- Over $1 trillion is being laundered every year by drug dealers, arms traffickers and other criminals in India, according to a report by audit and consulting firm KPMG.
- Funds transferred through the hawala market are between 30 to 40 percent of the formal market
Economic Crime continues to be pervasive threat for Indian Companies, with 35 % of the organizations reporting having experienced fraud in the past two years according to PwC Global Economic Crime Survey 2007. Many incidents of fraud are going unreported. According to PricewaterhouseCoopers’ India findings:
* Corruption and Bribery continues to be the most common type of fraud reported by 20 % of the respondents;
* The average direct financial loss to companies was INR 60 Million (US $ 1.5 million) during the two year period. In addition the average cost to manage economic crime in India was INR 40 Million (US $ 1 Million) which is close to double that of the global and Asia Pacific average;
* In 36% of cases companies took no action against the perpetrators of fraud;
* In 50% of the cases frauds were detected by chance. [PWC Report 2007]