Young Modulus Experiment

Experiment 1: Young Modulus Title:Bending of beam and coefficient of elasticity. Objective: To study the relationship between load, span, width, height and deflection of a beam, places on two bearers and affected by a concentrated load at the centre. :To ascertain the coefficient of elasticity for aluminium, brass and steel. Results: Measurement of test specimen (a) For beam material – Steel | Length, L (mm)| Thickness, h (mm)| Width, b (mm)| 1st reading| 650| 3. 15| 18. 97| 2nd reading| 650| 3. 11| 19. 03| 3rd reading| 650| 3. 12| 18. 97| Average reading| 650| 3. 13| 18. 99| (b) For beam material – Aluminium Length, L (mm)| Thickness, h (mm)| Width, b (mm)| 1st reading| 650| 3. 25| 19. 15| 2nd reading| 650| 3. 21| 19. 23| 3rd reading| 650| 3. 21| 19. 18| Average reading| 650| 3. 22| 19. 19| (c) For beam material –Brass | Length, L (mm)| Thickness, h (mm)| Width, b (mm)| 1st reading| 650| 3. 31| 19. 05| 2nd reading| 650| 3. 34| 19. 20| 3rd reading| 650| 3. 35| 19 . 09| Average reading| 650| 3. 33| 19. 11| Two simple supports end. (a) Deflection of test specimen [ Beam material-Steel ] Mass(gram)| Load (N)| Deflection #1 (mm)| Deflection #2 (mm)| Deflection #3 (mm)| Average Deflection (mm)| 100| 0. 981| 0. 5| 0. 45| 0. 48| 0. 43| 200| 1. 96| 0. 85| 0. 88| 0. 85| 0. 86| 300| 2. 94| 1. 30| 1. 32| 1. 38| 1. 33| 400| 3. 92| 1. 74| 1. 80| 1. 81| 1. 78| 500| 4. 91| 2. 20| 2. 24| 2. 25| 2. 23| (b) Deflection of test specimen [ Beam material-Aluminium ] Mass(gram)| Load (N)| Deflection #1 (mm)| Deflection #2 (mm)| Deflection #3 (mm)| Average Deflection (mm)| 100| 0. 981| 1. 18| 1. 15| 1. 16| 1. 16| 200| 1. 96| 2. 43| 2. 54| 2. 40| 2. 46| 300| 2. 94| 3. 72| 3. 67| 3. 72| 3. 70| 400| 3. 92| 4. 98| 5. 08| 5. 10| 5. 05| 500| 4. 91| 6. 07| 6. 20| 6. 15| 6. 14| (c) Deflection of test specimen [ Beam material-Brass ]Mass(gram)| Load (N)| Deflection #1 (mm)| Deflection #2 (mm)| Deflection #3 (mm)| Average Deflection (mm)| 100| 0. 981| 1. 02| 0. 97| 0. 90| 0. 96| 200| 1. 96| 1. 80| 1. 78| 1. 74| 1. 77| 300| 2. 94| 2. 67| 2. 78| 2. 66| 2. 70| 400| 3. 92| 3. 49| 3. 57| 3. 52| 3. 53| 500| 4. 91| 4. 37| 4. 41| 4. 37| 4. 41| One fixed end and one simple support end. (a) Deflection of test specimen [ Beam material-Steel ] Mass(gram)| Load (N)| Deflection #1 (mm)| Deflection #2 (mm)| Deflection #3 (mm)| Average Deflection (mm)| 100| 0. 981| 0. 26| 0. 23| 0. 27| 0. 25| 200| 1. 96| 0. 48| 0. 45| 0. 47| 0. 47| 300| 2. 94| 0. 69| 0. 70| 0. 70| 0. 0| 400| 3. 92| 0. 97| 0. 88| 0. 88| 0. 89| 500| 4. 91| 1. 15| 1. 12| 1. 12| 1. 13| (b) Deflection of test specimen [ Beam material-Aluminium ] Mass(gram)| Load (N)| Deflection #1 (mm)| Deflection #2 (mm)| Deflection #3 (mm)|Average Deflection (mm)| 100| 0. 981| 0. 60| 0. 67| 0. 69| 0. 65| 200| 1. 96| 1. 28| 1. 19| 1. 20| 1. 22| 300| 2. 94| 1. 80| 1. 80| 1. 82| 1. 81| 400| 3. 92| 2. 37| 2. 43| 2. 45| 2. 42| 500| 4. 91| 2. 97| 2. 98| 3. 01| 2. 99| (c) Deflection of test specimen [ Beam material-Brass ] Mass (gram)| Load (N)| Deflection #1 (mm)| Deflection #2 (mm)| Deflection #3 (mm)| Average Deflection (mm)| 100| 0. 81| 0. 47| 0. 42| 0. 48| 0. 46| 200| 1. 96| 0. 90| 0. 86| 0. 86| 0. 87| 300| 2. 94| 1. 30| 1. 28| 1. 30| 1. 29| 400| 3. 92| 1. 73| 1. 70| 1. 71| 1. 71| 500| 4. 91| 2. 14| 2. 14| 2. 13| 2. 14| Calculations: * Two simple supports end To calculate the moment of inertia : I = bh312 I = Moment of Inertia ( m4 ) b = Width of beam ( m ) h = Thickness of beam ( m ) To determine the beam Young modulus : E = F? (L348I) E = Young modulus ( Pa ) F = Force/load applied ( N ) ? = Deflection ( m ) L = Beam length ( m ) I = Moment of Inertia ( m4 ) F? = Slope of graph line deflection versus force ( N m-1 )Beam material – Steel I = bh312 = 18. 99 ? 10-33. 13 ? 10-33 12 = 4. 853? 10 -11m4 E = F? (L348I) = 4. 9-0. 980. 00223-0. 00043(600? 10-3)3484. 853? 10-11 = 3. 920. 00180. 2162. 329 ? 10-9 = 201. 94 GPa Beam material – Aluminium I = bh312 = 19. 19 ? 10-33. 22 ? 10-3312 = 5. 339? 10 -11m4 E = F? (L348I) = 4. 9-0. 980. 00614-0. 00116(600? 10-3)3485. 339? 10-11 = 3. 920. 004980. 2162. 563 ? 10-9 = 66. 35 GPa Beam material – Brass I = bh312 = 19. 11 ? 10-33. 33 ? 10-3312 = 5. 880? 10 -11m4 E = F? (L348I) = 1. 962-0. 9810. 00177-0. 00096(600? 10-3)3485. 880? 10-11 = 0. 9810. 000810. 2162. 822 ? 0-9 = 92. 69GPa * One fixed end and one simple support end I = bh312 I = Moment of Inertia ( m4 ) b = Width of beam ( m ) h = Thickness of beam ( m ) E = F? (3. 5L3384I) E = Young modulus ( Pa ) F = Force/load applied ( N ) ? = Deflection ( m ) L = Beam length ( m ) I = Moment of Inertia ( m4 ) F ? = Slope of graph line deflection versus force ( N m-1 ) Beam material – Steel I = bh312 = 18. 99? 10-33. 13? 10-3312 = 4. 853? 10 -11m4 E = F? (3. 5L3384I) = 4. 91-0. 9810. 00113-0. 000253. 5(600? 10-3)33844. 853? 10-11 = 3. 9290. 000880. 7561. 86 ? 10-8 = 181. 47 GPa Beam material – AluminiumI = bh312 = 19. 19? 10-33. 22? 10-3312 = 5. 339? 10 -11m4 E = F? (3. 5L3384I) = 4. 91-0. 9810. 00299-0. 000653. 5(600? 10-3)33845. 339? 10-11 = 3. 9290. 002340. 7562. 05 ? 10-8 = 61. 92 GPa Beam material – Brass I = bh312 = 19. 11? 10-33. 33? 10-3312 = 5. 880? 10 -11m4 E = F? (3. 5L3384I) = 4. 905-0. 9810. 00214-0. 000463. 5(600? 10-3)33845. 880? 10-11 = 3. 9240. 001680. 7562. 26 ? 10-8 = 78. 13GPa Theoretical value for young modulus of Steel = 200GPa Theoretical value for young modulus of Aluminium = 69GPa Theoretical value for young modulus of Brasses = 100-125GPa Discussion :Based on the results, the experimental young modulus for Steel is 201. 94 GPa by using two simple supports end. Besides that, the experimental young modulus for Aluminium is 66. 35 GPa and for Brass is 92. 69 GPa. On the other hand, when the test is carried out by using one fixed end and one simple support end, the experimental young modulus for Steel is 181. 47 GPa, Aluminium is 66. 35 GPa and Brass is 92. 