NEW DELHI, March 3 -- INDIA has the third-highest trade-related illicit financial flow among over 135 countries with a whopping $83.5 billion escaping the government's tax net owing to trade-based money laundering tactics, according to a report released on Tuesday by US-based think tank Global Financial Integrity (GFI).
The GFI classifies as illicit flows funds which are illegally earned, transferred, and/or utilised across an international border.
The primary sources of illicit flows include grand corruption, commercial tax evasion, and transnational crime.
A drug cartel using trade-based money laundering techniques to use the illegal proceeds of narcotics sales to purchase used cars, which will be exported to the drug source country an...