Finding Info on Bank Fees May Take Digging
Published: Friday, 21 Oct 2011 | 11:09 AM ET Text Size By: Molly Tilghman and Sandra Block The hullabaloo about Bank of America's decision to charge customers a monthly debit card fee has prompted many consumers to take a hard look at the cost of their bank accounts. Here's the problem: Almost all bank websites will prominently disclose the fees they don't charge. Identifying the fees they do charge is much more difficult. USA Today analyzed the cost of opening a basic checking account at the 10 largest banks and credit unions. In most cases, information about monthly maintenance fees, requirements to waive these fees, and the minimum needed to open an account are readily available on the institutions' websites. Other fees, such as the cost of taking a withdrawal from an out-of-network ATM or closing an account weren't prominently disclosed. Searching for a List of Fees To learn about these fees, consumers must dig up a "Schedule of Fees and Charges." This is where banks and credit unions compile a more detailed list of service fees that apply to their customers. Some financial institutions, such as the SunTrust Bank and Alliant Credit Union, featured a link to the fees on the main checking account page. This, however, was an anomaly. In some cases, we had to Google "Schedule of Fees," and the name of the bank or credit union. Even then, the schedule of fees isn't always comprehensive. RELATED LINKS How to Avoid Getting 'Crammed'Best Places to Work on Wall StreetBest Places to Work on Wall StreetObama Names Critic of Large Banks to FDIC BoardPIMCO Bond Man Bullish on US Banks Credit unions fared better than banks: With the exception of Security Service Federal, we found a schedule of fees on all their websites (although it sometimes took several clicks). We were also able to find a schedule of fees on websites for Bank of America [BAC 7.35 0.13 (+1.8%) ], Chase [JPM 36.69 -0.33 (-0.89%) ], SunTrust [STI 20.63 -0.38 (-1.81%) ] and Wells Fargo [WFC 27.08 0.01 (+0.04%) ]. With help from Google [GOOG 600.14 1.47 (+0.25%) ], we were able to find the fee schedule for PNC Bank [PNC 55.07 -0.90 (-1.61%) ] and U.S. Bank [USB 26.03 -0.19 (-0.72%) ]. But even the world's largest search engine couldn't unearth a fee schedule for HSBC, TD Bank, Citibank [C 34.16 -0.01 (-0.03%) ] and Capital One [COF 46.90 -0.17 (-0.36%) ]. To get their fee information, we had to email or call the banks. Determined customers can search for information about fees in banks' official disclosure documents, but they'll need a lot of time and a couple of cups of coffee, too. An analysis of checking accounts for the 10 largest banks by the Pew Health Group found that the median length of their disclosure statements was 111 pages. None of the banks provided key information about fees on a single page, the study found. "As a result," the study said, "consumers must navigate a confusing maze of disclosure documents in their efforts to locate all of the important account information." This story first appeared in USA Today. http://www.cnbc.com/id/44988911 Investors Show Interest in Foreclosure Plan
Published: Thursday, 27 Oct 2011 | 3:03 AM ET Text Size By: Reuters Big investors are showing interest in an evolving Obama administration plan to sell off foreclosed homes, although the government will have to make the offer sweet enough to coax private funds. Reed Saxon / AP A home is advertised for sale at a foreclosure auction in Pasadena, California. The White House is assessing how best to encourage private companies and investors to snap up foreclosed properties held by the government and convert them into rentals. Officials want private partners to take over as much as $30 billion in single-family properties that are currently on the books of government-run Fannie Mae, Freddie Mac and the Federal Housing Administration. Several money managers with large fixed income funds are interested, according to sources, and a request for ideas on how to construct a program received nearly 4,000 responses. A glut of foreclosures has weighed on home prices and the overall economy. An effort to get some of that inventory off the market could help stabilize it, while providing affordable rental options to Americans unable to obtain a mortgage. The foreclosure conversion program would come as the next step to complement other government supports for housing, including an expanded refinance program announced on Monday. The main question for prospective investors, which include broker-dealers and firms already overseeing similar rental programs, is the type of financing the government will make available—an issue officials are still struggling with. "In order to get a better bid, there has to be some incentive involved to get qualified investors involved," said Ron D'Vari, co-founder and chief executive of NewOak Capital. "The reality is not a lack of interest, but so far it looks like a lack of financing." Incentives could include low interest rates, tax benefits or some type of rental assistance, said D'Vari, a portfolio adviser who has been involved in mini-bulk auctions of real estate-owned properties, or REOs, in California. REO properties are those acquired by a lender, whether a bank or the government, after an unsuccessful auction attempt. Fannie Mae, Freddie Mac and the FHA own about 250,000 properties, close to a third of the country's REO pool. Looking at Options One key challenge would be finding big enough blocks of properties in specific geographic areas that could be sold at one time. Analysts say this is what it would take to make the program attractive to large institutional investors. More on CNBC.com A Foreclosure Snapshot from ChicagoUS Mortgage Applications Bounced Last Week The transaction and liability costs property managers will face as they try to bring deserted units back up to code also pose a hurdle. The government also needs to determine how it will protect taxpayers, and it might explore ways to pair up with investors and allow Fannie Mae, Freddie Mac and FHA to keep some type of an ownership stake in the rental properties. A public-private partnership, somewhat along the lines of a program the Treasury tried to use to soak up toxic bank assets during the financial crisis, would allow the government to gain from the sales. "The submissions are a source of ideas, some of which may be incorporated in transactions, and they supplement work that has already been done," a spokesperson at the Federal Housing Finance Agency, the regulator for Fannie Mae and Freddie Mac, said of the suggestions from private investors. "We don't believe there is any 'best' program. For any given locality, market conditions may dictate one or another type of transaction," the spokesperson said, without elaborating. Fannie Mae, Freddie Mac and the FHA have already undertaken some small efforts to reduce the backlog of foreclosed homes. They have donated a few vacant properties for demolition and have held some small auctions. Having already received $141 billion in taxpayer support since being seized by the government in 2008, Fannie Mae and Freddie are under enormous pressure to make sure they maximize the returns from the properties they hold. "This has got to be thought out. Fannie and Freddie would need to assess if they are getting the return they need from a rental," said Ken H. Johnson, a real estate professor at Florida International University. Johnson said one way to get over the hurdle would be for the two agencies to be given an explicit mission of market stabilization. Copyright 2011 Thomson Reuters. Click for restrictions. http://www.cnbc.com//id/45056823 HOW FRACTIONAL BANKING WORKS TO ALLOW FOR A REVALUATION OF THE IQD - JOSEY WALES At OOMF - 10/17/2011
From Dinar Recaps (Post by Red Lily) How Fractional Banking Economics will allow a high RV EXPLAINED: First off, I’ll use the exchange of a 10,000 IQD note as my example. To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD and IQD, that is given a two-tier payout, and a 2% bank spread. What You Will Receive: If you were to cash in your 10,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $9,800 credited to your bank account. What Your Bank Will Receive: Your Bank will receive a $10,000 credit to its Federal Reserve Account. They will also be able to add the $200 profit to their “capital account”. If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan. To learn more about this concept, I suggest you click HERE, and go to a video post I brought to the forum previously, and posted in my “Tidbits“ section. Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model. What the US Treasury Will Receive: First off, the US Treasury will receive $3,500 in estimated taxes in the quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out – $3,500 in). Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $6,500 to $4,000. Oil Now Enters the Picture: At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq. Payment will consist of a $12,500 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI in a form otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves. How the CBI “RECAPTURES” the Money: The $12,500 order is filled with 250 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35) What does all that mean? It cost Iraq $162.50 to bring back a 10,000 IQD note! Can they afford that? I think so! So, instead of paying out $12,500 for a 10,000 IQD note, they only pay $162.50! That doesn’t add to the money supply much at all does it! They receive their IQD back and place it in the CBI, or destroy it. The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to $12,500 USD (which had a net acquisition cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq. More completely explained, and simply put, it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.) Other Factors that Strengthen Iraq’s Position and Ability to RV: ■DFI Funds Returned & Other Assets: $280+ Billion USD, plus other frozen assets (estimated at $100 billion) will be returned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD. ■CBI IQD Reserve Requirement Adjustment: The CBI will change the current fractional IQD reserve requirements from 100% to 15% at the appropriate time. As a result, the the total potential money supply will be raised in value to $2.8 Trillion (430 billion/15), while at the same time, the total physical IQD in circulation will be reduced by removing the large bills with the 3 zeros over a period of 2 years, as they have indicated. ■Oil Production Increased: Iraq will also execute the plan they announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury. ■Oil Futures & Forex Contracts Added: To further stir the pot, the CBI will continue to use it’s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market. Think of their impact in public markets. There, my friends, is how this plan will be enacted and made possible. Taking NOTHING, and turning it into SOMETHING, then bringing it back to a “manageable and reasonable