69 GPa. Based on the results from the both method, the coefficient of elasticity for Aluminium is the highest among Steel and Brass as it has the lowest value of young modulus.By comparing with the theoretical young modulus for Steel, Aluminium and Brass, the experimental young modulus for specimen by using two simple supports end is more accurate than using one fixed end and one simple support end. This is because when the beam is tighten only at one side, it will causes the beam to deflect unequally at both side. Thus, the dial gauge readings recorded will be inaccurate. There are some factors that may affect the experimental results to be inaccurate when this experiment is carried out.One of the factors that lead to inaccurate results is because of the atmosphere around the laboratory. The strong air from the air-conditioner will cause the load to be unstable and shaking when the reading is taken. Thus, the readings in the dial gauge will be changing as the load is moving. Besides that, misalignment error will also affect the experi mental results to be inaccurate. The dial gauge is not placed to the center of the test specimen. This is important because the deflection of a beam placed on two bearers will be affected by a concentrated load at the centre.Moreover, parallax error may be occur when adjusting the height of the gauge so that the needle touched the test specimen. This error occurs because different people have different viewing of the measurement at an angle. Furthermore, the dial gauge must be set to 0. 00mm every time the load hanger is mount on the center of the test specimen. This steps need to be done before the readings is taken so that the results will not be interfere by the previous experimental results. The readings by the dial gauge must be taken when it is already fixed and stabilize.Therefore, softly tap on the dial gauge until the reading did not change to ensure that the load had already stabilize before the dial gauge reading is recorded. Conclusion : When the width and the height of the beam increases, the moment of inertia calculated will increase. Besides that, when the load and span increases, the deflection of a beam will also increases. This shows that the load and span is directly perpendicular to the deflection of a beam. Based on the results from both method, the coefficient of elasticity is increasing from steel, brass and aluminium.

The Role of Banking Sector in the Prevention of Money Laundering in Bangladesh

Chapter One Introduction 1. 0 INTRODUCTION Besides of development of Economic activities, monetary related crimes are also increasing in both developed and underdeveloped countries. Almost in each country illegal transaction of money has been increased & these illegal money has been also used on various illegal activities. Money laundering process refers to illegal receipt or transfer of fund from one place to another. This process involves not only the banking system of the country but also non-banking system.Bangladesh is moving towards an open economy with a small-magnetized sector by liberalizing the financial and economic policies. However, the money laundering mechanisms are creating problem for a country like Bangladesh. Bangladesh Bank as the Central bank of Bangladesh Supervise all the banking and non-banking financial transactions on behalf of Bangladesh Government. Money laundering process is a great obstacle to the execution of monetary policy adopted by Bangladesh bank t o stable the economy of the country.To prevent money laundering, money laundering prevention bill 2002 was passed in the National Assembly of Bangladesh on 5 April 2002 and Gazette Notification was made on 7 April 2002. And Bangladesh Bank has been designated to act as the main preventive agency. Money Laundering has serious adverse effect on Economical, Political & Social condition of a country. It increases unequal distribution of income and as a result, the employment level, output level of the country, price stability as well as economic development and growth can be hampered.So it is immediately required to prevent it. I believe it is a matter of great opportunity for me to study on this topic, as Money laundering, is a manifestation and a facilitator of organized crime, and has attracted increasing interest in our country. Due to money laundering process, desirable investment of the country cannot be done, national income declines and economic growth of the country hampers. 1. Background of Money LaunderingThe mafia mobster Al Capone is most often credited with coining term â€Å"money laundering† because he used investments in coin-operated Laundromats to disguise or â€Å"wash† the millions he made from bootlegging and other illegal enterprises during the Prohibition in the US-the banning of alcoholic drinks in the 20th century. It is also said that the term â€Å"laundering† is used because, years ago, the cash proceeds (in U. S. dollars) from drug sales were actually washed with soap and water to appear old and worn. Launderers would then go to the Federal Reserve Bank and exchange the â€Å"laundered† bills in for new bills.Along with the new bills came a fed receipt, which served to support the â€Å"legitimate† origin of the cash. The scam was finally identified when someone at the Fed realized that the serial numbers on the bills indicated that they should not be as old and worn as they appeared to be. The term first appeared in newspapers reporting the Watergate scandal in the US in 1973 and in judicial/legal contest in the US in 1982. Whilst the term â€Å"money laundering† was coined in the 20th century, it has been going on for several thousand years.The history of money laundering is interwoven with the history of trade and of banking. In 1986, the U. S. became the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity when it passed the U. S. money laundering law. The silk road which scholars say first became a real link around 100 BC, ran for 12,000 kilometers and linked some of the greatest civilizations the world has ever seen – the Chinese, Mongolian, Indian, Persian, Greek, Byzantine, Mesopotamian and Egyptian – transporting goods, people, ideas, religions and Money.Chinese inventions like gunpowder and paper first traveled to Europe in this manner. Along with many other things, Syrian jugglers and acrobat s, cosmetics, silver, gold, amber, ivory, carpets, perfume and glass from Europe, Central Asia, Arabia and Africa traveled to the east. It lasted until the 15th century when newly discovered sea routes to Asia opened up. Traditional method of moving money evolved before Western banking became established in the region protecting early merchants along the Silk Road against robbery.In ancient China it was known as â€Å"fei qian† or â€Å"flying coins†. The system spread throughout the world – to other Asian regions, the Indian Subcontinent, the Middle East, eastern and southern Africa, Europe and North and South America – following immigration patterns. These traditional money transfer systems are called as Chop, Hawala, Hundi, etc. 1970-The US Congress enacted the Bank Secrecy Act (BSA) in October 1970 following increasing reports of people bringing bags full of illegally – obtained cash into banks for deposit.The BSA is simply a reporting and reco rd-keeping statute. Although willful violations of its terms are a crime; it does not criminalize money laundering as such. BSA requires banks –retain financial details, -report cash transactions over $ 10,000/-. Thus in 1986, the U. S. became the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity. Thus made money laundering a crime in its own right, and strengthened the BSA in several respects, most importantly by prohibiting â€Å"structuring†. 