Money Loundry 69

Money Laundering watchdog to track realty deals transactions under the anti-moneylaundering

2011-04-20T18:59:00.000-07:00

All real estate transactions will have to be reported to the country’s anti- moneylaundering agency once the government amends a key law that seeks to curb black-money transactions.
The government plans to amend the Prevention of Money Laundering Act , which will require property registrars to file data of transactions recorded by them with the Financial Intelligence Unit, or FIU, a finance ministry official said. FIU is the national agency responsible for processing and disseminating information on suspect financial transactions to enforcement agencies across the world. “The scope of the (Prevention of Money Laundering) Act is being widened,” the official said.

The government may also bring several other transactions under the anti-moneylaundering act, according to the official. These may include futures and options trade in commodities.
Real estate transactions in excess of 30 lakh are already reported to the Income-Tax Department, but the government wants to tighten scrutiny of the sector, often accused of rampant use of black money and moneylaundering. Although there is no authentic data available, the cash component in property transactions is widely believed to be as high as 50%. This helps tax evaders park untaxed money easily in property deals.
“The realty sector is known to be vulnerable to laundering, so this is a move in the right direction,” said anti-moneylaundering expert Navita Srikant. “But suspicious transactions require real-time monitoring and coordination between supervising authorities. Automation of transactions , training of officers and knowledge of red flags to raise suspicious transaction is the key.” Bringing real estate transactions under the anti-moneylaundering law will ensure harsher punishment for tax evaders.

At present, many states rely on circle rates to check the use of black money in land deals. A circle rate is the minimum rate fixed by the government for valuation of a property. But it is not considered foolproof as the rate leaves scope for intra-region variations .
The amended law will also help track transactions involving funds from tax havens or territories named as “risky” by the financial action task force, or FATF. FATF is an inter-governmental body set up by the Group of Seven (G-7 ) nations for creating global policies and framework to combat moneylaundering and financing of terrorism. India became its 34th member last June, although it did not meet all the requirements.
The country is undergoing an onsite inspection by the agency on the state of compliance, the finance ministry official said, but he did not link the two. “India’s anti-money laundering law is being amended not just to meet international commitments but to go beyond ,” he said.
Incidentally, a parliamentary standing committee that examined the amendments to the antimoneylaundering law had asked the government to bring lawyers, notaries, real estate agents and gold dealers within its ambit.
Even the FATF had asked India to extend the act to a range of designated nonfinancial professionals and businesses, such as lawyers and real estate agents, and ensure they were effectively regulated and supervised. Many of these intermediaries will be indirectly covered by the act once property transactions begin to be reported.

Doing laundry the "green" way

2011-04-19T19:32:00.001-07:00

Tomorrow is Saturday, which is Laundry Day at the Jennebach home. Since I'm the stay-at-home dad, I get to do a bunch of chores, laundry being just one of them. When we bought appliances for our house three years ago, we decided to get a front-loader washer and dryer. We've been very happy with our purchase - it has great capacity, gets clothes clean and seems to be running very efficiently, as far as I can tell.
There are a few things to keep in mind when doing laundry, be it in a front-loader or "regular" washer - these tips can help you save water, energy and detergent, which will translate to money in your pocket:

Find the right temperature: most clothes don't need to be washed in hot or even warm water, and none of them need to be rinsed in warm water at all. The warmer your water, the more it will cost per load. In our house, we pretty much wash towels and anything seriously soiled in hot/cold. Everything else gets washed in cold/cold.
Which brings us to the second point - detergent. Make sure to use the right detergent, and the right amount. Using more detergent will not make your clothes cleaner, but will be money wasted.
Next, load the machine to capacity, but not beyond. A full load utilizes the washer best - overloading it could damage it.

When it comes to drying, there are a few easy things you can do to save time, energy and money:

Shake out each item before tossing it in the dryer (I'm skipping the clothesline because it's most likely impractical for 90% of us Minnesotans, but if you use one, good for you!). It will get some wrinkles out and "air" the piece at the same time, so the dryer will be able to keep it fluffy and dry it faster.
Take your laundry out of the dryer immediately after it's finished drying. It will fold easier and have fewer wrinkles.
Run your dryer loads as close together as possible. That way, the dryer stays warm from load to load and saves energy to "re-heat".

