A black money operator opens many shell companies to route money before it is invested. This is called 'layering', and it helps in covering up the money trail.
Assets are rarely in the beneficiary's name and money is moved through jurisdictions where Indian laws are not respected.
Over the years, many such perfectly legal but complex financial systems have evolved that help convert black money from bribes / kickbacks into white.
It is surprisingly easy and cheap to set up a shell company abroad. It costs as less as $500. Some countries allow companies to be set up through websites. Most Indians prefer layering services to be rendered through chartered accountants, lawyers and professional services companies.
In tax havens, professional beneficiary services is an organized industry and are bound by the laws of the land. The chances of these firms perpetuating fraud are negligible and that explains their popularity.
These companies are legal entities and are bound by professional beneficiary agreements, which act on clients' instructions and maintain 100 per cent confidentiality. Since the beneficial owner of the trust is a foreigner, there is no way to know whose money is being handled.
Some banks allow 'numbered accounts', where the account holder is identified by a number rather than his name. Blind shields are created through trusts in these jurisdictions to protect the identity of the ultimate beneficiary. The trust deed always remains a private document.
Many professional services companies advise on converting black money to white. While the money is typically used to buy property abroad, holidaying, gambling , on “heathcare” ( read as sex with beautiful models and children ) and buying jewellery, they are also routed back to India.
The return journey of black money typically has a sequence. Money is parked in a trust-friendly jurisdiction, such as Switzerland, before it is moved to a tax-efficient country such as Cyprus, where the taxation levels are very low, or have no taxes.
It is then routed to a tax-friendly country like Mauritius, before reaching the final destination in India. India has a Double Taxation Avoidance Treaty (DTAA) with Mauritius.
Most sailors know that their monthly allotments ( salaries sent to home bank ) emanate from shell companies offshore.
Do you mean to say banks in India or finance ministry don’t know all these things.
All are hand in glove.
If I want I can sent several of my past employers on a one way ticket to jail.
They will read this post and shit in their pants from today onwards.
The bastards even forged my FLAG OF CONVENIENCE ( say Panama flag on ship’s stern ) certificates like Certificates of competency, CDC, Specialisation course certificates .
I have commanded several Panama flagged ships though owners may be Japs, European , Americans etc. At one single time sailors hold several Panama certificates of competency made by different Ship Manning agencies in Mumbai . These are given on the basis of National flag certificates .
This is impossible unless it is forged.
Forgery is done in India , Phillipines etc . And the best part is that these bastard companied charged the sailors for these forged certificate ( usually comes to 500- 800 US dollar ) and at the same time charged the owners in Japan, Europe etc
Some of the shipmanagement companies in Mumbai sent forged account of wages to the owners. They would pay sailors a pittance and double the wages ( on paper ) , forge their signatures and send it to the owners .
Everybody knows these things.
Even ITF knew this .
I have seen forged Indians CDCs with govt of India ashoka chakra stamps. If I wish I can send all these Indian motherfuckers to jail. Probably one day I will dedicate a special post about these criminal bastards.
Flag of convenience (FOC) is a foul but accepted business practice whereby a merchant ship is registered in a country other than that of the ship's owners, and the ship flies that country's civil ensign.
Owners of a ship may register the ship under a flag of convenience to reduce operating costs or avoid the regulations of the owner's country. All standards are lowered— wages, safety , even death compensations .
Every son of a bitch ashore including IMO knew of all these things—they just played along. Thousands of sailors have died and been maimed severely due to the lack of safety. They cut the budgets, employ fake sailors with forged certificates.
A ship operates under the laws of its flag state, and these laws are used if the ship is involved in a case under international
The modern practice of flagging ships in foreign countries began in the 1920s in the United States, when Jewish shipowners wanted to bypass safety and quality regulations and rising labor costs .
Jew Rothschild ( SHELL oil ) and his Chillar crypto Jew agent Rockefeller ( STANDARD OIL ) were the first to do this.
I had a Turkish pumpman ( chemical tanker ) who extended his contract as soon as I came on board. Rest all signed off in a Turkish port.
So I mustered him “Why dont you sign off with the rest-- it is cheaper for the company. We are going off to South America ”
He said-- “As long as you are on board I will sail . The day you get off i will sign off. With you I can learn my job”.
And then the next day he brought his wife and 13 year old daughter on board -- lovely family- his wife was a Math professor - they had culture.
He told his wife who spoke excellent English – “This Indian captain is the only captain , who never demanded HAND KISSING at regular intervals from his officers/ crew “ .
My Turkish crew loved me -- I dont know why for I was harsh with them -- my cabin used to be full of BAKLAVA SWEETS ( mouth watering variety ) when my ship went to Turkish ports.
Anyway to cut a long story short-- my Russian chief officer ( 50% German blood – a most intelligent man ) once told me--the Turkish pumpman is better than my other officers . I trust him. This was in reply to why he was allowing liberties in the Cargo Control Room.
I remembered this.
The day i was signing off , i called this Turkish pumpman and gave him a piece of paper.
It contained an address in GEORGIA.
It had detailed explanations how to reach there..
He was to go there with some US dollars , and buy off a CERTIFICATE OF COMPETENCY for third mate .
( after USSR broke up, critical govt seals were stolen and mafia were issuing certificates of competency for a fixed cost ).
I knew how to recognize these FAKE certificates for it was better than the original. It was like detecting a fake US dollar.
I would be very harsh with these FAKE officers/ Engineers .
To cut this story short again--
After two years , i was sleeping in the middle of the ocean at 5 PM . My Romanian chief officer on the bridge tells me " Sir, you ex- Russian chief officer is on a ship passing by . He wants to talk to you"
I wore my robe and rushed on the navigating bridge .
I spoke to him, and then he breaks a bombshell.
MY THIRD MATE WANTS TO TALK TO YOU.
Yes- it was my Turkish pumpman-- he cried SIR, THANKS TO YOU , NOW I AM A THIRD MATE. YOU HAVE GIVEN ME A NEW LIFE. I WILL BE PROMOTED THIS MONTH . .
I replied--CONGRATULATIONS , DO NOT LET ME DOWN .
Then chief officer comes back on the line-- HE IS GOOD ON THE BRIDGE AND HAS LEARNT NAVIGATION WELL.
See- i do NOT have to reveal all this.
The use of open registries steadily increased, and in 1968, Liberia grew to surpass the United Kingdom as the world's largest shipping register.
As of 2009, more than half of the world’s merchant ships were registered with open registries, and the Panama, Liberia, and Marshall Islands flags accounted for almost 40% of the entire world fleet, in terms of deadweight tonnage.