990 – The Financial Crimes Enforcement Network (FinCEN) created by the US Treasury on April 25, initially to focus on the detection of financial crimes by providing analytical support to law enforcement investigations. In 1994, the agency would be given BSA regulatory responsibilities. 1992 – Annunzio-Wylie Money Laundering Act amended the BSA in several respects. Perhaps most important, required any financial institution, and its officers, directors, emplo yees and agents, â€Å"to report any suspicious transaction relevant to a possible violation of law or regulation. The Annunzio –Wylie Act, require all financial institutions to put in place, not only BSA compliance programs, but also anti-money laundering programs. At a minimum, the programs would be required to include: 1) The development of internal anti-money laundering policies, procedures and controls; 2) The designation of a compliance officer; 3) An ongoing employee training 4) An independent audit functions to test the program. At first U. S. A. has taken initiative to money laundering but now most of the countries of the world are aware about it. 2. Origin of the ReportThis Research Paper has been prepared for the partial fulfillment of Masters of Business Administration (MBA) Programme. For this purpose honorable teacher and supervisor Mr. Md. Nazrul Islam, Head of the Department of Business Administration, Shahjalal University of Science & Technology, Sylhet aske d to submit a proposal. After discussing with him about various issues of money laundering I have submitted a proposal on â€Å"The Role of Banking Sector in the Prevention of Money Laundering in Bangladesh † was submitted and then the final research paper is prepared. 3.Objective of the Paper The objective of the research paper is to help the students be familiar with how the theoretical knowledge obtained in the degree program can be applied in practice. Generally research is either problem identifying or problem solving tool. The objectives of the study are as follows: – 1. To understand the theoretical concepts of money laundering. 2. To show the present scenario of anti money laundering issues in Bangladesh. 3. To observe the policy development and maintenance by Bangladesh Bank as a supervisor of anti money laundering activities. 4.To figure out core procedures that Bangladesh Bank adopts to supervise the anti money laundering activities. 5. To comment on the exi sting system and recommend for improvement. 1. 4 Methodology Certain methods and techniques is utilized to collect data for this research paper. This study is mainly based on empirical as well as theoretical analysis. Collected data and information is tabulated, processed and analyzed critically in order to make the report informative. Both primary and secondary sources of data are chosen as effective means of collecting data relevant for this paper. . To prepare first part of the research paper secondary sources were used. Publications and database within Bangladesh Bank and others commercial bank helped me to get data about money laundering and its prevention. Various types of circular of Bangladesh Bank regarding money laundering exist in different commercial banks. This paper also required study of annual report, policy related circulars, and service rules, administrative circulars and other related papers. To get more information, I have also collected some books about money la undering and searched website. 2.Interview of the personnel from people within these relevant organizations was the basic technique to collect primary data. Informal discussion with executive connected with the planning and control works in the various levels of the Bangladesh Bank was needed. To collect data and to analyze these properly I have to be interviewed face to face with bank officials. . 5. Justification of the Research To prevent money laundering is very complex task especially in a country like Bangladesh where most of the citizens are illiterate and their economic bad condition inspired them to involve in illegal activities.This increases economic misery of the have-nots and concentrated wealth in the hands of 10% of the total population. The scope and scale of money laundering has increased over time and the process of addressing the problem has become complex because of the global nature of the problem. So cooperation among the law enforcing agencies, awareness of th e overall people of the country about its adverse effects, government strictness to avoid political interferences, all these are required to prevent it, that is, creation of wareness against money laundering is of highest importance at the moment. After about three months research with various money-laundering issues with Bangladesh Bank and Commercial Banks this paper is intended to fulfill course requirements of Masters of Business Administration. Bangladesh Bank, which is the authorized Bank to monitor all the banking and non-banking financial institutional activities, so I have worked on it in details. Beside this I have studied other operational areas of the commercial bank, which have enriched the level of my knowledge. . 