Do you have any favorite tricks you use when doing laundry? Any preferred detergent? Let me know - I'm always up for suggestions.

"The process of taking the proceeds of criminal activity and making them appear legal"

2011-04-19T00:20:00.000-07:00

Laundering allows criminals to transform illegally obtained gain into seemingly legitimate funds. It is a worldwide problem, with approximately $300 billion going through the process annually in the United States. The sale of illegal narcotics accounts for much of this money. Those who commit the underlying criminal activity may attempt to launder the money themselves, but increasingly a new class of criminals provides laundering services to Organized Crime. This new class consists of lawyers, bankers, and accountants.
Criminals want their illegal funds laundered because they can then move their money through society freely, without fear that the funds will be traced to their criminal deeds. In addition, laundering prevents the funds from being confiscated by the police.
Money laundering usually consists of three steps: placement, layering, and integration. Placement is the depositing of funds in financial institutions or the conversion of cash into negotiable instruments. Placement is the most difficult step. The easiest way to begin laundering large amounts of cash is to deposit them into a financial institution. However, under the federal Bank Secrecy Act of 1970 (BSA), 31 U.S.C.A. §§ 5311 et seq., financial institutions are required to report deposits of more than $10,000 in cash made by an individual in a single day. To disguise criminal activity, launderers route cash through a "front" operation; that is, a business such as a check-cashing service or a jewelry store. Another option is to convert the cash into negotiable instruments, such as cashier's checks, money orders, or traveler's checks.
Layering involves the wire transfer of funds through a series of accounts in an attempt to hide the funds' true origins. This often means transferring funds to countries outside the United States that have strict bank-secrecy laws. Such countries include the Cayman Islands, the Bahamas, and Panama. Once deposited in a foreign bank, the funds can be moved through accounts of "shell" corporations, which exist solely for laundering purposes. The high daily volume of wire transfers makes it difficult for law enforcement agencies to trace these transactions.
Integration involves the movement of layered funds, which are no longer traceable to their criminal origin, into the financial world, where they are mixed with funds of legitimate origin.
Many banks did not comply with the BSA during the 1970s and early 1980s. Following several federal investigations where it was revealed that banks had failed to report billions of dollars of cash transactions, reporting requirements were strengthened. Congress also enacted the Money Laundering Control Act of 1986 (MLCA), 18 U.S.C.A. §§ 1956 et seq. This statute criminalizes money laundering itself. It centers its attention on the criminals and conspirators who seek to launder the proceeds of illegal activity, including merchants, bankers, and members of the professions who assist criminals with money laundering. Another provision of the MLCA authorizes the government to confiscate all property that is traceable to violations of laws against money laundering.
After the September 11th Attacks on the United States in 2001, the federal government began to investigate more closely the connection between Terrorism and the sale of illegal drugs. According to President george w. bush, "[T]errorists use drug profits to fund their cells to commit acts of murder. If you quit drugs, you join the fight against terror in America." Terrorists have laundered money through such foreign countries as Colombia and Afghanistan. In September 2002, the Drug Enforcement Administration opened a museum exhibit in New York entitled "Target America: Traffickers, Terrorists and You" in an effort to educate the American public about the connection between drug sales and terrorism.

Money Smart Week Free financial planning help during

2011-04-17T22:37:00.000-07:00

Several Portland nonprofits and organizations are offering free financial planning help April 2-9 week as part of "Money Smart Week," promoted in part by the Federal Reserve Bank of Chicago and other groups.

On Saturday in Gresham, "Smart Saving: Stretching Your Retirement Dollars" will feature a member of the Oregon Society of CPAs discussing tax planning, retirement plan distributions and reverse mortgages from 2 to 3 p.m. at the Gresham Library, 385 NW Miller Ave.

On Thursday, in Portland, "Unraveling the Mysteries of Your Money" will feature a panel of five experts who can answer questions about banking, financial planning, taxes, college savings and investing.

