The Public Health Campaigns Health And Social Care Essay

Even though the relationship between cervical malignant neoplastic disease and sexual activity has proved by surveies to be near and the function of the HPV virus in the development of cervical malignant neoplastic disease is well-known, the reviewed articles showed that there have n't been emphasized plenty by the public wellness runs ( Waller, McCaffery and Wardle 2004 ) . Specifically in the NHS, the information provided is limited. Some surveies demonstrated that the medical cusps highlight the taking behavioural hazard factors such as the early age of first intercourse, the high figure of sexual spouses or the deficiency of usage of rubbers, nevertheless, the relationship between a sexual transmitted virus and cervical malignant neoplastic disease is n't presented clearly ( Waller, McCaffery and Wardle 2004 ) . Sexual activity of adolescents could be characterized as either a milepost of their development or a field of unsafe behaviour. During pubescence, gender becomes active as adolescents experiment, seeking for ‘sexual individuality ‘ . Merely one article ( [ 13 ] ) refering Greece high spot that to day of the month Greece competes with the highest abortion incidence rates worldwide and sexually transmitted diseases are the most common public wellness job among striplings. The deficiency of information on how to protect themselves for unintended gestation of STIs could be ruinous ( Iliadou and Palaska 2008 ) . Harmonizing to this survey, sexual instruction is limited and unsatisfactory among striplings in Greece because conservative positions claim that sexual wellness instruction shows new patterns to the immature people which otherwise they would n't follow. Specifically the chief beginnings of information on contraceptive method are friends ( 66 % ) , household ( 60 % ) a nd books or magazines ( 59 % ) whereas the wellness professional apply merely the 3.3 % of the replies ( Iliadou and Palaska 2008 ) . Contrary to the immature Greek population, research workers examined striplings of other states such as Denmark and they concluded that they have equal cognition on how to protect themselves while adult females and work forces are considered every bit responsible for the transmittal of STIs ( Mortensen 2010 ) . In add-on, most surprising is that besides the UK provides limited cognition on the STIs and HPV infection in both work forces and adult females. Five of the surveies ( [ 20 ] , [ 30 ] , [ 31 ] , [ 32 ] , [ 33 ] ) provided studies which proved that 67 % of the people responded that ‘many sexual spouses ‘ is a major cause of cervical malignant neoplastic disease whereas merely 31 % replied ‘viruses or infection ‘ . Merely 1 % of the respondents answered that HPV virus is a causal factor of cervical malignant neoplastic disease ( Waller, McCaffery and Wardle 2004 ) . The same surveies demonstrated that the form of cognition seems to divert across different age groups. For illustration, adult females of 55-64 old ages old are most likely to cognize hazard factors such as the sexual activity and holding many sexual spouses. On the other manus, younger adult females of 16-24 old ages old and people holding hapless instruction showed the lowest consciousness of the hazard factors ( Waller, McCaffery and Wardle 2004 ) ( Wardle, et Al. 2001 ) . This study raises the inquiry on the cognition British adult females have, sing the sexual behaviour. Furthermore, the overall cognition on sexually transmitted infections ( STI ) is surprisingly low among pupils. British female pupils were familiar with the smear trial as a preventative cervical malignant neoplastic disease testing step and they replied that they had ne'er considered themselves to be examined but they expressed an involvement in the HPV vaccinum. On the other manus, work forces were n't certain what smear trial is ( Martin, et Al. 2011 ) . Hence, what is revealed is that the recent high cervical malignant neoplastic disease incidence rates are the result of a wellness instruction system where the cognition of the sexual behaviour is limited and it is n't concentrated on the self-management and the subject of the organic structure. All these findings, in add-on to the 14 % increased incidence rates in the last four old ages ( Cancer Research UK, 2012 ) demonstrate that the current wellness instruction peculiarly in school-based undertakings in the UK is hapless and one-sided. It focuses largely on the unintended gestation and contributes to the position that sexual wellness is merely adult female ‘s duty. These surveies ( [ 30 ] , [ 32 ] , [ 33 ] ) show that school based programmes in the UK fail to understand that betterment of misbehaviour is required to set up self-discipline. Alternatively, these school-based programmes should intent to increase the cognition of the adolescences to supervise themselves, produce the consciousness of the hazard factors and make the sense of personal duty in take parting on a regular basis in the showing trials. Hence, wellness instruction would finally make adept disciplined organic structures. This manner, the organic structure becomes cardinal. The construct of bio-po wer is placed to exert non merely the organic structure but besides the psyche. For that ground, there was ever been a argument on whether the UK should present unfastened treatments about sex in a school-based programme and educate adolescents on proper sexual behaviour and their engagement to testing trials in order to cut down the sexually familial infections ( Martin, et Al. 2011 ) . Overall, it is dismaying that most people in Britain consider household medical history as most noteworthy factor for cervical malignant neoplastic disease than the infection by STIs ( Waller, McCaffery and Wardle 2004 ) . However, acceptance and execution of wellness instruction programmes outside school, has been a topic of research. Contrary to what Nettleton claims there is besides the belief provided chiefly by Annemarie Mol that wellness instruction of public wellness is n't adequate to do people move rationally and give up unhealthy life styles. Public wellness runs are accused for being really general and that they address the full population without taking into consideration the differences among people ‘s wellness position and the stipulations for disease. Every educational run focuses on the population as a entire and as all being equal and they do n't acknowledge that when the educational programmes address the whole population, there is a portion of it, that ca n't hold entree to the healthy life style they suggest and people do n't see themselves reflecting in this state of affairs ( Mol 2008 ) . Furthermore, gender is a sensitive field that most adult females feel uncomfortable and diffident to discourse about publically. Any public statement that emphasizes on the nexus between cervical malignant neoplastic disease, sexual activity and smear trial, sounds to be about the adult female ‘s ‘ ain gender ( Braun and Gavey 1999 ) . This is the ground why the wellness instruction even in public wellness runs should be targeted to specific age groups. School is a promising manner. Harmonizing to the undermentioned surveies ( [ 20 ] , [ 30 ] , [ 31 ] ) school is the lone establishment in our society where many immature people attend before their first intercourse. Given proper and sufficient wellness instruction, it is cardinal that the self-management of the adolescences is improved and the informed pick is activated. Health instruction finally creates to the adult females the sense of power and subject on their ain organic structure. Self-discipline is considered as a moral behaviour which is motivated by intrinsic factors. The school-based programmes aim to better these factors and make a sense of cognizing ego and lead to active agents of the society where people control themselves unconsciously ; that is, school- based programmes create what Foucault has defined as docile organic structures. Harmonizing to su rveies conducted in the '90s and 2000, there is no grounds that sexual instruction increases the sexual activity. Alternatively, the sexual instruction specifically in school-based programmes delays the first intercourse, increases the usage of prophylactic methods and reduces the figure of sexual spouses ( Kirby, et Al. 1994 ) ( Dolan Mullen, et Al. 1995 ) ( Iliadou and Palaska 2008 ) . Most significantly, through the wellness instruction course of study there were important positive consequences sing the decrease of unhealthy wonts ( Glanz, Rimer and Viswanath 2008 ) ( Dolan Mullen, et Al. 1995 ) such as smoke, and a important addition in the inoculation rates. In add-on, in the 1980s research surveies was found out that among simple and secondary school kids, wellness instruction really improved kids ‘s wellness attitude and behaviour ( Dolan Mullen, et Al. 1995 ) . Therefore, it is a great chance to turn to wellness instruction programmes particularly sing the decrease of hazardous sexual behaviour ( Kirby, et Al. 1994 ) and the regular engagement in diagnostic trials because most HPV instances are reported in immature ages of 20-24 old ages old. There are many ways to believe that public policy can forbid hazardous activities and advance healthy manner of life. Recreation countries and rigorous nutrient statute law are some public intercessions Mol suggests through which, people can switch into rational mundane wonts ( Mol 2008 ) . Information runs on the HPV inoculation is another 1. Some articles consider Denmark as a important illustration that makes a important attempt since the debut of the HPV vaccinum in 2006, to educate the female population with HPV information runs. These runs are concentrated on the safety, the cost, the efficiency and possible side effects of the vaccinums ( Mortensen 2010 ) . Besides, in the same model, the two vaccinum makers organized a media-based run meaning to inform the female population on the benefits of the inoculation ( Mortensen 2010 ) . The engagement of adult females in these events can increase their cognition on the disease and the possible hazard factors and they can do informed picks on showing or inoculation. Not surprisingly, in most of the developed states the cervical malignant neoplastic disease testing system is advanced, nevertheless as surveies show, adult females still develop cervical malignant neoplastic disease ( Bosh and Harper 2006 ) . So, primary bar has a double function ; in the first topographic point, the end of the wellness instruction is to supply information through a non-threatening, easy and accessible manner and raise the consciousness of persons about organic structure care and lifestyle alteration to forestall disease through assorted programmes. Through nonsubjective and progressive information, people can go rational histrions for them and they can acknowledge easy the hazard factors and the dangers of specific activities. For illustration, research analyzing the attitude of adult females and parents for the HPV vaccinum demonstrated that given the right information on the safety and efficaciousness of the vaccinum, they promote its usage ( Raffle, 2007 ) ( Bun n 2008 ) . Hence, a wide and complete educational programme is indispensable to trip an informed pick. Most of the articles pointed out that it is cardinal that adult females have the ability to do their ain wellness picks. Additionally, another end of the wellness instruction is to stress the personal duty for wellness and promote the engagement of adult females on wellness services ( Scambler 2005 ) . Women should experience that go toing the cervical malignant neoplastic disease testing scrutinies is a personal determination. In Western societies, people are an ideal illustration of docile organic structures as they are encouraged to take attention of their organic structure through preventative interventions and they are induced to command their wellness. Namely, protection of their organic structures is a portion of their duty as being members of the society ( Braun and Gavey 1999 ) ( Petersen and Lupton 2000 ) . As Mol agrees, it is better to promote people to take part in suc h intercessions instead than compel them ( Mol 2008 ) . No power system has of all time survived with the fright and coercion as the lone arms.