6 Limitations Though this report provides the insights of Money Laundering in Bangladesh and the mechanisms by which Bangladesh Bank takes steps to prevent Money Laundering, it has some limitations as well. As the activities of money laundering are illegal, a ll of work is going on behind the sight of general public; it is hard to find out the adequate & real data. The organization on which was studied is the Central Bank of BANGLADESH, which is not a private or public bank of Bangladesh.The main limitation that faced during conducting the study was lack of access to information considered confidential by employees of central bank based on their policy and strategies. Chapter Two 2. 1 Brief History of Money Laundering The mafia mobster Al Capone is most often credited with coining term â€Å"money laundering† because he used investments in coin-operated Laundromats to disguise or â€Å"wash† the millions he made from bootlegging and other illegal enterprises during the Prohibition in the US-the banning of alcoholic drinks in the 20th century.It is also said that the term â€Å"laundering† is used because, years ago, the cash proceeds (in U. S. dollars) from drug sales were actually washed with soap and water to appea r old and worn. Launderers would then go to the Federal Reserve Bank and exchange the â€Å"laundered† bills in for new bills. Along with the new bills came a fed receipt, which served to support the â€Å"legitimate† origin of the cash. The scam was finally identified when someone at the Fed realized that the serial numbers on the bills indicated that they should not be as old and worn as they appeared to be.The term first appeared in newspapers reporting the Watergate scandal in the US in 1973 and in judicial/legal contest in the US in 1982. Whilst the term â€Å"money laundering† was coined in the 20th century, it has been going on for several thousand years. It is said that the abuse of Chinese merchants and others by oppressive regimes and despotic rulers led them to find ways to hide their wealth, including ways of moving it around without it being identified and confiscated. Money laundering in this sense was prevalent 4000 years before Christ.Many minori ties in countries down the ages and around the world have taken steps to preserve wealth from the rulers- either from blatant confiscation or from taxation and, indeed, from a combination of both, who have targeted them simply because of their beliefs or colour. It is happening even today. And, of course from those seeking to enforce judgments in civil cases or to follow the money that results from other crime. The history of money laundering is interwoven with the history of trade and of banking. In 1986, the U. S. ecame the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity when it passed the U. S. money laundering law. 2. 2 The Silk Road – Once World’s main commercial artery The silk road which scholars say first became a real link around 100 BC, ran for 12,000 kilometers and linked some of the greatest civilizations the world has ever seen – the Chinese, Mongolian, Indian, Persian, Greek, Byzantine, Me sopotamian and Egyptian – transporting goods, people, ideas, religions and Money. Heading west were porcelain, furs, spices, gems and other exotic products of Asia.Chinese inventions like gunpowder and paper first traveled to Europe in this manner. Along with many other things, Syrian jugglers and acrobats, cosmetics, silver, gold, amber, ivory, carpets, perfume and glass from Europe, Central Asia, Arabia and Africa traveled to the east. It lasted until the 15th century when newly discovered sea routes to Asia opened up. Traditional method of moving money evolved before Western banking became established in the region protecting early merchants along the Silk Road against robbery. In ancient China it was known as â€Å"fei qian† or â€Å"flying coins†.The system spread throughout the world – to other Asian regions, the Indian Subcontinent, the Middle East, eastern and southern Africa, Europe and North and South America – following immigration patte rns. These traditional money transfer systems are called as Chop, Hawala, Hundi, etc. 2. 3 History of Criminalizing Money Laundering 1970-The US Congress enacted the Bank Secrecy Act (BSA) in October 1970 following increasing reports of people bringing bags full of illegally – obtained cash into banks for deposit. The BSA is simply a reporting and record-keeping statute.Although willful violations of its terms are a crime, it does not criminalize money laundering as such. BSA requires banks –retain financial details, -report cash transactions over $ 10,000/-. 1974 –although the BSA is accepted now, its constitutionality was originally challenged in the courts by elements of the banking community and some civil libertarians. BSA was challenged on a number of grounds. In California Bankers Assn . v. Shultz, 416 U. S. 21 (1974) Supreme Court rejected claims that various parts of the BSA violated constitutional rights. 986 – Growth, seriousness of the problem of Money Laundering, and of widespread non-compliance with the BSA, led to the enactment of the Money Laundering Control Act of 1986. Thus in 1986, the U. S. became the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity. Thus made money laundering a crime in its own right, and strengthened the BSA in several respects, most importantly by prohibiting â€Å"structuring†. 1990 – The Financial Crimes Enforcement Network (FinCEN) created by the US Treasury on April 25, initially to focus on the detection of financial rimes by providing analytical support to law enforcement investigations. In 1994, the agency would be given BSA regulatory responsibilities. 1992 – Annunzio-Wylie Money Laundering Act amended the BSA in several respects. Perhaps most important, required any financial institution, and its officers, directors, employees and agents, â€Å"to report any suspicious transaction relevant to a possible v iolation of law or regulation. † The Annunzio –Wylie Act, require all financial institutions to put in place, not only BSA compliance programs, but also anti-money laundering programs. At a minimum, the programs would be required to include: ) the development of internal anti-money laundering policies, procedures and controls; 2) the designation of a compliance officer; 3) an ongoing employee training 4) an independent audit functions to test the program. 2. 