something” that is accepted and supported by seeming endless supplies of oil. This is how the world’s ENTIRE NEW MONETARY SYSTEM will be regenerated and supported and backed, given, in essence, a re-birth and renewed for most governments and economic regions… even by “Black Gold”. So, here’s the summary for all the “players” involved, giving ballpark numbers, and not taking into account superfluous costs, fees, and other small details that don’t really affect the larger picture: ■Investor’s Net Gain: $10,000 – $200 = $9,800 x .65 = 6,370 for an investment that cost $10 ■Bank’s Net Gain: $200 added to “capital account”, plus $2,000 they can use to loan out. ■US Treasury Net Gain: $2,500 from the .25 spread on top + $3,500 in quarterly taxes = $6,000 ■CBI/GOI/Iraqi People Net Gain: $12,500 – $162.50 = $12,337.50 + Profits from “Other Factors” ■Overall Net Gain for All Involved: $6,370+$200+$6,000+12,337.20 = $24,907.20 This is the wealth that was generated from a single 10,000 IQD note that was given an original value of approximately $10! Is that amazing or what?! You tell me… can Iraq afford NOT to RV?!!! Will the IMF allow them to NOT RV their currency, but simply replace their large denoms for smaller ones?!!! LOL!!! In this scenario, EVERYONE WINS… and the IQD is slowly (over 2 years) taken back in to the CBI… eventually destroyed, leaving a manageable M2 behind, having created HUGE WEALTH throughout the world to re-supply what was allowed to be destroyed in the “great bleed” over a period of just a few weeks a couple of years ago, even the greatest redistribution of wealth the world has ever seen. Believe it or not, it has happened for this very purpose, and it IS coming! Banks Starting to Kill or Scale Back Debit-Card Fees
Published: Friday, 28 Oct 2011 | 8:16 PM ET Text Size By: Reuters After heavy criticism, big banks are starting to rethink their monthly debit-card fees. Bank of America [BAC 7.35 0.13 (+1.8%) ] is revamping its plans as rivals Wells Fargo [WFC 27.08 0.01 (+0.04%) ] and JPMorgan Chase [JPM 36.69 -0.33 (-0.89%) ] have decided not to charge monthly fees, ending test programs in certain states. Bank of America is likely to allow many customers to sidestep the fee by taking measures such as maintaining minimum balances, having paychecks direct deposited, or using Bank of America credit cards, the person said. Under earlier plans, customers might have needed balances totaling $20,000 across all their Bank of America accounts to avoid the fee. Bank of Americas unleashed a firestorm of criticism from customers, consumer advocates and politicians last month when it disclosed plans to charge customers $5 per month for using their debit cards, starting sometime next year. The goal was to make up revenue lost to a law that slashes the fees banks charge retailers when consumers swipe their cards. While some banks have disclosed plans to apply similar fees, many banks and credit unions decided not to institute the charge and have encouraged customers to switch banks. Charlotte, North Carolina-based Bank of America is not abandoning the fee now and will likely include it in new account types the bank is testing in three states. The bank plans to roll out these packages nationwide next year. The $5-per-month fee may still remain an option for customers, the person said. The bank has said the purpose of the new account types is to provide customers with upfront pricing, instead of hitting them with penalties after the fact. Customers can pay monthly fees of between $9 and $20, or avoid the charges by keeping minimum balances, using their credit cards or having a minimum amount deposited to their account. Among other banks, Wells Fargo said late Friday that in response to customer feedback it has canceled a five-state pilot program that would have charged customers $3 per month to use their cards After testing a $3 per month fee in two states since February, JPMorgan Chase has decided not to charge customers, a person familiar with the situation said on Friday. The test will end next month and will not be extended or expanded, the person added. Citigroup [C 34.16 -0.01 (-0.03%) ] announced an account overhaul in mid-September that did not include a monthly debit card usage fee. Stephen Troutner, head of banking products for Citi's U.S. consumer bank, said at the time that the New York-based bank found customers were strongly opposed to such monthly maintenance fees. Richard Davis, CEO of US Bancorp [USB 26.03 -0.19 (-0.72%) ], said during an Oct. 19 conference call with analysts the Minneapolis-based regional bank is monitoring the results of other banks imposing debit card fees. Davis did not rule out instituting a fee in the future, but said the bank has no immediate plans to do so. "We will find out if customers complain and move, or just complain," he said. "We will take all that in time and we will make our decision." SunTrust Banks [STI 20.63 -0.38 (-1.81%) ] is charging a $5 per-month fee on everyday checking account customers who make purchases. A spokesman declined to comment on the bank's strategy. Norma Garcia, manager of Consumers Union's financial-services program, applauded JPMorgan's decision, but said that, without more details, it was unclear if Bank of America's changes would be better for customers. "Clearly, there is overwhelming public support to drop the fee," she added. http://www.cnbc.com/id/45080627 Books we Recommend Thanks to One of our LIsteners Greg for this FREE Download (248 pages 2000 Version) OR purchase it below....Enjoy
How to invest in the Iraq Stock Exchange
First, confirm for yourself that your broker is an official broker of the Iraq Stock Exchange. See the list of official ISX brokers at the Iraq Stock Exchange website: http://72.52.252.89/isxportal/portal/brokerListContainer.html. Next, visit the brokers website. The link, if available is located in the ISX Brokers section on the home page of this site. Before you start any consideration of investing in the Iraq Stock Exchange, be aware that you MUST comply with the requirements set by the ISX directed to non-Iraqi investors. See http://72.52.252.89/isxportal/portal/rules.html Download the Word document titled "I.O.T. for Non Iraqi. Quote:"Non-Iraqi investor personality should be checked by the broker. The following documents should be required by electronic mail followed, within 15 days time, by copies certified by the Iraqi Embassy.....". a) ID (note from IraqStockX - this is usually a drivers license) b) Valid Passport c) Incorporation contract ... for legal entities d) .... address .... info e) three sample of signature. These mandates by the ISX require you to send scanned copies of your drivers license and passport to specific entities. If you are not comfortable with this, I see no way for you to invest in the Iraq Stock Exchange. One exception is to invest through a proxy company although we do not support this method here. See www.InvestorsIraq.com for these instructions. Follow the instructions below. Total cost=$183.00 for a personal account. Step 1. Download and complete the necesary form to open an account with an official ISX broker. Links available in the ISX Broker Box located on the home page of this site. Step 2. You must have your identity documents notarized locally then verified by the Iraqi embassy. IraqStockX has created an on-line form to help you with this, http://www.IraqStockX.com/Documents/ISXRegistrationDocument.asp The web page stores copies of your legal documents (drivers license and passport) in a temporary session variable on our server so the document prints properly. Your license and passport images are deleted from our server as soon as you close your browser. Print the document and have a local notary confirm your 3 signatures, passport, and drivers license. Then send the document to the Arab American Chamber of Commerce where they will: a) Notarize and certify the document with the court. b) Certify the document with the Secretary of State. c) Authenticate the document with the Department of State. d) Legalize the document with the Embassy of Iraq. The AACC address is: Arab American Chamber of Commerce US Legalization Attn: Arab Chamber Certification 1615 Bay Head Rd. Annapolis, MD 21409 Tele: 410-349-4900 See the AACC website at http://www.arabchamber.org/. for up to date fees and address. The current fee to authenticate documents for Iraq is $153.00. Use the United States Postal Service priority mail and include a stamped self addressed envelope for the return of your documents. Title your request to the AACC, "Please authenticate these documents". Do NOT request authentication for purposes of the Iraq Stock Exchange. For some unknown reason, they will authenticate your documents but not for the specific purposes of the Iraq Stock Exchange. When you receive your authenticated documents back from the AACC, scan them and send the scanned documents to your ISX broker by email as attachments. If your passport and drivers license are not clear on the scanned authenticated document, the Iraq Stock Exchange will request copies of your original passport and drivers license. Through experience, we suggest you attach scanned copies of your drivers license and passport with your authenticated documents to your broker. Your ISX broker will have the documents approved by the Iraq Stock Exchange and provide you with your official investor number from the Iraq Stock Exchange. Note, the ISX investor number is different than you broker account number. After you receive your ISX broker account number and your ISX investor number from the Iraq Stock Exchange, wire funds from your bank to your ISX broker. Wire information for each broker is also available in the broker links located on the home page of this site. Your ISX broker will provide specific documents that you must use to request purchases and sells of shares in the Iraq Stock Exchange. See your ISX broker website for these forms. Please make sure that you are buying or selling companies that are currently trading. Check the Iraq Stock Exchange website for the current bulletin to see which companies are active and how much you are likely to pay for a share of stock. Link: http://72.52.252.89/isxportal/portal/marketPerformance.html You should also review price graphs on IraqStockX.com comparing the last 6 months (default) to all time (since 8/2004) to see which companies trade consistantly and have shown staying power since the Iraq Stock Exchange opened for trading. Link http://www.iraqstockx.com/DrawGraph.asp. You will be wiring dollars which will be exchanged for dinars by your broker before the trade. Go to the Central Bank of Iraq website, http://www.cbi.iq/, to get the current dollar exchange rate. Multiply your dollar investment amount by the exchange rate to determine how many dinars you have to invest in Iraq Stock Exchange stock. http://www.iraqstockx.com/ISXForum/topic.asp?TOPIC_ID=103 Thanks to Scott Gonzalesd Are Brokers Being Punished for Not Pushing Enough Product?