Today more than 36 % of high-seas fishing vessels are registered in states they were not connected .
In business and commerce, the term flag of convenience is the use of a place, jurisdiction, state or country as a nominal (in name only) "home base" for one's operations or charter, even though either no or virtually no operations or business are conducted there. It is also used where the organization operates in one place even though nearly all of its customers are from somewhere else. It is a type of jurisdiction shopping.
Almost all flag states have been found by international shipping organizations to have substandard regulations. A basis for many criticisms is that the flag-of-convenience system allows shipowners to be legally anonymous and difficult to prosecute in civil and criminal actions.
Some ships with flags of convenience have been found engaging in crime, offer substandard working conditions, and negatively impact the environment. Life is hell for sailors in most of the FLAG OF CONVENIENCE ( FOC ) ships.
ITF PRETENDS TO SAVE SAILORS FROM FOC SLAVERY. MOST OF THE ITF MEMBERS ARE JEWS/ CRYPTO JEWS AND THEY ARE CONTROLLED BY JEW ROTHSCHILD.
I HAVE PERSONALLY ASKED SOME WHITE ITF MEMBERS “ ARE YOU A JEW “ AND ALMOST ALL THE TIME , THE ANSWER AFTER A PAUSE IS YES.
DURING SOMALIA PIRACY I HAD TO FIGHT TOOTH AN NAIL FOR COMPENSATIONS IN CASE THE SHIP GETS HIJACKED.
THERE WAS THE FAMOUS CASE WHERE ITF ASKED MY COMPANY PERSONNEL HEAD OF DEPT TO APOLOGISE TO CAPT AJIT VADAKAYIL IN WRITING.
THE ITF READ THIS APOLOGY AND DEMANDED A SECOND APOLOGY AS THE FIRST ONE WAS NOT CONTRITE ENOUGH TO A SENIOR CAPTAIN , OF 3 DECADES COMMAND EXERIENCE
Shipowners usually register ships in FOC states because they have cheap registration fees and low taxes or no taxes at all. These states also allow shipowners to employ cheap unskilled labour, officers with FAKE certification, cutting costs by lowering standards of living and working conditions for crewmembers.
FOC registries also enable shipowners to employ a non-unionised workforce.
Globalisation by JEW Rothschild and Bilderberg club, has helped to fuel this rush to the bottom. In an increasingly fierce competitive shipping market, each new FOC promotes itself by offering the lowest possible fees and the minimum of regulation.
Similarly, shipowners are forced to look for the cheapest and least regulated ways of running their vessels to remain competitive ( read as raking in the moolah ) - and FOCs provide the solution.
ITF being in cahoots with ruthless shipowners have failed to secure and enforce international minimum social standards on its vessels - this includes respect for human rights..
I remember joining a BRITISH FLAG ship and telling the owners that I refuse to wear my uniform and peak cap – I was the only Indian there ( with the cook )rest were all white skins
There MUST be a genuine link between the owner of a vessel and the flag the vessel flies, as stipulated in the United Nations Convention on the Law of the Sea. In the case of FOC registries, this "genuine link" does not exist.
The following countries have been declared FOCs:
Antigua and Barbuda
France (second register)
Germany (second register)
Sao Tome and Principe
St Vincent and the Grenadines
FOC registers do not enforce minimum social standards. The crew’s home countries can do little to protect them because the rules that apply on board are often those of the country of registration.
Most FOC seafarers are not members of a trade union, or if they are, the union frequently has no influence over what happens on board.
EVEN AFTER DOING ALL THE HARD WORK SOMETIMES THE SALARIES TO SAILORS ARE NOT PAID AT ALL.
THE MANNING OFFICES IN MUMBAI USED TO HOLD ON TO SALARIES SO THAT THEY CAN MILK INTEREST. ALL KNEW THIS-.
Seafarers on FOC ships frequently suffer as a result of:--
Very low wages or no pay at all – crew on FOC ships are frequently owed large sums of money without which they cannot even make their own way home
Very poor on-board conditions
Inadequate food and clean drinking water
Long periods of work without proper rest. I had to fight tooth and nail at sea to enfore rest periods for sailors of under manned Chemical tankers –which do excessive manual tankcleaning
Sailors get BURNT OUT .
Most FOC ships are unsafe. The owners do NOT have a proper budget for spare parts . Most FOC vessels are substandard because they fail to adhere to scheduled maintenance programmes, which a national flag state would impose
The statistics proved that there were VERY high casualty rates - poor safety practices of unskilled crew employed for peanut salaries , would lead to frequent accidents
The FOC flags have a BLACK BALL DATABASE .
A sailor gets being blacklisted if he make a complaint – he is now ex-communicated from ships. He will not be able to find alternative employment; some seafarers have even been imprisoned on their return home—as these FOC manning agents have police and judges in their payroll.
Some FOC ships engage in drug and arms smuggling . The Captain is most of the time unaware . The customs and both load and discharge ports are in cahoots
The ITF usually targets the ship captain . These bastard instead of doing their jobs pretend that the Captain is in cahoots with the company ..
I have asked ITF inspectors on their face DO YOU THINK I AM A FUCKIN' SAILOR ?.
They get non-plussed.
I have even PHYSICALLY thrown out ITF inspectors in foreign countries when I get the gut feeling that they are doing a charade.
They threaten me while getting ousted --
I tell them DO YOUR FUCKIN' WORST -and I give them a photocopy of my passport.
The IMO is more worried about penquins, dolphins and whales than third world sailors.
IMO DOES NOT EVEN KNOW THEIR JOBS
ITF HAVE TURNED A BLIND EYE TO AGED RUST BUCKET SHIPS WITH HOLES IN THE BOTTOM .
IMO DOES NOT EVEN KNOW THEIR JOBS
ITF HAVE TURNED A BLIND EYE TO AGED RUST BUCKET SHIPS WITH HOLES IN THE BOTTOM .
I WAS THE FIRST TO INTRODUCE DYNAMIC RISK ASSESSMENT
IN MY SAFETY COMMITTEE MEETING I FOCUSED ON DANGERS AHEAD OF MY SHIP AND LOOMING SHADOW – NOT DANGERS IN MY SHIPS WAKE, SO THAT MY BOSSES CAN WRITE NICE CIRCULARS AND POINT FINGERS ON SAILORS
THIS UPSET MY BOSSES AS THEIR MANGY ASSES WERE ON THE LINE.
I MAD SURE MY ROOT CAUSE ANALYSIS EXTENDED FROM SHIP TO SHORE AND STOPPED THERE – THE FUCKIN’ BUCK STOPS HERE.