4 Why Money Laundering is done? Criminals engage in money laundering for three main reasons: First, money represents the lifeblood of the organization that engages in criminal conduct for financial gain because it covers operating expenses, replenishes inventories, purchases the services of corrupt officials to escape detection and further the interests of the illegal enterprise, and pays for an extravagant lifestyle.To spend money in these ways, criminals must make the money they derived illegally appear legitimate . Second, a trail of money from an offense to criminals can become incriminating evidence. Criminals must obscure or hide the source of their wealth or alternatively disguise ownership or control to ensure that illicit proceeds are not used to prosecute them. Third, the proceeds from crime often become the target of investigation and seizure. To shield ill- gotten gains from suspicion and protect them from seizure, criminals must conceal their existence or, alternatively, make them ook legitimate. 2. 5 Why we must combat Money Laundering Money laundering has potentially devastating economic, security, and social consequences. Money laundering is a process vital to making crime worthwhile. It provides the fuel for drug dealers, smugglers, terrorists, illegal arms dealers, corrupt public officials, and others to operate and expand their criminal enterprises. This drives up the cost of government due to the need for increased law enforcement and health care expenditures (for example, f or treatment of drug addicts) to combat the serious consequences that result.Crime has become increasingly international in scope, and the financial aspects of crime have become more complex due to rapid advances in technology and the globalization of the financial services industry. Money laundering diminishes government tax revenue and therefore indirectly harms honest taxpayers. It also makes government tax collection more difficult. This loss of revenue generally means higher tax rates than would normally be the case if the untaxed proceeds of crime were legitimate. We also pay more taxes for public works expenditures inflated by corruption.And those of us who pay taxes pay more because of those who evade taxes. So we all experience higher costs of living than we would if financial crime—including money laundering—were prevented. Money laundering distorts asset and commodity prices and leads to misallocation of resources. For financial institutions it can lead to a n unstable liability base and to unsound asset structures thereby creating risks of monetary instability and even systemic crises. The loss of credibility and investor confidence that such crises can bring has the potential of destabilizing financial systems, particularly in smaller economies.One of the most serious microeconomic effects of money laundering is felt in the private sector. Money launderers often use front companies, which co-mingle the proceeds of illicit activity with legitimate funds, to hide the ill-gotten gains. These front companies have access to substantial illicit funds, allowing them to subsidize front company products and services at levels well below market rates. This makes it difficult, if not impossible, for legitimate business to compete against front companies with subsidized funding, a situation that can result in the crowding out of private sector business by criminal organizations.No one knows exactly how much â€Å"dirty† money flows through the world's financial system every year, but the amounts involved are undoubtedly huge. The International Money Fund has estimated that the magnitude of money laundering is between 2 and 5 percent of world gross domestic product, or at least USD 800 billion to USD1. 5 trillion. In some countries, these illicit proceeds dwarf government budgets, resulting in a loss of control of economic policy by governments. Indeed, in some cases, the sheer magnitude of the accumulated asset base of laundered proceeds can be used to corner markets — or even small economies.Among its other negative socioeconomic effects, money laundering transfers economic power from the market, government, and citizens to criminals. Furthermore, the sheer magnitude of the economic power that accrues to criminals from money laundering has a corrupting effect on all elements of society. The social and political costs of laundered money are also serious as laundered money may be used to corrupt national instit utions. Bribing of officials and governments undermines the moral fabric in society, and, by weakening collective ethical standards, corrupts our democratic institutions.When money laundering goes unchecked, it encourages the underlying criminal activity from which such money is generated. Nations cannot afford to have their reputations and financial institutions tarnished by an association with money laundering, especially in today's global economy. Money laundering erodes confidence in financial institutions and the underlying criminal activity — fraud, counterfeiting, narcotics trafficking, and corruption — weaken the reputation and standing of any financial institution. Actions by banks to prevent money laundering are not only a regulatory requirement, but also an act of self- interest.A bank tainted by money laundering accusations from regulators, law enforcement agencies, or the press risk likely prosecution, the loss of their good market reputation, and damaging the reputation of the country. It is very difficult and requires significant resources to rectify a problem that could be prevented with proper anti-money-laundering controls. It is generally recognized that effective efforts to combat money laundering cannot be carried out without the co-operation of financial institutions, their supervisory authorities and the law enforcement agencies.Accordingly, in order to address the concerns and obligations of these three parties, these Guidance Notes were drawn up. 2. 6 Techniques in Money Laundering There are diversified method of money laundering which ranges from the purchase and resale of a luxury item (e. g. a house, car, or jewelry) to passing money through a complex web of legitimate businesses and ‘shall’ companies (i. e. those companies that primarily exist only as named legal entities without any trading business activities). Basically 3 stages, which may comprise numerous transactions by the launderers-Placement†”the physical disposal of the initial proceeds (derived from illegal activity). 1. Breaking up of large amounts of cash into smaller amounts. 