Yes, at one firm at least March 2011 You'd expect a financial firm to fire an advisor for not serving the best interests of his or her clients. Merrill Lynch is also demoting those who don't bring in enough revenue, according to Financial Advisor magazine. The media report says that advisors who have at least 10 years of experience but don't bring in at least $250,000 annually in commissions and fees won't be allowed to be advisors anymore — continuing a trend that many large brokerages have been following for years. The firm says the move "aligns advisors' interests with those of our clients and shareholders," according to the magazine. It's obvious how Merrill's move might help shareholders: More revenue produces more profit. But it's harder to see the value for clients. The only way brokers generate commissions is by selling investment products. That means the brokers must constantly pitch new products to their clients. Is that compatible with the clients' financial goals? Merrill's policy might explain, in part, why thousands of brokers are leaving big brokerage firms to join smaller independent firms and why many of their clients are following them. At the end of 2008, big brokerages managed 48% of individual investors' assets, while independent firms managed 19%, according to Cerulli & Associates. But the research firm projects that the big firms' market share will drop to 41% by 2012 while independents' share will rise to 23%. Could it be that the prediction I offered in my second book, The New Rules of Money — that big brokerage firms are dinosaurs and will become extinct — might be coming true? LINK Bank Secrecy Act of 1970 and the Patriot Act on money laundering
Dude McCann Today at 1:18 PM This is the link to Wikipedia, there is enough links to other sites to do some good research; http://en.wikipedia.org/wiki/Bank_Secrecy_Act Also, a link to the Patriot Act. Title III: Anti-money-laundering to prevent terrorism; this is the one that would pertain to cash-out; LINK Thanks to our friends at My Invested Group (Dude McCann post) LINK Private Banking: Articles of Interest
Bespoke banking: making the most of private banking Lesley Parker April 20, 2011 Emma Isaacs began using private banking services at about the time she sold her first business. Photo: Louise Kennerley It's said you need $50 million just to say hello to a private banker in Geneva or New York but Australia's much younger private-banking services are rolling out the red carpet for customers with much less cash. Here, if you have at least $1 million in "footings" - assets not including the family home that you can invest or borrow against - the big domestic banks and some of the specialist operators among the investment banks will be happy to at least have a chat about what they can do for you. Private banking - where a dedicated banker caters to your financial and investment needs - is "an attractive and growing" market, says Jane Watts, who in December left Macquarie Bank to become the general manager of Westpac Private Bank. As of 2010, there were 207,500 high-net-wealth individuals - defined as people with more than $1 million in investable assets - in Australia and the number has been growing at 8.5 per cent year-on-year since 2003, Watts says. Money did the sums and in 2011 that would translate into a new millionaire every half hour. That's partly the result of the wave of postwar baby boomers reaching the stage of life - global financial crises permitting - where they've accumulated a lifetime's wealth. They may be cashed up from selling a business ahead of retiring or they may have profited over the years from lofty property prices. Of course, you don't have to be a baby boomer to be "privately banked", as it is termed. Younger people are making money too, as small-business entrepreneurs, well-paid executives or as they start to inherit wealth. There's also a lot of new money in places such as Western Australia and Queensland, where the commodities boom has created millionaires (and a few billionaires, too). WHAT IS PRIVATE BANKING? There's a bit of a debate about how you define private banking and in some ways that's because private banking is supposed to be tailored to the individual. What it is depends on how much you have and what you want to do with it. You won't find a published list of specific services, products or discounts. Instead, private bankers talk about providing "bespoke", "holistic" and "integrated" services. In New York that can extend to walking the dog for an ultra-wealthy client, though that sort of "concierge" service isn't common here. In Australia, international operators such as Credit Suisse focus on wealth management, tapping into a history of private banking as a service for the leading families of Europe that goes back generations. For the big four banks, comparatively recent entrants, it's more about combining their banking capabilities with more-recent expertise in wealth management, wrapping that up with platinum-level personal service. You might get preferred access to investment opportunities such as share floats or bond issues, help with insurance and estate planning, access to superannuation specialists and general financial advice. You might want fast loan approvals. You'll have a central point of contact - most likely with a "relationship manager" - plus a team of people around them that includes a financial adviser. In theory, your manager will always be available. Adrian Hondros, the executive general manager of Commonwealth Private (which looks for $2.5 million in footings and an annual income of $250,000) says private banking is about three things: service, advice and opportunities. It's deeper and broader than the service you'll receive from a lone financial planner and your relationship manager won't be dealing with hundreds of customers as a bank branch manager might. That said, a principal in PricewaterhouseCoopers' wealth-management practice, Anthony James, says a number of financial planners in Australia offer similarly sophisticated services, dealing with only a small clientele of high-net-worth individuals. "They can't be forgotten," he says. WHAT DOES IT COST? Having come with at least $1 million in investable assets - perhaps $2 million, $10 million or even $50 million if you've knocked on the door of a "boutique" operator - you're already a pretty lucrative client, so you may or may not have to pay a separate fee for the privilege of having a private banker. Commonwealth Private and Westpac Private Bank ($1 million minimum and $400,000 in earnings) don't charge a specific private-banking fee, for instance, while ANZ Private Bank ($1 million threshold) levies $1200 a year and NAB Private Wealth (also $1 million) $750. But the comparison isn't a straightforward one, as you will still need to consider the other fees that will be charged. You'll pay for financial advice, just as you would elsewhere, for instance. The private banks of the big four charge a straight fee, while other operators extract a percentage of the funds you have under management. If you have $5 million under management, a 1 percentage point cut comes to $50,000 a year. Bear in mind that the banks levying a specific fee may waive other charges. ANZ's private-banking fee, for instance, covers credit card and account fees and access to online broker E*Trade. Ultimately, it's not about discounts - if you have enough money you'll get those anyway, inside or outside a private bank - but about the level of service. A sceptic might wonder whether private-banking services are just another way to extract fees by pushing products and services but Watts says high-net-worth individuals are pretty savvy and "they wouldn't tolerate product flogging". WHO DOES IT SUIT? Having $1 million burning a hole in your pocket doesn't automatically mean private banking is for you. The managing director of ANZ Private Bank, Catherine McDowell, refers to private bankers as being ''servants'' to people with complicated lives and complex financial needs. At ANZ, if you don't want such a close or deep relationship, there's a separate service for affluent clients - outside the private bank - that focuses more on the transaction side of banking. The people it does suit are those who don't have the confidence or expertise to manage their money on their own and those who may be financially capable but ''time-poor'' - medical specialists are a big segment, for instance. Some people may have complicated needs, such as how to divide their business wealth when the time comes to pass it on, or set up a philanthropic trust. A principal analyst with the banking industry researcher East & Partners, Paul Dowling, says the value you'll get out of private banking depends on whether you're ultra-high-net-worth or just plain wealthy, as well as on how ''active'' you are: ''The more transactions you're involved with, the richer you are to the bank.'' At $1 million in assets you may be getting only a ''veneer'' of private banking, he says. THE RIGHT MATCH Private banking is such a personal relationship that industry observers say shopping around isn't so much about price - everything's negotiable in the world of private banking - but about finding the right match. Alan Shields of the Private Banking Council suggests sitting down with the person who may become your relationship manager to see if your ideas and personalities click. The executive general manager of NAB Private Wealth, Angela Mentis, says a lot of work goes into matching the sophistication and needs of a potential client with the skills and ''emotional intelligence'' of the prospective relationship manager. ''That first meeting is very important,'' she says. Awards and customer-satisfaction surveys may also provide clues. In Euromoney's Private Banking Survey for 2011, Credit Suisse was named best private banking service in Australia overall, followed by Commonwealth and NAB, then Westpac and Macquarie. Commonwealth Private took many subsidiary awards. Credit Suisse was also the worldwide winner. In the 2011 Private Banking Council awards, Commonwealth Private won the $1 million to $10 million client category, ANZ Private the $10 million to $30 million category and Macquarie the $30 million-plus category. The principal of researcher CoreData, Andrew Inwood, says the customers of Westpac and Commonwealth Private are the most satisfied in its surveys but even then they only score 6 out of 10. ''No one's ripping it up,'' he says. Hey, big spenders It's said that investor sentiment among the rich is a "lead indicator" - where they go now others will follow in six months' time. So where are Australia's wealthiest people putting their money? Well, until late last year, they still had a big wad of it in cash after heading for safety during the global financial crisis. One survey of high-net-worth individuals (HNWIs) found that, as of last year, half still thought cash the best place to be, up from just 12 per cent before the global financial crisis. However, researchers are saying that they are seeing signs that HNWIs are prepared to head back into the sharemarket. CoreData says its Investor Sentiment survey for the March quarter found that, overall, respondents expected the economy to slow in the June quarter and business conditions to deteriorate. HNWIs in the survey, though, predicted the opposite. "Could the tides finally be turning?" the researcher asks. Investment Trends