The Role of Banking Sector in the Prevention of Money Laundering in Bangladesh

Chapter One Introduction 1. 0 INTRODUCTION Besides of development of Economic activities, monetary related crimes are also increasing in both developed and underdeveloped countries. Almost in each country illegal transaction of money has been increased & these illegal money has been also used on various illegal activities. Money laundering process refers to illegal receipt or transfer of fund from one place to another. This process involves not only the banking system of the country but also non-banking system.Bangladesh is moving towards an open economy with a small-magnetized sector by liberalizing the financial and economic policies. However, the money laundering mechanisms are creating problem for a country like Bangladesh. Bangladesh Bank as the Central bank of Bangladesh Supervise all the banking and non-banking financial transactions on behalf of Bangladesh Government. Money laundering process is a great obstacle to the execution of monetary policy adopted by Bangladesh bank t o stable the economy of the country.To prevent money laundering, money laundering prevention bill 2002 was passed in the National Assembly of Bangladesh on 5 April 2002 and Gazette Notification was made on 7 April 2002. And Bangladesh Bank has been designated to act as the main preventive agency. Money Laundering has serious adverse effect on Economical, Political & Social condition of a country. It increases unequal distribution of income and as a result, the employment level, output level of the country, price stability as well as economic development and growth can be hampered.So it is immediately required to prevent it. I believe it is a matter of great opportunity for me to study on this topic, as Money laundering, is a manifestation and a facilitator of organized crime, and has attracted increasing interest in our country. Due to money laundering process, desirable investment of the country cannot be done, national income declines and economic growth of the country hampers. 1. Background of Money LaunderingThe mafia mobster Al Capone is most often credited with coining term â€Å"money laundering† because he used investments in coin-operated Laundromats to disguise or â€Å"wash† the millions he made from bootlegging and other illegal enterprises during the Prohibition in the US-the banning of alcoholic drinks in the 20th century. It is also said that the term â€Å"laundering† is used because, years ago, the cash proceeds (in U. S. dollars) from drug sales were actually washed with soap and water to appear old and worn. Launderers would then go to the Federal Reserve Bank and exchange the â€Å"laundered† bills in for new bills.Along with the new bills came a fed receipt, which served to support the â€Å"legitimate† origin of the cash. The scam was finally identified when someone at the Fed realized that the serial numbers on the bills indicated that they should not be as old and worn as they appeared to be. The term first appeared in newspapers reporting the Watergate scandal in the US in 1973 and in judicial/legal contest in the US in 1982. Whilst the term â€Å"money laundering† was coined in the 20th century, it has been going on for several thousand years.The history of money laundering is interwoven with the history of trade and of banking. In 1986, the U. S. became the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity when it passed the U. S. money laundering law. The silk road which scholars say first became a real link around 100 BC, ran for 12,000 kilometers and linked some of the greatest civilizations the world has ever seen – the Chinese, Mongolian, Indian, Persian, Greek, Byzantine, Mesopotamian and Egyptian – transporting goods, people, ideas, religions and Money.Chinese inventions like gunpowder and paper first traveled to Europe in this manner. Along with many other things, Syrian jugglers and acrobat s, cosmetics, silver, gold, amber, ivory, carpets, perfume and glass from Europe, Central Asia, Arabia and Africa traveled to the east. It lasted until the 15th century when newly discovered sea routes to Asia opened up. Traditional method of moving money evolved before Western banking became established in the region protecting early merchants along the Silk Road against robbery.In ancient China it was known as â€Å"fei qian† or â€Å"flying coins†. The system spread throughout the world – to other Asian regions, the Indian Subcontinent, the Middle East, eastern and southern Africa, Europe and North and South America – following immigration patterns. These traditional money transfer systems are called as Chop, Hawala, Hundi, etc. 1970-The US Congress enacted the Bank Secrecy Act (BSA) in October 1970 following increasing reports of people bringing bags full of illegally – obtained cash into banks for deposit.The BSA is simply a reporting and reco rd-keeping statute. Although willful violations of its terms are a crime; it does not criminalize money laundering as such. BSA requires banks –retain financial details, -report cash transactions over $ 10,000/-. Thus in 1986, the U. S. became the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity. Thus made money laundering a crime in its own right, and strengthened the BSA in several respects, most importantly by prohibiting â€Å"structuring†. 990 – The Financial Crimes Enforcement Network (FinCEN) created by the US Treasury on April 25, initially to focus on the detection of financial crimes by providing analytical support to law enforcement investigations. In 1994, the agency would be given BSA regulatory responsibilities. 1992 – Annunzio-Wylie Money Laundering Act amended the BSA in several respects. Perhaps most important, required any financial institution, and its officers, directors, emplo yees and agents, â€Å"to report any suspicious transaction relevant to a possible violation of law or regulation. The Annunzio –Wylie Act, require all financial institutions to put in place, not only BSA compliance programs, but also anti-money laundering programs. At a minimum, the programs would be required to include: 1) The development of internal anti-money laundering policies, procedures and controls; 2) The designation of a compliance officer; 3) An ongoing employee training 4) An independent audit functions to test the program. At first U. S. A. has taken initiative to money laundering but now most of the countries of the world are aware about it. 2. Origin of the ReportThis Research Paper has been prepared for the partial fulfillment of Masters of Business Administration (MBA) Programme. For this purpose honorable teacher and supervisor Mr. Md. Nazrul Islam, Head of the Department of Business Administration, Shahjalal University of Science & Technology, Sylhet aske d to submit a proposal. After discussing with him about various issues of money laundering I have submitted a proposal on â€Å"The Role of Banking Sector in the Prevention of Money Laundering in Bangladesh † was submitted and then the final research paper is prepared. 3.Objective of the Paper The objective of the research paper is to help the students be familiar with how the theoretical knowledge obtained in the degree program can be applied in practice. Generally research is either problem identifying or problem solving tool. The objectives of the study are as follows: – 1. To understand the theoretical concepts of money laundering. 2. To show the present scenario of anti money laundering issues in Bangladesh. 3. To observe the policy development and maintenance by Bangladesh Bank as a supervisor of anti money laundering activities. 4.To figure out core procedures that Bangladesh Bank adopts to supervise the anti money laundering activities. 5. To comment on the exi sting system and recommend for improvement. 1. 4 Methodology Certain methods and techniques is utilized to collect data for this research paper. This study is mainly based on empirical as well as theoretical analysis. Collected data and information is tabulated, processed and analyzed critically in order to make the report informative. Both primary and secondary sources of data are chosen as effective means of collecting data relevant for this paper. . To prepare first part of the research paper secondary sources were used. Publications and database within Bangladesh Bank and others commercial bank helped me to get data about money laundering and its prevention. Various types of circular of Bangladesh Bank regarding money laundering exist in different commercial banks. This paper also required study of annual report, policy related circulars, and service rules, administrative circulars and other related papers. To get more information, I have also collected some books about money la undering and searched website. 2.Interview of the personnel from people within these relevant organizations was the basic technique to collect primary data. Informal discussion with executive connected with the planning and control works in the various levels of the Bangladesh Bank was needed. To collect data and to analyze these properly I have to be interviewed face to face with bank officials. . 5. Justification of the Research To prevent money laundering is very complex task especially in a country like Bangladesh where most of the citizens are illiterate and their economic bad condition inspired them to involve in illegal activities.This increases economic misery of the have-nots and concentrated wealth in the hands of 10% of the total population. The scope and scale of money laundering has increased over time and the process of addressing the problem has become complex because of the global nature of the problem. So cooperation among the law enforcing agencies, awareness of th e overall people of the country about its adverse effects, government strictness to avoid political interferences, all these are required to prevent it, that is, creation of wareness against money laundering is of highest importance at the moment. After about three months research with various money-laundering issues with Bangladesh Bank and Commercial Banks this paper is intended to fulfill course requirements of Masters of Business Administration. Bangladesh Bank, which is the authorized Bank to monitor all the banking and non-banking financial institutional activities, so I have worked on it in details. Beside this I have studied other operational areas of the commercial bank, which have enriched the level of my knowledge. . 6 Limitations Though this report provides the insights of Money Laundering in Bangladesh and the mechanisms by which Bangladesh Bank takes steps to prevent Money Laundering, it has some limitations as well. As the activities of money laundering are illegal, a ll of work is going on behind the sight of general public; it is hard to find out the adequate & real data. The organization on which was studied is the Central Bank of BANGLADESH, which is not a private or public bank of Bangladesh.The main limitation that faced during conducting the study was lack of access to information considered confidential by employees of central bank based on their policy and strategies. Chapter Two 2. 1 Brief History of Money Laundering The mafia mobster Al Capone is most often credited with coining term â€Å"money laundering† because he used investments in coin-operated Laundromats to disguise or â€Å"wash† the millions he made from bootlegging and other illegal enterprises during the Prohibition in the US-the banning of alcoholic drinks in the 20th century.It is also said that the term â€Å"laundering† is used because, years ago, the cash proceeds (in U. S. dollars) from drug sales were actually washed with soap and water to appea r old and worn. Launderers would then go to the Federal Reserve Bank and exchange the â€Å"laundered† bills in for new bills. Along with the new bills came a fed receipt, which served to support the â€Å"legitimate† origin of the cash. The scam was finally identified when someone at the Fed realized that the serial numbers on the bills indicated that they should not be as old and worn as they appeared to be.The term first appeared in newspapers reporting the Watergate scandal in the US in 1973 and in judicial/legal contest in the US in 1982. Whilst the term â€Å"money laundering† was coined in the 20th century, it has been going on for several thousand years. It is said that the abuse of Chinese merchants and others by oppressive regimes and despotic rulers led them to find ways to hide their wealth, including ways of moving it around without it being identified and confiscated. Money laundering in this sense was prevalent 4000 years before Christ.Many minori ties in countries down the ages and around the world have taken steps to preserve wealth from the rulers- either from blatant confiscation or from taxation and, indeed, from a combination of both, who have targeted them simply because of their beliefs or colour. It is happening even today. And, of course from those seeking to enforce judgments in civil cases or to follow the money that results from other crime. The history of money laundering is interwoven with the history of trade and of banking. In 1986, the U. S. ecame the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity when it passed the U. S. money laundering law. 2. 2 The Silk Road – Once World’s main commercial artery The silk road which scholars say first became a real link around 100 BC, ran for 12,000 kilometers and linked some of the greatest civilizations the world has ever seen – the Chinese, Mongolian, Indian, Persian, Greek, Byzantine, Me sopotamian and Egyptian – transporting goods, people, ideas, religions and Money. Heading west were porcelain, furs, spices, gems and other exotic products of Asia.Chinese inventions like gunpowder and paper first traveled to Europe in this manner. Along with many other things, Syrian jugglers and acrobats, cosmetics, silver, gold, amber, ivory, carpets, perfume and glass from Europe, Central Asia, Arabia and Africa traveled to the east. It lasted until the 15th century when newly discovered sea routes to Asia opened up. Traditional method of moving money evolved before Western banking became established in the region protecting early merchants along the Silk Road against robbery. In ancient China it was known as â€Å"fei qian† or â€Å"flying coins†.The system spread throughout the world – to other Asian regions, the Indian Subcontinent, the Middle East, eastern and southern Africa, Europe and North and South America – following immigration patte rns. These traditional money transfer systems are called as Chop, Hawala, Hundi, etc. 2. 3 History of Criminalizing Money Laundering 1970-The US Congress enacted the Bank Secrecy Act (BSA) in October 1970 following increasing reports of people bringing bags full of illegally – obtained cash into banks for deposit. The BSA is simply a reporting and record-keeping statute.Although willful violations of its terms are a crime, it does not criminalize money laundering as such. BSA requires banks –retain financial details, -report cash transactions over $ 10,000/-. 1974 –although the BSA is accepted now, its constitutionality was originally challenged in the courts by elements of the banking community and some civil libertarians. BSA was challenged on a number of grounds. In California Bankers Assn . v. Shultz, 416 U. S. 21 (1974) Supreme Court rejected claims that various parts of the BSA violated constitutional rights. 