Offshore banking is the action of having a bank account outside of the country of residence. Since its start, offshore banking has become a considerably lucrative business. Many of those who take part in offshore banking are looking for a secure location to place their income or seize the opportunity of having lower taxes. However, there are those who misuse the privilege of a foreign bank and use the business ventures for illegal actions rather than the original purpose of the dealings. Offshore banks seem to have an impartial acceptance of quite a few clients within the bank that create a lower standard of ethics in contrast to the ethics meant to be held—this includes those of a political position. Furthermore, this has the potential to be detrimental to the economy. Individuals that have offshore accounts control accounts through a credit card that has a unique and individual number and secret code. These would often be referred to as “identifier codes” called IBNs (International Bank Account Number)—where the account holder is identified by a sequence of characters—rather than the traditional system of recording names, as defined by National Westminster Bank. An IBN is not to be confused with an account number (though it not uncommon for an account number to be included) as it often varies between countries. Often times, a report must be filed for the purpose of obtaining this information. This system helps all of these banks provide financial secrecy which is that only you and your banker would legally be allowed to know the financial activity within your account. The financial secrecy, completely different from financial privacy, includes many regulations to maintain this asset of secrecy. For example, many banks would n... ... middle of paper ... ....). Democracy Now!. Retrieved January 27, 2014, from http://www.democracynow.org/2011/4/15/offshore_banking_and_tax_havens_have Offshore banking. (2014, November 2). Wikipedia. Retrieved February 20, 2014, from http://en.wikipedia.org/wiki/Offshore_banking Purpari, M. (n.d.). How Far Offshore is Offshore Banking?. Suite101.com. Retrieved January 27, 2014, from https://suite101.com/a/how-far-offshore-is-offshore-banking-a344923 Ritchie, J. (n.d.). Connect With Us. MintLife Blog. Retrieved January 27, 2014, from https://www.mint.com/blog/trends/offshore-banking/ Warren, Z. (2013, September 23). U.S. government cracking down on offshore bank accounts through FATCA. U.S. government cracking down on offshore bank accounts through FATCA. Retrieved February 20, 2014, from http://www.insidecounsel.com/2013/09/23/us-government-cracking-down-on-offshore-bank-accou
"Police Officer Salary." Job Search | One Search. All Jobs. Indeed.com. N.p., n.d. Web. 11 Feb. 2014.
In this report I will go on to discuss the topic of money laundering in the following order; firstly, I will begin by explaining what is money laundering?, why it is done?, and how it is done? I will then go on to explain the effects of money laundering and the institutions/organisations that are at risk from these activities. I will also be discussing the current situation in the UK regarding money laundering and whether anything can be done to prevent or restrict laundering activities, and will then go on to conclude my findings.
Corporate Attorney Salary (United States)." Corporate Attorney (US) Salary. N.p., n.d. Web. 29 May 2014.
As globalization continues to flourish and evolve, this creates further opportunities in which individuals are able to launder money with greater ease, efficiency in profit and sophistication. Through the forms of economic globalization, people may use new forms of travel to their advantage and personal gain. It is widely recognized (Pfaller, A & Lerch, M 2005, Auernheimer, L 2003) that this is becoming a significant challenge in the international sphere. Through globalization, criminals are able to create new means to commit crime for an economic benefit and avoid prosecution through new forms of travel. This allows them to spread transactions across multiple nations around the globe, thus increasing the number of obstacles that need to be overcome for an investigation to be completed (Karofi, U, Mwanza, J). For example, this can be explained through the new forms of money laundering. Money laundering is ‘the process by which one conceals the existence, illegal source, or illegal application of income, and disguises that income to make it appear legitimate’ (President’s Commission on Organised Crime 1984, p. 7). This can be achieved through the process of transporting diamonds or gold or even through wire transfers (Morris-Cotterill, N). The lack of risk that is involved in these contemporary crimes is increasing the appeal for crimes such money laundering to occur. This is due to the fact that criminals know that it will prove to be difficult to investigate and prosecute their activities when it occurs on a transnational basis. This, in turn, gives more individuals the opportunity to commit these crimes with little risk that they will be caught. Furthermore, this targets potential naïve victims into partaking in these forms of c...
Ruggeri, Amanda. "Obama Takes Aim at Offshore Tax Havens." U.S News And World Reports. 04/05/2009: n. page. Web. 9 Oct. 2011
...ax evasion. While recent initiatives like TIEA and OECD approach to reduce bank secrecy and provide voluntary information sharing by tax haven countries may help, these changes will likely have limited effects because the tax authorities must identify the specific taxpayers for information on request. And the EU directive has the drawback of limited membership. The third alternative of capital gain tax elimination all over the world brings the burden onto the bottom of the pyramid, so it is also undesirable. The most effective remedy for international tax evasion by individuals is automatic, multilateral information sharing through global tax organization, which has already been initiated in the European Union. More limiting measures, such as requiring more oversight of and information from foreign banks that act as qualified intermediaries, may also be effective.