has also seen a move back to shares. Its survey late last year of 2000 wealthy individuals found that during the course of 2010, the proportion of assets held in residential investment property shrank from 25 per cent to 21 per cent, with that move mirrored by a rise in direct share investments from 28 per cent to 32 per cent. When asked about their ideal asset allocation, high-net-wealth investors said on average that 40 per cent of their wealth should be in direct shares, says the chief operating officer of Investment Trends, Tim Cobb. "We tend to think wealthier investors are more savvy,'' he says. ''The big question is whether their decision to switch from property will be followed by mum-and-dad investors." Hands-on help with property portfolios It was about the time she sold her first business that Emma Isaacs (pictured) started using private banking services. ''I was looking for a much more hands-on and close relationship with a banker,'' says Isaacs, now chief executive of Business Chicks, a national membership network for women in business. ''It was very much about personal investment services. I have a reasonable-size property portfolio. I like to move very quickly and my banker needs to move quickly to have deals approved. It's been really good to have someone right there for you. They look after both your business and personal needs, everything from mortgages through to credit cards, high-interest accounts and lines of credit.'' But it hasn't been all plain sailing. Isaacs says her first private banking relationship wasn't entirely successful as it didn't deliver on promised networking opportunities, nor did she experience the level of service where, say, a loan could be approved on a Saturday night. That was despite her first bank charging an annual fee for private banking. Her current bank doesn't charge a service fee and Isaacs has found it more interested in her investment goals and her business. She feels her first experience was a result of just not getting the right person. ''If you feel like you're only one of 2000 clients, then you may as well just go to the local branch and form a relationship with the manager there,'' she says. Is private banking just another chance to push bank products? Isaacs says her bankers have suggested things over the years ''but they haven't been pushed by any measure - they'll certainly bring them up but I know it's up to me''. High-flyer relies on private banker An author and speaker on business etiquette, Patsy Rowe (pictured), says she's happy to concentrate on what she does best and leave the finances to her private banker. "I'm time-poor; I work six days a week, usually," says Rowe, whose speaking commitments take her around Australia and overseas. "They've been able to project-manage my finances on my behalf. They've taken the burden off my shoulders so I can concentrate on doing the things I like doing and the things I'm good at." Rowe says her private banker and financial planner will drive an hour from their office in Brisbane to her home in Sanctuary Cove to discuss her affairs. Banker Elizabeth Fox, of Westpac Private Bank, also accompanies Rowe to investment seminars, whether they're hosted by Westpac or not. In addition, the bank has provided introductions to other clients who might want a speaker on business etiquette. "That's gold," Rowe says of the networking. "I can't overemphasise the depth of the relationship. They want an enduring relationship with you. They're not in it for the quick sell of a product." Key points You'll need at least $1 million in assets outside the family home to access private banking. Private banking provides close-contact, personalised banking and wealth management. It's not necessarily about discounts; if you have enough money, you get those anyway. It suits people who need their hand held or who are time-poor. It's said that those who are less wealthy may only be getting a ''veneer'' of private banking. http://www.smh.com.au/money/investing/bespoke-banking-making-the-most-of-private-banking-20110419-1dlz8.html#ixzz1KTfEBbd4 * New super rich need private and investment banking * Private banking becoming more elite * Growing trend of investment bankers moving to wealth By Chris Vellacott Wed Apr 20, 2011 9:36am EDT LONDON, April 20 (Reuters) - Banks are sending some of their best talent to work in private banking as clients get richer and demand more, siphoning off recruits from a traditionally higher paying and racy career in capital markets. Many banks reporting first-quarter earnings in coming weeks are prioritising expansion in wealth management because its stable deposit base offsets more volatile business lines like trading or investment banking. But banks are also eyeing an emerging client group, namely the international oligarchy of families that have amassed vast wealth through control of global companies. While these clients will want personal services for the super rich like premium credit cards or mortgages on superyachts, as owners of huge business empires they are also heavy users of investment banking. Where once private banking was seen as a genteel arm of the industry, dealing in inherited wealth, it now needs higher calibre staff with investment banking expertise, bankers say. "One of the results of the boom in emerging markets and commodities has been a huge rise in the number of owner-occupied firms that have become global businesses," Des Byrne, managing director at Barclays Wealth's (BARC.L) UK and Ireland arm, said. "That's given rise to this "ultra" need that many of the banks are targeting ... -- the application of investment banking style products and services to individuals, to human beings as opposed to the board or management teams of companies," he said. Prominent examples of people associated with dominant global companies include Mexican telecoms billionaire Carlos Slim, steel tycoon Lakshmi Mittal or Russian magnates like Oleg Deripaska. Reflecting this blend of private and corporate banking, British bank Coutts has set up a division aimed at turning corporate shipping clients of its parent Royal Bank of Scotland (RBS.L), many of which are owned by Greek families, into private bank customers. [ID:nLDE6B50NW] Citi's (C.N) private banking arm reshaped itself after the financial crisis to sit within the group's institutional business, focusing on clients rich enough to own big companies needing regular access to global capital markets. Recruiters and bankers say the entry requirements for private banking are far higher than they were a decade ago. And a once unimaginable phenomenon -- investment bankers opting to become private bankers -- is gathering pace. The top ranks of many international private banks are already well populated by people who cut their teeth in investment banking. Byrne joined Barclays' private banking arm in 2008 from Barclays Capital. His boss Thomas Kalaris, chief executive of Barclays Wealth also came from an investment banking background. Other notable examples include Rory Tapner, head of RBS's wealth management arm and a one time joint global head of investment banking at UBS (UBSN.VX). Stephen Russell, chief of staff at UBS's wealth management arm in the UK, says the few private banking jobs on offer in his business are routinely inundated with applicants. "In the context of this year, we've made eight hires and interviewed about 140 people ... The challenge for us is getting a fit with what we and our clients expect from people and what exists in the market," he said. Investment banking remains potentially more lucrative, paying up to 40 percent more in total compensation according to Sophie De Ferranti, head of private wealth management at ValensGoldberg, a headhunter based in London. But private banking pay is less volatile, Byrne says, and attracts many former capital markets staff looking for an escape from the increasingly technical and narrowly focused word of investment banking. "It's not an easy option, It's a different lifestyle," he said. (Editing by Sinead Cruise and Mark Potter) (For the Funds Hub blog: blogs.reuters.com/hedgehub) (For Global Investing: here) http://www.reuters.com/article/2011/04/20/private-banks-idUSLDE7330VQ20110420 the_iqd_team-_private_banking-articles_of_interest.doc IRS Focuses on Wealthiest Americans in Foreign Bank Account Reporting Plan
The Internal Revenue Service is focusing on the wealthiest Americans with money overseas as it develops regulations that will require foreign banks to give the government more information about those customers. In new guidance released today, the IRS said it will direct foreign banks to spend less time identifying and monitoring accounts of people with less than $50,000 and more effort focusing on U.S. account holders with more than $500,000 and with private banking relationships. The information provided today should help financial institutions figure out the process of identifying U.S.-linked accounts, even though the IRS didn’t answer every question that companies have raised, said Barbara Angus, a partner at Ernst & Young LLP in Washington. “It has operational impacts on financial institutions, on all aspects of their business, on IT systems, on the account opening process,” she said. “That kind of impact, again, is sort of why information is needed, and needed as soon as possible.” The requirements, passed by Congress last year, take effect in 2013. They force foreign banks to tell the IRS about U.S. account holders as part of the agency’s effort to combat offshore tax evasion. Banks based outside the U.S. face 30 percent withholding on certain payments from inside the U.S. if they fail to share information with the IRS. Implementing the Rules An overall goal of the regulatory process is to get information to stakeholders as quickly as possible, according to a Treasury Department official who spoke on condition of anonymity to describe the agency’s approach. The administration is working on the regulation and knows that financial institutions are anxious to know how to implement the rules by the effective date, the official said. Financial institutions from around the world, including Allianz SE (ALV), Aegon NV (AGN) andCommonwealth Bank of Australia (CBA), filed comments with the IRS after the agency released its first set of guidance on the law last August. The rules are part of a broader effort by the U.S. government and the IRS to combat offshore tax evasion. Commissioner Douglas Shulman has made the issue one of his top priorities. Voluntary Disclosure Separately, the IRS is operating a voluntary disclosure initiative, which encourages taxpayers with undeclared accounts and income to come forward, pay penalties and likely avoid prosecution. The deadline for entering that program is Aug. 31. About 15,000 taxpayers came forward during a similar program in 2009, and the IRS has been using the information it gleaned during that process to pursue others, Shulman said April 6. Yesterday, the agency asked a court for a summons that would require HSBC Holdings Plc (HSBA) to disclose information about its U.S. clients with accounts in India. The information released today deals largely with foreign financial institutions and doesn’t address other questions attorneys have about how the new law will work, said Charles Kolstad, an attorney at Venable LLP in Los Angeles who represents the owners and beneficiaries of trusts. The law, he said, imposes new reporting requirements on beneficiaries of foreign trusts, even in cases where the beneficiaries may not know trust details. That’s an area where the IRS will need to release future guidance. “This really doesn’t answer most of the questions that people have,” Kolstad said. LINK http://www.bloomberg.com/news/2011-04-08/irs-focuses-on-wealthiest-in-foreign-bank-account-reporting-plan.html 7 STEPS TO ESTABLISHING “YOUR” MONEY RULES
