Money laundering , frankly speaking, is an age-old process to disguise the illegal origin or criminal nature of money. Such as money gotten from smuggling, arms sales, organized crime, trafficking in humans, prostitution rings, drug trafficking, embezzlement, bribery, insider trading and all technical fraud. These ill-gotten gains are moved, hopefully, untraceable by investing them in legitimate businesses, bank deposits or securities. But, mostly, the reason for laundering is tax evasion, like the VAT carousel scheme in the EU, which moved goods among businesses in other jurisdictions and capitalized on the various VAT rates. Tax fraud laundering schemes has cost the US over 10 to 20 billion dollars every single year. Both criminal and tax aversions in money laundering work well in obscuring the source.

Banking systems are an important part for money laundering to take place. Huge amounts of cash are spread out in numerous accounts, like financial off-shore centers , tax havens and free economic zones, then converted to money orders or bonds. Sometimes they are even placed in charities and trusts, then transferred to other locations, like a fake payment for ‘goods and services’ against bogus or inflated invoices issued by holding companies owned by accountants, lawyers on behalf of the unnamed beneficiaries. These transferred funds are then re-assembled and shipped back to the point of origin with a clean identity. Hence, laundered money. The laundered funds will be invested in legitimate businesses. Very simple really and very effective. There is no paper trail or way too much paper trail and the accounts are liquid making it virtually impossible to trace.

The problem laundered money is due to the very nature of being non-productive and idle . But, the injection of laundered money into any economy transforms them into a productive source of working capital, but this is bad, because it corrupts banks, government officials, it contaminated legal sectors of the economy, pushes out legitimate and foreign capital, deflates and un-stabilizes the control of money and enhances a cross-the-border capital movement, which increases the volatility of the exchange rate. There is a multilateral, coordinated effort to require and to exchange information, uniform laws and enhance extra-territorial legal powers to counter the international dimensions of money laundering. Due to the domestic political and economical concerns, may countries have signed up in an effort to combat this insidious practice.

Why is Money Laundering Bad? is a post from: LimeBoard

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A cooperative and productive relationship has existed between the United States and Malaysia for many years. Transitional times, politically and economically for both countries, have created hopes for the future and the optimism of this newly heightened national pride of the the citizens of each country. Tourism and international business conventions at the luxury hotels Singapore, Malaysia, and the United States support, are on the rise again. The relations of all these countries serves the purpose of creating alliances between countries with related financial goals. Singaporean leaders have spent decades collecting alliances, realizing the need that they have as a small country, with limited geographical resources, to depend on the larger allies with perhaps more financially stable economies and a wider range of natural resources. The new prime minister of Malaysia, Datuk Seri Najib, has been congratulated and admired by both governments of the U.S. and Singapore as being a man who is very forward thinking. James Keith, the U.S. Ambassador to Maylasia was one of those congratulating the country and their new leader.

Many leaders are confident in the extensive experience Najib brings to this office. They believe that this man will be provide inspiration to the people of Malaysia during these transitional times, providing that inspiration for those citizens and their abilities to reach their full potentials, individual potentials as well as well as national achievements. Cuba’s ambassador was among those at the conference in Kuala Lumpur, Cuba and Malaysia have enjoyed a strong alliance for many years. The hopes of the leaders of the various countries is the connections that will be made between the alliances, the hope of bi-lateral relationships occurring between those countries not already allied. Alliances being created due to two countries being allied with the same country, say as in the case of Malaysia having good relations with both the U.S. and Cuba. And the possibility that that may result in better foreign relations between the U.S. and Cuba themselves.

The New Prime Minister of Maylasia is a post from: LimeBoard

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President Bush has invited the leaders of 20 nations to come to Washington on Nov. 15 for an international meeting on the economy, the White House said Wednesday. The move could eventually lead to a far-reaching overhaul of the rules governing global financial markets.  Read more…

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It is one of Barack Obama‘s most reliable laugh lines. At the close of his stump speech, he often says, “I am reminded by every day of my life — if not by events, then by my wife — that I am not a perfect man.”

These days, after catching grief for calling her husband “snore-y and stinky” and speaking about his bad habits in the manner of a loving but exasperated wife, Michelle Obama only sings his praises. Read more

Michelle Obama in the Limelight is a post from: LimeBoard

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