THIS IS THE REASON WHEN CAT AJIT VADAKAYIL LEFT A COMPANY HIS BOSSES ASHORE GOT DRUNK CELEBRATING—BACHCH GAYA SAALA !
I KNOW ABOUT THIS BECAUSE I HAVE FANS ASHORE WHO ADMIRED MY BALLS OF STEEL.
It is amazing how we fall into the same hole again and again and again, at sea.
It is because of the attitude of the shore powers.
When there is an accident at sea TRUTH IS ALWAYS THE FIRST CASUALITY
You find the truth is buried instantly by people who want to protect their backsides and people who want to collect insurance and laugh all the way to the bank.
As a result of which , shore powers put a lot of importance to near misses, so that the jokers can write nice circulars and shine. This as as stupid as writing volumes about fishing boats in the ship's wake.
At sea on the bridge we care only about fishing boats ahead of ship. We like to be PRO-ACTIVE and deal with hazards which have NOT yet happened. We like to talk about coming shadows.
But the jokers ashore don't want this on SMS reporting records, for if the shadow indeed does its evil deed, they stand to lose their honourable chairs.
They will even give you fancy ROOT CAUSE analysis tools, where as soon as the blame comes on the sailor's incompetence or negligence , it stops . And then the poor sailor is victimised.
So why did the third mate have a collision?
The root cause arrives by the RCA software says he slept on the bridge , which is a crime, and the third mate did NOT follow watch keeping company orders as per the manual.
You sailors must take this further.
Here is a true case , of an European Third mate, who sailed with me.
Why did the third mate fall asleep?---He could NOT sleep in his rest hours.
Why could he not sleep?-- Because he was very worried
Why was he worried ?-- Because his best friend told him that his wife was seen in a pick up bar.
Why was his wife --? --because her husband has NOT send his salary allotment for past 3 months.
Why did the allotment --- ? --because the company did not remit the allotment.
Why did the company---? --because the owners did not send the funds despite 10 reminders.
SO THE ROOT CAUSE IS -- THE RICH OWNERS DID NOT SEND FUNDS.
These are the same rich owners who try to skim 10 Dollars off you. You take a flight, the airhostess will wait on you. After the plane lands, she heads off to a swank 5 star hotel and you go to a cheap sleazy motel.
The shore powers would like to give you a safety belt to be tied around your waist. As soon as you fall off from a height you will break your spine --100%. Who cares?
It is upon the sailor to demand for a safety harness which supports you at the crotch, so that you don't break your spine. Be aware. You owe it to yourself.
A lot of boiler explosions and Generator trips at sea go unreported. The company does NOT want this on the records. You try to put a SMS report about a AE trip while picking up pilot , and immediately you will get victimised.
Conrods of AE have been busting for a hundred years-- who cares?
Has anybody found the root cause for prevention? Don't give bullshit cures like changing the bolts and tightening after so many hours blah blah--
GREED ON THE OCEAN is the worst form of human greed. IMO/ ITF all work in cahoots with filthy rich ship owners. This vile form of GLOBAL CAPITALIST human greed is unknown to people ashore.
Like the landslide global capitalist onslaught of exploitation, the environment, human rights, organized labor and common dignity have been cast aside by the greed of but a few worthless parasites upon the seas as well. They are grinding our world in to the dust in order to produce profit.
The once proud maritime fleets of the world are becoming an object of shame-- with ships being commanded by cowards
PEOPLE WHO KNOW CAPT AJIT VADAKAYIL INCLUDING MY WORST DETRACTORS BOSSES WILL VOUCH— THAT THIS CAPTAIN WAS THE SOLE ROCK OF GIBRALTER AT SEA , HAVING THE GUTS AND THE COMPETENCE TO TAKE ON EVIL / STUPID MEN IN POWER
I remember I joined a Norwegian owners ship at Dubai drydock in June ( summer ) . I refused to sail out the ship unless Freon gas was given for the ship’s AC plant. The gas came el pronto . The ship was without AC for 9 months and I gleaned this info from a 3rd Engineer in office who came to the manning office to collect some dues.
Another ship always had water in the ballast double bottom—again a Norwegian owner. I went down to the tanks and located three holes .
I knew where to look. I plugged the tree holes myself using softwood spikes and a welding cup doubler . It is extremely dangerous as you can get electrocuted. I lost a lot of blood ( did NOT know until I felt weak ) as the edges of the bottom holes were like razors.
ALMOST ALL MY RADIO OFFICERS TOOK MY PERMISSION TO PHOTOCOPY MY MESSAGES TO SHORE OFFICE WHERE I KICKED THEM ON THEIR COLLECTIVE BALLS, AGAIN AND AGAIN AND AGAIN.
THE RADIO OFFICERS TOLD ME --
YOU ARE ONE CAPTAIN WHO HAD THE COMPETENCE AND THE BALLS – THIS IS CATHARSIS FOR US – WHEN WE BECOME OLD RETIRED MEN, WE WILL HAVE SOMETHING TO FIRE OUR HUMAN SPIRIT.
A "Flag Of Convenience" (FOC) ship is a ship where the nationality of the owner is different from the country in which the ship is registered.
Countries that offer registration of ships owned by foreign interests are considered to have what is called an "open register". Foreign owned ships dominate the flags of "open register" countries.
The United Fruit Company was one of the first to create the Honduran open registry to ensure the cheap and reliable transport of its bananas—humongous profits
On FOC ships the Jap owner may have 100 ships. Each ship will have a different owner . This way if one ship sinks or pollutes incurring huge liabilities , the other 99 ships are safe.
The CERTIFICATE of registry will show some bullshit SHELL COMPANY name as owner with a FAX number. You try to fax on that number ( say in Panama ) nothing will happen—all know this .
Ship registration is the process by which a ship is documented and given the nationality of the country to which the ship has been documented. The nationality allows a ship to travel internationally as it is proof of ownership of the vessel
International law requires that every merchant ship be registered in a country, called its flag state. A ship is bound to the law of its flag state. It is usual to say that the ship sails under the flag of the country of registration.
A ship's flag state exercises regulatory control over the vessel and is required to inspect it regularly, certify the ship's equipment and crew, and issue safety and pollution prevention documents.
A registry that is open only to ships of its own nation is known as a traditional or national registry. Registries that are open to foreign-owned ships are known as open registries, and some of these are classified as flags of convenience.