Panelists include: Michael Parker, director of the Oregon College Savings Plan; Jim Hunt, chief financial officer of OnPoint Community Credit Union in Portland; Nelson Rutherford, a certified financial planner and accountant with Alten, Sakai & Co. in Portland; and officials from the Oregon Division of Finance and Corporate Securities.

Brent Hunsberger, The Oregonian's personal finance columnist and author of It's Only Money blog, will moderate.

The event is sponsored by Operation HOPE and Financial Beginnings, two Portland nonprofits that promote financial literacy. It takes place from 6 to 8 p.m. at Room 327 in Portland State University's Smith Memorial Union, 1825 SW Broadway. Visit mysteriesofmoney.eventbrite.com for more information or to register.

On Saturday, April 9, Financial Beginnings and the Portland Business Alliance also are hosting Dollars & $ense, a free family financial fair for low-income families. It will include sessions on basic budgeting for families and how to teach children to save. The fair will take place 10 a.m. to 3 p.m. at Friends of the Children, 44 NE Morris in Portland.

The Money Fix is a feature-length documentary

2011-04-16T05:16:00.001-07:00

Money is at the intersection of nearly every aspect of modern life. Most of us take the monetary system for granted, but it has a profound and largely misunderstood influence on our lives. THE MONEY FIX is a feature-length documentary exploring our society’s relationship with the almighty dollar.
THE MONEY FIX examines economic patterning in both the human and the natural worlds, and through this lens we learn how we can empower ourselves by redesigning the lifeblood of the economy at the community level. The film documents three types of alternative money systems, all of which help solve economic problems for the communities in which they operate.
This website is dedicated to providing you with resources to educate yourself about currency. We hope you will find space in your busy life to ponder deeply what kinds of economic relationships you wish to be in. Conventional money is just one way to measure wealth. How will you measure the wealth you create?

Transparency International welcomes investigations into corruption and calls on Egyptian government to strengthen anti-corruption laws

2011-04-15T00:42:00.001-07:00

Ransparency International (TI), the global anti-corruption organisation, welcomes the on-going investigations in Egypt of former state officials for alleged corruption and TI calls on the Egyptian government to strengthen its anti-corruption laws.The apprehension of high-profile suspects, including former president Hosni Mubarak and his sons, sends a strong signal about the changing political will in Egypt. At the same time, TI warns it is important that due process is followed in all legal trials.

In 2010, TI published independent assessments of the pillars of society that shape how Egypt is governed and found that anti-corruption and good governance concepts are poorly understood by civil servants, the private sector and ordinary citizens.

The revolution of 25 January represents a new start for Egypt and its fight against corruption, given the pivotal role the issue played during the popular demonstrations across the country.

TI therefore calls on the government to take this historic opportunity to rebuild these pillars, including ensuring a strong and independent judiciary, to develop an enforceable anti-corruption framework supported by a cohesive legal structure and genuine political will.

This includes providing strong freedom of expression legislation for all Egyptian citizens and comprehensive access to information laws. Citizens should have the right to express dissenting opinions without fear of reprisals, which happened recently with the arrest of a blogger who was sentenced to three years in prison for criticising the military.

From 17-18 April 2011 TI will hold a workshop in Cairo entitled “Towards a new integrity system in Egypt” which will discuss the importance of strong, transparent institutions that enforce anti-corruption laws and uphold freedom of expression.

On April 19 2011 TI is also hosting: A practical guide to asset recovery: How to guarantee accountability during the Egyptian revolution.

Money Laundering INCSR 2011 & Financial Crime, Volume II

2011-04-15T00:41:00.000-07:00

The 2011 International Narcotics Control Strategy Report, Money Laundering and Financial Crimes, highlights the most significant steps countries and jurisdictions categorized as “Major Money Laundering Countries” have taken to improve their anti-money laundering/counter-terrorist financing (AML/CFT) regimes. The report provides a snapshot of the AML/CFT legal infrastructure of each country or jurisdiction and its capacity to share information and cooperate in international investigations.