986 – Growth, seriousness of the problem of Money Laundering, and of widespread non-compliance with the BSA, led to the enactment of the Money Laundering Control Act of 1986. Thus in 1986, the U. S. became the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity. Thus made money laundering a crime in its own right, and strengthened the BSA in several respects, most importantly by prohibiting â€Å"structuring†. 1990 – The Financial Crimes Enforcement Network (FinCEN) created by the US Treasury on April 25, initially to focus on the detection of financial rimes by providing analytical support to law enforcement investigations. In 1994, the agency would be given BSA regulatory responsibilities. 1992 – Annunzio-Wylie Money Laundering Act amended the BSA in several respects. Perhaps most important, required any financial institution, and its officers, directors, employees and agents, â€Å"to report any suspicious transaction relevant to a possible v iolation of law or regulation. † The Annunzio –Wylie Act, require all financial institutions to put in place, not only BSA compliance programs, but also anti-money laundering programs. At a minimum, the programs would be required to include: ) the development of internal anti-money laundering policies, procedures and controls; 2) the designation of a compliance officer; 3) an ongoing employee training 4) an independent audit functions to test the program. 2. 4 Why Money Laundering is done? Criminals engage in money laundering for three main reasons: First, money represents the lifeblood of the organization that engages in criminal conduct for financial gain because it covers operating expenses, replenishes inventories, purchases the services of corrupt officials to escape detection and further the interests of the illegal enterprise, and pays for an extravagant lifestyle.To spend money in these ways, criminals must make the money they derived illegally appear legitimate . Second, a trail of money from an offense to criminals can become incriminating evidence. Criminals must obscure or hide the source of their wealth or alternatively disguise ownership or control to ensure that illicit proceeds are not used to prosecute them. Third, the proceeds from crime often become the target of investigation and seizure. To shield ill- gotten gains from suspicion and protect them from seizure, criminals must conceal their existence or, alternatively, make them ook legitimate. 2. 5 Why we must combat Money Laundering Money laundering has potentially devastating economic, security, and social consequences. Money laundering is a process vital to making crime worthwhile. It provides the fuel for drug dealers, smugglers, terrorists, illegal arms dealers, corrupt public officials, and others to operate and expand their criminal enterprises. This drives up the cost of government due to the need for increased law enforcement and health care expenditures (for example, f or treatment of drug addicts) to combat the serious consequences that result.Crime has become increasingly international in scope, and the financial aspects of crime have become more complex due to rapid advances in technology and the globalization of the financial services industry. Money laundering diminishes government tax revenue and therefore indirectly harms honest taxpayers. It also makes government tax collection more difficult. This loss of revenue generally means higher tax rates than would normally be the case if the untaxed proceeds of crime were legitimate. We also pay more taxes for public works expenditures inflated by corruption.And those of us who pay taxes pay more because of those who evade taxes. So we all experience higher costs of living than we would if financial crime—including money laundering—were prevented. Money laundering distorts asset and commodity prices and leads to misallocation of resources. For financial institutions it can lead to a n unstable liability base and to unsound asset structures thereby creating risks of monetary instability and even systemic crises. The loss of credibility and investor confidence that such crises can bring has the potential of destabilizing financial systems, particularly in smaller economies.One of the most serious microeconomic effects of money laundering is felt in the private sector. Money launderers often use front companies, which co-mingle the proceeds of illicit activity with legitimate funds, to hide the ill-gotten gains. These front companies have access to substantial illicit funds, allowing them to subsidize front company products and services at levels well below market rates. This makes it difficult, if not impossible, for legitimate business to compete against front companies with subsidized funding, a situation that can result in the crowding out of private sector business by criminal organizations.No one knows exactly how much â€Å"dirty† money flows through the world's financial system every year, but the amounts involved are undoubtedly huge. The International Money Fund has estimated that the magnitude of money laundering is between 2 and 5 percent of world gross domestic product, or at least USD 800 billion to USD1. 5 trillion. In some countries, these illicit proceeds dwarf government budgets, resulting in a loss of control of economic policy by governments. Indeed, in some cases, the sheer magnitude of the accumulated asset base of laundered proceeds can be used to corner markets — or even small economies.Among its other negative socioeconomic effects, money laundering transfers economic power from the market, government, and citizens to criminals. Furthermore, the sheer magnitude of the economic power that accrues to criminals from money laundering has a corrupting effect on all elements of society. The social and political costs of laundered money are also serious as laundered money may be used to corrupt national instit utions. Bribing of officials and governments undermines the moral fabric in society, and, by weakening collective ethical standards, corrupts our democratic institutions.When money laundering goes unchecked, it encourages the underlying criminal activity from which such money is generated. Nations cannot afford to have their reputations and financial institutions tarnished by an association with money laundering, especially in today's global economy. Money laundering erodes confidence in financial institutions and the underlying criminal activity — fraud, counterfeiting, narcotics trafficking, and corruption — weaken the reputation and standing of any financial institution. Actions by banks to prevent money laundering are not only a regulatory requirement, but also an act of self- interest.A bank tainted by money laundering accusations from regulators, law enforcement agencies, or the press risk likely prosecution, the loss of their good market reputation, and damaging the reputation of the country. It is very difficult and requires significant resources to rectify a problem that could be prevented with proper anti-money-laundering controls. It is generally recognized that effective efforts to combat money laundering cannot be carried out without the co-operation of financial institutions, their supervisory authorities and the law enforcement agencies.Accordingly, in order to address the concerns and obligations of these three parties, these Guidance Notes were drawn up. 2. 6 Techniques in Money Laundering There are diversified method of money laundering which ranges from the purchase and resale of a luxury item (e. g. a house, car, or jewelry) to passing money through a complex web of legitimate businesses and ‘shall’ companies (i. e. those companies that primarily exist only as named legal entities without any trading business activities). Basically 3 stages, which may comprise numerous transactions by the launderers-Placement†”the physical disposal of the initial proceeds (derived from illegal activity). 1. Breaking up of large amounts of cash into smaller amounts. 2. Depositing the cash in bank and subsequently transferring the same amount from one bank to another, preferably, in abroad. 3. Exchanging into a foreign currency and subsequently conversion into local currency. 4. Cash purchase of single premium insurance policy or other investment. 5. Cash purchase of costly items like jewelry, diamond, car, aircraft, and boats etc as an alternatives to cash. 6.Injecting the cash in business like hotels, restaurants, bars, casinos, bookmakers, travel agency, taxi firm etc. which handle considerable cash in day-to-day operation. Layering—creation of complex layers of financial transactions for disguising the audit trail and provide secrecy. 1. Purchase & sale of securities and commodities via brokers. 2. Conversion into monetary instruments like BCD, TC, BONDs. 3. Electronic funds transfer-very freq uently. 4. Making deposit in outstation bank branches or overseas banking system. 5. Sale & purchase of material assets between some fictitious persons/associates.Integration – the laundered proceeds are set back into the economy in such a way that they re-enter the financial system appearing as normal business funds/legal money. Identification of illicit source becomes next to impossible. 1. Falsification (over/under invoicing) of invoicing/export. 2. Deployment of fund in ‘shell’ company and recoup the as legitimate profit. 3. Taking aid of corrupt bank employees and obtaining bank loan by depositing illicit money as security. 4. False loan repayment. 5. Taking aid of E-cash, which enables to move vast amount of money instantly with just a few keystrokes. . 7 Moving Money Abroad Legitimate purposes-are for moving money abroad: (1) to invest, (2) to speculate, (3) to lend, (4) to meet trading/personal obligations and (5) to safeguard assets against theft or seiz ure by repressive regimes. But a criminal moves money abroad for- (1) Dealing in arms & ammunition, (2) Drug trafficking, (3) Financing terrorist activities, (4) Evasion of exchange regulations/control, (5) Evasion of taxation, (6) Disguise or remove proceeds of threat/fraud/bribe, (7) Making blackmail payments and (8) Paying ransom for kidnappers.The banking system remains one of the most important avenues for money launderers. The use of bearer certificate of deposit, bank drafts, wire transfers to transmit funds internationally and establishment of loan back scheme are commonly used as banking instruments around the world. New methods are constantly being used to avoid detection. These may include simple measures as â€Å"Smurfing† or Structuring that is making numerous small deposits which would fall below a suspicious cash transaction report, using relatives, third party or false names on accounts or more sophisticated measures such as use of shell companies.A recent stu dy by FATF found increasing use of non-bank financial institutions (Money Changers, remittance business etc. ) to provide services attractive to launderers since these institutions are subject to fewer regulatory requirements than banks. Because of increasing profit from the drug trafficking and other criminal enterprises, money launderers are adopting new techniques, employing specialized expertise who can provide sophisticated methods of laundering and various other financial services.Techniques used include false invoicing (over- invoicing, under- invoicing), commingling of legal and illegal money, the use of bank loan arrangements (whereby the launderer transfers proceeds to another country and use them as security for a bank loan, which is sent back to original country) and layers of transactions through off-shore shell companies. In addition, a significant amount of illegal proceeds has been invested in real estate. However, because of the introduction of anti-money laundering counter measures in different countries, money launderers constantly seek new ways to circumvent regulation.Methods that work tend to be replicated in different locations or may be used with some modifications. 2. 7. 1 Underground Banking (Alternative Remittance System) There has also of under ground or alternative banking system commonly known as ‘Hawala’ or Hundi in the sub-continent. This system works without a paper trail. A ‘Hawala’ bankers issue neither a written receipt for the sum received nor an order for payment. What he does, make a firm verbal commitment to the seller of dollars to make an equivalent taka payment at the agreed rate of exchange, through his agent in the particular country.Then he sends a coded message to his agent containing the designated recipients name and time, date and address for the payment. Why people resort to underground banking a. Socio-economic & political reasons b. Higher returns c. Anonymity d. No available bankin g channel e . Avoidance of local taxes f. Illiteracy/Semi-literacy Advantages of Hundi/Hawala: a. No paper trail b. No bureaucracy c. Cost effective d. No body is the loser and e. No holiday-very fast delivery [pic] Figure 1. Basic sequence of communication and payment in an alternative remittanceThe Chinese have a similar system known as ‘fie chien’ or flying money. This system, sometimes known as ‘Chit’ system involved depositing money in one country in exchange for chit or a chop (i. e. a seal) and remittance of this money in another country on presentation of the chit. It is fast and convenient, does not involve the transportation of bank cash, leaves little trail for investigators, has virtue of anonymity and the costs are fairly low. The main negative consequence of money laundering can have on the financial system.A large-scale money laundering operation may put at the risk of smaller nation’s financial system through loss of credibility and i nvestor’s confidence. The victims of the bank’s malpractice were the depositors and the government in developing countries. 2. 7. 