Abstract The paper explains the process of money laundering and focuses on the drug trafficking and illegal gambling industries. The paper then explores the relationship between illegal drug trade and gambling and shows how casinos have been used as ways for drug traffickers to launder money. The paper points out the limitations in prosecutors' ability to prove one is engaged in money laundering as well as the Internet and technology that make it increasingly difficult to regulate financial transactions. The paper concludes that despite these limitations, the focus on money laundering remains one of the most effective ways to curtail both the drug trade and illegal gambling.
Outline:
What is money laundering?
Drug Money Laundering
Money Laundering: Illegal Gambling
Relationship between Illegal Drugs and Gambling
Changes in the Law
From the Paper "The usual process of laundering drug money entails three basic steps. The first stage involves depositing the drug proceeds into clandestine domestic and foreign financial institutions that do not seem obviously illegal. Sometimes the profits are broken up into small amounts, usually less than $10,000 to avoid currency reporting requirements or through creating sham companies, casinos, wire transfer companies, or simply smuggling the currency out of the United States in suitcases or concealing the cash in some other manner (Zagaris & Ehlers 2003). In the case of a pseudoephedrine smuggling ring an airline employee was recruited at O'Hare airport in Chicago to help smuggle drug-derived cash outside of the United States, sometimes stuffing the bills in empty cereal boxes that were packed in a suitcase ("Cash Smuggling Case at O'Hare Airport," U.S. Drug Administration Press Release, 2004)."
Abstract The author of this paper reviews the book by Gary North, "Honest Money" which deals with the relationship between money and the Bible. The paper's author examines the book's central idea that the value of money lies in its marketability. In other words, if money is unable to buy you goods and services, it is worthless. The author of the paper continues and discusses the idea proposed in the book that individuals must make and use money according to biblical guidelines in order to call their money honest and pure.
From the Paper "Honest Money follows the theme of making and using money according to biblical guidelines in order to call your money honest and pure. The bible doesn't restrict anyone with regards to the form of money they use. There are restrictions on how money should be used. But there are no limitations on what constitutes money. For example anything can be used as money: silver money, gold money, platinum money, salt, wampum, but the most important thing is that the buyer and seller should be aware of the mode of exchange and should also agree to it. This is a very critical part. If the buyer or the seller is unaware, that would be considered unethical and dishonest and thus both parties must be made aware."
Abstract The paper discusses the seriousness of money laundering. It confirms that global based financial markets make money laundering easy for financiers, and countries that enact account secrecy laws, are connected to countries with account reporting mandates, making it possible for a person to deposit "dirty" money anonymously in one country and have it transferred to another country. The paper, reports that money laundering is a commonly committed crime that wreaks havoc on the financial stability of a nation.
From the Paper "The International Monetary Fund states that money laundering, which drug traffickers use to bring proceeds gained through distribution or sale of controlled substances back into legitimate markets, or to hide support of terrorist organizations, amounts to between 2% and 5% of the world's Gross Domestic Product, (over $600 billion annually). Money laundering hides the true basis of funds gained through selling and distributing drugs and converts them into solid assets with apparently legitimate sources. However, laundering large amounts of small-denomination bills is conspicuous enough that it makes traffickers visible and liable to laws against such practices. "Tracking and intercepting this illegal flow of drug money is an important tool used to identify and dismantle international drug trafficking organizations."
Abstract The paper examines the philosophy of money in human civilization. The paper discusses how it is evident that money has changed over time as societies have become more sophisticated and complex. The paper relates that ever since the emergence of ancient cities and empires, it has always served as a means of measuring the value of work, possessions or services. The paper explains that it still serves that purpose today, even though it is now defined and understood in many different ways because of the nature of capitalism. The paper discusses that in the earliest societies, money did not exist since a simple barter system was used in which people traded something they had a surplus of, for something they needed.
This paper discusses the matter of E-money, looking at the article titled "The Global Economy: Financial, Monetary, Trade and Knowledge Asymmetries" by Bernd Kempa.
1,125 words (approx. 4.5 pages), 5 sources, 2005, $ 44.95
Abstract This paper discusses Bernd Kempa's article titled "The Global Economy: Financial, Monetary, Trade and Knowledge Asymmetries". The writer studies questions over what regulation should apply to e-money systems, particularly of small-scale transaction services). Various e-money application systems are examined in this article, including both card-based and network-based systems, Mondex and Geldkarte.
From the Paper "The purpose of this paper is to discuss and analyze Bern Kempa's essay on "The Global Economy: financial, Monetary, Trade and Knowledge Asymmetries". Kempa's thesis is based on the assumption that the emergence of electronic money will impact destabilize money markets and weaken monetary policies. He suggests that e-money poses as a potential threat to central bank money and to the existence of money itself. Kempa discusses how e-money first came about, as a result from advancement in cryptography and smart card technology."
Abstract This paper discusses whether money is an effective motivator at work. It presents theories that may or may not support our common knowledge of money being an effective motivator, but they all have one thing in common - that their premises are based on observations of outward behavior and reports made by individuals who participated in the studies.