2. Depositing the cash in bank and subsequently transferring the same amount from one bank to another, preferably, in abroad. 3. Exchanging into a foreign currency and subsequently conversion into local currency. 4. Cash purchase of single premium insurance policy or other investment. 5. Cash purchase of costly items like jewelry, diamond, car, aircraft, and boats etc as an alternatives to cash. 6.Injecting the cash in business like hotels, restaurants, bars, casinos, bookmakers, travel agency, taxi firm etc. which handle considerable cash in day-to-day operation. Layering—creation of complex layers of financial transactions for disguising the audit trail and provide secrecy. 1. Purchase & sale of securities and commodities via brokers. 2. Conversion into monetary instruments like BCD, TC, BONDs. 3. Electronic funds transfer-very freq uently. 4. Making deposit in outstation bank branches or overseas banking system. 5. Sale & purchase of material assets between some fictitious persons/associates.Integration – the laundered proceeds are set back into the economy in such a way that they re-enter the financial system appearing as normal business funds/legal money. Identification of illicit source becomes next to impossible. 1. Falsification (over/under invoicing) of invoicing/export. 2. Deployment of fund in ‘shell’ company and recoup the as legitimate profit. 3. Taking aid of corrupt bank employees and obtaining bank loan by depositing illicit money as security. 4. False loan repayment. 5. Taking aid of E-cash, which enables to move vast amount of money instantly with just a few keystrokes. . 7 Moving Money Abroad Legitimate purposes-are for moving money abroad: (1) to invest, (2) to speculate, (3) to lend, (4) to meet trading/personal obligations and (5) to safeguard assets against theft or seiz ure by repressive regimes. But a criminal moves money abroad for- (1) Dealing in arms & ammunition, (2) Drug trafficking, (3) Financing terrorist activities, (4) Evasion of exchange regulations/control, (5) Evasion of taxation, (6) Disguise or remove proceeds of threat/fraud/bribe, (7) Making blackmail payments and (8) Paying ransom for kidnappers.The banking system remains one of the most important avenues for money launderers. The use of bearer certificate of deposit, bank drafts, wire transfers to transmit funds internationally and establishment of loan back scheme are commonly used as banking instruments around the world. New methods are constantly being used to avoid detection. These may include simple measures as â€Å"Smurfing† or Structuring that is making numerous small deposits which would fall below a suspicious cash transaction report, using relatives, third party or false names on accounts or more sophisticated measures such as use of shell companies.A recent stu dy by FATF found increasing use of non-bank financial institutions (Money Changers, remittance business etc. ) to provide services attractive to launderers since these institutions are subject to fewer regulatory requirements than banks. Because of increasing profit from the drug trafficking and other criminal enterprises, money launderers are adopting new techniques, employing specialized expertise who can provide sophisticated methods of laundering and various other financial services.Techniques used include false invoicing (over- invoicing, under- invoicing), commingling of legal and illegal money, the use of bank loan arrangements (whereby the launderer transfers proceeds to another country and use them as security for a bank loan, which is sent back to original country) and layers of transactions through off-shore shell companies. In addition, a significant amount of illegal proceeds has been invested in real estate. However, because of the introduction of anti-money laundering counter measures in different countries, money launderers constantly seek new ways to circumvent regulation.Methods that work tend to be replicated in different locations or may be used with some modifications. 2. 7. 1 Underground Banking (Alternative Remittance System) There has also of under ground or alternative banking system commonly known as ‘Hawala’ or Hundi in the sub-continent. This system works without a paper trail. A ‘Hawala’ bankers issue neither a written receipt for the sum received nor an order for payment. What he does, make a firm verbal commitment to the seller of dollars to make an equivalent taka payment at the agreed rate of exchange, through his agent in the particular country.Then he sends a coded message to his agent containing the designated recipients name and time, date and address for the payment. Why people resort to underground banking a. Socio-economic & political reasons b. Higher returns c. Anonymity d. No available bankin g channel e . Avoidance of local taxes f. Illiteracy/Semi-literacy Advantages of Hundi/Hawala: a. No paper trail b. No bureaucracy c. Cost effective d. No body is the loser and e. No holiday-very fast delivery [pic] Figure 1. Basic sequence of communication and payment in an alternative remittanceThe Chinese have a similar system known as ‘fie chien’ or flying money. This system, sometimes known as ‘Chit’ system involved depositing money in one country in exchange for chit or a chop (i. e. a seal) and remittance of this money in another country on presentation of the chit. It is fast and convenient, does not involve the transportation of bank cash, leaves little trail for investigators, has virtue of anonymity and the costs are fairly low. The main negative consequence of money laundering can have on the financial system.A large-scale money laundering operation may put at the risk of smaller nation’s financial system through loss of credibility and i nvestor’s confidence. The victims of the bank’s malpractice were the depositors and the government in developing countries. 2. 7. 