Market Regulation: The Reserve Bank of Fiji and Exchange Control

The main payment systems to transfer funds to finance the global Islamic terrorism are through the traditional banking channel: wire-transfers and the hawala. Heads of terror groups operate in a different fashion, using higher value and higher risk methods of financing like drug trafficking in Afghanistan and diamond smuggling in Africa.

Chapter 11 in the textbook Homeland Security by Larry K. Gaines and Victor E. Kappeler, discussed in lengthy detail the way terrorist cells go about financing, as well as their financial needs. However, one of the most common questions asked today; once the terrorist organizations obtain the needed funds to plot an attack how do they go about moving the money without being detected? The answer given in chapter 11 in the textbook is through money laundering (Gaines & Kappeler, 2012, p. 315). Pursuing this further, terrorist cells go about laundering their money through a verity of methods. To better elaborate, one well known way to launder money is through priceless

Terrorist funding is a vital fragment of what allows the smooth transition of missions and acts of violence to take place. The money acquired goes into planning and executing assignments and operations. Funds are needed in order to provide radicals with adequate training, food and lodge, firepower and weapons, passports with different identities as well as communication support. The members of terrorist groups have to rely on funding in order to fulfill sustainment capabilities as well being able to function on a day to day basis. Many of them have families to support and the use of terrorist funding often goes back to the member’s families as contribution of their services and volunteerism to their cause whether political or religious.

Criminalisation is a central tenet of any credible anti-money laundering (AML) regime. The principal offences related to money laundering in Australia are contained in division 400 of the Criminal Code Act 1995(Cth) (the Criminal Code), which applies to both ‘proceeds’ and ‘instruments’ of crime. Recognising the wide array of channels used to launder funds, the provision is framed in broad terms and has been relied on to prosecute individuals in a variety of circumstances. This versatility has been acknowledged by the courts with the NSWCA in Milne v R asserting that ‘the money laundering offences in section 400 constitute a 21st century response to antisocial and criminal conduct commonly with international elements’. Through the remainder of this presentation I will outline the evolution and background of these offences, their elements, application, and

Terrorists gain money through illegal activities such as front companies, drug trades, and kidnappings. Terrorist leaders such as Osama Bin Laden have been known to own chain stores throughout the Middle East, using them not only for money laundering but as a safe route to move and store weapons (Kaplan). In addition to this, these organizations tend to share in illegal oil profits and loot banks and market goods. Not only are these methods illegal, they are unethical, too. Kidnapping has been found to produce high profits for many of these groups. Holding hostages for ransom forces desperate family members into giving away huge sums of money in order to keep their loved ones alive. While the ways in which groups like these attain their money is disturbing, families are desperate to feed their children and themselves. On the other hand, many people are unaware of these illegal methods and know only of the charities that support the terrorist organizations. Charity is a big aspect of Islam, and there are thousands of charities through the Middle East. While as few as a hundred charities may sponsor terrorism, these are some of the wealthiest charities (Kaplan). The high amount of money flowing into these organizations leaves little for the rest of the population who have almost no way of attaining income at

The fight against money laundering over the last two decades has become an increasingly important task. Although the idea of money laundering has historically been associated with the 1930s and gangsters such as Al Capone and Meyer Lansky, operating under the US Dry Regime, broad public use, the term acquired during the Watergate case investigation mid-70s . It is the law that defines money laundering as a crime that occurs in the 1980s. Since then, many initiatives have been developed and implemented to combat this criminal activity. When discussing the issue, one must take into account the most important economic change of the last few decades - the growing globalization of the world economy and especially the global capital market. Economies

The Annunzio-Wylie Anti-Money Laundering led to the Suspicious Activity Report (SAR). Financial institutions were prohibited from disclosing to an individual that they were filing a SAR on them. The law also delivered “whistleblower” protection for individuals that file SARs. Substantial penalties were established for banks that were convicted of money laundering. Potential penalties included monetary fines and loss of banking license at the least (Burdett, 2012). The Penalties are starting to turn here and focus more on the white collar or organization committing crime not just the offender. As the mafia, wiseguys, and thugs were running ramped in the street, CEO’s and mid-level management a like where laundering money through their own cooperation on a large scale. Investment Company, Solomon Smith Barney’s own research analyst, Jack Grubman “cooked the books” when making the company reports reflect healthier than they were and ill-advised investors to invest with companies he himself was part of. Grubman cost a number of investor a lot of money and shamed the name of the Citigroup cooperation (Goldstein, 2002). The Annunzio-Wylie Anti-money Laundering Act take action to create the Bank Secrecy Act Advisory Group, thus increasing the sanctions for violation of the Bank Secrecy Act of 1970. In keeping up with advancing times recordkeeping and verification for wire transfers became more