2 Electronic Money Laundering Criminals are always looking for â€Å"a new type of detergent which allows for cleaner laundry† (Bortner, 1996). They have been quick to exploit each new method of financial transfer. In the 1980s and 1990s wire transfers became a popular method for moving money in both the legal and illegal sectors.By 2000 we may see the same situation with e-money. The abuse of e-money by money launderers may become a significant problem in the future because e-money systems will be attractive to money launderers for two reasons: 1. Transactions may become untraceable; and 2. Transactions are incredibly mobile. Untraceability |E-money systems may provide Organized Crime with untraceable, | |mobile wealth. | The use of e-money systems will mean fewer face-to-face financial transactions.The anonymity of e-money will make â€Å"knowing your customer† much more difficult. E-money systems also allow the parties to the transaction to deal with each other directly, without the assistance of a regulated financial institution. Thus, there may not be a traditional audit trail. Mobility Hypothetically, e-money could come from anywhere in the world, and be sent anywhere in the world. Thus, e-money systems may offer instantaneous transfer of funds over a network that, in effect, is not subject to any jurisdictional restrictions.The problem may be illustrated by separating the process of money laundering into three basic steps – placement, layering and integration – and then comparing traditional money laundering systems with cyber-systems. The first step in money laundering is the physical disposal of cash. Traditionally, placement might be accomplished by depositing the cash in domestic banks or other kinds of financial institutions. Or the cash might be smuggled across borders for depos it in foreign accounts, or used to buy high-value goods, such as artwork, airplanes, or precious metals and gems, that can then be resold with payment by cheque or bank transfer.With e-money laundering, cash may be deposited into an unregulated financial institution. Placement may be easily achieved using a smart card or personal computer to buy foreign currency, goods, etc. Powerful encryption may be used to guarantee the anonymity of e-money transactions. The second step, layering, involves working through complex layers of financial transactions to distance the illicit proceeds from their source and disguise the audit trail. This phase traditionally involves such transactions as the wire transfer of deposited cash, the conversion of deposited cash into monetary instruments (e. . , bonds, stocks, travelers' cheques), the resale of high-value goods and monetary instruments, and investment in real estate and legitimate businesses, particularly in the leisure and tourism industries. Shell companies, typically registered in offshore havens, are a popular device in the traditional layering phase. These companies, whose directors are often local attorneys acting as nominees, protect the identity of the real owners. These owners also benefit from restrictive bank secrecy laws and attorney-client privilege In an electronic-money system, layering can be done through a personal computer.There is usually no audit trail. In addition, e-money systems allow for instantaneous transfer of funds over a system that, in effect, has no borders. The last step is to make the wealth derived from crime appear legitimate. Traditionally, integration might involve any number of techniques, including using front companies to â€Å"lend† the money back to the owner or using funds on deposit in foreign financial institutions as security for domestic loans. Another common technique is over-invoicing, or producing false invoices for goods sold – or supposedly sold – ac ross borders.In e-money laundering the criminal may be able to achieve integration by using a personal computer to pay for investments or to buy an asset, without having to call on the services of an intermediary financial institution. In short, the temptation of electronic forms of money for the criminal may be the potential for untraceable, mobile wealth. 2. 8 Vulnerability of the Financial System to Money Laundering Money laundering is often thought to be associated solely with banks and moneychangers. All financial institutions, both banks and non-banks, are susceptible to money laundering activities.Whilst the traditional banking processes of deposit taking, money transfer systems and lending do offer a vital laundering mechanism, particularly in the initial conversion from cash, it should be recognized that products and services offered by other types of financial and non-financial sector businesses are also attractive to the launderer. The sophisticated launderer often involv es many other unwitting accomplices such as currency exchange houses, stock brokerage houses ,gold dealers, real estate dealers, insurance companies, trading companies and others selling high value commodities and luxury goods.Certain points of vulnerability have been identified in the laundering process, which the money launderer finds difficult to avoid, and where his activities are therefore more susceptible to being recognized. These are:  ¦ entry of cash into the financial system;  ¦ cross-border flows of cash; and  ¦ Transfers within and from the financial system. Financial institutions should consider the money laundering risks posed by the products and services they offer, particularly where there is no face-to-face contact with the customer, and devise their procedures with due regard to that risk.Although it may not appear obvious that the products might be used for money laundering purposes, vigilance is necessary throughout the financial system to ensure that weakn esses cannot be exploited. Banks and other Financial Institutions conducting relevant financial business in liquid products are clearly most vulnerable to use by money launderers, particularly where they are of high value. The liquidity of some products may attract money launderers since it allows them quickly and easily to move their money from one product to another, mixing lawful and illicit proceeds and integrating them into the legitimate economy.All banks and non-banking financial institutions, as providers of a wide range of money transmission and lending services, are vulnerable to being used in the layering and integration stages of money laundering as well as the placement stage. Electronic funds transfer systems increase the vulnerability by enabling the cash deposits to be switched rapidly between accounts in different names and different jurisdictions. However, in addition, banks and non-banking financial institutions, as providers of a wide range of services, are vulne rable to being used in the layering and integration stages.Other loan accounts may be used as part of this process to create complex layers of transactions. Some banks and non-banking financial institutions may additionally be susceptible to the attention of the more sophisticated criminal organizations and their â€Å"professional money launderers†. Such organizations, possibly under the disguise of front companies and nominees, may create large scale but false international trading activities in order to move their illicit monies from one country to another.They may create the illusion of international trade using false/inflated invoices to generate apparently legitimate international wire transfers, and may use falsified/bogus letters of credit to confuse the trail further. Many of the front companies may even approach their bankers for credit to fund the business activity. Banks and non-banking financial institutions offering international trade services should be on thei r guard for laundering by these means.Investment and merchant banking businesses are less likely than banks and moneychangers to be at risk during the initial placement stage. Investment and merchant banking businesses are more likely to find them being used at the layering and integration stages of money laundering. The liquidity of many investment products particularly attracts sophisticated money laundering since it allows them quickly and easily to move their money from one product to another, mixing lawful and illicit proceeds and integrating them into the legitimate economy.Although it may not appear obvious that insurance and retail investment products might be used for money laundering purposes, vigilance is necessary throughout the financial system to ensure that non traditional banking products and services are not exploited. Intermediaries and product providers who deal direct with the public may be used at the initial placement stage of money laundering, particularly if they receive cash. Premiums on insurance policies may be paid in cash, with the policy subsequently being cancelled in order to obtain a return of premium (e. . by cheque), or an insured event may occur resulting in a claim being paid out. Retail investment products are, however, more likely to be used at the layering and integration stages. The liquidity of a mutual funds may attract money launderers since it allows them quickly and easily to move their money from one product to another, mixing lawful and illicit proceeds and integrating them into the legitimate economy. Lump sum investments in liquid products are clearly most vulnerable to use by money launderers, particularly where they are of high value.Payment in cash should merit further investigation, particularly where it cannot be supported by evidence of a cash-based business as the source of funds Insurance and investment product providers and intermediaries should therefore keep transaction records that are comprehensive enough to establish an audit trail. Such records can also provide useful information on the people and organizations involved in laundering schemes. Corporate vehicles trust structures and nominees are firm favorites with money launderers as a method of layering their proceeds. Providers of these services can find themselves much in demand from criminals.The facility with which currency exchanges can be effected through a bureau is of particular attraction especially when such changes are effected in favor of a cheque or gold bullion. 2. 9 Money Laundering-Bangladesh Scenario Bangladesh is neither a drug producing nor a major consumer country for drugs. However, our country’s proximity to Golden Triangle in the East and Golden crescent in the West rendered her vulnerable to drug trafficking and drug related problems. In Bangladesh, no drug cartel, drug syndicate or organized groups of drug dealers have been intercepted till to day.At present, phensedyl, heroin and cannabis r ank first, second and third in order of prevalence in the country. The influence of the drug money is not yet felt to pose a major concern for us. However, Money laundering is no less then significant in our economy. Both black money and dirty money are being laundered in various ways as under: 1. Conversion of local currency into foreign currency from black market. Smuggle it out of the country and deposit it to any foreign bank; 2. The use of hundi to send money overseas; 3. The use of bearer instruments (drafts, cheques, stock certificate etc) 4.Operating business enterprises, which hardly makes profits, but shows large profits and pays taxes to cover and legalize their dirty money; 5. The use of third party or false name accounts at financial institutions; 6. The purchase of items of value (such as luxury goods, gold, vehicles real estate); 7. Create investment companies in which fictitious persons deposit money invest in shares, stock and bonds; 8. Financing the political group s by other country; 9. Excess greediness; 10. No proper way to determine the amount of income on assets; 11.Dishonesty of customs, defense and government employee; 12. Problems of illegal immigrant; 13. Lack of co-operation from the Bangladesh embassy with Bangladeshi people living in the foreign country; 14. Lack of co-operation from the foreign branches of banks and foreign exchange organization with Bangladeshi people living in the foreign country; 15. Bureaucratic complexity & extra payment; 16. Lack of providing temporary debt privilege; 17. Smuggling; 18. Under invoicing; 19. Transfer pricing & over invoicing; 20. Illegal transaction of capital; 21. Terrorist financing; 22.Lack of potential political figure; 23. Demonstration. 1. Money Laundering Effects on Society 1. Laundered money may be used to corrupt national institutions. Bribing of officials and governments undermines the moral fabric in society, and by weakening collective ethical standards, corrupts our democratic in stitutions. 2. Money laundering erodes confidence in financial institutions and the underlying criminal activity—fraud, counterfeiting, narcotics, trafficking, and corruption—weaken the reputation and standing of any financial institution. 3. Governments need to increase health care expenditures e. . treatment of drug addicts, treatment of victims of violence, etc. 2. 9. 2 Economic Effects of Money Laundering Because crime, underground activity, and money laundering take place on a large scale, macroeconomic policymakers must take them into account. But, because these activities are hard to measure, they distort economic data and complicate governments’ efforts to manage economic policy. In addition, the ability to identify statistically the country and currency of issuance and the residency of deposit holders key in understanding monetary behavior.To the extent that money demand appears to shift from one country to another because of money laundering-resulting in misleading monetary data—it will have adverse consequences for interest and exchange rate volatility, particularly in dollarized economies, as the tracking of monetary aggregates becomes more uncertain. The income distribution effects of money laundering must also be considered. To the extent that the underlying criminal activity redirects income from high savers to low savers or from sound investments to risky, low-quality investments, economic growth will suffer.For example, there is evidence that funds from tax evasion in the United States tend to be channeled into riskier but higher-yielding investments in the small business sector, and also that tax evasion is particularly prevalent in this sector. Fraud, embezzlement, and insider trading seem likely also to be more prevalent in rapidly growing and profitable businesses and markets, because â€Å"that’s where the money is. † Money laundering also has indirect macroeconomic effects. Illegal transactions c an discourage legal ones by contamination.For example, some transactions involving foreign participants, although perfectly legal, are reported to have become less desirable because of an association with money laundering. More generally, confidence in markets and in the efficiency-signaling role of profits is eroded by widespread insider trading, fraud, and embezzlement. And, money that is laundered for reasons other than tax evasion also tends to evade taxes, compounding economic distortions. Moreover, contempt for the law is contaminating—breaking one law makes it easier to break others.Accumulated balances of laundered assets are likely to be larger than annual flows, increasing the potential for destabilizing, economically inefficient movements, either across borders or domestically. These balances could be used to corner markets—or even small economies. The above effects are to some extent speculative; however, the Quick study (1996) also conducted empirical test s on the relationship between GDP growth and money laundering in 18 industrial countries for the first time.It found evidence that significant reductions in annual GDP growth rates were associated with increases in the laundering of criminal proceeds in the period 1983-90. 2. 9. 