From the Paper "Our long-standing belief is that money is what keeps our farmers cash-cropping, our nurses flocking abroad, our athletes training for competition, our writers pleasing their editors, and our telemarketing agents on the job at three in the morning. But is it really cold, hard cash that makes the world go round? Is it the only thing that keeps us up and about and motivated to do a good job?"
Tags: labor, money, motivator, psychology, theory, work
Abstract A paper that looks into the question of 'How money market fund disintermediated the commercial bank and thrift in the late 1970s. It uses three references.
Abstract This document discusses the time value of money (TVM) concept which is a foundational concept in all financial disciplines. It further discusses the impact that TVM has on annuities and how they are valued through the rule of 72 which is also used to figure most other types of interest bearing accounts to determine rates of return. Finally, the paper examines the concept of opportunity cost because understanding the cost associated with not doing something in lieu of doing something else is important in determining which strategy to adopt.
From the Paper "The time value of money (TVM) is a foundational concept in finance. TVM impacts all forms of finance from business, to consumer, as well as government (Murphy, 2000). TVM is integrally related to interest and concepts related to interest. TVM is also referred to periodically as the discounted present value (DPV) and was first discussed as far back as the 12th century (Murphy, 2000). TVM relies on the concept that a preference for some sort of immediate returns on a given sum of money rather than merely receiving the same amount of money at some point in the future. TVM essentially states that a deposit of $1,000 accumulates an amount of interest resulting in an increase in a given period of time. "
Abstract This paper discusses how money laundering policies have altered in recent years. According to this paper, it is the direct result of America's realization that it is no longer invulnerable to terrorist attack. This unsettling state of affairs has forced a re-assessment of how the United States can combat terrorism. One of the primary means, is to cut off the funding that permits terrorism to survive.
Abstract This paper explains that the Financial Task Force on Money Laundering (FATF) was formed by the G-7 nations as an intergovernmental task force to examine money laundering trends, techniques and past AML actions and to develop new, more effective measures for implementation into anti-money laundering (AML) systems. The author points out that, although Switzerland and the U.K. have developed intricate AML systems as describe in this paper, the U.S.'s enforcement oriented AML system is the international leader. The paper recommends that AML systems could be strengthened by investigating and prosecuting money laundering activity in connection with every criminal offense, which is often associated with money laundering, such as terrorism, corruption and tax evasion This paper includes tables and graphs.
Table of Contents:
Introduction
Definition of Money Laundering
Trends in Money Laundering
Anti-Money Laundering Systems: International Standards
History of the Development of Anti-Money Laundering Systems
Anti-Money Laundering Systems: The United Kingdom
Anti-Money Laundering Systems: Switzerland
The Future of Money Laundering and Anti-Money Laundering Systems
Switzerland vs. the U.K.: How Effective are Their AML Systems?
Appendix 1: Country Page - Switzerland, IBA Anti-Money Laundering Forum
Appendix 2: Country Page - the United Kingdom, IBA Anti-Money Laundering Forum
Appendix 3: FATF - The Forty Recommendations
From the Paper "It is important to understand past trends in methods for money laundering in order to predict and prevent the development of future methods. This is gained through an in-depth understanding of the prevalence and evolution of money laundering methods and their current and emerging trends. The identification of trends ensures that money laundering methods are understood and that action is taken to comprehend other key factors involved, such as context. Through its typologies effort, the FATF emphasized the identification and description of money laundering trends both at the worldwide level and on a more systematic basis."
This paper discusses the issues around the development of E-money (also called electronic money, digital money or digital cash), the economic base and monetary policy.
Abstract This paper defines E-money as spendable balances represented by digits on a bank's balance sheet. The paper discusses that E-money can not become standard currency until the public understands the concept and feels comfortable in using the technology and until the emergence of cryptography, the ability to make the transactions secure and unbreakable. The author believes that financial markets will have to develop new internal regulations, banks will have to adjust their style of business and the federal government will have to rethink the status of its monetary policy to keep control of the monetary base.
Table of Content
Abstract
Why Did Money Develop?
New Advances in Payment Systems
Why the Advances to get rid of Fiat Currency?
What is E- Money?
E-money and Government Regulation
E-money and Government Taxation
Conclusion
From the Paper "In the last thirty to forty years, major advances in payment systems and abilities have revolutionized the way most Americans and Europeans pay for goods and services. In the early 1950's, a new type of card emerged that enabled people to pay for goods and services without actually transferring any type of fiat currency or commodity, the Diners Club payment card. It was the first card that enabled individuals to pay for their lunch or dinner just by signing a piece of paper."
Abstract This paper details how money as a tool was born and what significance it played in people's lives throughout the times. This paper also provides a definition of the concept and how it has evolved over time. The paragraphs below explain how the concept of money has provided a foundation for today's global culture. This paper explores how this concept has become misunderstood and intangible over time. By understanding the history of money, one can take with them a better grasp of how to handle the current economic environment. With hope, maybe this understanding can lead to change within the present economy.