Transparency International welcomes investigations & calls on Egyptian government to strengthen anti-corruption laws

Why Does A Manual On Corporate Practices For Businesses Devote A Chapter To "Money Laundering"?

2011-04-14T06:20:00.000-07:00

Other chapters of this Manual deal with extortion and bribery and how to curtail corruption in public-private and private-private transactions. This chapter addresses how the ill-gotten monies therefrom are disposed of, if not spent promptly. It is called "money laundering". By common usage and statutory definition, money laundering is a crime. Perforce, an examination of money laundering extends beyond extortion and bribery into the realms of narcotics trafficking, frauds, tax evasion and other serious crimes, domestic and transnational.

Should the reader care? Yes. For openers, any business, whether a financial institution, professional service, industrial enterprise, charitable NGO or otherwise, caught in the web of money laundering could have its reputation irreparably damaged. Its directors, management and staff could be the subjects of private and public investigations out of which indictments and prosecutions could arise. At best, it would be a public relations nightmare. It only takes one unethical person who has the discretion to make decisions to jeopardize an entire organization. A reputation for integrity takes many years to build, and only a few moments to damage, debase, decimate or destroy.

Virtually all businesses would be wise to be alert to money laundering methods and tactics. For their own protection and preservation, businesses must build and implement defenses and countermeasures, and install various other forms of protection.

While anti-money laundering laws have been or are being adopted in over 100 countries around the world, no country yet requires its financial institutions to detect money laundering. Pragmatically, the most they can do is to require that "suspicious transactions" (hard to define) be reported, subject to a plethora of regulations and policies. Despite the pressing need, which is slowly being recognized by nation states, the effectiveness of anti-money laundering laws has been mixed, i.e. better than no laws at all, but falling far short of the ideal of strict, fair and universal enforcement with well-knit international cooperation within and between governments, regulatory and supervisory authorities, law enforcement agencies, the judiciary and ever the private sector. As usual, vigorous enforcement is limited to too few countries.

What Exactly Is Money Laundering?

The phrase is descriptive. In its simplest non-legal terms, money laundering is "the processing of criminal proceeds (profits or other benefits) in order to disguise their illegal origin" (FATF). Another definition is "the process of transforming the proceeds of illegal activities into legitimate capital" (Mr. Byung-Ki Lee—Korea Institute of Criminology). Note that the act of money laundering occurs only after a predicate criminal offense has been committed to generate the criminal proceeds which in turn need to be laundered to convert them into "legitimate capital". This transition process has become a thriving business, albeit quite illegal in some, but not yet all, countries.

Note that if the money being moved did not come from an illegal activity, then its handling and processing are not considered money laundering. Thus, preparatory measures are not necessarily illegal within the money laundering context, e.g. pre-positioning funds to be used for, say, bribing a foreign government official.

Money laundering has three aspects. The first is physical disposal of the cash, i.e., its placement. The second is to disguise an audit trail to make the money, in effect, disappear. The technique is called layering, i.e., moving the money around, through and to multiple institutions in different jurisdictions. The adoption of the Euro as a common currency in Europe simplifies the flow of funds obviating the complications of shifting between multiple currencies. The final step is to bring the money back into the mainstream of commerce and investment as legitimate funds--it is calledintegration.

How Pervasive Is Money Laundering?

Money laundering is said to be the world’s third largest business by value! And it is growing. How big is it? No one knows with any degree of certainty. Both experts and competent authorities avoid estimating the scope. That sidestepping does not help the reader. Let us say evidence points to an answer of hundreds of billions of US dollars per annum. In early 1995, the OECD, headquartered in Paris, estimated the scale of laundering of drug money alone, excluding proceeds of other crimes and tax evasion, to exceed US$ 1,100 billion annually. The Financial Times of London estimated this trade value at only US$ 500 billion annually, which sum, nevertheless, amounts to 2% of global GDP!

