of these cases, foreign money enters the Indian markets and fuels growth of economy, industries and capital market.
Any entity investing in participatory notes is not required to register with SEBI, whereas all FIIs have to compulsorily get registered. It enables large hedge funds to carry out their operations without disclosing their identity.
Participatory notes are instruments used for making investments in the stock markets. However, they are not used within the country. They are used outside India for making investments in shares listed in the Indian stock market. That is why they are also called offshore derivative instruments.
Indian regulators still allow participatory notes though they have no way to know who owns the underlying securities. A lot of unaccounted money made its way to the country through the participatory note route.
PNs are becoming a favourite with a host of Indian money launderers who use them to first take funds out of country through hawala and then get it back using PNs. Some of the entities route their investment through participatory notes to take advantage of the tax laws of certain preferred countries.
Humongous amount of money which comes into the market via PNs is unaccounted wealth camouflaged under the guise of FII investment
SEBI must ensure that PNs are not used as conduits for black money or terrorist funding.
As per SEBI regulations, PNs can be issued to only those entities that are regulated by an appropriate regulator in the countries of their incorporation and are subject to compliance of “Know Your Client” norms.
FIIs are also required to declare that these PNs have not been issued to Indian residents or non-resident Indians.
Obtaining information on “beneficial ownership” of P notes is of crucial importance to prevent their misuse.
P notes are transferable in nature. This makes tracing the “true beneficial owner” of P notes even more difficult since layering of transactions can be made so complex so as to make it impossible to track the “true beneficial owner”.
SEBI needs to examine if this provision of allowing transferring of P notes is in any way beneficial for easing foreign investment. Any investor wanting to invest through P notes can always invest afresh through an Foreign Portfolio Investor (FPI) instead of buying from a P note holder.
The primary method of generation of black money remains suppression of receipts and inflation of expenditure. The suppression could be over a range of businesses and industrial activities which are covered by what may be called ‘primary’ enactments to regulate sale receipts, actual production, charging amount in excess of statutory amounts, etc.
However, as manipulation of income is not always possible by suppression of receipts, tax-payers may try to inflate expenses by obtaining bogus or inflated invoices from ‘bill masters’, who make bogus vouchers and charge nominal commission.
As these persons are of very modest means, upon investigation, they tend to leave the business and migrate from the city where they operate. This is one of the reasons for a proportion of income tax arrears attributed to ‘assessee not traceable’.
Similarly, there are other categories of small ‘entry operators’, who provide accommodation entries by accepting cash in lieu of cheque/demand draft given as loans/advances/share capital, etc and thereby launder large sums of money at miniscule commissions.
Due to frequent migration, such entry operators escape prosecution under the Income Tax Act. The appellate tax bodies also tend to tax their income at nominal rates. There is no effective deterrence, except for taxing commission on such bogus receipts and tax in the hands of beneficiaries.
Providing fake bills and entries need to be dealt with strongly and as criminal offence under the tax laws
Use of shell companies to provide accommodation entries to launder black money has been observed in a number of high profile cases
Serious Frauds investigation office (SFIO) under Ministry of Company needs to actively and regularly mine the MCA 21 database for certain red flag indicators.
These red flag indicators could be based on common DIN numbers in multiple companies, companies with same address, same contact numbers, use of only mobile numbers, sudden and unexpected change in turnover declared in returns etc.
Whoever makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document in the transaction of any business relating to the customs knowing or having reason to believe that such declaration, statement or document is false in any material particular, should be imprisoned for atleast ten years . Fines are not a deterrence to ultra rich criminals.
Private medical colleges now take donations of more than one crore . . That cash normally would be unaccounted money. For controlling such transactions, there should be specific provision that donation shall not be accepted by cash and whosoever accept it, would be punishable under the Prevention of Corruption Act, as if he is “deemed to be a public servant”.
In Kerala for example large amounts of money goes to Christiana and Islamic institutions.
When large amount is donated, it should be only accounted money and that payment should be by account–payee cheque to the charity or the institution. Even if gift of jewelry is made to the charity or institution, it should be by mentioning donor’s name , AADHAR card number and his PAN Number.