2 Electronic Money Laundering Criminals are always looking for â€Å"a new type of detergent which allows for cleaner laundry† (Bortner, 1996). They have been quick to exploit each new method of financial transfer. In the 1980s and 1990s wire transfers became a popular method for moving money in both the legal and illegal sectors.By 2000 we may see the same situation with e-money. The abuse of e-money by money launderers may become a significant problem in the future because e-money systems will be attractive to money launderers for two reasons: 1. Transactions may become untraceable; and 2. Transactions are incredibly mobile. Untraceability |E-money systems may provide Organized Crime with untraceable, | |mobile wealth. | The use of e-money systems will mean fewer face-to-face financial transactions.The anonymity of e-money will make â€Å"knowing your customer† much more difficult. E-money systems also allow the parties to the transaction to deal with each other directly, without the assistance of a regulated financial institution. Thus, there may not be a traditional audit trail. Mobility Hypothetically, e-money could come from anywhere in the world, and be sent anywhere in the world. Thus, e-money systems may offer instantaneous transfer of funds over a network that, in effect, is not subject to any jurisdictional restrictions.The problem may be illustrated by separating the process of money laundering into three basic steps – placement, layering and integration – and then comparing traditional money laundering systems with cyber-systems. The first step in money laundering is the physical disposal of cash. Traditionally, placement might be accomplished by depositing the cash in domestic banks or other kinds of financial institutions. Or the cash might be smuggled across borders for depos it in foreign accounts, or used to buy high-value goods, such as artwork, airplanes, or precious metals and gems, that can then be resold with payment by cheque or bank transfer.With e-money laundering, cash may be deposited into an unregulated financial institution. Placement may be easily achieved using a smart card or personal computer to buy foreign currency, goods, etc. Powerful encryption may be used to guarantee the anonymity of e-money transactions. The second step, layering, involves working through complex layers of financial transactions to distance the illicit proceeds from their source and disguise the audit trail. This phase traditionally involves such transactions as the wire transfer of deposited cash, the conversion of deposited cash into monetary instruments (e. . , bonds, stocks, travelers' cheques), the resale of high-value goods and monetary instruments, and investment in real estate and legitimate businesses, particularly in the leisure and tourism industries. Shell companies, typically registered in offshore havens, are a popular device in the traditional layering phase. These companies, whose directors are often local attorneys acting as nominees, protect the identity of the real owners. These owners also benefit from restrictive bank secrecy laws and attorney-client privilege In an electronic-money system, layering can be done through a personal computer.There is usually no audit trail. In addition, e-money systems allow for instantaneous transfer of funds over a system that, in effect, has no borders. The last step is to make the wealth derived from crime appear legitimate. Traditionally, integration might involve any number of techniques, including using front companies to â€Å"lend† the money back to the owner or using funds on deposit in foreign financial institutions as security for domestic loans. Another common technique is over-invoicing, or producing false invoices for goods sold – or supposedly sold – ac ross borders.In e-money laundering the criminal may be able to achieve integration by using a personal computer to pay for investments or to buy an asset, without having to call on the services of an intermediary financial institution. In short, the temptation of electronic forms of money for the criminal may be the potential for untraceable, mobile wealth. 2. 8 Vulnerability of the Financial System to Money Laundering Money laundering is often thought to be associated solely with banks and moneychangers. All financial institutions, both banks and non-banks, are susceptible to money laundering activities.Whilst the traditional banking processes of deposit taking, money transfer systems and lending do offer a vital laundering mechanism, particularly in the initial conversion from cash, it should be recognized that products and services offered by other types of financial and non-financial sector businesses are also attractive to the launderer. The sophisticated launderer often involv es many other unwitting accomplices such as currency exchange houses, stock brokerage houses ,gold dealers, real estate dealers, insurance companies, trading companies and others selling high value commodities and luxury goods.Certain points of vulnerability have been identified in the laundering process, which the money launderer finds difficult to avoid, and where his activities are therefore more susceptible to being recognized. These are:  ¦ entry of cash into the financial system;  ¦ cross-border flows of cash; and  ¦ Transfers within and from the financial system. Financial institutions should consider the money laundering risks posed by the products and services they offer, particularly where there is no face-to-face contact with the customer, and devise their procedures with due regard to that risk.Although it may not appear obvious that the products might be used for money laundering purposes, vigilance is necessary throughout the financial system to ensure that weakn esses cannot be exploited. Banks and other Financial Institutions conducting relevant financial business in liquid products are clearly most vulnerable to use by money launderers, particularly where they are of high value. The liquidity of some products may attract money launderers since it allows them quickly and easily to move their money from one product to another, mixing lawful and illicit proceeds and integrating them into the legitimate economy.All banks and non-banking financial institutions, as providers of a wide range of money transmission and lending services, are vulnerable to being used in the layering and integration stages of money laundering as well as the placement stage. Electronic funds transfer systems increase the vulnerability by enabling the cash deposits to be switched rapidly between accounts in different names and different jurisdictions. However, in addition, banks and non-banking financial institutions, as providers of a wide range of services, are vulne rable to being used in the layering and integration stages.Other loan accounts may