In the FT Fraud Report of October 1997, it was reported that "The Black Economy in the UK is generally estimated by informed sources to amount to approximately 7% of GDP. In the USA, it is estimated at approximately 9% of GDP; in Germany, the figure approximates to 10%, while Italy, Greece and Spain are believed to have black economies amounting to approximately 25% of their GDPs. In Russia and Central and Eastern Europe, it is anticipated that the black economy could amount to as much as 50% of GDP." Asia, Africa, the Middle East and Latin America have their own substantial black economies.

Fraud often generates money laundering. Businesses are subject to fraud through simple and complex deceptions by both insiders--employees, agents--and by outsiders. Being a fraud victim is embarrassing and expensive and recoveries are limited. On a more widespread scale, of the information age, fraud can occur through credit cards, smart cards, stored value cards, e-money, e-commerce, etc. Technology helps both the good and the evil.

Incidentally, illustrative of how pervasive narcotics have become in our society, it is said that 90% of the currency bills in circulation in the USA are contaminated with narcotics. In the UK, the amount is considered as being 40%.

These estimates dwarf the US$ 11.7 billion anticipated to be gained in the global trade of counterfeit computer software (BSA and SPA) in 1998. The ICC-Paris in 1996 estimated that 5-8% of total world trade, say US$ 250 billion, is in counterfeit products of all types. Much of the monetary proceeds thereof pass through money laundering schemes.

From What Crimes Does Money Laundering Arise—I.E. Sources Of Illegal Proceeds?

The term money laundering is of relatively recent origin. In their modern context, anti-money laundering precepts and laws were originally only aimed at the disposing of the proceeds of the trade in narcotics, inclusive of psychotropic substances. Though hiding money has been around probably since currency was invented, the US, in 1986, was the first country in the world to criminalize money laundering but only as it related to the illegal drug trade. It was soon realized by the US and other countries that the ill-gotten proceeds of extortion, bribery and fraud also needed international cooperation legislation to inhibit money laundering, to track and recover the illegal money, and to prosecute offenders. With the onset of globalization, instantaneous electronic money transfers, the growth in the last decade of organized crime and the public disclosure of scandals, public-private and private-private corruption, and other serious crimes involving money laundering practices, unfortunately, have been blossoming.

Besides narcotics production and trafficking, and depending upon the selection by each country of which serious crimes to include in their own national anti-money laundering enactments, there is a vast array of nefarious activities which generate questionable profits and which are or could be addressed in anti-money laundering legislation. Examples are extortion, bribes, protection rackets, terrorism, smuggling of goods (favorites are alcohol, cigarettes, computer chips and raw materials), smuggling of weapons, nuclear material, precious metals and precious gems (primary diamonds) to avoid customs; illegal immigration and smuggling of people to avoid immigration, white slavery and trafficking in women for prostitution, pedophile activities; intellectual property (trademarks, copyrights, patents, trade secrets and know-how); theft and resale of commodities, metals, oil, gas, art, antiques and historical artifacts; counterfeiting (currency and documents); crimes of violence (contract killing, arson and bombing); illegal logging (particularly tropical forests), trade in endangered species of animals and plants, and even in human body parts; environmental crimes (solid, toxic and hazardous waste disposal; air, water, noise pollution; unsustainable development); usury; investment and VAT fraud, false invoicing and financial fraud (bank fraud, credit card fraud, investment fraud, advance fee fraud, bankruptcy fraud, embezzlement, misappropriation, insurance fraud, passports, visas and documentation); motor car thefts, tax fraud, tax evasion; illegal gambling; maritime crimes (piracy, charter party frauds, cargo deviations, phantom ships, marine theft, marine pollution); technology crimes; theft over the Internet, Internet crime generally. While lengthy, this list is neither exhaustive nor all-inclusive.

Though the above list is extensive, it bears repeating that each individual country specifies in statutes those serious crimes which are to be subject to its money laundering laws. They may be few, or they may be many. The more crimes covered, the more difficult money laundering should become. Check the laws of those jurisdictions in which you do business and banking.

Have There Been International Endeavors To Promote Anti-Money Laundering Acceptance?