Betting in sports is illegal in the country, and hence, creates a wide scope for black money generation. In India, only betting on horse racing, lotteries conducted by state governments and casinos in certain states are permissible
Cricket betting is widespread in the country. As there are no legitimate means on placing bets, hence, people resort to illegal channels such as bookies/bookmaker that facilitate gambling by setting odds, accepting and placing bets and paying out winnings on behalf of other people.
Illegal betting leads to malpractices such as match–fixing or spot–fixing wherein the bookie fixes the outcome of the event in his favor by having an illegal agreement with the sportsperson. This leads to bettors being cheated at the hands of bookmakers, thereby enabling them to earn huge sums of black money.
The Indian Premier League (IPL) has been marred by betting and spot fixing scandals and involvement of huge amount of black money. As per news reports, some of the players are paid more than the payment slabs prescribed by the Board of Control for Cricket in India (BCCI), with certain amount paid through legitimate means and some in black.
IPL team owners BIG FISH laundered their money they got by betting.
To throw a smoke screen they got SMALL FISH like Sreeshant arrested to divert public opinion.
To screw Sreeshant BIG FISH IPL owners splurged money in bribes
EVERYBODY KNOWS WHY LALIT MODI SHIFTED IPL TO SOUTH AFRICA..
WE ARE NOT CUNTS.
Nobody has shown much interest in the movement of black money creation through the stock exchange platform and Participatory notes (P-notes). We know why !
SEBI must have monitor and study unusual rise of stock prices of companies and the use of stock exchange platform to evade taxes through the Long Term Capital Gains (LTCG) provision.
SEBI must monitor the beneficial owner of P-notes. Steps must taken to scrutinize cases of tax evasion done through the stock exchange platform. SEBI must share s information with the Finance Intelligence Unit (FIU).
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, know 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.
Companies with poor financial fundaments in terms of past income or turnover raises huge capital by allotment of preferential shares to various entities. This is followed by a sharp rise in share price once the preferential allotment is done, through circular trading.
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.
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.
Suspicious Activity Report (SAR)-- Any cash transaction where the customer seems to be trying to avoid reporting requirements . A SAR must also be filed if the customer's actions indicate that s/he is laundering money or otherwise violating federal criminal law. The customer must not know that a SAR is being filed.
Lawyers and tax advisors are the ones who come up with these schemes to hide money and avoid paying taxes. They too must get long term jail if caught
BITCOIN cryptocurrencies are used for terrorist funding and making criminal activity on the Internet more accessible.
Transparency is a vital aspect of bringing money laundering and tax evasion to a halt. Criminals usel loopholes to take advantage. All are still in dense fof as to how money laundering is done trough sales of the virtual currency BITCOIN
Criminals who work in the shadows of the dark web are often paid in virtual currency, which is an attractive way to launder funds. The Indian Govt still has NO fuckin’ idea about DARK WEB
Money launderers historically have far outstripped the efforts of regulators, law-enforcement officials and anti-money laundering (AML) professionals who try to stop them from circumventing the law.
Fraud examiners should seriously consider what the future of money laundering involving virtual currencies might look like so they can close the gap between the good guys and the bad guys.
Bitcoin is a cryptocurrency and a payment system invented by an unidentified programmer under the name of Satoshi Nakamoto. Bitcoin was released as open-source software in 2009.
Since the system works without a central repository or single administrator, bitcoin is a decentralized virtual currency. Bitcoins can be exchanged for other currencies, products, and services.
The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and the media
Darkwallet is a bitcoin wallet designed to make bitcoin use completely private. Dark Wallet is a digital wallet that enables data anonymization by obfuscating bitcoin transactions carried out in the online market space.
The advent and increase in the use of bitcoin has sent regulators scurrying to crack down on the subsequent increase in money laundering and black market activities funded by the digital currency.
Of note was the 2013 FBI shutdown of Silk Road, an online marketplace popular for its trade in illegal drugs using bitcoin.
The problem with bitcoin is its high level of transparency visible in transactions conducted online. Every transaction made is usually recorded in a digital public ledger known as a blockchain.
