COMMERCIAL LAW Essay Example | Topics and Well Written Essays - 1750 words

COMMERCIAL LAW - Essay Example The ways that are used to launder money include using the financial systems or services that cover up the tracks or sources from where the money is being transferred. Whereas, some countries may only consider money laundering when being used in a crime in that administration is being cheated on. The amount of money laundered every year is in billions, posing a policy threat and concerns for the governments. Many governments release the amount of money laundered each year either all around the world or only within their economy. The IMF (International Monetary Fund) in 1996 stated that about 2.3 percent of the global economy consisted laundered money. Therefore, FATF (Financial Action Task Force) is an organization set up to fight money laundering. FATF does not publish the exact figures of money laundered each year because it is impossible to estimate the right amount. Governments and other International bodies have made measurements in order to prevent and combat money laundering2. Financial institutions like IMF and FATF have made efforts to detect these sources and the transactions involving laundered money. International large scale criminal organizations and activities such as drug wars are the main benefactors of money laundering. Issues related to money laundering have existed as long as these international criminal organizations and activities have existed. It has been understood recently that anti-money laundering legislations have been the reason for the drop in both these acts of crime because these acts usually require transmission of funds that have untraceable sources. METHODS The process of money laundering consists of basic three steps are3: 1. Placement 2. Layering 3. Integration PLACEMENT: This is the process of introducing the cash within the financial system through some illicit means. LAYERING: This step consists of covering the tracks or camouflaging the illegal source. INTEGRATION: It is the acquiring the money generated from illegal sour ces from the transactions carried out by illegal funds. To chase away any kind of further suspicions, money launderers convert form of their dirty money into various types such as: 1. Smurfing is a method of breaking the money into smaller deposits of money or purchasing bearer instruments such as money orders and the depositing them into further smaller amounts. 2. Cash smuggling in bulk and then depositing it into offshore banks with greater chances of hiding money. 3. Depositing cash into the accounts of business that involves greater amounts of cash such as strip clubs, casinos, tanning spas etc. 4. Trading money by using over-value invoices to cover the movement of money. 5. Buying controlling interest in a bank that has less rigorous money- laundering legislations and then moving the money without having the bank scrutinize it. 6. Buying gambling chips from the casinos then cashing it after playing for a while in the form of a check or get a receipt proving it as a gambling wi n or spending the money in gambling with the higher odds then showing the wins while hiding the losses. 7. Through paying black salaries to the unregistered employees of a company and black cash is used to pay them. 8. Fictional loans 9. Hiding the money at home or other places 10. Tax evasion and also that legalize unreported assets in tax havens. ANTI-MONEY LAUNDERING IN UK Anti-money launderi

Performance appraisals Research Paper Example | Topics and Well Written Essays - 1250 words

Performance appraisals - Research Paper Example Performance appraisals are aimed at the smooth accomplishment of organizational goals by monitoring employee behavior and enhancing employee productivity. This paper deals with the various aspects of performance appraisals including its use in the workplace, its subjective and objective nature, legal and ethical issues, advantages and disadvantages, and suggests possible alternatives. Performance appraisals in the workplace Performance appraisals play a pivotal role in the management of organizations. Performance appraisals serve a large variety of purposes within organizations. The management often uses performance appraisals for taking important decisions on promotions, rewards, transfers and terminations of employees, for identifying training and development needs, for validating selection and development programs, and for providing timely feedback to the employees on their performance (Robbins 228). Performance appraisals offer a unique opportunity for managers and supervisors to evaluate the performance of their employees and to improve their performance by timely feedbacks or interventions. For Chukwuba, performance appraisals play two potentially conflicting roles within an organization. The first of these roles is â€Å"to measure performance for the purpose of rewarding or otherwise making administrative decisions about employees† whereas the second is ‘development of individual potential’ within the organization (Chukwuba 3). Both these roles are essential for the overall growth and development of the organization. It is the responsibility of the supervisors to guide, direct and motivate the subordinates through appropriate performance appraisals. However, self-appraisals, peer appraisals, subordinate appraisals, customer/client appraisals, and multiple raters are also proved to be significant in various organizational settings (Jennifer 255). Performance appraisals yield employee satisfaction and enhance their performance when the ir work is appreciated or rewarded. On the other hand, it can also put an end to undesirable behavior among the employees. Objective and subjective performance appraisals Performance appraisals can be of two types-objective or subjective. While objective performance appraisals are based on facts subjective performance appraisals are based on individuals’ perceptions. As such objective measures appear to be more valid and reliable. However, it is a fact that the actual performance of an employee cannot completely be evaluated based on facts or statistical data alone. Therefore, effective management system makes use of both objective and subjective performance appraisals. Objective performance appraisals are results-oriented as the focus is on facts or statistical data whereas subjective measures are â€Å"based on individuals’ perceptions and can be used for appraisals based on traits, behaviors, and results† (Jennifer 254). While objective performance appraisals value the performance of employees in terms of their sales, business, achievements, profits or growth in income subjective evaluation takes into account such aspects as the efforts made by the employee, the attitude of the employee and his/her behavior. For instance, the