Now, organized crime has become a threat to security and stability at the international level. This crime may lead to the weakening of economic, social, and cultural institutions of countries. Further, it may cause the loss of confidence in the democratic process and impact those who have political power. Achieving monetary

Donations from charities and other organizations are the leading source of funding for terrorism. “Charities and philanthropic organizations have also been used to move funds and are sources of al Qaeda funding” (Forest & Howard, 2013, pg. 14). Some of these charities and organizations are trying to promote Islam through legitimate programs; such as for schools, medical supplies, and orphans; but many are raising funds with the direct intent of supporting terrorism. Terrorist organizations move the money from charities through informal banking systems, money order or cash services, and even regular banks. Another way

Illegal money flows pose a massive challenge to all societies, rich and poor. Tax evasion undercuts the financing of public services and distorts the economy. Financial crime fuels and facilitates criminal activities from drug trafficking and human smuggling to theft and fraud. Corruption corrodes public institutions and warps decision-making. Terrorist finance sustains organisations that spread death and fear. The scale of such illicit money flows is staggering. Depending on the country, tax evasion robs the public sector of anywhere between 6% and 70% of what tax authorities estimate they should be collecting. Global financial crime flows are estimated to amount to over US$2tr per year. Corruption amounts to another US$1tr. Most of the effort

We all understand that anti-money laundering and counter-terrorism financing matters. This course explains how money laundering and terrorism financing work, then provide the essentials for lawyers to do two important things.

Organized Crime is criminal activities that are planned and controlled by powerful groups and carried out on a large scale. Organized Crime groups have increased in dimension and activities in the past decade and have become global threats causing a serious obstacle in the international community. In the United States, such groups have continued to widen despite measures to curb them and they have established networks in the biggest cities. “Criminal groups have well developed international networks that help them to better exercise their activities in both legal and illegal markets by using extremely complicated strategies and varied modi operandi” (Jenkins & Gary 1987). Due

This delegate suggests some solutions for this problem. Firs, she thinks that people around the world should be aware of the money laundering. Actually, many people around the world are not knowledgeable about corruption happening in the world related to money. Nations should notice the danger and severity of financing terrorism to prevent people from getting damaged. Secondly, since money laundering cannot be prohibited by a small power, this delegate thinks that it is necessary to combine countries’ investigative agencies. When many countries cooperate together, she certainly believes that it is possible for nations to eliminate money laundering rate. The last solution this delegate suggests is that each country have to reinforce the regulation of the money irregularity. Government should check if the great amount of money has been traded. If it has taken place, this delegate thinks that nation should research about the route the money has come from. To do this, she thinks that government should take more care about money that are being traded among people. This delegate believes that that when many nations work together to eliminate the money laundering, it will lead to the decreased rate of organized crimes taking place all around the world. Also there will be a brighter future coming up for the

Money laundering hinders the government in collecting taxes as it becomes tough to collect revenue from transactions which take place in the underground There are numerous socioeconomic effect of money laundering because as dirty money is transformed into 'clean ones', they are used to expand existing criminal operations and finance new ones. Furthermore it may lead to the transfer of economic power from the market, the government and the citizens to the criminals, abetting before crimes and corruptioneconomy, hence resulting in reduction in government

Money laundering to transnational organized crime operations because if their cash was not able to merge with legal business then the offenders would easily be discovered and their income would not be legitimate (Albanese, 2011). This process allows criminal proceeds to be disguises from their original origin(Albanese,2011). Transnational organized crime at times can go unnoticed and even unsolved because money laundering is not just a trade but an irreplaceable mechanism of every other illicit trade and when these activities experience a surge, it pushes more into the laundering cycle(Naim,2005).