3 How money is laundered in regional basis in Bangladesh. It has found by the research team from both the different secondary & primary sources that, there are regional trends of money laundering in our country. Such as- In Sylhet region there are a lot of people lived in foreign countries. So there are great chances of illegal money transfer in this region i. e. hundi or hawala.This system works without a paper trail. A hawala banker issues neither a written receipt for the sum received nor an order for payment. What he does, make a firm verbal commitment to the seller of dollars to make an equivalent taka payment at the agreed rate of exchange, through his agent in Sylhet region. Then, he sends a coded mes sage, to his agent containing the designated recipients name and time date and address for the payment. As well as chance of gold smuggling in this region from foreign lived people and their local relatives.In Chittagong region there are a lot of cases of drug smugglings and arm smugglings occurring in front of the eye of different law enforcing agencies. In Khulna region there are many incidents of forest materials & other goods of laundering. In Comilla region a lot of suger, sharies, and fensdils are smuggled every year in our country. In the Rajshahi region the occurrence of cattle smuggling are very common, and it has a network to supply cattle all over the country especially in the season of Eid . How money is laundered Smurfing involves the use of multiple cash deposits, each smaller than the minimum cash-reporting requirement. †¢ Misinvoicing of exports and falsification of import letters of credit and customs declarations can conceal cross-border transfers of, say, the proceeds of drug trafficking. †¢ Barter: stolen property (e. g. , antiques or automobiles) can be exchanged, across national borders or domestically, for illegal substances. †¢ Parallel credit transactions can be used to avoid the formal economy, except for the final use made of the net proceeds of illegal activity to purchase legally marketed goods or services. Interbank wire transfers may not be subject to reporting on money laundering; bribery of bank officials can thus make it easier to conceal large illegal transfers between accounts. †¢ Derivatives that replicate insider trading opportunities (e. g. , a synthetic version of a company stock subject to merger or takeover) can be used to avoid detection of an unusual change in a listed stock price. 2. 11 International Anti-Money Laundering Initiatives Money laundering has become a global problem as a result of the confluence of several remarkable changes in world markets (i. . , the globalization of markets). The growth in international trade, the expansion of the global financial system, the lowering of barriers to international travel, and the surge in the internationalization of organized crime have combined to provide the source, opportunity, and means for converting illegal proceeds into what appears to be legitimate funds. In 1986, the U. S. became the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity with the enactment of the Money Laundering Control Act of 1986.Since enacting the law, the U. S. Congress has increased its coverage, reach and scope, making it the broadest, strongest and most far-reaching money laundering law in the world. The U. S. law is a weapon of enormous breadth and power wielded by U. S. prosecutors in that country. Those convicted under the law face a maximum prison term of 20 years and a fine of $500,000 per violation. A legal entity such as a bank or business that is convicted under the law faces fines and forfeitures.In addition, a bank that is convicted of money laundering can lose its charter and federal deposit insurance. Persons and entities also face civil money penalties. Concerted efforts by governments to fight money laundering have been going on for the past fifteen years. The main international agreements addressing money laundering are the 1988 United Nations Vienna Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (the Vienna Convention) and the 1990 Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds of Crime.And the role of financial institutions in preventing and detecting money laundering has been the subject of pronouncements by the Basle Committee on Banking Supervision, the European Union, and the International Organization of Securities Commissions. The Vienna Convention, adopted in December 1988, laid the groundwork for efforts tocombat money laundering by creating an obligation for signa tory states (including Bangladesh) to criminalize the laundering of money from drug trafficking.It promotes international cooperation in investigations and makes extradition between signatory states applicable to money laundering. It also establishes the principle that domestic bank secrecy provisions should not interfere with international criminal investigations. During the past twenty years there have been a number of resolutions passed by the ICPOInterpol General Assembly, which have called on member countries to concentrate their investigative resources in identifying, tracing and seizing the assets of criminal enterprises.These resolutions have also called on member countries to increase the exchange of information in this field and encourage governments to adopt laws and regulations that would allow access, by police, to financial records of criminal organizations and the confiscation of proceeds gained by criminal activity. In December 1988, the G-10's Basle Committee on Ban king Supervision issued a â€Å"statement of principles† with which the international banks of member states are expected to comply.These principles cover identifying customers, avoiding suspicious transactions, and cooperating with law enforcement agencies. In issuing these principles, the committee noted the risk to public confidence in banks, and thus to their stability, that can arise if they inadvertently become associated with money laundering. Over the past few years, the Basle Committee has moved more aggressively to promote sound supervisory standards worldwide.In close collaboration with many non-G-10 supervisory authorities, the Committee in 1997 developed a set of â€Å"Core Principles for Effective Banking Supervision†. Many important guidelines issued by Basle Committee for worldwide implementation for all banks among which, â€Å"Prevention of the Criminal Use of the Banking System for the Purpose of Money Laundering†, December 1988 â€Å"Custome r Due Diligence for Banks†, October 2001â€Å"Sound Practices for the Management and Supervision of Operational Risk â€Å", February 2003; Shell banks and booking offices â€Å", January 2003; relate to money laundering controls.In 1989, the G-7 countries recognized that money laundering had become a global problem, not least due to the increase in drug trafficking. The G-7 Summit in Paris in 1989 took a great step forward in combating international money laundering with the creation of the Financial Action Task Force (FATF) to develop a coordinated international response to mounting concern over money laundering. One of the first tasks of the FATF was to develop steps national governments should take to implement effective anti-money laundering programs.The experts within FATF came up with a list of 40 Recommendations, built on the firm foundations of the 1988 UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and the Statement of Principl es of the Basle Committee on Banking Regulations. The FATF 40 Recommendations set out the basic framework on what countries need to do — in terms of laws, regulations and enforcement — to combat money laundering effectively and were designed with universal application in mind.Over time, they have been revised to reflect new developments in money laundering and experience. The 40 Recommendations have now become the global blueprint in anti- money laundering best practice and set the international standards for money laundering controls. Setting those standards meant that all participating governments committed to moving in the same direction at the same pace, a requirement for success. Through FATF's peer-review process, the participants have pushed each other into implementing the standards.Even the IMF regards the anti-money laundering actions advocated by the FATF as crucial for the smooth functioning of financial markets. In joining FATF, every member nation makes a political commitment to adopt the recommendations and allows itself to be evaluated by the other member nations on whether it has fulfilled that commitment. Today FATF has grown to an organization of thirty-one member countries and has representatives from the Gulf Cooperation Council and the European Commission.Participants include representatives from members' financial regulatory authorities, law enforcement agencies, and ministries of finance, justice, and external affairs. Representatives of international and regional organizations concerned with combating money laundering also attend FATF meetings as observers. This top-down, cooperative approach has been greatly successful in encouraging FATF member nations to improve their money laundering regimes. With expanded membership, FATF has now achieved agreement on money laundering standards and implementation among 31 governments.More than that, FATF has encouraged development of regional groups to adhere to the same standards. B y the last count, about 130 jurisdictions — representing about 85 percent of world population and about 90 to 95 percent of global economic output — have made political commitments to implementing â€Å"The Forty Recommendations. † Another, more controversial initiative that FATF has developed to enhance international cooperation is publication of a list of non-cooperative countries and territories (NCCT) — jurisdictions that lack a commitment to fight money laundering.Following the June 2000 publication of the first such list, a number of the 15 NCCT jurisdictions have acted quickly to implement FATF standards. . Other UN initiatives, such as the 2000 UN Convention against Transnational Organized Crime, have assisted in complementing the work undertaken by the FATF. However, it was the FATF’s exercise on Non-Cooperating Countries and Territories which brought about a sea change in thinking at the highest political levels.The exercise, which identi fies and evaluates the legal, judicial and regulatory framework of countries whose regulatory systems do not appear to meet international standards, has been a success, despite its unpopularity in many quarters. 1. 8. 16. After 11 September 2001, the tragedy in New York highlighted to all civilized nations the need to look at the finances of terrorists and the methods used to transfer funds around the11 world. The FATF expanded its mission beyond money laundering and agreed to focus its expertise on the worldwide effort to combat terrorist financing.The FATF, at its Washington meeting in October 2001, came up with 8 Special Recommendations to tackle this threat. Terrorists use similar systems to money launderers and the 8 Special Recommendations complement the 40 existing Recommendations. The United Kingdom was one of the first countries in the world to have signed and ratified the UN International Convention on the Suppression of the Financing of Terrorists through the Terrorism Ac t 2000. In fact the UK was unique in meeting the requirements of all 8 FATF Special Recommendations immediately.Several regional or international bodies such as the APG (Asia/Pacific Group on Money Laundering), CFATF (Caribbean Financial Action Task Force), the ESAAMLG (Eastern and Southern Africa Anti-Money Laundering Group), GAFISUD (Financial Action Task Force for South America), the MONEYVAL Committee of the Council of Europe (the Select Committee of experts on the evaluation of anti-money laundering measures) and the OGBS (Offshore Group of Banking Supervisors), either exclusively or as part of their work, perform similar tasks for their members as the FATF does for its own membership.Bangladesh is a member of APG. This co-operation forms a critical part of the FATF’s strategy to ensure that all countries in the world implement effective counter-measures against money laundering. Thus the APG, the CFATF, GAFISUD, the MONEYVAL Committee and OGBS carry out mutual evaluatio ns for their members, which assess the progress they have made in implementing the necessary anti-money laundering measures. In the same vein, APG, CFATF and the MONEYVAL also review regional money laundering trends.During the past decade, a number of countries have created specialized government agencies as part of their systems for dealing with the problem of money laundering. These entities are commonly referred to as â€Å"Financial Intelligence Units† or â€Å"FIUs†. These units increasingly serve as the focal point for national anti- money laundering programs because they provide the possibility of rapidly exchanging information (between financial institutions and law enforcement / prosecutorial authorities, as well as between jurisdictions), while protecting the interests of the innocent individuals contained in their data.Since 1995, another forum for international cooperation has developed among a number of national financial intelligence units (FIUs), who beg an working together in an informal organization known as the Egmont Group (named for the location of the first meeting in the Egmont-Arenberg Palace in Brussels). The goal of the group is to provide a forum for FIUs to improve support to their respective national anti-money laundering programs.This support includes expanding and systematizing the exchange of financial intelligence, improving expertise and capabilities of the personnel of such organizations, and fostering better communication among FIUs through the application of new technologies. The Egmont Secretariat, currently hosted by the UK, is the ideal vehicle for FIUs from various countries to talk to one another once they reach the required standard. Financial Crimes Enforcement Network (FinCEN), the U. S. inancial intelligence unit led by the Department of the Treasury, provides training and technical assistance to a broad spectrum of foreign government officials, financial regulators, law enforcement personnel, 12 and ba nkers. This training covers a variety of topics, including money laundering typologies, the creation and operation of FIUs, the establishment of comprehensive anti-money laundering regimes, computer systems architecture and operations, and country-specific antimoney- laundering regimes and regulations.FinCEN also works closely with the informal Egmont Group of more than 50 FIUs to assist various jurisdictions in establishing and operating their own FIUs. Additionally, FinCEN has provided FIU and money laundering briefings and training in many jurisdictions, including Argentina, Armenia, Australia, the Bahamas, Brazil, Canada, China, Costa Rica, Dominican Republic, El Salvador, Germany, Greece, Hong Kong, India, Indonesia, Isle of Man, Jamaica, Jersey, Kazakhstan, Lebanon, Italy, Liechtenstein, Nauru, Nigeria, Netherlands, Palau, Paraguay, Russia, Seychelles, South Africa, Switzerland, St.Vincent and the Grenadines, Taiwan, Tanzania, Thailand, Tonga, and the United Kingdom. FinCEN ha s also conducted personnel exchanges with the Korean and Belgian FIUs. The U. S. Department of State's Bureau for International Narcotics and Law Enforcement Affairs (INL) develops assistance programs to combat global money laundering. INL participates in and supports international anti-money- laundering bodies and provides policy recommendations regarding international money laundering activities.The U. S. State Department has developed a programmatic approach to assist jurisdictions in developing anti-money-laundering regimes to protect their economies and governments from abuse by financial criminals and stem the growth of international money laundering. This approach integrates training, technical assistance, and money laundering assessments on specific money laundering problems or deficiencies to achieve concrete, operational, institution-bui

