Money laundering has dropped 80%:
According to the Intelligence Bureau (IB) money laundering has dropped 80% in turnover within 3 days after decision of PM Narendra Modi to demolish Rs500 and Rs1000 notes. There are no transactions observed between the Kashmir Valley and Gulf countries within 3 days. IB reports says PM Modi’s DeMonetisation policy to bring out black money effect is showing.
The hawala operators went underground:
Hawala operators of Delhi, Jaipur, Ahmadabad and Mumbai are underground after PM Modi taken decision on to demolish Rs500 and Rs1000 notes. IB said in its report, money-laundering has come to a halt after hawala operators went underground. IB’s report is submitted to the Home Ministry. IB ministry and the National Investigative Agency (NIA) is on task to monitor the impact of the currency closure.
As per the IB report, Hawala operators has stop doing work in the Kashmir Valley and they are afraid to cite due to the action of the security forces. After PM Modi’s decision Black money operators are nervous, they are not willing to take that risk. Even similar facts have come to light in Income Tax Department survey.
Terror funding through Hawala:
Terrorism and the drug trade get funding via Hawala money. Hawala business does not quoted or use any type of the bills or papers. This business totally based on word of mouth. In this business the cash has been delivered to a place to any place other without the use of banking system. source