Anti-money laundering laws, policies and practices are only recently gaining broad acceptance among nation states and regional and international organizations. In 1989, the G-7 countries created the Financial Action Task Force ("FATF"), an independent intergovernmental agency comprising 26 countries including the principal major economies, and two regional organizations. The purpose of this organization is to examine and report on measures to combat money laundering, to monitor implementations of counter money laundering measures, to track and review money laundering activities, and to promote FATF activities and advise members and non-member countries. Its headquarters are located within the OECD in Paris, France.

In 1990, the FATF issued its Forty Recommendations which "provide a comprehensive blueprint for action against money laundering, covering the criminal justice system and law enforcement, the financial system and its regulation; and international cooperation" (FATF). Amended in 1996 to reflect changes in money laundering trends and potential future threats, the Forty Recommendations are the most comprehensive set of anti-money laundering directives yet created for governments, legislatures, law enforcement, financial institutions and businesses in general.

Other international and regional bodies have issued or adopted similar guidelines, in whole or in part, namely, the United Nations and several of its specialized agencies, the International Organization of Securities Commissions, the European Union (EU), the Council of Europe, Gulf Cooperation Council, Organization of American States (OAS), Caribbean Financial Action Task Force (CFATF), South Pacific Forum, Asia/Pacific Group on Money Laundering, Council for Security Cooperation in the Asia-Pacific (CSCAP), INTERPOL, ASEANPOL, World Customs Organization (WCO), Southern and Eastern Africa Financial Action Task Force (SEAFATF), Bank for International Settlements (BIS), Basel Committee on Banking Supervision, International Banking Security Association, Banking Federation of the European Union, Organization for Economic Cooperation and Development (OECD), among others. In other words, with the concepts of good governance, transparency and accountability being adopted into the work-a-day realms of the public and private sectors, as demanded by civil society, anti-money laundering policies and practices are finally gaining the attention of governments and international organizations throughout the world.

The bribery of foreign public officials to obtain or maintain business was criminalized first in 1997 in the US embodied in the now famous "Foreign Corrupt Practices Act". Twenty years later, the OECD issued its "Convention on Combating Bribery of Foreign Public Officials in International Business Transactions". In late 1998, this Convention came into force, having been ratified by the required number of signing countries. Article 7 thereof criminalizes the money laundering aspect of the predicate offense of bribery. Article 7, therefore, if enforced, is a key hope in stemming this type of corruption.

What Are Some Of The Techniques Used By Money Launderers?

The FAFT annual reports and reports on money laundering typologies are some of the best sources of information on the subject. (See the FAFT website at "www.oecd.org/faft/reports.html".) The aforementioned Forty Recommendations can also be downloaded from this site. Another source of current information on money laundering is "Money Laundering Alerts" by Alert Global Media, a subscription service, which is available at "www.moneylaundering.com". Alert Global Media’s list of "Suspicious Activities" examples is instructive and illuminating.

The techniques of money laundering can be broken down into three principal categories: (A) banking, (B) non-bank institutions, and (C) non-financial businesses. In bullet point form for brevity, the methods are summarized as:

A. Banking

large deposits and transfers
false name accounts
accounts of friends, relatives and cronies
smurfing (electronic structured transactions of electronic cash)
shell and front companies, usually offshore, for layering transactions
lawyers, accountants, consultants, trustees, fiduciaries
"collection accounts"
acquiring compliant banks
"payable through accounts"
"loan back arrangements"
telegraphic transfer
bank drafts, money orders, cashier’s cheques
cash—deposits and withdrawals, business transactions, smuggling across borders
travelers cheques
Internet—banking and electronic purse accounts

B. Non-Bank Financial Institutions

bureaux de change, exchange offices, casa de cambio
money remittance services (giro houses)
underground banking—"hawala", "hundi", chit and chop shops which handle illegal foreign exchange transactions in India and East Asia
single premium insurance products
postal services—money orders, packages (for smuggling cash)

C. Non-Financial Businesses Or Professions

professional facilitators, e.g. lawyers, accountants, financial advisors, notaries, secretarial companies, trustees and other fiduciaries
systems based on trust and loyalty
real businesses—false invoicing, co-mingling of legal and illegal money, loan back arrangements, layering of transactions through offshore shell companies, false import/export declarations
commercial trade transactions through Free Trade Zones
casinos, bookmaking, Internet casinos
real estate companies
purchase and cross border delivery of precious metals
use of warrants in the metals market