Panama first established its open register in 1916 and increasingly became the target for American shipowners, who were subject to the restrictive regime – particularly with regard to manning - imposed at home by the USA maritime legislation, and who could benefit from the new register’s more relaxed manning and taxation regime. Panama was subsequently joined by Honduras
SO WHOM SHALL WE THANK—AS USUAL IT HAS TO BE A BUNCH OF CROOKED JEWS
In the 1950s, open registers accounted for some 4% of the world’s fleet, and by the mid-1980s, more than 30%. At the beginning of 2009, over 73% of the total merchant fleet were registered under foreign flags (mainly in open registers), with Panama accounting for 23.6% of the world’s tonnage
The term Flag of Convenience is particularly associated with the International Transport Workers’ Federation (ITF), which, since 1948, has been waging a campaign ( SIC ) against these registers.
TODAY ALL KNOW THAT JEW ROTHSCHILD FUNDS AND SUPPORTS BOTH SIDES . TO CONTROL THE OPPOSITION, LEAD IT YOURSELF.
IN INDIA EVERY TRADE UNION LEADERS BEFORE 1947 WAS A ROTHSCHILD PAYROLL AGENT. ONE EVEN BECAME OUR PRESIDENT AFTER INDEPENDENCE—WE GAVE HIM BHARATRATNA TOO
ITF MADE SURE WHITE MEN HAD A BETTER COLLECTIVE BARGAINING AGREEMENT ( EVERY THIN BETTER—WAGES/ FACILITIES/ DEATH COMPENSATIONS ) THAN THE BROWN AND BLACK SKINNED SAILORS OF THIRD WORLD NATIONS.
ITF DID BLATANT DISCRIMINATION. THEY PLAYED AROUND WITH ENGLISH WORDS .
Each year the numbers above keep growing at an alarming rate. The reason for this is that there is greater profit in sailing FOC ships for the ship-owners.
The following are the reasons for this: Easy entry to and exit from open registers; low taxes or no taxes levied on shipping; the governments of open registered countries lack the power or willingness to impose national or international standards which allows FOC ships to avoid health, safety, environmental and ship maintenance regulations; avoid union ship crews; hire ship crews from the most economically depressed nations; helps suppress ship crews grievances; and in some cases allows for true ship-owners to avoid economic responsibility for such things as environmental damage, shipping accidents, and payment of ship crew's wages.
White skinned sailors say in American President Lines had good FOC conditions –while some ships using Third world poor nations crew has pathetic conditions—most of which was never honored—it was only on paper.
If sailors complains, it is the ITF who gives the hidden info to JEW owners and tech managers whom to screw and sack.
The ITF says that at least 2,500 seafarers die each year at sea and that crews on FOC ships are more than thrice as likely to get killed on the job
WHEN A WHITE JEW OWNER CANT FORCE HIS WHITE CREW TO DO A DANGEROUS/ ILLEGAL/ ENERVATING HARD JOBS, HE DOES COMPLETE CREW CHANGE AND USES THIRD WORLD CREW
WHEN CAPT AJIT VADAKAYIL STOPPED DANGEROUS TIME HONORED PRACTICES THE SHORE BOSSES WERE PISSED OFF— WELL THEY COULD DO ZILCH FUCK SHIT ON ME.
Hiding the identity of ownership is done to camouflage ownership of ships poorly maintained or crews poorly supported, or who have a history of ship detentions, as well as those with distinctly illegal or even terrorist intent.
WHEN I JOIN SUCH A SHIP, ( WITH DELIBERATE POOR STANDARDS , LACK OF GENUINE SPARE PARTS ) I WOULD STENCIL AT THE GANGWAY IN LARGE FLUORESCENT ORANGE PAINT ( I MADE THE STENCILS MYSELF )
THIS SHIP IS OWNED BY XXXXX -- THIS SHIP IS TECHNICALLY MANAGED BY XXX--- THIS SHIP IS TIME CHARTERED ( HEAD DISPONENT OWNER ) BY XXXX -- THIS SHIP IS CLASSED BY XXXX.
I WOULD TAKE PHOTOS ( RESIZE IT ) AND ADD AS ATTACHMENT TO EVERY EMAIL .
IT PISSED OFF MY BOSSES.
THEY TRIED TO MAKE ME RUB IT OFF—BUT FELL PHUTT ON THEIR FACES
NOBODY DARED TO THE BELL THE CAT NAMED VADAKAYIL
The quest for anonymity often comes to the fore when ships are finally sent for disposal. Often when a ship is purchased for scrapping, usually by cash buyers, she will undergo a change of name and registry under her new owners. There are instances, however, when this change of identity happens whilst the vessel is actually at sea and en route to the breakers.
In 2007, the former ferry Beni Ansa sailed from Almeira to Alang for scrapping. The vessel had been detained under advice from the European Commission, and a detailed inspection indicated the presence of hazardous materials on board. During that month, the ship changed its name and registration with different open registers, from Beni Ansar under the Moroccan flag, to Beni under the flag of Tuvalu, and then to Aqaba Express under the flag of the Comoros Islands.
After finally being allowed by the authorities to sail, ostensibly to Romania, for the purposes of refurbishment, the ship then changed course, arriving to anchor off Alang under yet another name, the Al Arabia. Whilst it is conceivable for a ship to be re-registered in order to enjoy economic advantages, it is difficult to associate such a series of changes being undertaken for any purpose other than a simple hiding of identity (and hence of liability) once it had ended its operational life and was actually at sea and destined for the shipbreakers.
IF YOU THINK THE ENGLISH SPEAKING WHITE MAN RUNS THE SHIP BETTER THAN AN INDIAN , THINK AGAIN –
I WAS THE FIRST INDIAN CAPTAIN ON A BIG VLCC OIL TANKER OWNERS COMPANY—IT WAS ALWAYS MANNED BY BRITISH OFFICERS
I FOUND OUT IN THE FIRST HOUR ITSELF THAT THE CLEAN SLOP TANK WAS BEING USED AS THE DIRTY SLOP TANK— BY CHECKING BACK ALL ANNEX 1 OIL RECORD BOOKS TO SHIP'S FIRST VOYAGE AFTER DELIVERY .
EXAMPLE: A CAPTAINS CABIN IS ALWAYS ON THE STARBOARD SIDE, TOP FLOOR ( ALL SHORE PEOPLE / PILOTS/ AGENTS HOME IN ) , BUT THEN I HAVE SEEN A SHIP WHERE THE CAPTAINS CABIN WAS ON THE PORT SIDE.
THE BRITISH OFFICERS FOR 11 YEARS DID NOT HAVE THE CEREBRAL WHEREWITHAL TO DO “CLOSED LOOP TANK CLEANING”.
