When there started competition to earn money in the world, the money was categorized into two types. The money which was gained from industry, business and trade of skill is called transparent or valid money. The money gained from abnormal and illegal source is called black money. This classification of money did not exist in past because at that time legal and illegal activities of gaining money had not been specified. But in modern period, the money has been started to be classified. The publicly seen money was called valid money and unseen, hidden money was called black money. At present world, the black money is amassed. So, black money is an important subject of discussion.
The black money is converted into white money in various transactions in the market. The general public are unaware of such transaction of such money, no matter it is in large or small amount. Only those, who indulge in this type of money, know its transaction. This type of transaction is done clandestinely; and the black money is transformed into real money by various means.
The laundering of black money is similar in all countries. This type of money is used in buying and selling of contraband goods, services and materials. In most of the developing countries, this type of money is spent in political transformation. In some countries, black money is used to mobilize terrorist activities. Therefore, the black money play a significant role in the transformation of state power of developing countries. All the governing person, agencies have accepted this fact. But this bitter reality cannot be disclosed in front of the general public.
There are two characteristics of black money.
1. Black money is concealed.
2. It is active even if property is concealed.
Having these characteristics, the black property is providing benefit to the people in all countries. The face the ruling persons of the world may look bright but their character is corrupted behind the curtain. This reality is better known to the people in power. It is also a characteristic of black money.
The black money is hidden. But even if it is hidden, it performs a task. The inherent elements of black property are classified in the following three elements.
1. Terrorist activity,
2. Transaction of illicit goods,
3. Antisocial activity.
1. Terrorist activities:
Black money raises egoistic thought and activities in person and society. The terrorist activities have mainly two objectives.
a. Preservation of religious and racial identity,
b. To occupy the state power.
a. Preservation of religious and racial identity:
Terrorism causes disharmony among the people of divergent races and religions. Some parties are trapped in the cycle of terror. But the result is void. The terrorist activities conducted in the support of black money give rise to unstable situation. Therefore, the situation created by black money cannot stable. The black money only spreads terror and gives pain. It harms and destroys the society. Black money may also be used for purchasing arms and weapons
b. To occupy the state power:
Due to greed for power, terrorist activity is increased within and outside the country. The ambitious person and community adopt two types of activities and plan accordingly by utilizing the black money.
i. Democratic way,
ii. Non-democratic way.
i. Democratic way:
By democratic way, they go close to the people. They become candidates for election by spending a large amount of money and giving assurances to the people. It looks like democracy but it is not. It is in practice in all developing countries. This is entirely a nondemocratic practice but it is describe as a democracy. They can capture booth and use money and muscles to bag votes.
ii. Non-democratic way:
By non-democratic way, certain caste, religion and community misleads the people to seize state power and to create obstacle for the smooth running of state affair. Such type of unfavorable environment is created particularly in developing countries to weaken the state affair by means of black money. The black money is used to create conflict, terror and capture the state power. After seizing state power black money is gained. Due to this cyclic system, the transaction of black money does not seem to be under control. But it can be minimized and managed when it is identified.
2. Transaction of illicit goods:
Illicit goods are transacted by black money. The black money is illicit and it initiates to have transaction of other illicit goods. The black money has transaction of the following things.
b. Contraband goods
c. Arms and ammunition
The production and trading of drugs from one country to another is legally punishable. However, several types of drugs are produced in many countries of the world. These drugs are supplied to all the countries as per demand. In this way, production, transaction and trade of drugs are carried out by means of black money. In all countries of the world, the drugs is traded covertly with the illegal money. Even if drug is traded secretly, it is consumed openly.
b. Contraband goods:
Contraband goods are traded by means of black money. Some countries prohibit the transaction of some goods according to their policy. There is high demand of such things/goods in that country. So it is prohibited to export or import. The import and export of such contraband things are done with black money.
c. Arms and ammunition:
Destructive arms and ammunition mean such physical and chemical weapons, which destroy the human and animal existence. The developed countries are mostly engaged to produce such destructive weapons. While dealing with such arms and ammunition, they take maximum profit and arranging commission in the name of national security. In such transactions, black money is used.
