Money Laundering in A Changed World - Part I

Written by Sam Vaknin


Continued from page 1

The Scale ofrepparttar Problem

According to a 1996 IMF estimate, money laundered annually amounts to 2-5% of world GDP (between 800 billion and 2 trillion US dollars in today's terms). The lower figure is considerably larger than an average European economy, such as Spain's.

The System

It is important to realize that money laundering takes place withinrepparttar 106723 banking system. Big amounts of cash are spread among numerous accounts (sometimes in free economic zones, financial off shore centers, and tax havens), converted to bearer financial instruments (money orders, bonds), or placed with trusts and charities. The money is then transferred to other locations, sometimes as bogus payments for "goods and services" against fake or inflated invoices issued by holding companies owned by lawyers or accountants on behalf of unnamed beneficiaries. The transferred funds are re-assembled in their destination and often "shipped" back torepparttar 106724 point of origin under a new identity. The laundered funds are then invested inrepparttar 106725 legitimate economy. It is a simple procedure - yet an effective one. It results in either no paper trail - or too much of it. The accounts are invariably liquidated and all traces erased.

Why is it a Problem?

Criminal and tax evading funds are idle and non-productive. Their injection, however surreptitiously, intorepparttar 106726 economy transforms them into a productive (and cheap) source of capital. Why is this negative?

Because it corrupts government officials, banks and their officers, contaminates legal sectors ofrepparttar 106727 economy, crowds out legitimate and foreign capital, makes money supply unpredictable and uncontrollable, and increases cross-border capital movements, thereby enhancingrepparttar 106728 volatility of exchange rates.

A multilateral, co-ordinated, effort (exchange of information, uniform laws, extra-territorial legal powers) is required to counterrepparttar 106729 international dimensions of money laundering. Many countries opt in because money laundering has also become a domestic political and economic concern. The United Nations,repparttar 106730 Bank for International Settlements,repparttar 106731 OECD's FATF,repparttar 106732 EU,repparttar 106733 Council of Europe,repparttar 106734 Organisation of American States, all published anti-money laundering standards. Regional groupings were formed (or are being established) inrepparttar 106735 Caribbean, Asia, Europe, southern Africa, western Africa, and Latin America.

(continued)

Sam Vaknin is the author of Malignant Self Love - Narcissism Revisited and After the Rain - How the West Lost the East. He is a columnist for Central Europe Review, United Press International (UPI) and eBookWeb and the editor of mental health and Central East Europe categories in The Open Directory and Suite101.

Web site:

http://samvak.tripod.com/


How to Use Consultants Effectively - A View From the Other Side

Written by Carol Verret


Continued from page 1

Definerepparttar Objectives. What arerepparttar 106722 goals andrepparttar 106723 benchmarks? All too often a client is ambivalent about whatrepparttar 106724 objectives are in terms of observable outcomes. I suggested to a client that a market share penetration was an imminently achievable goal and he indicated that he thought that was not achievable. I told him he was right, it wasn’t achievable as long as he thought it wasn’t. This client property is now consistently running well over that. Another goal may be to increase mid-week occupancy. Setrepparttar 106725 average number of rooms per weeknight and develop a system of measurement. The benchmarks are what percentage increase and incremental number of rooms in three months, six months, and a year.

Definerepparttar 106726 Parameters ofrepparttar 106727 Consultation. Definerepparttar 106728 fee structure, billable expenses andrepparttar 106729 duration ofrepparttar 106730 consultation with renewal options, if applicable. Discussrepparttar 106731 reporting arrangement and agree upon whenrepparttar 106732 bill is to be paid. In many cases,repparttar 106733 consultant is a small business operator and invoices left unpaid for over thirty days puts him or her in a bind and gets your account poorly served.

Commit to Implementation ofrepparttar 106734 Recommendations. The single most frustrating thing to a consultant is a client with whomrepparttar 106735 chemistry is right,repparttar 106736 terms of contract are clear butrepparttar 106737 client does not implement or supportrepparttar 106738 agreed upon action plans and recommendations. The consultant has no authority to enforcerepparttar 106739 performance ofrepparttar 106740 action plans exceptrepparttar 106741 authority and express support that you give them. In those situations where everyone lovesrepparttar 106742 recommendations and action plans but there is no support for their implementation,repparttar 106743 consultant invariably getsrepparttar 106744 blame for poor results. It’s your money -- use it wisely.

Agree to Disagree on Occasion. A good consultant is there to stimulate you and provide another opinion. Commit to having discussions. If everything you were doing inrepparttar 106745 past was so good, how did you get into this situation inrepparttar 106746 first place? If you keep on doing what you are doing you will keep on getting what you’ve gotten. A disagreement on an issue doesn’t mean that you are wrong. Back your ego out of it and be willing to listen to a dissenting opinion. At least agree to think about it.

Commit torepparttar 106747 Agenda. A good consultant will furnish you with an itinerary prior torepparttar 106748 visit and it is up to you to ensure thatrepparttar 106749 staff involved has cleared their calendars to giverepparttar 106750 consultant their focus and attention. A consultant’s time is very expensive to waste. A staff member who is feeling threatened or defensive will often avoid spendingrepparttar 106751 required time withrepparttar 106752 consultant. While a good consultant will try to put their fears to rest (unless they arerepparttar 106753 problem), it is up to you to make it clear torepparttar 106754 staff thatrepparttar 106755 consultant is there to identify and support solutions, not to threaten or find fault. However, asrepparttar 106756 saying goes, if you are not part ofrepparttar 106757 solution, you are part ofrepparttar 106758 problem. Communicate, Communicate, Communicate. As in any good relationship, success depends uponrepparttar 106759 level of communication betweenrepparttar 106760 parties involved. Make sure thatrepparttar 106761 staff providesrepparttar 106762 reportsrepparttar 106763 consultant requests. A good consultant will begin their itinerary with a meeting withrepparttar 106764 key contact(s) and conclude withrepparttar 106765 same. Read and share withrepparttar 106766 staffrepparttar 106767 report thatrepparttar 106768 consultant furnishes after each visit and discuss onrepparttar 106769 phone.

A good consultant is not someone who is ‘between jobs’ or unemployable. Most have held positions of responsibility and produced results for their employers. That is how they developed their expertise. They are doing what they do for various reasons and not looking for a job. A good consultant has usually been offered numerous jobs by clients but prefers to do consulting forrepparttar 106770 challenge, variety and flexibility that it affords.

A good consultant is a consummate ‘hole plugger’ and problem fixer that can generate many times their fees in additional revenue provided that you,repparttar 106771 client, know how to use them effectively.

Carol Verret and Associates Consulting and Training offers training and consulting services to the hospitality industry in the areas of sales, marketing and customer service. For a complete description of her services, log onto her web site at http://www.carolverret.com, contact her via email at carol@carolverret.com or phone (303) 618-4065.


    <Back to Page 1
 
ImproveHomeLife.com © 2005
Terms of Use