For more detailed descriptions of the techniques and how they have worked, actual case studies can be found in the "Money Laundering Guide" published in mid-1998 by the Commercial Crime Bureau of the ICC located in Barking, England, UK. (See their website at: "www.iccwbo.org/icccbhp.htm". See also Billy's Money Laundering Information website at "www.laundryman.u-net.com". Another interesting site is the Financial Crimes Enforcement Network at "http://www.ustreas.gov/fincen.")

Anti-Money Laundering Institutions - Deterrence And Countermeasures

There are several concepts of deterrence which have recently garnered broad support. Businesses should consider working them into their own normal accounting and financial control systems. Money laundering can occur innocently as well as deliberately.

The first step is to access your own risk profile and vulnerability to being used for money laundering—check your internal control systems, policies and operations. Establish internal anti-money laundering policies and procedures and put senior people in charge of compliance and staff training.

The fundamental theme common to most of the countermeasure initiatives is the old maxim of "Know Your Customer" and "Know the Counter Partners"—identify and verify them through third party due diligence. And maintain files on them. Know who you are dealing with at both ends of a transaction.

"Know Your Business" is another vital concept. Protect your integrity and reputation. Know how, when and where to recognize unusual transactions.

"Know your Administration"—accurate and complete record-keeping and reporting compliance is crucial to keep your own business and the anti-money laundering system functioning. Create audit trails. Audit to test and track your own anti-money laundering compliance systems.

Recognize suspicious transactions and transaction sizes and report them to internal compliance officers and the competent authorities in accordance with anti-money laundering regulations, laws and policies. Check the suspicious indicators lists for guidelines.

Educate, train and periodically test employees to create and maintain their awareness.

Be forewarned that it is not just corporate reputations which are at risk for allowing money laundering to occur, but officers, directors and other individuals involved can face prison terms, substantial fines, and unusual confiscations. One unscrupulous renegade in an organization can taint all the honest people in that organization. The costs of reputation repair and recovery are enormous, far outweighing the costs of precaution.

Conclusions

Money laundering is BIG business. Should your business inadvertently, directly or even indirectly, become a victim of or a participant in any serious crime, the chances are high that your money will disappear through one or more money laundering ploys. Finding your money and recovering it will be time consuming and expensive, and for some, most embarrassing. Probably less than 10% of the victims, corporate and individual, take the effort to even attempt recovery of lost funds.

Protect yourself and your integrity with the "Know Your…" concepts. Anti-money laundering laws have yet to prove their effectiveness, and international cooperation between governments with respect to money laundering is only now being established. Such laws, practices and cooperation have to work if legitimate business is to survive and prosper.

Finally, for readers who want to learn more about money laundering, please refer to lists of Internet links on the Web at: "http://macau.ctm.net/jgod/m/html" and "http://www.ex.ac.uk/RDavies/arian/scandals/launder/html". Also periodically check the website of Transparency International, the coalition against corruption in international business at "http://www.transparency.de".

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Money Loundry, because love is real....

2011-04-14T06:11:00.000-07:00

''We have a message, and fashion is our method of relaying it to the world. Our message is to mask yourself from negativity, and through that principle, flight can be achieved. "GAS'D" is not bound by one community or one lifestyle, it is the combination of numerous lifestyles. One may ask themselves why the word "GAS'D". Gas is used everyday as fuel that brings energy into well made machines. We as a people are also well made machines with many talents and abilities. We too need that fuel, that energy, that drive to succeed and grasp the dreams that appear untouchable. There are many negative influences among us and until we mask ourselves, we will succumb to these influences. We are entrepreneurs first, we want to bring art and uniqueness back to the fashion industry. We are a clothing line born of the people and strive off our relationship with the public. "GAS'D" bridges over races, cultures, and ideas. This is what sets us apart among the many. We see life as a one way path. Forward is our only option. Success is our goal, Art is our passion'' -GAS'D