Many people jump right into investments without giving any consideration to how that fits into their money personality. You wouldn’t buy furniture for your home or wear clothes that you have never seen before purchasing without the careful consideration of your individual personality and needs, so why put your money in investment vehicles without the same careful consideration? Determining your money mindset will avoid unnecessary anxiety when it comes to investing! The first step to leading your wealth is to begin by developing your “Money Mindset.” As you begin to set the parameters and guidelines for how you will invest your money, you must remember that this process is an art, not a science. You will no doubt change your philosophy over time and continually tweak your rules for years to come. There is NO set formula for this process. The rules that you set are truly YOUR money rules. You must be comfortable with them and be willing to follow them consistently. As you establish these rules, remember that no one knows your financial background, situation, emotions and priorities more than you do. Therefore, this is a very personal exercise. This process may prompt emotions that you never imagined would come out over money. It may be that you just have a very difficult time making yourself do this exercise for some unknown reason. Or it may be extremely easy for you to rush through the process. In any event, I challenge you to really evaluate your thoughts and emotions about money and to set up your money rules according to a plan that you can get excited about. The following are some points of consideration to assist you in determining what your “Money Rules” should be. And remember this is a dynamic process that will change over time with age, income, investable assets and market conditions. Take time annually to review and make the appropriate changes. Before considering investment options, determine what your income needs are now and/or will be in retirement. If you don’t know what you need you will not be able to accurately plan for your retirement. Ask yourself: 1. How much income do you need now to retirement and from retirement to the rest of your life, to support your lifestyle? 2. What percentage of your portfolio will be required to provide Income and what percentage to provide Growth? If you aren’t sure, have a monthly income number (a minimum and desired amount) of income you will need to support your desired lifestyle. 3. How are my assets and income currently protected? a. Assets – Are they guaranteed and insured, and if so, by whom? b. Income-Is the only source of your income dependent upon your job? c. Are both your assets and income dependent upon your job? 1. PARTICIPATION: Active or Passive or Pactive (a little of both)? Decide what percent of your portfolio you wish to be active vs. passive. Active means that you do the work. Passive means that you don’t. But, the reality is that most passive investments are really “pactive” investments. In other words, you must always drive your investment portfolio and be involved. Ask yourself: 1. How much time per week can I devote to my investments? 2. Am I willing to do the due diligence that is necessary to make wise investments? 3. Am I organized enough to track my investments? 4. Do I enjoy managing my investments? 5. Do I have enough investment knowledge to do this myself? 6. Am I able and willing to learn about investments? 7. Can I detach my emotions from an investment if it goes bad? 8. Can I stay focused on using my money rules even if my friend gives me a “hot stock tip?” 2. INVESMENT OBJECTIVE: Cash Flow or Appreciation? Decide what percent of your portfolio you wish to allocate to producing cash flow and what percent of your portfolio you wish to allocate to producing appreciation. Basically this means money now or money later. Ask yourself: 1. Am I able to pay my monthly bills without using debt right now? 2. Do I have a sufficient emergency fund in case things go bad? 3. Do I know of anything in the next 12-36 months that will have a significant effect on my income or expenses? 4. Is my job stable and am I committed to staying at it for the next 12months or longer? 5. Do I have credit card debt or other debts (medical/school/other)? 6. For how long will I be satisfied with my current standard of living? 7. Have I considered cost of living increases? 8. Are there large purchases that I plan on making or that I am considering in the next 12-36 months? 9. Am I disciplined enough to start an investment program and stick with it for at least 5 years? 10. Am I an impulse buyer? 11. Am I patient when it comes to money growing? 12. Do I practice delayed gratification? 13. Can I emotionally handle the ups and downs of watching an investment fluctuate in value over time if I believe that it will result in higher returns in the end? 14. Will I stick to my money rules even when I do not want to? 15. Is my personal life stable enough to invest for the long haul? 16. What is my preferred EXIT strategy? 3. TARGET RATE OF RETURN: Determine the minimum limits and the goals for your investment returns. You can determine this by the “Annualized Rate of Return” or the “Overall Return on Investment” approach. You can set minimum limits and goals for each type of investment account or you can simply set overall minimum limits and goals for all of your investments. However you choose to do this, the important thing is that you know what you are trying to accomplish with each investment that you make and you know that it is reasonable to accomplish your goals with each investment. Ask yourself: 1. How do I feel about the risk/reward relationship in investing? 2. Do I get nervous if my investment account balance goes down one month? 3. Can I accept temporary losses to make higher gains over time? 4. Am I willing to make unconventional investments to make higher returns? What if my family tells me that I am foolish? 5. Do I need investments that feel “safe” to sleep better at night? We call this “Sleep Equity”! 6. The formula for wealth is: time+money+rate of return. If you have a lot of one or two, then you can have a lesser amount of the other one. Which one do I have the least of? The most of? 7. Can I be patient to wait on my money to grow? 8. Do I need to see immediate growth in my money? 9. Do I need to feel in control of my investments? 10. Do I have “baggage” from past investment experience that will hinder me from investing wisely? 11. Have I had a bad experience with a specific class of investments? If so, can I get past it and invest in that class again? 12. Do I consider myself conservative, average or aggressive as an investor? Does it really matter what I am if the numbers determine whether or not I succeed in this area of my life? 13. Can I use the numbers, not my emotions, to determine my investment success? 14. Can I lose the money that I am going to invest and be O.K.? Can I lose any of it? How much of it can I lose? 15. Am I looking at my investment capital as my “pot of gold” that I am depending on? Or, am I investing my capital and working on making it again? 16. What is the worst case scenario? Can I live with it? 4. RISK APPROACH: Determine how you want to handle RISK According to Ed Winslow, author of the book “Blind Faith”, there are only four ways of managing any kind of risk. · Avoid Risk – Investment strategies that do not place your principal at risk and normally would offer some type of guaranteed return, such as CD’s, savings accounts or traditional fixed annuities. · Accept Risk – Investment strategies that place your principal at risk and do not offer any contractual guarantees only “promises” of “potential” high returns such as stocks, mutual funds or variable annuities. · Manage Risk – Investment strategies that claim to manage risk in an effort to minimize it, such as asset allocation models, hedge funds and money managers. For example Wall Street guru’s proclaimed for years that a well diversified portfolio would minimize their client’s risk of investing in the stock market. Recent market corrections have shown that this management style does not address “systemic” risk or in other words, all traditional asset classes experiencing a simultaneous downturn. · Transferring Risk – Investment strategies that transfer the risk of loss of principal to experts in exchange for contractually guaranteed principal protection and participation in market gains. These strategies typically trade off a small portion of the potential upside to have NONE of the downside or potential loss during downturns or market declines. Ask yourself: 1. How am I most comfortable in handling risk? 2. What percentage of your portfolio should be in each risk handling category? 3. Am I able to categorize my current and future investment options in each of these risk handling categories? 4. Do you have a template or approach that will assist you in optimizing the risk/reward within each risk handling category. For example: I have 2 options that fall into the category of risk avoidance. Option 1, One year CD paying 3% per year, Option 2, a 100% liquid savings account currently paying 2% per year. Which one would be better for you? The answer will be a function of your individual circumstances in the areas of liquidity, rate stability and security of the financial institution. 5. What is the EXIT strategy I am most comfortable with? 5. LIQUIDITY NEEDS You must decide how liquid you need to keep your investments. It is imperative that you seriously consider this matter. You do not want to end up badly needing funds that are tied up for a long term hold. So, decide how much money you can invest for the long term (over 2 years) and how much you can invest for the short term (under 2 years) and how much you can invest for really short periods (under 1 year). Only invest monies that you do not need for cash flow or other needs. It is always advisable to have a safe emergency fund that is easily accessible. Your Advisor can make a recommendation as to what he/she believes is suitable for your situation. Be sure and evaluate the liquidity cost of any investment. For example; this may be directly addressed as a “surrender” value in an annuity or it can be hidden in investments such as stocks or mutual funds. For example; many brokers will tell you that your stocks and mutual funds are completely “liquid” and can be liquidated any time you feel you need money…HOWEVER, if they are “at risk” investments and you lose half of your investment, your money isn’t liquid, its VAPOR! This is undoubtedly the most unanticipated surprise that most people face when investing. Annuities get a “bad rap” from brokers because they say you have to tie your money up for some set number of years varying by contract, but you know upfront your surrender charges or cost of liquidity and most of the time it doesn’t exceed 10% of the total monies invested. Contrast this scenario by stocks or mutual funds in which you can lose half of your money during an unanticipated downturn or poor money manager. Ask yourself: 1. Am I able to pay my monthly bills without using debt right now? 2. Do I have a sufficient emergency fund in case things go bad? 3. Do I know of anything in the next 12-36 months that will have a significant effect on my income or expenses? 