I WONDER IF THEY EVEN KNEW –GROSS INCOMPETENCE
ELEVEN CONSECUTIVE YEARS OF ANNEX 1 CARGO OIL RECORDBOOK ENTRIES CANNOT LIE
THIS IS A HUGE CRIME – OWNERS / SHORE BOSSES / PAST INSPECTORS CAN BE JAILED – THE SHIP CAN BE FINED IN BILLIONS OF USD.
COMPANY WOULD COME DOWN
ON A SCALE OF 1 TO 100 FOR THE MOST SHOCKING DISGRACEFUL EPISODE EVER AT SEA- PAST/ PRESENT/ FUTURE – THIS IS THE ULTIMATE !
THIS WILL BE AT 100 –TOP NOTCH
ALL BRITISH OFFICERS PUMPED OIL INTO THE SEA—THEY HAD NO FUCKIN’ CLUE--
CHOOTIYAS OF THE FIRST ORDER --
THIS INCOMPETENCE CAN NEVER EVER BE EXCEEDED
THIS INCOMPETENCE CAN NEVER EVER BE EXCEEDED
I REFER TO THIS COMPANY WHEN MY SHIP FACED THIS PLANETs NO 1 TYPHOON—SUPER TYPHOON BART.
I HAD TOLD MY POMPOUS WHITE BOSSES IN LONDON TO FUCK OFF—AND BOY , WERE THEY ANGRY WITH ME !!
The families of seafarers that die on FOC ships most of the time do not receive a penny in compensation from the ship-owners.
PRATIBHA CAUVERY IS REGISTERED IN MUMBAI — PRATIBHA IS SHARAD PAWARS WIFE
OWNING A SHIPPING COMPANY IS A GREAT WAY TO LAUNDER MONEY.
SOMETIMES UNSCRUPLOUS SHIPOWNERS SINK THEIR OWN SHIPS
The M/V Jahan (Belize FOC registered) was reported sunk in the South Atlantic Ocean in good weather, and all 28 crewmembers were reported lost.
A distress call reported, "uncontrollable flooding" and that the crew, mostly Bangladeshi citizens, would be forced to abandon ship.
The distress call was not a general call but rather was a normal telex sent to the ship-owners. The ship had an Inmarsat C system that was not used. Australian Marine Rescue, the South African Air Force and three bulk carriers searched for the ship and found nothing.
Later the ship resurfaced in Tema, Ghana displaying a different name. It seems that the ship had a lien on it and it sought to fake its own sinking.
ON CHEMICAL TANKERS IT IS ABSOLUTELY NO -NO -NO TO HAVE OFFICERS WITH FAKE CERTIFICATES OF COMPETENCY AND FUDGED EXPERIENCE
MOST OF THE TERRIBLE ACCIDENTS AT SEA ARE HUMAN IGNORANCE CAUSED
Here is a report –
"During port operations, I was serving as chief officer and had worked continuously for 48 hours. I contributed to a chemical overflow in which serious injury occurred by not concentrating on the loading operation. Acrylonitrile overflowed and covered two men when I hot-washed an adjacent tank."
SUCH A THING CAN HAPPEN ONLY TO AN IMPOSTER, WITH FAKE EXPERIENCE AND FAKE CERTIFICATES
The following are some examples of abandon FOC ships :
The FOC Maltese flagged MN Verona was left stranded in the port of Hamburg, Germany after it was detained for technical deficiencies. The Polish and Filipino crew was left without food or water, and the Swedish owners had not paid the crew for over 5 months.
The crew of the MN Terpsichore (Maltese FOC flag) were abandon in the Port of Mongla, Bangladesh without food, clean drinking water and electricity. Because of the appalling conditions crewmembers were in poor health and there was an outbreak of hepatitis. Because the crew had not been paid in 10 months they were forced to sell their belongings to buy food.
The crew of the Queen of Vevey (Panamanian FOC flag), made up of Russian and Ukrainian seafarers, was abandon at anchorage at Port Stanley in the Falkland Islands in unsanitary conditions. The ship was said to be "unseaworthy". The crew remained unpaid and a local Seamen's Mission was supplying them with food and water. The ship was sold and changed its name to the Maimad and reflagged to the FOC St. Vincent register. The authorities of the Falkland Islands did little to help because, as they stated "it is only too likely that unscrupulous ship-owners would be encouraged to abandon their vessels there..."
The Burmese crew of the Brahm (Maltese FOC flag) was abandoned off the coast of Lagos, Nigeria for almost six months. They were forced to cook and clean with river water and became stricken with tropical diseases. Several crewmembers became so ill that they had to be transported to a hospital. The crew also had not been paid.
The Ukranian crew of the Alcor (Maltese FOC flag) was abandoned in the St. Lawrence River off of Quebec City, Canada after it ran aground. The reason it ran around was that it suffered a rudder breakdown. The vessel had vertical crack in the hull running from deck to water level. The crew had not been paid in months.
The Sri Lankan, Ukrainian and Romanian crew of the Elijeanne (Panamanian FOC flag) were abandoned in Port Au Prince, Haiti. The crew was forced to sleep in alleyways and on hatch covers. The vessel was infested with mosquitoes that led to an outbreak of malaria. The crew also had not been paid.
The crew of the MN Endurance (Belizean FOC flag) was abandoned in the Port of Maputo, Mozambique. The captain left the ship without food, water or fuel for electricity. The crew had not been paid wages in months.
The crew of mixed nationality from Central America and Asia of the MN Ocean Wave (Panamanian FOC flag) were abandoned in Mongla, Bangladesh after the ship went aground. Because of serious structural deficiencies and the likelihood of the ship breaking up, the crew left the ship and were placed in custody by Bangladesh authorities. There they waited for their wages.
The Pakistani crew of the Normar Pride (Panamanian FOC flag) was abandoned in Curacao, Netherlands Antilles without food, water and their wages.
The crews of the sister ships oil tankers Luigi S and Zagara were abandoned after another sister ship the Erika (all three are Maltese FOC flagged) broke up and sank in the Bay Biscay, polluting the Brittany beaches with heavy fuel oil. The crew of the Luigi S was abandoned in Montenegro, and the crew of the Zagara was abandoned in Sicily. The crews had not been paid in over a year. The abandonment came about out of the ship-owners wanting to cut their assists and avoid responsibility for the costs of the pollution of the Erika.
The crew of the Karteria (Maltese FOC flag) was abandoned in the Port of Antwerp, Azores after a horrific explosion that left two dead and another with a broken back with 30% burns. That crewmember was left in a hospital that could not treat him until the ITF intervened. The rest of the crew was abandon with an unstable cargo that continued to emit explosive quantities of hydrogen gas.