This “black money” along with illegal exports taint local economies and corrodes the financial structure in developing countries where organized crime has strongholds. Developing countries become the targets for such practises due to the ability for organised crime groups to manipulate the system in place to their benefit. A country’s tax system is an important economic feature that has a major impact on organized criminal activities. A financial environment in the country where tax evasion is prevalent is often accompanied by the higher levels of organized crime associated with the nature and scale of money laundering. Organised crime groups take advantage of an already weak system to benefit their own enterprises. Instead of being granted a chance to improve, developing countries’ financial systems are stemmed from achieving success due to the presence of malicious “black money” operations done by crime groups. A great deal of money traverses these illegal systems every year, and it put to use on more illicit trades, operations, etc. Consequently, “according to an estimate by the non-profit Global Financial Integrity group, $1 trillion vanishes from the developing world’s economies every year. That is money that is badly needed for development” (Indrawati). By taking the money from countries where the regulations are not as strict in turn squanders any chance that
The purpose of this paper is to be able to provide an example of a recent scandal about usual unethical behavioral occurrences in Mexico. This paper aims at addressing the principal factors; actors involved, consequences and outcomes of unethical behavior, it also analyzes the impairment done to workers, companies, oil Mexican industry and the Mexican government. This paper is an attempt to shed light among Mexican citizens and provides an international perspective of the white-collar crime perpetrated by Oceanografia, PEMEX and CitiBank Inc. In addition, implications and penalties faced by each person engaged
How much do trust your bank or other institutions that have access to your financial and personal information? It may be time that all Canadians ask themselves this important question. This is a major issue in today’s world. We are living in the Information Age, and with all the technological advances we experience daily, having access to any kind of information is literally at yours and everybody else’s fingertips. This paper will focus on one of the most significant issues in the news recently that have sparked national interest, which is the issue of Privacy Laws in Canada, specifically within the Banking industry.
Many groups of people use money laundering today, and many ways exist to launder money. Money laundering has become more sophisticated over the years. It is much different then when Al Capone laundered his bootleg profits. The United States is doing what they can to combat this illegal activity but without the help of others it is an impossible task. Many countries have teamed up with the Unites States to help. The only way to truly combat it is to persuade the other countries to develop anti-laundering standards. Along with developing these standards, banks need to train their staff on how to catch different transactions and policies to catch money laundering. Because laundering is so easy in these less developed countries laundering will continue, and while this illegal activity continues the activity itself will continue to destroy the economy in which it exists.
Lastly the challenges faced by the Islamic banking is the lack of unity in giving Shariah’s view. Therefor, it gives problem to the agencies as there are different methodologies that are being proposed when elaborating the law. In order to counter this challenges, agencies need to take initiatives of choosing the view which is parallel or nearly parallel with what was underlined by the Al-Quran and As- Sunnah.
The intensely competitive, action-oriented, profit-hungry world of investment banking can seem like a bigger-than-life place where deals are done and fortunes are made. Investment bank includes but is not limited to bringing an established company to the market, by that I mean taking company with the capabilities but not capital of expanding, and raising money through other investors or the stock market (IPO) for a commission, I chose this field because of my personal experience with my father and his company, I’ve seen him go from starting off as a cold calling broker, to running a brokerage firm, to starting a brokerage firm, all the way to having his own investment firm. I feel like I would do better with jobs where you set your own hours and work at your own pace. A lot of the work is commission based so the more your work the more you make, this would also benefit me because it would drive me to work more, money is my motivation. To be hired you will need good people and communication skills, highly analytical skills, high ability to synthesize and high creative ability. You will also need experience in modeling, valuing companies, and financial accounting.
While banking and financial institutions have play an important role in contributing the economic growth by collecting and allocating the resources to those who in need of finance, it also can bring the financial chaos to the economy as well. Since this industry is a sentitive and fragile one, the banking superivision is required to monitor on the banking system aiming to identify and measure risks in order to protect not only the financial institutions but also the customers from the contagious risk that would happen without any alert. Moreover, banking supervision is established in order to protect depositors against avoidable losses, thereby contributing to confidence in the financial system and the
It is true, that Internet Banking is useful for customers as well as for the banks. On the one hand, it helps people have direct and quick access to their bank accounts, on the other hand, helps the banks to save costs. ‘Clearly, in order to conti...
Never have I ever climbed a mountain peak. As a child, I imagined myself conducting expeditions in deep-frozen pathways, leading amateur explorers to the top of the world, and instructing rookies in surviving harsh blizzards. Even though slightly altered, my childhood dream has been achieved. I led a team of fellow classmates, in my Strategic Management course, to the success summit of a financial competition. Over the course of a semester, I and my teammates were supposed to create and manage a company of the IT industry, in a computer-simulated environment, along with other four rival teams. I dealt with strategy and financial matters of our virtual enterprise, while my colleagues were working on marketing and manufacturing. During the four months of the exercise, I have experienced finance from various aspects: capital budgeting, through selecting favorable investment for upcoming quarters; debt management, by assessing the necessary amount and efficiency of loans; profitability analysis and dividend policy, which had been used to compile the company’s general performance index. Working in a multinational team, which included an American, a Norwegian and a Moldovan, strengthen my negotiations skills, as well as flexibility and cooperation. But above all, this experience intensified my passion for finance. Of course, a pleasant bonus was the fact that, in the end, our company’s financial performance was six times the performance of second-best team.