4. Is my job stable and am I committed to staying at it for the next 12months or longer? 5. Should the need arise, can I purchase Health Insurance, Long Term Care Insurance etc…? 6. Do I have credit card debt or other debts (medical/school/other)? 7. For how long will I be satisfied with my current standard of living? 8. Have I considered cost of living increases? 9. Are there large purchases that I plan on making or that I am considering in the next 12-36 months? 10. How much money can I tie up for 5 years? 3 years? 1 year? 6 months? 11. Am I investing my retirement fund? What if I lose some or all of it? 12. Do I have time before retirement to make up money lost in investments? 13. Can I get to my money if I come across an investment that is secure and guaranteed to give me a great return in 6 months? 14. Can I get to my money should I have a short term or long term disability event? 6. TAX RAMIFICATIONS You must consider the effects that taxes will have on all your investments and your regular income as well. Some investments create returns that impact the taxes you pay on your ordinary income. A great year in your investments could mean that your regular income is taxed at a much higher rate. Many people pay AMT or Alternative Minimum Tax, when there is an excellent strategy such as “fractionalized ownership of oil and gas wells, which will offset those taxes, and yield returns for generations! You will need to consider using: · CPA and/or Tax Attorney (recommended for significant wealth) to help you plan how to move your money in and out of investments over time to take full advantage of the tax code as it relates to investments. · Strategies like using Real Estate depreciation or using IRA monies to make investments or using 1031 Transfers in Real Estate are all potentially very helpful strategies. It is a must that you have a great tax strategist onto your team to help you in this area. Choose professionals who are more successful than you and whose clients include high net worth individuals and other very successful business owners. Choose “specialists” not generalists. You wouldn’t go to an internist to get bypass surgery! When you work with a professional whose expertise is in very specific areas, they will know all of the subtle nuances of your taxes. Ask yourself: 1. Will the IRS treat me or my spouse as a Real Estate Professional? This term refers to the way the IRS treats certain investors-it does not mean that you are a Real Estate Agent or Broker. See your accountant for help if needed- it could really be worth it for you! 2. Will my investment returns cause my earned income to be taxed at a higher rate? 3. Do I understand the difference in long-term and short-term capital gains? 4. Am I self-directing my IRA investments into Real Estate, Promissory notes, businesses, etc…? 5. Am I using a Roth IRA? 6. Do I understand the tax benefits of cash flow real estate? 7. Do I know the most tax efficient direct investments? 8. Am I deferring taxes on the growth of my investments? 9. Am I planning on tax free income at retirement? 10. What is my EXIT strategy? 7. ASSET CLASS ALLOCATION PERCENTAGE: Develop an Asset Allocation Strategy with Diversification Some examples of various Asset Classes are as follows: · Businesses/DPP (Direct Participation Programs) · Real Estate · Gas & Oil · Promissory Notes · Cash on hand · Gold, Silver & Precious Metals · Insurance & Insurance backed Investments (Life Settlements, Fixed Indexed Annuities, Whole or Universal Life-Banking on Yourself Concept) · Securities (Stocks, Mutual Funds, Bonds) True “Diversification” is outside of traditional asset classes. You are not diversifying when you merely have large cap/small cap within a stock portfolio, because if/when there is a systemic downturn, they all crash! You should have at least some of your money in asset allocation vehicles that are either uncorrelated to market conditions or have protection of your principal safety built into the contract. An example of a “safe” allocation strategy would be the following: · Fixed Indexed Annuities 20% · Whole or Equity Indexed Universal Life Insurance: 20% · Life Settlements: 30%-40% · Real Estate: 20% · Gas & Oil: 10% (Fractionalized Ownership) · Gold, Silver & Precious Metals: 10% · Cash on hand: 10%n(or whatever allows you to sleep at night!) Your model may only include 2 asset classes, that is OK, just make sure you have made your determinations based on careful consideration of these 7 steps. Be sure and diversify at least 2 asset classes and have some of your investments in strategies where your principal is contractually guaranteed. The more money that is contractually guaranteed, the more comfortable you may be putting another portion in a more risky investment. This model applies to your overall portfolio, not just your invest-able assets at any given time. You may need to re-balance your portfolio over time as certain asset classes get out of balance. Also, there are many other investment options not included in this model such as stocks, bonds, mortgage notes, collectibles, etc… Whatever asset class you come across in your search, be sure and determine what characteristics this investment is for ex. (active/passive/little of both) (safe/risky) or (cashflow/appreciation) If your personal money rules exclude those characteristics of those particular investments…. DO NOT EVEN CONSIDER THEM! Another very important point to consider is if you are a W2 Employee or in other words, depending on a company for your paycheck, your salary is “at risk money”. Outside of the obvious illegal or non-performance reasons, you have no control over your company and their decision to terminate your employment. Companies move, go bankrupt, and products lose their allure, so consider this when determining how “safe” your paycheck money really is. Also keep in mind that 401K plans are almost always strategies that put your entire savings at risk, and the mutual funds that are offered in a 401K plan are usually not the best choices on Wall Street. They have a “captive” audience so they bundle the funds that do not sell or perform well alone. These are only models or examples. You must make these decisions yourself because you are the only one who truly knows you and because you must live with the outcome. This model is a working template that can be changed and applied to many different situations. This is your financial formula that can help you achieve more than you ever imagined for yourself and for the good of others. Be sure and include anyone who will be affected by your investment decisions such as your spouse! *Great Resources: “Incorporate and Grow Rich” C.W. Allen, Financial Strategist “Cash Machine” by Loral Langemeier, Financial Strategist “Wealth Cycle Investing” by Loral Langemeier, Financial Strategist “Blind Faith” by Edward Winslow, Investment Advisor, CPA, CFP “The Millionaire Mind” by T.Harv Eker “Rich Dad Poor Dad” by Robert Kiyoski “Cash Flow Quadrant” (Rich Dad Poor Dad) by Robert Kiyoski “Breaking The Rules” by Kurt Wright *7 STEPS TO ESTABLISHING “YOUR” MONEY RULES is a registered trademark of Lead Your Wealth® © 2009 Dinar Daddy: OPINION
SEPTEMBER 27, 2010 12:29 AM · All, From the moment I’ve been in this investment even until now, the debate of LOP versus RV has been raging. That very argument is what drove me and thousands of others AWAY from Investors Iraq (IIF), as it appeared it was absolutely overrun by those who felt it was their mission to squash the hopes and dreams of other investors. I am sharing this with the permission of those who have helped bring me this concept to light, from several legitimate economists and very sharp minds, their perspective to help each of you understand this dilemma. I don’t know about you, but I’ve been told time and again by those who are absolutely in a position to know that this will NOT be a LOP, but will be a straight-up RV, yet I found myself not being able to refute the arguments of those who brought only “part of the truth” forward, using the “numbers” to their advantage through logical focus on that which was clearly understood. This post of mine is dedicated to explaining how an RV will happen. CONCEPT EXPLAINED: First off, I’ll use the exchange of a 10,000 IQD note as my example. To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD and IQD, that is given a two-tier payout, and a 2% bank spread. What You Will Receive: If you were to cash in your 10,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $9,800 credited to your bank account. What Your Bank Will Receive: Your Bank will receive a $10,000 credit to its Federal Reserve Account. They will also be able to add the $200 profit to their “capital account”. If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan. To learn more about this concept, I suggest you click HERE, and go to a video post I brought to the forum previously, and posted in my “Tidbits“ section. Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model. What the US Treasury Will Receive: First off, the US Treasury will receive $3,500 in estimated taxes in the quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out – $3,500 in). Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $6,500 to $4,000. Oil Now Enters the Picture: At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq. Payment will consist of a $12,500 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI in a form otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves. How the CBI “RECAPTURES” the Money: The $12,500 order is filled with 250 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35) What does all that mean? It cost Iraq $162.50 to bring back a 10,000 IQD note! Can they afford that? I think so! So, instead of paying out $12,500 for a 10,000 IQD note, they only pay $162.50! That doesn’t add to the money supply much at all does it! They receive their IQD back and place it in the CBI, or destroy it. The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to $12,500 USD (which had a net acquisition cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq. More completely explained, and simply put, it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.) Other Factors that Strengthen Iraq’s Position and Ability to RV: DFI Funds Returned & Other Assets: $280+ Billion USD, plus other frozen assets (estimated at $100 billion) will be returned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD. CBI IQD Reserve Requirement Adjustment: The CBI will change the current fractional IQD reserve requirements from 100% to 15% at the appropriate time. As a result, the the total potential money supply will be raised in value to $2.8 Trillion (430 billion/15), while at the same time, the total physical IQD in circulation will be reduced by removing the large bills with the 3 zeros over a period of 2 years, as they have indicated. Oil Production Increased: Iraq will also execute the plan they announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury. Oil Futures & Forex Contracts Added: To further stir the pot, the CBI will continue to use it’s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market. Think