As a result, balances and full transaction history can be traced to the bitcoin addresses of users. Users in this case, especially dark web or underground users, who want to remain anonymous, opt for platforms like Dark Wallet.
Dark Wallet wallet comes equipped with three pockets – spending, business, and savings – and with no limit to the number of pockets you can create. Each pocket has its own stealth address from which bitcoin transactions can be made.
Dark Wallet offers anonymity and privacy to its users in two ways: stealth addresses and coin mixing.
Dark Wallet will open a major door to many illegal and heinous activities including terrorism funding, money laundering, drug trafficking, and child pornography.
Criminal businesses wary of unwelcome government surveillance and data hacks believe Dark Wallet to be a tool for tackling growing issues surrounding data privacy and anonymity.
Dark Wallet: a bitcoin application designed to protect its users’ identities far more strongly than the partial privacy protections bitcoin offers in its current form. By encrypting and mixing together its users’ payments, Dark Wallet seeks to enable practically untraceable flows of money online that add new fuel to the Web’s burgeoning black markets.
Dark Wallet is just money laundering software. Dark Wallet might enable heinous crimes like child pornography, murder-for-hire, and terrorism.
To protect the identity of the user receiving coins instead of spending them, Dark Wallet offers a different technique known as a stealth address. Any user can ask Dark Wallet to generate a stealth address along with a secret key and then publish the stealth address online as his or her bitcoin receiving address.
When another Dark Wallet user sends payment to that address, Dark Wallet is programmed to instead send the coins to another address that represents a random encryption of the stealth address.
The recipient’s Dark Wallet client then scans the blockchain for any address it can decrypt with the user’s secret key, finds the stealth payment, and claims it for the user.
The important thing is that when someone pastes your stealth address into [blockchain search tool] blockchain.info, absolutely nothing shows up. The payment is entirely hidden.
One of the leading puzzles related to cross border flow of investment is the phenomenon of ‘Round tripping FDI’. Here, money from a country (eg. India) flows to a foreign country (Mauritius) and comes back as foreign direct investment to India.
Round tripping of FDI refers to the capital belonging to a country, which leaves the country and then is reinvested in the form of FDI.
There are a number of observed factors that promotes round tripping. Tax concessions allowed in the foreign country encourages individuals to park money there. The money will be invested in a company formed there (Mauritius) and later this company will be taking back the money as foreign direct investment into the home country (India).
Under the income tax law, a Mauritius based company that made investment in India has to pay its tax in Mauritius. An advantage for the Indian businessman parking his money in the Mauritius formed company is that tax there is significantly low.
The term ‘round-tripping’ is self-explanatory. It denotes a trip where a person or thing returns to the place from where the journey began. In the context of black money, it leaves the country through various channels such as inflated invoices, payments to shell companies overseas, the hawala route and so on.
After cooling its heels overseas for a while, this money returns in a freshly laundered form; thus completing a round-trip.
How does the money return to India? It could be invested in offshore funds that in turn invest in Indian assets. The Global Depository Receipts (GDR) and Participatory Notes (P-Notes) are some of the other routes that have been used in the past.
About 27% of inflows into India in the past can be attributed to round tripping, a strategy for money laundering and tax evasion. The RICH experts are now sitting in the opposition in parliament . Almost all these rich politicians are from families who were paupers in 1947
Participatory notes are the financial instruments through which individual foreign investors or hedge funds who do not want to disclose their identity can invest in Indian markets, otherwise registration with Sebi is a must to get an exposure into Indian equities.
Registered foreign institutional investors (FIIs), foreign banks and brokerages based in India issue P-notes to foreign investors and invest in Indian stocks on their behalf. Any dividends or capital gains collected from the underlying securities go back to the investors.
While a common investor has to fill up several KYC (know your customer) forms, provide PAN number and proof of address, etc, a P-Note investor can invest anonymously. This makes it a 'legal' way to route unaccounted wealth in Indian equities, thus feeding the black money monster. Corrupt Indian politicians and arm dealers who have received kickbacks misuse the P-Note route to fulfil illegal objectives.