The Pakistani crew of the Delta Pride (Maltese FOC flag) was abandoned off the coast of South Padre Island, Texas for over 10 months. The ship had its papers and the seafarer's passports confiscated after the owner skipped out of dues by going bankrupt. The SOS calls from the crew were ignored and they ran out of fuel, thus not power for lights and cooking. They had to save rainwater, for they had run out of fresh water and they had to fish in order to eat. The crew became malnourished and sick from having to drink dirty water.
Most seafarers on FOC ships are recruited by shipping agents (job sharks) and are forced to sign over their first month's wages to these employment agents. If any of them express any grievance or speak of unions they become blacklisted for future employment at sea.
Getting back to SHELL companies-
While campaigning in 2008, President Obama slammed the “Ugland House,” a five-story building in the Cayman Islands that is reportedly home to over 18,000 companies.
"That's either the biggest building in the world, or the biggest tax scam on record," said Obama.
The Panama Papers — the cache of leaked documents from a Panama law firm, Mossack Fonseca — have revealed how thousands of the firm’s clients, including an array of powerful figures around the world, stashed billions of dollars in tax havens.
Financial institutions must verify the identities of customers with AADHAR card , who set up accounts in the names of shell companies, thus closing a loophole in the banking system that thwarts transparency efforts.
After revelations came to light about Americans using Swiss bank accounts to evade taxes, the United States in 2010 passed the Foreign Account Tax Compliance Act, which requires financial firms in other countries to disclose details about American clients with offshore accounts.
Yet the United States is one of the few countries that has refused to sign new international standards for exchanging similar financial information with other countries.
The United States demands that the rest of the world tell it when an American holds an account at a foreign institution, but the U.S. does not return the courtesy by automatically providing comparable information on foreign investors in U.S. banks to their home tax jurisdictions
When politicians steal, they reduce the amount of public cash left over for roads or schools. When they give sweetheart contracts to their chums, they defraud taxpayers and deter honest firms from investing in their country. All this hobbles growth.
Many schemes described in the Panama papers involve anonymous shell companies, whose real owners hide behind hired “nominees”. Such vehicles are known as the “getaway cars” for tax dodgers, launderers and crooked officials.
It is time to untint their windows by creating central registers of beneficial ownership that are open to tax officials, law-enforcers—and the public. The penalties for lying when registering a firm should be stiff with minimum number of years of rigorous incarceration
Too many are paid to act as buffers, offering an extra layer of protection against those who pry.
To see just how far they could go to secure an untraceable shell company, investigators and research teams impersonated a range of criminals — from money launderers to terrorist financiers to drug traffickers. They made email solicitations to nearly 4,000 services in more than 180 countries around the world.
Despite the glaring red flags signaling potential security threats, they were able to secure approval to set up untraceable shell companies online for as little as a few hundred dollars.
Almost half of the firms they solicited failed to ask for proper identification — and one-fifth did not want any photo ID at all.
The U.S. is among the top offenders. The findings show that D elaware, Nevada, Montana, and Wyoming are some of the easiest places in the world to score an illicit shell operation.
If we could understand the money-laundering process and take steps to track the real people in control of shell companies, it would be much more difficult for organized criminals and possibly terrorists to carry out their nefarious activities.
Let's say you're a government official or corporate executive, and you want to receive a $1 million bribe or kickback for giving a lucrative and excessively priced contract to a foreign or local business. You approve the contract, and its payment, and pad the consideration by a few million, which includes $1 million for yourself.
The client puts your $1 million overpayment into a shell company in an offshore jurisdiction, where your ownership can remain anonymous. You are then free to invest or spend the money. The business writes it off as an expense, paid out to an offshore consultant.
Or perhaps you'd prefer that your $1 million be used to buy an asset offshore for you, or that it be paid out gradually in salaries or fees to family members. Either way, you're good to go.
It's the same thing in reverse. Simply sell your goods or services to a business at a price that is less than the goods or services are worth. Then, out of the embezzled funds, you get $1 million directly from the company that got the bargain. These funds can be placed directly into anonymous offshore account or into an asset of your choice.
Let's say you want to bring $1 million into your country without detection by tax authorities. Clients were urged to buy diamonds for cash, then smuggle them overseas in toothpaste tubes to fool authorities. The gems can then be sold for cash, to private dealers, once you rinse off the Colgate.
Another technique is to transfer your funds to anonymous debit cards. And if you want to go old-school, collectible stamps still have their fans.
Credit Suisse admitted guilt to such activities and others - such as shredding documents and keeping transactions below the US $10,000 reportable limit - to help American clients avoid taxes, paying a fine of $2.6 billion
The largest recipient of FDI (Foreign Direct Investment) is the British Virgin Islands, an archipelago with 23,000 residents. More than 100 billion USD washed up there. Other havens receiving massive "investments" included the Cayman Islands, Liechtenstein, Monaco, Andorra, and Vanuatu.
These funds also dominate stock and bond markets. By 2012, tax havens held more than 30% of the total foreign investment (corporate, bonds, stocks) in the US.
One high-profile case in is now underway in Spain, where the world's greatest soccer superstar, Lionel Messi, and his father stand accused of laundering $5.56 million (4.2 million euros) worth of sponsorship dollars.
Learn to take with a pinch of salt tall stories about Bollywood movies hitting the 200 crores mark. You will get an idea why producers are very keen to release movies in Pakistan
Below: Banker wife Amruta of the CM Fadnavis singing at UMANG ( Bollywood function ) for Mumbai police.!
IT IS HIGH TIME PM MODI HAS A PEEK UNDER THE DARK UNDERBELLY OF BOLLYWOOD , THEIR DIRTY MONEY AND SHELL COMPANIES.
One of the biggest production houses of Bollywood – Shree Ashtavinayak Cine Vision. This production house is credited with most number of blockbuster franchises in Bollywood.
The company earned the dubious distinction of engineering a massive scam of around Rs 1000 crores (approx) which is a record in itself.
The first case appeared on the horizon in 2007, when a line producer (Tejpal Ambalal Shah) alleged that the production company hasn’t paid him to the tune of Rs 41 crores. He filed a case and won. The court asked Ashtavinayak to pay him back in full with penalties.
Ashtavinayak was one of the producers of the superhit films, Dabangg, Jab We Met and Golmaal.
But unfortunately, even after he won and had a court order in hand, he found that Ashtavinayak’s cheques were bouncing.