Competitive Advantage and Disadvantage Between Minorities and Women in the Workforce

â€Å"It’s a small world. † How many times do we hear this in our everyday life? The internet, mass media, telecommunications, and mass transportation have all contributed to the shrinking of the international market. As companies become more and more diverse, it’s becoming more and more important for the employees to understand and manage it. For my research paper, I’ve decided to find out the competitive advantage and disadvantage between minorities and women in the workplace.Diversity in the workplace is a topic that many industries and organizations spend an abundant amount of time and training on in order to ensure its presence. Today’s workplace is more diverse than it has ever been in the history of America. 1 out of 4 Americans belong to a minority or is foreign-born. Women are making up less than half of the work force. Whether you are a business owner, executives, salesperson, or customers, your success will increasingly depend on your abi lity to function in a culturally diverse marketplace. Women, people of color, and immigrants will soon hold almost ? of all jobs in this country.In order to effectively manage diversity and recognize it as a source of strength instead of conflict, we will need to be educated and reprogrammed to accept and embrace diversity. In the world today, it is a face that a lot of people believe that racism is no longer exists. Little do they know, as of 2010, the National Organization of Women believes that the U. S. still needs an affirmative action plan. African American women earned 63 cents to a dollar for the jobs that men do, and Hispanic women earn 57 cents to the dollar and Blacks have twice the unemployment rates of whites.Minority and immigrant groups are often disadvantaged in gaining access to jobs for which they are educationally qualified and earn less than their white counterparts. Descriptive results showed greater overall underemployment among females than males. Blacks and H ispanics had higher unemployment and working poverty rates compared to non-Hispanic whites and Asians, with job mismatch highest among Asians. Immigrant underemployment was greater than that of the native-born Americans. Asians posted the largest disparity in immigrant versus native-born underemployment, and blacks had the smallest.The double disadvantage hypothesis of minority group and immigrant status is accepted only for Asian men and women with jobs mismatched to their skills and for Asian women, who are most likely to be unemployed or be among the working poor. Asian immigrants’ women have the characteristics to stay at home, cleaning house, shy, and less aggressive, which transform to have less attached to the workforce. Researchers have shown great interest in the study of gender and race effects on promotions outcomes.The evidence suggests that women are disadvantaged such that they are less likely to be promoted than their equal qualified male counterparts. Lacks of advancement opportunities is major contributors to voluntary quit decisions by employees that fitted the job well and contribute to the company they belong. Employment decisions should be based on skills and ability, allowing all employees to put their talents to good use and work together to get the best possible outcome. America is not the only place in the world that’s facing the challenge of workplace discrimination.Within the UK, construction has an unenviable status as being the industry with the lowest representation of women and ethnic minority employees. The construction workplace presents a challenging and hostile environment for non-traditional workers, and women and ethnic minority employees face both similar and different challenges and attitudinal barriers. Discriminatory behavior perform by the dominant white male workforce is unbearable, as are informal recruitment practices, exclusive networks and a competitive culture. As the turn of the new millennium, the proportion of minority members living n poverty, attending poorly funded schools, or experiencing other forms of disadvantage far exceed the proportion of whites under these conditions. It was found that the minority residents of communities with large minority populations were in worse socioeconomic conditions than the minority residents of predominately white communities. Furthermore it was found that as minority concentration increased, white residents tended to do better. In addition, the extent of racial inequality between minority and white residents was greater in communities with larger minority populations.The improvement of education and training to minority residents of racially concentrated communities will be very beneficial, not only to the people itself, also think of it as a better country as a whole. There is little question that the improvement of educational levels and employment skills of minority residents communities will pay dividends in the near future. The growing markets of Latin America, Asia, and Central and Eastern Europe are now playing an ever more important role in global buying, selling and manufacturing.Diversity within a company can help the firm better understand the culture, customs, and the way of doing business internationally. Customers also prefer to do business with a workforce that which they can identify, and that have a strong commitment to their community. There are many advantages to having a work environment that is diverse. A company that is prepared for changes in demographics is prepared for the market changes as well as the changes in the pool of applicants. Having a diverse workplace creates an increase in attracting and retaining the most qualified candidates.Diversity programs within corporations improve corporate culture, help in recruitment, and help to maintain better client relations. In conclusion diversity in workforce is growing in all countries, specially America, Canada, and Europe. With having m ore diverse work environment, organization can produce better performance. It is important for the companies to know diversity and how to handle the issues relating to it. Also the need of the diverse workforce is getting more not only because there are different people but also because they can produce better results with having different types of people working.Leaders in the organizations must learn diversity and how to manage it effectively. One of the reasons, aside that my family is back in Hong Kong, that I will end up going back to Hong Kong as soon as I graduate college is because as much as I don’t want to say it, I can feel discrimination everyday in my life. As little as just playing basketball on a nice day, someone around you will always have the stereotype about how you look and what to expect. We can arguably say that America is the â€Å"melting pot† of the world, but racism, in my book, will never escape in the use of our everyday life.