CORRUPT STOOGES OF A WAITRESS, HAVE " ROUND TRIPPED" THOUSANDS OF CRORES OF ILL GOTTEN MONEY FROM PAST KICK BACKS.
TO DIMWIT LITTLE BO BEEPS -- –
A LOT OF BLACKMONEY HAS COME BACK ..
ROUND TRIP KEE JAI !
TEE HEEEEEEEE !
THE GOVT MUST REWARD WHISTLE BLOWERS WITH A PERCENTAGE .
ONLY THIS CAN NAB CRIMINALS AND CORRUPT POLITICIANS WHO NOW SIT IN THE OPPOSITION -- WHO ARE SO DANG COCKY .
WE SHALL SEE WHO WILL HAVE THE LAST LAUGH
As you vet an entity, ask these questions:--
No online presence whatsoever? (Huge red flag.)
Is the amount of online information available consistent with the goods/services that the entity says that it's engaged in?
Is there too much free online posting of information on the company?
Signs of billing schemes include:--
Invoices for unspecified consulting or other poorly defined services.
Vendors that have only a post-office-box address.
Vendors with company names consisting only of initials. Many such companies are legitimate, but crooks commonly use this naming convention.
Rapidly increasing purchases from one vendor.
Vendor billings more than once a month.
Vendor addresses that match employee addresses.
Large billings broken into multiple smaller invoices, each of which is for an amount that will not attract attention.
Internal control deficiencies such as allowing a person who processes payments to approve new vendors.
False Entity Structure :-The false entity is created by an internal employee or external party for the sole purpose of misappropriating company assets.
Vendors are either legally created or exist in name only or;
The perpetrator assumes the identity of a real vendor. The real vendor maybe a dormant vendor already on the master file or a real vendor which is not complicit in the fraud scheme. The takeover may occur on a permanent or temporary basis.
The process of detecting shell corporations is a two-step process.
The first step is to conduct fraud data analytics interrogation routines, which are designed to locate vendors that are consistent with the data profile of a shell corporation or transactions that are indicative of a shell corporation.
The second step is to perform audit procedures which are designed to pierce the concealment strategy or reveal the truth.
The data mining strategy is a two-fold process. The first step is to build the data profile for the fraud scenario. The second step is to understand how the sophistication of the concealment strategy impacts the fraud data analytics.
Fraud Data Analytics Strategy:-- There is a direct correlation between the degree of sophistication of the concealment strategy and fraud data analytics strategy.
On a simple basis, by matching the vendor addresses to the employee address we can detect a shell corporation. This is low sophistication.
When the employee does not use any aspect of his home address, the direct match will not detect the shell corporation.
The following describes how we calibrate our fraud data analytics at each level of concealment.
Low sophistication of concealment:---
Direct matches of the fraudulent entity structure to another entity structure
Entity identifying information links to the perpetrators known identifying information, for example, a specific street address
Fraudulent activity is linked to one or a few entity structures
Overall sample size is determined by the number of transactions that match the data profile. The sample size can range from zero to a large number
Medium sophistication of concealment:--
Direct matching routines are less effective
Sample selection focuses on internal control avoidance
Examples of internal control avoidance include split transactions or off-period transactions
Entity identifying information relates to some aspect of the perpetrators known identifying information, for example, a zip code location versus a physical street address
Sample size tends to be judgmentally determined versus the use of all transactions meeting the matching criteria
High sophistication of concealment:--
Direct matches are not effective because entity identifying information has no relationship with the perpetrators known identifying information
Fraudulent activity may be linked to multiple entities or smaller dollar transactions
Analysis of transactional data for patterns and frequency that correlate to a fraud scenario
Sample selection relies on data interpretation skills
Filtering techniques like drill-down analysis are effective in reducing the number of transactions fitting the data profile, thus, allowing data interpretation to be more effective
Sample size tends to be judgmentally determined versus the use of a matching criterion
THIS POST IS NOW CONTINUED TO PART 12 BELOW-
CAPT AJIT VADAKAYIL