He then approached the Company Law Board (CLB). The CLB found evidence that the company was siphoning off funds to shell companies on the pretext of making films. Some of these companies were registered in India whereas others were in tax havens, like Dubai.
Altogether, the CLB could gather evidence of about Rs 824 crore which was siphoned off to different companies (or subsidiaries) for making films. The production of those films were never started. The physical address of those companies could not be traced as well.
Moreover, in some companies their go-down security guards and a few housewives were registered as directors. They had no clue about their own companies either.
This started a chain of events including more criminal cases getting registered against all the directors of Shree Ashtavinayak Cine Vision. As the Bombay High Court didn’t grant them any further protection (against the criminal cases registered against them), some of the directors of the company went into hiding.
As the evidences started piling up, the police started arresting the top officials of the company. Finally, on April 16, 2015, the chief managing director of the company Dhilin Mehta and his father, ironically named Harshad Mehta, were arrested. Dhilin was arrested by the Rajasthan Police just minutes before he was to catch a flight to Dubai.
The two were jailed at Arthur Road prison and all their offices were sealed. Though some of the directors of the company have now been freed, Dhilin and Harshad are still languishing in jail.
The production house has since closed down all operations and its offices have been taken over by creditors and the law enforcement agencies.
Cases are on against them for floating bogus shell companies, siphoning off public money through them and dealing in black money.
All their investors and their business associates have lost crores since this massive scam came to the fore.
Bollywood doesn’t want you to know that one of its biggest production houses turned out to be a house of scams.
This is the story of Bollywood
Every year Bollywood dances for the Mumbai police—with even CM of Maharashtra sitting in the front row.
Does he even know of the deals made backstage between crooks and police ?
CRIMINAL ABDUL KARIM TELGI WHO PRODUCED BOLLYWOOD FILMS ONCE SHOWERED 93 LAKHS ON A WHORE IN A CHAMIYA BEER BAR IN A COUPLE OF HOURS.
THE SUPREME COURT COLLEGIUM JUDGES BURNT MIDNIGHT OIL TO OPEN CHAMIYA BAR BEER BARS IN MUMBAI
BUT HEY – BREADWINNERS OF ENTIRE FAMILIES ARE ROTTING AS UNDERTRIALS FOR DECADES.
A shell corporation may also arise when a company's operations have been wound up, for example following a takeover, but the “shell” of the original company continues to exist.
Shell companies are the main component of the underground economy, especially those based in tax havens. They may also be known as international business companies, personal investment companies, front companies, or "mailbox" companies. Shell companies are be used for tax avoidance.
Like how superstars have fakes running facebook and twitter accounts –same way shell corporations have been used to commit fraud, by repeatedly creating an empty shell corporation with a name similar to existing famous real corporations, then running up the price of the empty shell and suddenly selling it (pump and dump).
There are shell companies that were created for the purpose of owning assets (including tangibles, such as a real estate for property development, and intangibles, such as royalties or copyrights) and receiving income. Reasons behind creating such a shell company may include protection against litigation and/or tax benefits (some expenses that would not be deductible for an individual may be deductible for a corporation
The term merger and acquisition ("M&A") refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity.
Corporate exercises, including mergers and acquisitions, the motive is always value addition In reality, most of the commercial transactions are initiated and signed off by management on the company’s behalf, instead of shareholder per se.
The management, who runs the company, if not for hostile purpose, may not always share identical aim with the shareholder of a body corporate.
Over the past years, a considerable number of empirical studies have been conducted to explain mergers and takeovers activities, including reverse takeover, with financial theories such as Value Maximisation, Social Efficiency and Empire Building, the results of which are yet inconclusive.
Compared with the voluminous researches on of merger and acquisition, reverse takeover, being a specific type of acquisition transaction, is seldom discussed and examined by Value Maximisation theory and Empire Building theory, let alone Opportunism.
Reverse mergers are often the most expedient and cost-efficient way for private companies that hold shares that are not available to the public to begin trading on a public stock exchange. Prior to the rise of reverse mergers, the vast majority of public companies were created through the initial public offering (IPO) process.
In a reverse merger, an active private company takes control and merges with a dormant public company. These dormant public companies are called "shell corporations" because they rarely have assets or net worth aside from the fact that they previously had gone through an IPO or alternative filing process.
Reverse mergers allow owners of private companies to retain greater ownership and control over the new company, which is a huge benefit to owners looking to raise capital without giving their companies away. Reverse merger is used as a way of going public without the expense and time required by an IPO.
Usually mergers occur in a consensual (occurring by mutual consent) setting where executives from the target company help those from the purchaser in a due diligence process to ensure that the deal is beneficial to both parties.
Acquisitions can also happen through a hostile takeover by purchasing the majority of outstanding shares of a company in the open market against the wishes of the target's board. An acquisition may be friendly or hostile. In the former case, the companies cooperate in negotiations; in the latter case, the takeover target is unwilling to be bought or the target's board has no prior knowledge of the offer.
Acquisition usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of a larger or longer established company and keep its name for the combined entity. This is known as a reverse takeover.
I HAD FIRST HEARD OF THE ANGLO EASTERN UNIVAN MERGER 18 YEARS BEFORE IT HAPPENED—FROM THE HORSES MOUTH
I WAS THE BLUE EYED BOY OF THE “WICKED JEW” CAPT CAJ VANDERPERRE . FOR HIM MY SHIT WOULD NOT SMELL.
The number one reason for a domestic company to set up a shell company is to realize a tax haven abroad.
Multinational businesses have been known to set up shell companies in countries with super-low corporate tax rates.
They do their international operations through their shell, thus not having to report to the country (where their operations are taking place) the sums involved, and considerably reduce their tax bill.
Large corporations, like in the Apple example, have decided to move jobs and profits offshore, taking advantage of looser tax codes. This is the process of "offshoring" or "outsourcing" work that was once conducted domestically.
Significantly high earners set themselves up as shell companies in one or many locations, like the Cayman Islands. This is a gray area of tax evasion where people funnel earnings through shell companies in such a way that it isn't counted toward personal income.
The most interesting type of shell company (to investors) is one that has a listing. Given that it takes time and money to obtain a listing, a listed shell has significant value even if it does not have any assets. Listed shells are therefore often the targets of reverse takeovers.
A shell company, is a firm with no current business activity or significant assets. Some shell companies may have had operations in the past, but these have dwindled due to either mismanagement or unfavorable market conditions.
Money launderers send money across the world using and abusing shell companies, intermediaries and transmitters. Their aim is to create a web of confusion.
All know the convoluted ways certain American multinationals such as Starbucks operate in order to avoid paying taxes. Jew Rothschild’s agent Jew Howard Schultz, Starbucks CEO is now giving pin pricks to Donald Trump.
