Showing posts with label money laundering. Show all posts
Showing posts with label money laundering. Show all posts

Wednesday, October 2, 2013

Making Money

I love this – the modern history of money in 315 words:

“…On a desert island gold is worthless. Food gets you through times of no gold much better than gold gets you through times of no food. If it comes to that, gold is worthless in a goldmine, too. The medium of exchange in a gold mine is the pickax.

Hmm. Moist stared at the bill. What does it need to make it worth ten thousand dollars? The seal and signature of Cosmo, that’s what. Everyone knows he’s good for it. Good for nothing but money, the bastard.

Monday, May 6, 2013

Singapore: Tax Evasion = Money Laundering

What with all the election news, how many caught this article on Singapore’s crackdown? (excerpt)

Banks in Singapore agonize over rich clients in tax evasion clampdown

The authorities are keen to ensure the city-state is not seen as a tax haven for the wealthy from Europe, China, Indonesia, Malaysia and elsewhere without dulling its allure as an oasis for the rich, replete with casinos, luxury properties and high-end boutiques and restaurants. More than 70 percent of Singapore's S$1.34 trillion ($1.08 trillion) in assets under management at the end of 2011 came from overseas, an MAS survey showed.

Monday, March 4, 2013

BNM On Illicit Money Flows

It’s a fairly long explanation and directly targets the Global Financial Integrity reports with respect to Malaysia (I’ve taken the liberty of copying it in full):

Update on Measures to Address Unrecorded Financial Flows

Bank Negara Malaysia would like to provide an update on measures that have been undertaken by members of a High Level Multi-Agency Special Task Force (Task Force) to reduce illicit financial flows. The Task Force comprises of the Attorney General’s Chambers of Malaysia, Royal Malaysian Customs Department, Royal Malaysia Police, Malaysian Anti-Corruption Commission, Inland Revenue Board of Malaysia, Immigration Department of Malaysia and Bank Negara Malaysia. The Task Force’s role is to spearhead more effective coordination and collaboration among key law enforcement authorities in the country as well as between local and international enforcement agencies to mitigate illicit activity and financial flows.

Tuesday, October 30, 2012

Latest GFI Report: Illicit Capital Flows Through China

The latest from Global Financial Integrity focuses on illicit outflows and inflows revolving around China (excerpt from press release):

Illicit Financial Flows from China and the Role of Trade Misinvoicing

The Chinese economy hemorrhaged US$3.79 trillion in illicit financial outflows from 2000 through 2011, according to a new report [PDF] released today by Global Financial Integrity (GFI), a Washington, DC-based research and advocacy organization. Amidst increased domestic concern over inequality and corruption, GFI’s study raises serious questions about the stability of the Chinese economy merely two weeks before the once-in-a-decade leadership transition…

Wednesday, July 7, 2010

A New (Old) Way To Launder Money

This isn’t exactly on economics or even on Malaysia, but I couldn’t resist posting this:

Zimbabweans wash dirty US dollars with soap, water

By ANGUS SHAW, Associated Press Writer Angus Shaw, Associated Press Writer – Tue Jul 6, 10:19 am ET

HARARE, Zimbabwe – The washing machine cycle takes about 45 minutes — and George Washington comes out much cleaner in the Zimbabwe-style laundering of dirty money.

Low-denomination U.S bank notes change hands until they fall apart here in Africa, and the bills are routinely carried in underwear and shoes through crime-ridden slums.

Some have become almost too smelly to handle, so Zimbabweans have taken to putting their $1 bills through the spin cycle and hanging them up to dry with clothes pins alongside sheets and items of clothing.

It's the best solution — apart from rubber gloves or disinfectant wipes — in a continent where the U.S. dollar has long been the currency of choice and where the lifespan of a dollar far exceeds what the U.S. Federal Reserve intends.

Zimbabwe's coalition government officially declared the U.S. dollar legal tender last year to eradicate world record inflation of billions of percent in the local Zimbabwe dollar as the economy collapsed.

The U.S. Federal Reserve destroys about 7,000 tons of worn-out money every year. It says the average $1 bill circulates in the United States for about 20 months — nowhere near its African life span of many years.

Larger denominations coming in through banks and formal import and export trade are less soiled.

But among Africa's poor, the $1, $2, $5 and $10 bills are the most sought after. Dirty $1 bills can remain in circulation at rural markets, bus parks and beer halls almost indefinitely, or at least until they finally disintegrate.

Still, banks and most businesses in Zimbabwe do not accept torn, Scotch-taped, scorched, defaced, exceptionally dirty or otherwise damaged U.S. notes.

Zimbabweans say the U.S. notes do best with gentle hand-washing in warm water. But at a laundry and dry cleaner in eastern Harare, a machine cycle does little harm either to the cotton-weave type of paper. Locals say chemical "dry cleaning" is not recommended — it fades the color of the famed greenback.

Laundry worker Alex Mupondi said customers asked him to try machine-washing a selection of bills and the result impressed him.

But storekeeper Jackie Dube hasn't yet taken up advice of friends to cleanse the often damp and stinking U.S. dollars she receives for the garments and cheap Chinese consumer goods she sells in Harare. It's time-consuming, she says, adding that stinky, unhygienic bills are a problem.

"I get rid of the worst of the notes as soon as I can in change," she said.

APTOPIX Zimbabwe Money LaunderingAlex Mupondi, hangs one dollar notes on a drying line after washing them in Harare, Zimbabwe, Tuesday, July 6, 2010. The washing machine cycle takes about 45 minutes — and George Washington comes out much cleaner than before in Zimbabwe-style laundering of dirty money. Zimbabweans trading in the American currency since their own hyperinflationary notes were abandoned last year say washing their dirtiest cash works. (AP Photo/Tsvangirayi Mukwazhi)