Combating Money Laundering in the Digital Age: Legal Frameworks and Technological Interventions

Combating Money Laundering in the Digital Age: Legal Frameworks and Technological Interventions

Sanganna Motgi
Rohit Sangan
Sachidanand N Hede

Department of Information Science
RV College of Engineering
Bengaluru, Karnataka, India
sangannamotgi.is22@rvce.edu.in
rohitjsangan.is22@rvce.edu.in
sachinanandnh.is22@rvce.edu.in

Sandesh Dattatri

Department of Information Science

RV College of Engineering Bengaluru, Karnataka, India

sandeshdattatr.is22@rvce.edu.in

Dr Chitra B T

Department of Industrial Engineering

RV College of Engineering Bengaluru, Karnataka, India

chitrabt@rvce.edu.in

Abstract— This paper examines the complicated issue of money laundering in the rapidly changing digital world. It closely reviews current legal frameworks and how technology plays an increasing role in tackling this problem. The paper looks into the clever tactics used by criminals, such as cryptocurrencies and the dark web. It also evaluates the effectiveness of countermeasures like AI- based detection systems, blockchain analytics, and forensic accounting tools. The research highlights major challenges in enforcement, including jurisdictional issues and the fast pace of technological change that outstrips the slower development of policies. Additionally, it explores the new ecosystem of Fintech and RegTech startups that focus on Anti-Money Laundering (AML) solutions. The paper analyzes recent case studies from India and worldwide to demonstrate the real-world impacts of these developments. Finally, it suggests ways to improve policies, promote innovation through regulatory sandboxes, and encourage international cooperation. This offers a forward-looking perspective on how to address financial crime in the digital age.

Index Terms—Money Laundering, Digital Age, Legal Frameworks, Technological Interventions, AML, KYC,

Blockchain, AI, Financial Crime.