Evil corp Starbucks has promised to hire 10,000 refugees over five years in response to Donald Trump’s executive order temporarily barring refugees access to the US and banning entry for anyone from seven majority Muslim countries.
All know the greedy Jew wants to give less wages and profit.
All know the greedy Jew wants to give less wages and profit.
All know how this Jew Schultz uses his shell companies to dodge taxes and launder money
In November 2014, European Union antitrust regulators ruled that a deal struck between Dutch authorities and Starbucks might be illegal, with the Netherlands giving the coffee-shop chain giant unfair tax breaks. According to the Commission, Starbucks was using a Netherlands subsidiary to shift revenue from higher-tax nations to lower-tax ones.
Money laundering aims to conceal the identity, source, and destination of illicitly-obtained money.
The money laundering process can be broken down into three stages.
First, the illegal activity that garners the money places it in the launderer’s hands.
Second, the launderer passes the money through a complex scheme of transactions to obscure who initially received the money from the criminal enterprise.
Third, the scheme returns the money to the launderer in an obscure and indirect way.
In 1996, Harvard-educated economist Franklin Jurado went to prison for cleaning $36 million for Colombian drug lord Jose Santacruz-Londono. People with a whole lot of dirty money typically hire financial experts to handle the laundering process. It's complex by necessity: The whole idea is to make it impossible for authorities to trace the dirty money while it's cleaned.
Structuring deposits also known as smurfing, entails breaking up large amounts of money into smaller, less-suspicious amounts. In the United States, this smaller amount has to be below $10,000 -- the dollar amount at which U.S. banks have to report the transaction to the government. The money is then deposited into one or more bank accounts either by multiple people (smurfs) or by a single person over an extended period of time.
After arranging a smurf deal by phone or email, you'll be asked to have the cash couriered to a smurf's residence . The smurf will then deposit small amounts of your cash into an account every day for weeks or months - or years - avoiding watchful eyes by keeping the numbers small. Along the way, you can ask your smurf to withdraw some cash - which has since been rendered untraceable - for a shopping spree.
Smurfs are supposed to stay under the radar. That's what makes them smurfs.
But the rise of internet banking had made smurfing even more lucrative, and some top practitioners became so big they began to draw attention.
For years, Hong Kong's most prolific money launderer was a teenager named Luo Juncheng , who originally opened a Bank of China account with a $500 deposit. During the next eight months, he made nearly 5,000 deposits, and more than 3,500 withdrawals electronically, moving $1.67 billion offshore before attracting notice. He was sentenced to 10 years in prison in 2013 - bad news for the smurf, and his clients.
Other smurfs come to attention of authorities through their flamboyant lifestyles. In March, another Hong Kong resident, Carson Yeung , was sentenced to six years for laundering $91.27 million through his bank accounts between 2001 and 2007. A former hairdresser who'd since bought the UK's Birmingham City football team, he claimed he had accumulated hundreds of millions of dollars in profits from stock trades, a hair salon, and gambling.
A smurf deposits illegally gained money into bank accounts for transfer in the near future. To prevent money laundering by criminals involved in illegal activities, such as drugs and extortion, countries such as the United States and Canada require a currency transaction report be filed by a financial institution handling a transaction exceeding $10,000 in cash.
Therefore, a criminal group with $50,000 in cash for laundering may use several smurfs for depositing anywhere from $5,000 to $9,000 in a number of accounts geographically dispersed.
For example, a smurf may pack cash in a suitcase and smuggle it to another country for gambling, buying international currency or other reasons.
During the layering stage, illicit money is separated from its source by sophisticated layering of financial transactions that obscures the audit trail and breaks the link with the original crime. For example, the smurfs move funds electronically from one country to another, and then divide the money into investments placed in advanced financial options or overseas markets.
The integration stage is where the money is returned to the criminal from what appear to be legitimate sources. Although there are numerous ways of getting the money back, funds must appear to come from a legitimate source, and the process must not draw attention. For example, property, art work, jewelry or high-end automobiles may be purchased and given to the criminal.
Cuckoo smurfing is one way criminals move money internationally. For example, say a New York criminal owes a London criminal $9,000, and a London merchant owes a New York supplier $9,000. The London merchant goes to London Bank and deposits $9,000 with instructions to transfer the money to the New York supplier’s bank.
The London banker, working with the New York criminal, instructs the New York criminal to deposit $9,000 in the New York supplier’s bank account. The London banker then transfers $9,000 from the London merchant’s account to the London criminal’s account. The London merchant and the New York supplier do not know the funds were never directly transferred; all they know is the London merchant paid $9,000 and the New York supplier received $9,000.
Money launderers often send money through various "offshore accounts" in countries that have bank secrecy laws, meaning that for all intents and purposes, these countries allow anonymous banking. A complex scheme can involve hundreds of bank transfers to and from offshore banks. According to the International Monetary Fund, "major offshore centers" include the Bahamas, Bahrain, the Cayman Islands, Hong Kong, Antilles, Panama and Singapore.
India has well-established, alternative banking systems that allow for undocumented deposits, withdrawals and transfers. These are trust-based systems, often with ancient roots, that leave no paper trail and operate outside of government control. This includes the hawala system .
Shell companies are fake companies that exist for no other reason than to launder money. They take in dirty money as "payment" for supposed goods or services but actually provide no goods or services; they simply create the appearance of legitimate transactions through fake invoices and balance sheets.
Launderers sometimes place dirty money in otherwise legitimate businesses to clean it. They may use large businesses like brokerage firms or casinos that deal in so much money it's easy for the dirty stuff to blend in, or they may use small, cash-intensive businesses like bars, car washes, strip clubs or check-cashing stores. These businesses may be "front companies" that actually do provide a good or service but whose real purpose is to clean the launderer's money.
This method typically works in one of two ways: The launderer can combine his dirty money with the company's clean revenues -- in this case, the company reports higher revenues from its legitimate business than it's really earning; or the launderer can simply hide his dirty money in the company's legitimate bank accounts in the hopes that authorities won't compare the bank balance to the company's financial statements.
Most money-laundering schemes involve some combination of these methods, although the Black Market Peso Exchange is pretty much a one-stop-shopping system once someone smuggles the cash to the peso broker. The variety of tools available to launderers makes this a difficult crime to stop, but authorities do catch the bad guys every now and then. In the next section, we'll take a look at two busted money-laundering operations.
THIS POST IS NOW CONTINUE TO PART 4 , BELOW
CAPT AJIT VADAKAYIL