Look for the fax that im sending you Essay Example | Topics and Well Written Essays - 1000 words

Look for the fax that im sending you - Essay Example The firm seeks to thrive through employment of friendlier and skilled staff, which in combination with great prices, is set to propel the repeat business that will be reliable. The firm expects that as the price of medication continues to rise, Inter-Global Medicare will be increasingly be appealing to the clientele’s sense of value, affordability, and convenience. Inter-global Medicare Entrepreneurs has come on board with the best prescription medication that seeks to fill the therapeutic gap that many scientific attempts have failed to break. Antiobesity Treatment, which this firm has developed, is called surgical sympathectomy. This entails administration of tables and a theatre surgical operation that is aimed at removing some of the excess fats from the body. After that, the patient is taken through a physical exercise session for at least two months and utmost five months within the supervision of the experts and within the facility. The degree of efficacy of this prescr iption will be based on the extent of weight loss. Considering the other past and even the present alternative prescriptions to the Inter-Global's drug, it emerges the best in terms of side effects with little body immunity destabilization and physical wellbeing. Objectives The objectives of Inter-Global Medicare entrepreneurs for its first four years in the market include; i. Deliver beyond the customers’ expectations with superior pricing ii. Increase the market size by more than 35% per year iii. Develop a steady business that survives off its own cash flow. Mission The mission statement of Inter-global Medicare is to provide clients with the best prices for their prescription medications. Our convenience and services will exceed the expectations of the customers. Keys to Success The fundamental keys to success by this firm will include; Satisfaction of the customers so that they are always motivated to come again. To ensure that the overhead costs as well as operating cos ts are maintained as low as possible. To provide effective prices that will be affordable to the customers and a cost-sales competitive tool against the other players in the industry. Company Summary Inter-Global Medicare entrepreneurs is located in Upper-Hill commercial center and offers prescription medications at discount prices to customers by mail order or at the store front. Company Ownership Inter-Global Medicare entrepreneurs are private limited liability corporation. It is registered with the national companies’ registrar under the company’s registration act. Products The Inter-Global Medicare Entrepreneurs offers a wide range of prescription drugs to patients based within Upper hill and nationally. Both generics and name brands will be on offer. In order for clients to purchase medications through mail order, they must first contact The Inter-global Medicare Entrepreneurs over the phone. The customer then needs to mail in the prescription, fax it, or email it . Once it is received and payment arrangements are complete, the prescription will be sent out to the customer via the delivery department. Local customers may stop by the store front to pick up the medications. In conducting any form of business, the concern should be over the welfare of the customers. The pharmaceutical industry is particularly delicate too given the implication of wrongful administration of drugs on patients. Based on this, the firm would do everything to ensure the safety

Poverty in Africa Essay Example | Topics and Well Written Essays - 1500 words

Poverty in Africa - Essay Example This has led not only to the formation but also to strengthening of G8 from time to time. The fabric of G8 is engulfing in its fold ever more areas of security, trade, development and other human concerns including environment and sustainable growth and advancement perspectives. The 'collapse' of the Brettonwoods system in 1971, formation of Organization of Arab Petroleum Exporting Countries in 1967, Yom Kippur War of 1973 the 1973 Oil Crisis, economic recession and stagflation in 1970s are the major factors leading to emergence of G8 (Tinbergen, 1977. See also http://en.wikipedia.org/wiki/1973_oil_crisis ). Their concern for poverty also has apparent reasons. Among developing and underdeveloped nations, Africa alone has about 170 million people living in subhuman circumstances with almost nothing but garbage to eat daily. This is, indeed, a vast potential of human resource going waste while living under severe conditions. Future of the world, to a great extent, lies in proper prospective development of these widespread pockets of poverty and squalor. G8, as such, has evolved from a 'Library Group' to G8 today. Since 1975, the heads of state or government of the major industrial democracies have been meeting annually to deal with the major economic and political issues facing their domestic societies and the international community as a whole. The six countries at the first summit, held at Rambouillet, France, in November 1975, were France, the United States, Britain, Germany, Japan and Italy (sometimes referred to as the G6). They were joined by Canada at the San Juan Summit of 1976 in Puerto Rico, and by the European Community at the London Summit of 1977. From then on, membership in the Group of Seven, or G7, was fixed, although 15 developing countries' leaders met with the G7 leaders on the eve of the 1989 Paris Summit, and the USSR and then Russia participated G8: Poverty in Africa in a post-summit dialogue with the G7 since 1991. Starting with the 1994 Naples Summit, the G7 met with Russia at each summit (referred to as the P8 or Political Eight). The Denver Summit of the Eight was a milestone, marking full Russian participation in all but financial and certain economic discussions; and the 1998 Birmingham Summit saw full Russian participation, giving birth to the Group of Eight, or G8 (although the G7 continued to function along side the formal summits). At the Kananaskis Summit in Canada in 2002, it was announced that Russia would host the G8 Summit in 2006, thus completing its process of becoming a full member (http://www.g7.utoronto.ca/what_is_g8.html see also http://www.g8online.org/ , http://www.g8.utoronto.ca/ ). G8 and Millennium Summit Goals G8, at the latest Gleneagles Summit, has covered several areas of contemporary challenges to international community. One of the major concerns has been the question of poverty in