Introduction
Definition of Money Early Coins
Early Banking
Paper Money American Monetary System
Intangible Money Conclusion
From the Paper "There is a common misconception among people that money means something or has value in our culture. In today's current economic environment and age of speed of light technologies that bring people closer together than ever before, it is difficult to imagine that money does not have any real value. It really depends on one's concept or definition of money. Right now in this day and age where the system is failing so many as the cost of living grows higher and the average wage stays the same, it is easy for one to become obsessed with the notion of money being valuable. A wise man once told me that money is a tool and how you chose to use will define your character. He also expanded this idea by elaborating money as a tool can make things happen, rather those things are good or bad is entirely put to the person handling the money. With this in mind, it is easy to see how wrapped up society has become in money and how it works. Now more than ever, money seems so fluid and intangible as it can take on many forms, not just paper but bursts of light over a telecommunications wire or the magnetic strip of a debt card. It is seems now more than ever as the relationship of supply and demand of money becomes twisted, people need a better understanding of how money came to be so important."
Abstract This paper examines how successful money laundering fuels the perpetration of crimes such as drug trafficking, organized crime, corruption, illicit sales/transportation of weapons, human trafficking, fraud and theft by providing criminals with near infinite ways to conceal their actions from law enforcement agencies and ultimately provide themselves with the rewards for their criminal behavior in the form of money and proceeds that appear to be legitimate. It then looks at how bulk currency is moved using black market exchange and how this money is invested into illegal activities. The paper contends that the combating of money laundering presupposes the existence of capacity and resources at the national level and that the rise and popularity of electronic banking and informal electronic value transfer systems require scrutiny and regulation to prevent abuse and exploitation by criminals and traffickers intent on amassing and legitimizing their illicit proceeds.
Outline:
The Sophistication of Money Laundering: Bulk Currency and the U.S. Financial System
Investment of Drug and Illicit Proceeds in Business
The Internationalization of Money Laundering
Intensified Involvement of Criminal Organizations in Money Laundering Activities
An Analysis or Recommendations
From the Paper "The process of moving bulk currency from the United States and into Mexico, and Central or South America has been a long-standing operation much akin to the techniques used by traffickers to smuggle illicit narcotics or other contraband into the country. Smugglers and traffickers are limited only by the extent of their imaginations. Since 1996 - 1997, the Southwest border has become the focal point of drug trafficking into the United States. The majority of the cocaine in the United States is smuggled across the border with Mexico. This massive and very open stretch of land along the U.S. southern boundary provides many opportunities for criminals to smuggle cocaine, methamphetamine, and marijuana into the United States. "
Abstract This paper explains that Microsoft Money 2007's only competitor in this category of personal financial management software, Intuit's Quicken Premier, has many features offered in its latest version that differentiate it from its past versions; something that the programmers at Microsoft did not do. The author argues that Microsoft Money 2007 has many major bad qualities such as (1) the basic platform did not change dramatically from the previous version, (2) the user must log-in to Window's Live Mail, which presents a potential security problem, (3) another program will be needed to file the tax information generated on Money (4) it does not synchronize with any handheld devices, (5) the program can be painfully slow and (6) there are still glitches in the software. The paper suggests that the potential user download the trial version of this software and try it for his or herself.
Table of Contents
Microsoft Money Overview
Major Features Offered
Pros and Cons of Microsoft Money 2007
Reviews
From the Paper "The good and bad features of using Microsoft Money 2007 are numerous and all of them could never be named in such a report as this. The first is a look at the good features of 2007. Adding accounts to Money is made very easily, especially if the account is already available online, such as a credit card or banking account. Money will also update the information on these sites when you login to the program. Money is laid out well with easy access to drop-down menus, backward and forward buttons, and features a plethora of information including links to the best available credit card or mortgage interest rates, among others."
Abstract The writer notes that in his enlightening article regarding electronic money, "Money in an Electronic World", Bernd Kempa argues that electronic funds are not likely to replace traditional money any time soon but that the role of the central bank in determining a country's monetary policy may be affected. The writer points out that the Kempa voices these concerns in closing his research in which he successfully illustrates the development of electronic funds and cash. The writer discusses that companies such as eBay and Amazon.com have turned the retail industry upside down and these two companies alone handle billions of dollars annually in electronic funds across international markets without ever handling physical currencies. Yet, the writer maintains that central banks will continue to determine monetary policy because the simple fact is that none of these new economy institutions or the electronic funds that accompany new business models creates money themselves. The writer concludes that they only move currency values that have been created via traditional channels.
Outline:
Author Analysis
Developments in Electronic Money Conclusion
From the Paper "These observations are, while not being indicative of an impending catastrophe, somewhat alarming for economists who might be concerned with monetary policy at the national level. However, by raising such alarms, the author does not adequately support why he believes electronic funds might hold the potential to undermine such national economic and monetary policy when, in fact, all electronic funds originate first with the issuance of funds through traditional channels. No company that regularly operates in the financial markets, private or otherwise, has the ability to generate funds, whether electronic or otherwise, in any manner that supersedes the role or the oversight of the central banking systems."
Tags: funds, transfer, e-cash, monetary, banking, systems