3. Antisocial activity:
Any activities that harm the society are antisocial. Many antisocial activities are conducted to make black money elusive. The following activities can be taken as example of antisocial activities.
a. Gambling (Casino)
c. Unhealthy Recreation Center
a. Gambling (Casino):
Gambling is any game or activity that is played with a bet. For example, game of card, betting in casino, betting in exchange offer etc. are forms of gambling. All these gambling centers are run by persons of black money. Many countries provide gambling center and casino to collect some amount of tax as well as bribe. But black money is working in the background of such gambling center and casino.
Prostitution refers to trade of sex. But other inhuman activities are undertaken under prostitution. Prostitution is carried out to collect black money. It can flourish by the use of black money. The main source of initiation, promotion and production of prostitution is black money. Prostitution is accepted by almost all societies of the world. Unless black money is not controlled, prostitution won’t be removed from society.
c. Unhealthy Recreation Center:
An unhealthy recreation center refers to the place where unhealthy recreation in provided. This includes recreation center, clubs, and other places that attract the youth. In such type of place, human body is sold with money. Unhealthy activities like flesh trade are undertaken in the name of therapy and treatment. Eventually the society gets harmed and these centers are benefited.
The above discussion can be represented in a figure:-
Elements created from black property
The above figure proves that the antisocial elements are created by black money. Even if all the elements are not related to each other, they develop from the same source. It indicates that controlling measures can be made easily and effectively. It is also proved that removal of black money is removal of all antisocial elements.
Controlling measures should clamp down the sources of black money. In other words, all the antisocial activities created by black money should completely be hooked by the controlling measures. For this, the following three compulsory elements are required.
a. Provision of strict law,
b. Civil awareness,
c. Will power in political leaders.
a. Provision of strict law:
It is necessary to have provision of strict law which bring the person and community who acquire money illegally within the parameter of punishment. The condition to obey the law should be created. The investigation act should punish those who acquire illegal money and try to legalize it. The money acquired from laundering process should be nationalized. The criminals should be sentenced for life. This is a better method to control the black money.
b. Civil awareness:
Civil awareness is a condition where most of the citizens of the country are conscious about their rights and duties. To create this condition, they should be well educated and their basic needs should be fulfilled. In developed countries, such types of people belong to 80 percent of total population but in developing countries the proportion of well educated, competent people is only 20 percent. Thus, it’s difficult to promote civil awareness in developing countries. Civil awareness can be maintained when maximum numbers of people are educated. So the main responsibility of a state is to develop aware citizens.
c. Will power in political leaders:
The transaction of black money cannot be controlled unless the political leadership manifests a strong will power. In developing countries, the political leaders tend to capture power with the strength of the black money. So, it is very difficult to control it. However it is necessary to have measures to control it. That medium is the waxing of leader’s willpower to control the way of collecting black money.
Let us see the controlling measures of black money in figure:
The above triangle has A, B and C dominated by black money. The strict laws that are implementable along with public awareness and the political leader’s willpower corrodes the corruptive activities. If A, B and C are active, they dissuade people to make black money.
But to control the black money completely, provision of strict law, development of civil awareness and political will power must be ensured.
It means even if the black money can be controlled, the developed countries are not successful to do so. It is because in those countries political forces are victims of black money. Those who are involved in black money themselves have influenced political area. Even if the law has been made, it has difficult to implement it to control the transaction. On the other hand, in developing countries, law to control the black money is not yet formulated. Even if formulated in some countries, it is almost in dormant state. Therefore it is clear that law alone cannot control the transaction of black money.
If all these three aspects are effectively executed, the transaction of illicit property can be controlled. If one among three becomes weak, the aim cannot be attained. Most importantly, the political leadership must have strong will power to control the black money.