Does the suppression of unions and workers groups, and collective Essay

Does the suppression of unions and workers groups, and collective action undermine democracy - Essay Example It is always clear that unions and collective action allow employees to achieve steady increase in their fields of compensation, working conditions and their economic standards. Consequently, unions also play a greater role in facilitating the levels of democracy, inclusion and participation is the general society. This result is experienced both within the place of work and widely in social and democratic activities. Therefore, these unions exert this positive influence directly through their own internal processes and functions but also indirectly through their impact on the level of inclusion, participation, and protection to the society fully (Silverman). Internal evidence proves that societies with stronger unions and collective bargaining system will always demonstrate greater levels of equality and inclusion and stronger democratic participation. Below is a brief review of the various dimensions of unions’ positive influence on the effective and quality democracy. The employees always have two major basic mechanisms for expressing that they are not satisfied with their situation in the place of work. The first concept involves the classic market mechanism of exit and entry, in this case, the individuals practice their freedom of choice to either accept a situation or reject it (Silverman). This can relate with the fact that if a consumer is not satisfied by a product or service he or she can change their respective providers, and this applies to workers who are not satisfied with the kind of job they do to reject the job and move to an offer that is more desirable. In the labor market, exit is synonymous with quitting and entry with new companies hire. Great organizations such as public agencies, governments, and large corporations can facilitate the exit entry idea by providing the possibility of transferring from one department to another instead of leaving the firm or organization completely. The second

Research for Health Project Paper Example | Topics and Well Written Essays - 5000 words

For Health Project - Research Paper Example The proposal aims at correcting the situation by suggesting various alternatives towards ensuring early HIV infection diagnosis among the Africans in UK. There is a need to access the various barriers that hinder. The research paper will also contain some research questions that the researcher will use in the field to come up with concrete findings in the study. The methodological chapter reviews some of the research techniques and designs that the researcher will use in addressing the qualitative and quantitative studies in developing the research. The section also gives the prelude on how data will be collected in the field as well as the sampling procedures that will be used in obtaining the desired population for the study. A detailed technique of raw data analysis and presentation is also indicated in the chapter. A literature search refers to an explicit and systematic approach to identifying, retrieving and managing bibliography of independent studies. The independent sources are obtained from published from sources, and the search aims at synthesizing conclusions, singling out future areas of research as well as locating information on particular topics. Today, a lot of technological advances are seen in the field of medicine as well as nursing. For instance, there are epidemics and new cases of diagnosis of some diseases worldwide. The current trends in the late diagnosis of HIV infection among the black Africans is a matter of concern in UK (Health Protection Agency, 2007). The issue poses a great concern to the government of UK to find out the primary cause of the late HIV infection diagnosis. Late HIV infection diagnosis among Africans in UK is a serious problem in the region. The problem of late HIV infection defines a situation where the CD4 cells count way below the minimum level of 350 cells/mm3 (Fenton, 2007, p.14). The late diagnosis hinders early access to

Speech presentation or Example | Topics and Well Written Essays - 1000 words

Speech or Presentation Example The purpose of this speech is to enable audience to exactly know about the importance of customers, they hold for any business. After the speech, audience will know basics of why maintaining good relations with customers is important, how customer relationship management can be implemented in brief and how it can benefit an organization. Customers, being the wage payers of employees, are very important for each and every employee of an organization. Especially, people in marketing and sales department should be well aware of their importance. Customers should be treated well, not only when they are making their purchases but also after the time since the post purchase care shown by businesses towards their customers is an important tool to attract customers for being loyal with the organization and repeat their purchase. Existing or Old customers hold key importance for businesses. Studies have proved that the most effective area of revenue generation for businesses is to attract existing customers. But even then most businesses think that once a customer has made the purchase, he or she is bonded with the organization which ultimately results in to the loss of customer base and number of clients or customers for an organization starts shrinking. Customers are very sensitive to organization's behavior with them. There can be many reasons a customer may feel bad about an organization and wishes not to repeat his or her purchase with the organization. They might think that the organization is no more fair or justified with its offering, or organization is unconcerned with the issues and problems they had from their previous purchase, or a competitor of their previous seller has offered a better product or service. Customers, if find an organization trustworthy, are very eager to repeat their purchase with this organization since it reduces their time for decision making their purchase. They had an experience with the organization's product or service and they are confident and satisfied with the organization's offering; these things provide them an ease of mind in their purchase decisions which ultimately transform into repeat purchases. It is always feasible for an organization to work for attracting its existing customers since: "Repeat customers spend 33% more than new customers. Referrals among repeat customers are 107% greater than non-customers. It costs six times more to sell something to a prospect than to sell that same thing to a customer (Laura Lake, 2007)". Before implementing customer relationship management in an organization, management should know, "what is the actual problem with the existing handling of customers that initiated the need for customer relationship management" (Management-crm, 2007) "Customer Relationship Management (CRM) is a process companies use to understand their customer

Use of Information Technology in Human Resource Planning Essay

Use of Information Technology in Human Resource Planning - Essay Example LITERATURE REVIEW Jacoby, Nason and Saguchi (77) argued that Information Technology is widely used in various departments of an organization in the United States and Japan. They insisted that IT plays a major role in the departments of human resources, aiding in the managerial processes of recruitment of workers and making of job schedules. Another group of researchers; SchoI?nberger and Lazer (221) proposed that the introduction of IT related operations in an organization, especially in the HR planning promotes efficient management and allocation of duties to employees and identification of nonperforming employees as every employee’s tasks are known. The major department of an organization is the HR department argued Haines and Lafleur (525) and incorporation of IT or digitizing the department will increase productivity of the organization by a significant margin. In the Journal of Knowledge Management, Klaila (138) claims that transformation of the information system from manual to digital in the HR department can reduce the bulk of the paper work involved in carrying out different tasks in the department. IT makes it easier to store employee information as it provides secure databases that are only accessible to the authorized parties. As IT has progressed from the old and slow mainframes to much quicker LANs (local area networks), WANs (wide area networks) and the World Wide Web, the business world follows suit in moving from the manual operations to computerized platforms (Ashbaugh and Miranda 144). Planning involves laying down strategies of an organization that are to be followed regarding performing various tasks. The HR department can work in conjunction with other departments in carrying these tasks, for instance, staff training and recruitment and job allocation among others. In order to plan adequately for a foreseeable progress of an organization, good strategies have to be laid down to avoid the failure of an organization. First is finding literature about HR tasks and functions, HR without IT and its implications. Investigate on the transformation process from HR without IT to HR with IT, and finally, how the computerized HR department will affect the planning process of human resources. Research Philos ophy, Approach and Strategy The research is based on phenomenological philosophy describing a number of individual experiences about a phenomenon. In this research, positivism philosophy has been adopted as it provides the researchers with a clear view of the current system in comparison to the old system. It focuses around the actual facts that exist in the IT introduction from the researcher’s point of view, coming up with related conclusions on what should and should not be done to ensure a successful IT incorporation in the planning process of the human resources. This philosophy allows the researcher to provide their own views about how IT is beneficial to human resource planning, while directly correlating their views to the current deliverables of the system. The research also takes a deductive approach since it works from a proven theory that IT helps in human resource planning, sampling different rules and already proven facts about our theory through collection of d ata on these facts, then use these data to back up

Business Law Term Paper Example | Topics and Well Written Essays - 750 words

Business Law - Term Paper Example An LLC is a flexible business entity that combines the elements of a partnership and that of a corporation. It provides limited liability for its members. Limited liability implies that the liability of a member is limited to a certain sum, which in most cases is the value of the members contribution to the business. A shareholder in an LLC is not personally liable for any liabilities incurred by the entity unless to the extent of their investment in the entity. This business model is ideal for Paul as it will allow him to form the business with both Sara and Ronald. Compared to a partnership, an LLC does not give joint or individual liability. In a partnership, partners are not only liable for the actions undertaken by the entity but also liable for their actions. A corporation, on the other hand, is not preferred due to the costs and time involved in its incorporation. Incorporating a business requires additional paper work compared to an LLC because they are highly regulated. Addi tionally, corporations are taxed twice, that is because the companys profits as well as the dividends paid to its shareholders incur taxes (Baden-Fuller & Morgan 2010). The steps involved in forming an LLC include choosing and registering a business name, which must not be similar to that of any registered entity and should indicate that the business is an LLC. It is also a requirement to file articles of organization. These are documents which contain the name of the business, its address and the names of its members. Equally important is the creation of an operating agreement, which stipulates the rules and regulations for the operation of the business. Operating agreements often include allocation of profits and losses, rights and responsibilities of members, and other provisions that allow the business to operate smoothly. Pauls idea of charging less prices in order to veer off