of their impact in public markets. There, my friends, is how this plan will be enacted and made possible. Taking NOTHING, and turning it into SOMETHING, then bringing it back to a “manageable and reasonable something” that is accepted and supported by seeming endless supplies of oil. This is how the world’s ENTIRE NEW MONETARY SYSTEM will be regenerated and supported and backed, given, in essence, a re-birth and renewed for most governments and economic regions… even by “Black Gold”. So, here’s the summary for all the “players” involved, giving ballpark numbers, and not taking into account superfluous costs, fees, and other small details that don’t really affect the larger picture: Investor’s Net Gain: $10,000 – $200 = $9,800 x .65 = 6,370 for an investment that cost $10 Bank’s Net Gain: $200 added to “capital account”, plus $2,000 they can use to loan out. US Treasury Net Gain: $2,500 from the .25 spread on top + $3,500 in quarterly taxes = $6,000 CBI/GOI/Iraqi People Net Gain: $12,500 – $162.50 = $12,337.50 + Profits from “Other Factors” Overall Net Gain for All Involved: $6,370+$200+$6,000+12,337.20 = $24,907.20 This is the wealth that was generated from a single 10,000 IQD note that was given an original value of approximately $10! Is that amazing or what?! You tell me… can Iraq afford NOT to RV?!!! Will the IMF allow them to NOT RV their currency, but simply replace their large denoms for smaller ones?!!! LOL!!! In this scenario, EVERYONE WINS… and the IQD is slowly (over 2 years) taken back in to the CBI… eventually destroyed, leaving a manageable M2 behind, having created HUGE WEALTH throughout the world to re-supply what was allowed to be destroyed in the “great bleed” over a period of just a few weeks a couple of years ago, even the greatest redistribution of wealth the world has ever seen. Believe it or not, it has happened for this very purpose, and it IS coming! Go Iraq… Go Understanding… Go RV… Go Dinar! Dinar Daddy http://theiraqidinar.com/2010/09/27/dinar-daddy-making-sense-of-the-numbers-no-lop/ A Workbook on Bank Reserves and Deposit Expansion
The purpose of this booklet is to describe the basic process of money creation in a "fractional reserve" banking system. The approach taken illustrates the changes in bank balance sheets that occur when deposits in banks change as a result of monetary action by the Federal Reserve System - the central bank of the United States. The relationships shown are based on simplifying assumptions. For the sake of simplicity, the relationships are shown as if they were mechanical, but they are not, as is described later in the booklet. Thus, they should not be terpreted to imply a close and predictable relationship between a specific central bank transaction and the quantity of money. The introductory pages contain a brief general description of the characteristics of money and how the U.S. money system works. The illustrations in the following two sections describe two processes: first, how bank deposits expand or contract in response to changes in the amount of reserves supplied by the central bank; and second, how those reserves are affected by both Federal Reserve actions and other factors. A final section deals with some of the elements that modify, at least in the short run, the simple mechanical relationship between bank reserves and deposit money. Money is such a routine part of everyday living that its existence and acceptance ordinarily are taken for granted. A user may sense that money must come into being either automatically as a result of economic activity or as an outgrowth of some government operation. But just how this happens all too often remains a mystery. READ Booklet Here :: Modern Money Mechanics LINK SOURCE FOREX & CURRENCY CONVERTERS:
http://www.xe.com XE http://www.exchange-rates.org/MajorRates/ByRegion/M Exchange Rates .org http://www.netdania.com Netdania http://www.mataf.net/#en Mataf http://fxtop.com FX Top http://www.oanda.com Oanda http://www.menafn.com/currency_charts_data.asp?BC=USD&CC=IQD&CT=1M Mena FN http://www.advfn.com/p.php?pid=qkquote&symbol=FX^USDIQD ADVFN (Customized link to IQD) http://www.forexpros.com/commodities/real-time-futures ForexPros http://www.imf.org/external/np/fin/data/rms_rep.aspx International Monetary Fund (IMF) http://www.cbi.iq/ Central Bank of Iraq (CBI) http://www.forex.tradingcharts.com/quotes/index.php?sym=usdiqd&Submit=Go&tz=GMT Forex Trading Charts IRS Video Portal: Compliance with Bank Secrecy Act for MSBs
Transcript: Hello. I’m Kevin McCarthy of the IRS and I would like to discuss with the money services business market segment how an effective anti-money laundering or AML program can assist you in complying with the Bank Secrecy Act, also known as the BSA. Money services business, or MSB, activities may include: The issuance and sale of money orders and traveler’s checks; Money transmission; Check cashing; and/or Currency exchange or dealing. Any of the financial services offered by an MSB carries the risk of being used in money laundering or terrorist activities. This risk is determined by the types of products offered and customers served, high-risk geographic areas, and by the absence of a comprehensive anti-money laundering or AML program. An AML program is the key component in managing your risk. The program must be sufficient to allow the MSB to identify, monitor, mitigate and, when required, report financial activity. It must also comply with BSA regulatory requirements. IRS BSA examiners and state regulators conduct examinations to determine compliance with the BSA. Examinations are risk-based and focus on the AML program. The examiner will consider: The risk assessment of the MSB, The strength of the MSB’s AML program, The training provided to personnel, The quality of independent testing conducted, and The MSB’s compliance history. Generally, an examination will include: An on-site visit and walk-through of the business, Interviews with key employees such as personnel conducting transactions and the AML compliance officer, Examination of the AML program to assess its adequacy, and Examination of the books and records, to include limited transaction testing. More information is available in the Bank Secrecy Act/Anti-Money Laundering Examination Manual for Money Services Businesses. This manual can be found at IRS.gov by entering keywords “money services businesses” or at FinCEN.gov. Click on the MSB link. I hope this information is useful and assists you in complying with the Bank Secrecy Act. LINK Bank, Thrift and Credit Union Ratings..Is Your Money Safe?
Bank, Thrift and Credit Union Ratings http://www.bankrate.com/rates/safe-sound/ssPromo.aspx Calculators for mortgage, retirement, investing, car loans, credit cards and refinancing.
Calculators Mortgage payment calculator Calculate your mortgage payment and more Use our calculators to finesse your monthly budget, compare borrowing costs and plan for your future. See our full list of calculator and decision tools. Select a product below to begin calculating: Auto, Credit Card, Home Equity, Investment, Mortgage, Personal Finance, Retirement Savings, Tax Debt, Management, Insurance, Small Business LINK Request your free annual credit report.
It's QUICK, EASY and SECURE. This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. AnnualCreditReport.com is the official site to help consumers to obtain their free credit report. We guard your privacy. Please be aware of how you arrived at this site. To ensure that you are visiting the legitimate site, type the site name https://www.annualcreditreport.com directly into the address bar on your browser. You will never receive an email directly from the Annual Credit Report Request Service Take advantage of your free credit report once a year When is the last time you checked your credit report? Some people never do. Those are the ones who could become susceptible to deceptive loan tactics. For example, let's say you're at a car dealership. The salesman might put on a big show, saying how difficult it was, but that they finally found a lender who will finance your loan at 14% -- when all along you had great credit, and could have found yourself a loan elsewhere at 4%. You have a right under federal law to see each of your three credit files once a year, for free: The special federally-sanctioned site for this is called AnnualCreditReport.com http://www.annualcreditreport.com. It is the ONLY truly free website to check your credit report. Note: There are many so called "free" credit report sites...make sure you use the only one that is truly free. LINK Dinar Daddy (Cash-In): Member’s Answers to Post-RV Questions
SEPTEMBER 10, 2011 · Great info from Members at Dinar Daddy Forum.....Thanks to them for this information.. Cash-in What are your cash-in options post-RV? Traders and Banks When do you cash-in? (do it right away? Wait a bit? Is there a hurry?) think hard before you cash in make sure you have every thing prepared. Don’t be in a hurry Where in the world/country will there be cash-in locations? Check with your banks and places were you purchased your dinars they might have cash in locations. Who will be participating in such a monumental undertaking? Only the people you trust completely friends and family that are involved in dinar them selves. What are the best deals you can make when cashing in? Who ever gives you the highest rate call around Can you make your own deal to cash-in? Yes What else should you know about cashing in? Have your receipts your bank account numbers your I.D What precautions should you make before going to your appointment? Be aware of everybody try and make a appointment. You can also Take pictures front and back of your dinars just for extra precautions What should you already have set up prior to cash-in? Your LLC, Bank account, Receipts, Banking Investing Life Decisions Who to choose a bank that deals with foreign currency How to go about it check it out on the Internet do your research What can you do now? Prepare yourself mentally and physically Who will be involved in a cash-in? Yourself,the banker or trader, When do you approach a bank? After you know the rate What options to banks offer you both now and post RV? Until its a tradable currency most banks wont even deal with the dinar. After Rv then ever bank will differ not one bank will give you the same option do your research Who do you work with? (stock broker? Investment adviser? Financial planner? Banker?) It depends on your investing. Stock broker for stock market, depends on what investment you want to do. What types of investments are worth considering? Silver,gold, currency’s,other foreign investments including Iraq How do you formulate a plan for investing? Keep a portfolio and follow natural catastrophe, populations, economy’s and resources in country. How do you invest? It depends on what country you want to invest in (example Iraq. Three ways to invest. Paper money,warka bank account, ISX) there is also the UBS Financial Services How do you go about finding someone you can trust that will help you know your options and what to consider? Do your research and check them out. What are the risks involved with different types of investments? Investments alone there is always a high risk win or lose How do you set up a way to make interest on your money going forward? You can invest it put it in CD’s Retirement funds, Where should you place your money, and for how long before investing into anything? Put it into a financial institution that you trust and invest as soon as possible. Who do you tell you’ve come into money? People you trust so no one else only if you trust them with your lives What changes do you make in your life post-RV? As little as possible have a plan but don’t flaunt or go overboard. Live on a budget What changes should you be making now? Have your goals and think how you can make your money grow How do you protect your physical currency holdings both now and post-RV? Do not trust anybodys word for anything and be smart about it Who can you trust to help you? Breitling and dinar daddy.. Don’t trust anybody but your self.Where do you go and how do you go about it? Be smart and check around and cash in at the closes place. http://theiraqidinar.com/2011/09/10/dinar-daddy-cash-in-members-answers-to-post-rv-questions/ Yahoo Finance
