Regulation

The least important trend is tightening of financial regulations and establishment or enhancement of compulsory (as opposed to industry or voluntary) regulatory and enforcement agencies.

New legislation in US which amounts to extending powers of CIA domestically and of DOJ extra-territorially, was rather xenophobically described by a DOJ official, Michael Chertoff, as intended to "make sure American banking system does not become a haven for foreign corrupt leaders or other kinds of foreign organized criminals." Privacy and bank secrecy laws have been watered down. Collaboration with off shore "shell" banks has been banned. Business with clients of correspondent banks was curtailed. Banks were effectively transformed into law enforcement agencies, responsible to verify both identities of their (foreign) clients and source and origin of their funds. Cash transactions were partly criminalized. And securities and currency trading industry, insurance companies, and money transfer services are subjected to growing scrutiny as a conduit for "dirty cash".

Still, such legislation is highly ineffective. The American Bankers' Association puts cost of compliance with laxer anti-money-laundering laws in force in 1998 at 10 billion US dollars - or more than 10 million US dollars per obtained conviction. Even when system does work, critical alerts drown in torrent of reports mandated by regulations. One bank actually reported a suspicious transaction in account of one of September 11 hijackers - only to be ignored.

The Treasury Department established Operation Green Quest, an investigative team charged with monitoring charities, NGO's, credit card fraud, cash smuggling, counterfeiting, and Hawala networks. This is not without precedent. Previous teams tackled drug money, biggest money laundering venue ever, BCCI (Bank of Credit and Commerce International), and ... Al Capone. The more veteran, New-York based, El-Dorado anti money laundering Task Force (established in 1992) will lend a hand and share information.

More than 150 countries promised to co-operate with US in its fight against financing of terrorism - 81 of which (including Bahamas, Argentina, Kuwait, Indonesia, Pakistan, Switzerland, and EU) actually froze assets of suspicious individuals, suspected charities, and dubious firms, or passed new anti money laundering laws and stricter regulations (the Philippines, UK, Germany). A tabled EU directive would force lawyers to disclose incriminating information about their clients' money laundering activities. Pakistan initiated a "loyalty scheme", awarding expatriates who prefer official bank channels to much maligned (but cheaper and more efficient) Hawala, with extra baggage allowance and special treatment in airports.

The magnitude of this international collaboration is unprecedented. But this burst of solidarity may yet fade. China, for instance, refuses to chime in. As a result, statement issued by APEC last week on measures to stem finances of terrorism was lukewarm at best. And, protestations of close collaboration to contrary, Saudi Arabia has done nothing to combat money laundering "Islamic charities" (of which it is proud) on its territory.

Still, a universal code is emerging, based on work of OECD's FATF (Financial Action Task Force) since 1989 (its famous "40 recommendations") and on relevant UN conventions. All countries are expected by West, on pain of possible sanctions, to adopt a uniform legal platform (including reporting on suspicious transactions and freezing assets) and to apply it to all types of financial intermediaries, not only to banks. This is likely to result in ...

The decline of off shore financial centres and tax havens

Poor listening habits should be a serious concern to executives. When other people talk, do you really listen with your fullest attention? Do you remember names of those you meet at functions? How well do you really know your clients? How well do you remember instructions?

So much time is wasted by a lack of communication. Studies show that most of us listen at only about 25% efficiency level. That means we don’t remember 75% of what is said to us! Hearing is not same as listening. Active Listening requires certain skills to receive, organize and interpret what has just been said.

Here are some helpful tips for Effective Listening:

#1 – Be relaxed and be in a receptive stance, not anxious or perched to respond. Keep focused on what they are saying and use good eye contact.

#2 - Listen with intention of understanding and ask for clarity when needed. You are to listen, not to teach, fix, analyze, interrupt or defend yourself at that moment.

# 3 - Make listening a fun activity. Tell yourself that you are going to give everyone you talk to your full attention.

#4 - Don’t be impatient with speaking pace. Different parts of US have various paces of speech and International executives need time to express themselves properly in English.

# 5 - Don’t argue until you have heard total comment. Many times we jump to conclusions before sentence is completed, then we look foolish.

#6 - When listening try to summarize what they have said. Can you repeat main points of what was just said either out loud or in your mind? How well do you remember?