Banking & Budgeting - Articles of Interest LINK Articles of Interest:Banking & Budgeting BUDGETING Anti-Money Laundering Laws & Practices for Banks, Individuals & Corporations The author discusses the requirements of the United States’ anti-money laundering laws and the banking industry’s standard practices and procedures for implementing these legal requirements. He also explains some related principles of offshore banking, wire transfers, Know Your Customer, Economic Substance, and other pertinent practices related to anti-money laundering issues and litigation. The United States has passed eight major laws that define how banks and the country as a whole deal with money laundering: 1. Bank Secrecy Act of 1970 Key Points: ● The Grand Daddy of anti-money laundering laws. It established the original requirements for recordkeeping and reporting by banks, individuals, and some other financial institutions. ● Required banks to file Currency Transaction Reports (“CTRs”) with the Financial Crimes Enforcement Network (“FinCEN”) at the IRS’s Detroit Computing Center for any cash – read “currency” – transactions over $10,000. ● Established basic Know Your Customer requirements for banks. 2. Money Laundering Control Act of 1986 Key Points: ● Addressed the prohibition of deposit structuring intended to avoid the $10,000 reporting ceiling. 3. Anti-Drug Abuse Act of 1988 Key Points: ● Began requiring car dealers and real estate closing personnel to file CTRs for transactions involving more than $10,000. ● Required sellers of financial instruments of $3,000 or more to verify the identity of the purchaser. 4. Annunzio-Wylie Anti-Money Laundering Act of 1992 Key Points: ● Instituted the Suspicious Activity Report (“SAR”) form as a replacement for the previously used Form 366 Criminal Referral. SARs are filed with FinCen at the IRS’s Detroit Computing Center. ● Began requiring banks to verify and maintain records regarding wire transfers. 5. Money Laundering Suppression Act of 1994 Key Points: ● Required every Money Services Business to register with FinCEN. ● Facilitated the CTR exemption process for legitimate businesses that handle large amounts of cash. ● Required banking agencies to review and enhance their anti-money laundering training, and develop anti-money laundering examination procedures. ● Required banks to establish improved procedures for referring suspected cases of anti-money laundering to the appropriate law enforcement officials. 6. Money Laundering and Financial Crimes Strategy Act of 1998 Key Points: ● Required banking agencies to include anti-money laundering training in their bank examiner training programs. ● Required the formulation of an overall national strategy to deal with money laundering. ● Established the ability to target anti-money laundering enforcement activities against specific geographical areas, industry sectors, or financial institutions where warranted. 7. USA PATRIOT Act a/k/a/ Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept and Obstruct Terrorism Act of 2001. Title III of the USA PATRIOT Act is known as the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001. Key Points: ● Strengthened customer identification procedures required of financial institutions. ● Required financial institutions to establish adequate due diligence procedures for offshore and foreign bank accounts. ● Prohibited United States financial institutions from doing business with foreign shell banks. ● Permitted the federal government to seize the assets of a bank that is holding assets of a person or entity that is laundering money. ● Improved information sharing between financial institutions and the U.S. government. ● Expanded the anti-money laundering program requirements to all financial institutions. ● Permitted imposing more strict anti-money laundering measures on jurisdictions, institutions, or transactions that are deemed to be more likely to be engaged in money laundering activities. ● Required federal banking agencies to consider a bank’s anti-money laundering practices while considering approval of proposed bank mergers and bank or branch acquisitions. 8. Intelligence Reform & Terrorism Prevention Act of 2004 Key Points: ● Permitted requiring specific financial institutions to report cross-border electronic transmittals of funds. As you can tell from the development of American anti-money laundering laws over the last forty years, the government has gradually increased the intensity of the preventive and detection measures in response to the failure or inadequacy of the previously enacted measures. For example, the introduction of the CTR in 1970 did not foresee the obvious inevitability of structuring transactions; yet structuring was not addressed until sixteen years later in 1986. For another example, focusing law enforcement attention on a specific area, such as Columbia, was not addressed until 1998, some 28 years after the Bank Secrecy Act, even though it was known in 2006 that 70% of the world’s cocaine originated in Columbia. (Source: United States National Drug Intelligence Center.) Clearly, anti-money laundering laws are generally one step behind what needs to be in place in order to be effective. Cash versus Wire Transfers Initial anti-money laundering efforts were primarily aimed at detecting cash deposits by criminals into financial institutions so that they could then move around their funds. As time passed, it became obvious that a great deal of criminally-sourced funds were making their way into the financial system; and money laundering detection efforts expanded their initial concentration on funds entering the system and began to look at funds already in the system and moving around by wire transfer, check and other means. These detection efforts involve enhanced due diligence on the part of financial institutions and their knowledge of their customers’ businesses and at least basically how they operate. This is sometimes referred to as the “Know Your Customer” policy. The goal is for the bank to understand the Economic Substance of their customers’ businesses so that the bank can understand how the funds transfers under consideration fit into their customers’ normal business patterns. Verification of identification for individuals and companies opening new accounts has been a part of effective anti-money laundering procedures for a long time; and this is easier to accomplish than the Know Your Customer aspect. Nevertheless, it is not unreasonable that banks should be required to have a face-to-face meeting with their customers and understand their business model and their standard operating system. Once a bank has this understanding of who their customer is and how they operate, the bank can be alert as to any out-of-pattern account activity that could indicate money laundering going on in the account. If a bank does detect out-of-pattern activity, the bank should immediately file a Suspicious Activity Report with FinCEN through the IRS’s Detroit Computing Center, as directed on the SAR form. One often overlooked area that may give rise to money laundering is when one company acquires another. The problem that can occur is that a criminal-controlled company can acquire a legitimate company that already is a bank customer. This makes it important that the bank re-investigate its customer anytime that the customer is acquired by another entity. Particular attention should be paid to wire transfers and other transactions to or from so-called offshore banks, offshore bank accounts, or offshore entities that are located in areas known for their lax banking and financial policies. Without blindly accusing any particular jurisdiction, here is a list of countries that are generally considered by the financial community to be suspicious locations for inbound or outbound financial funds transfers, and that warrant close scrutiny: Andorra, Anguilla, Antigua and Barbuda, Bahamas, Bahrain, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Cook Islands, Cyprus, Dominica, English Channel Islands of Jersey and Guernsey, Ghana, Gibraltar, Hong Kong, Ireland, Isle of Man, Labuan (in Malaysia), Liechtenstein, Luxembourg, Madeira, Malta, Macau, Mauritius, Monaco, Montserrat, Nauru, Panama, Saint Kitts and Nevis, Seychelles, Singapore, Switzerland, and the Turks and Caicos Islands. This is what banks need to know and do in order to effectively deal with the prevention of money laundering: 1. Establish and have in place complete anti-money laundering policies and procedures. 2. Document these policies and procedures in either your existing policy and procedure manual(s) or in a separate manual. 3. Make sure that all existing and new employees that are in a position to observe money laundering activities are informed regarding money laundering and the bank’s means for preventing it. 4. Make sure that the established policies and procedure manuals are available for reference by the staff when operational questions arise. 5. Make sure that all employees know to whom they should refer any questions on this subject when they arise. 6. Be aware of any unusual or out-of-pattern funds transfer activities, and report them on a Suspicious Activity Report. 7. Don’t be afraid to turn down an account that you suspect might be involved in money laundering or any other illegal activity. You will be better off without it, and you may save your bank the kind of front page notoriety that it doesn’t want. ABOUT THE AUTHOR: Don Coker Expert witness and consulting services. Over 430 cases for plaintiffs & defendants nationwide, 107 testimonies, 12 courthouse settlements, all areas of banking and finance. Listed in the databases of recommended expert witnesses of both DRI and AAJ. Clients have included numerous individuals, 60 banks, and governmental clients such as the IRS, FDIC. Employment experience includes Citicorp, Ford Credit, and entities that are now JPMorgan Chase Bank, BofA, Regions Financial, and a two-year term as a high-level governmental banking regulator. B.A. degree from the University of Alabama. Completed postgraduate and executive education work at Alabama, the University of Houston, SMU, Spring Hill College, and the Harvard Business School. Called on by clients in 27 countries for work involving 57 countries. Widely published, often called on by the media. Copyright Don Coker More information about Don Coker Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author. http://www.hg.org/article.asp?id=18853 |
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