be used as part of this process to create complex layers of transactions. Some banks and non-banking financial institutions may additionally be susceptible to the attention of the more sophisticated criminal organizations and their â€Å"professional money launderers†. Such organizations, possibly under the disguise of front companies and nominees, may create large scale but false international trading activities in order to move their illicit monies from one country to another.They may create the illusion of international trade using false/inflated invoices to generate apparently legitimate international wire transfers, and may use falsified/bogus letters of credit to confuse the trail further. Many of the front companies may even approach their bankers for credit to fund the business activity. Banks and non-banking financial institutions offering international trade services should be on thei r guard for laundering by these means.Investment and merchant banking businesses are less likely than banks and moneychangers to be at risk during the initial placement stage. Investment and merchant banking businesses are more likely to find them being used at the layering and integration stages of money laundering. The liquidity of many investment products particularly attracts sophisticated money laundering since it allows them quickly and easily to move their money from one product to another, mixing lawful and illicit proceeds and integrating them into the legitimate economy.Although it may not appear obvious that insurance and retail investment products might be used for money laundering purposes, vigilance is necessary throughout the financial system to ensure that non traditional banking products and services are not exploited. Intermediaries and product providers who deal direct with the public may be used at the initial placement stage of money laundering, particularly if they receive cash. Premiums on insurance policies may be paid in cash, with the policy subsequently being cancelled in order to obtain a return of premium (e. . by cheque), or an insured event may occur resulting in a claim being paid out. Retail investment products are, however, more likely to be used at the layering and integration stages. The liquidity of a mutual funds may attract money launderers since it allows them quickly and easily to move their money from one product to another, mixing lawful and illicit proceeds and integrating them into the legitimate economy. Lump sum investments in liquid products are clearly most vulnerable to use by money launderers, particularly where they are of high value.Payment in cash should merit further investigation, particularly where it cannot be supported by evidence of a cash-based business as the source of funds Insurance and investment product providers and intermediaries should therefore keep transaction records that are comprehensive enough to establish an audit trail. Such records can also provide useful information on the people and organizations involved in laundering schemes. Corporate vehicles trust structures and nominees are firm favorites with money launderers as a method of layering their proceeds. Providers of these services can find themselves much in demand from criminals.The facility with which currency exchanges can be effected through a bureau is of particular attraction especially when such changes are effected in favor of a cheque or gold bullion. 2. 9 Money Laundering-Bangladesh Scenario Bangladesh is neither a drug producing nor a major consumer country for drugs. However, our country’s proximity to Golden Triangle in the East and Golden crescent in the West rendered her vulnerable to drug trafficking and drug related problems. In Bangladesh, no drug cartel, drug syndicate or organized groups of drug dealers have been intercepted till to day.At present, phensedyl, heroin and cannabis r ank first, second and third in order of prevalence in the country. The influence of the drug money is not yet felt to pose a major concern for us. However, Money laundering is no less then significant in our economy. Both black money and dirty money are being laundered in various ways as under: 1. Conversion of local currency into foreign currency from black market. Smuggle it out of the country and deposit it to any foreign bank; 2. The use of hundi to send money overseas; 3. The use of bearer instruments (drafts, cheques, stock certificate etc) 4.Operating business enterprises, which hardly makes profits, but shows large profits and pays taxes to cover and legalize their dirty money; 5. The use of third party or false name accounts at financial institutions; 6. The purchase of items of value (such as luxury goods, gold, vehicles real estate); 7. Create investment companies in which fictitious persons deposit money invest in shares, stock and bonds; 8. Financing the political group s by other country; 9. Excess greediness; 10. No proper way to determine the amount of income on assets; 11.Dishonesty of customs, defense and government employee; 12. Problems of illegal immigrant; 13. Lack of co-operation from the Bangladesh embassy with Bangladeshi people living in the foreign country; 14. Lack of co-operation from the foreign branches of banks and foreign exchange organization with Bangladeshi people living in the foreign country; 15. Bureaucratic complexity & extra payment; 16. Lack of providing temporary debt privilege; 17. Smuggling; 18. Under invoicing; 19. Transfer pricing & over invoicing; 20. Illegal transaction of capital; 21. Terrorist financing; 22.Lack of potential political figure; 23. Demonstration. 1. Money Laundering Effects on Society 1. Laundered money may be used to corrupt national institutions. Bribing of officials and governments undermines the moral fabric in society, and by weakening collective ethical standards, corrupts our democratic in stitutions. 2. Money laundering erodes confidence in financial institutions and the underlying criminal activity—fraud, counterfeiting, narcotics, trafficking, and corruption—weaken the reputation and standing of any financial institution. 3. Governments need to increase health care expenditures e. . treatment of drug addicts, treatment of victims of violence, etc. 2. 9. 2 Economic Effects of Money Laundering Because crime, underground activity, and money laundering take place on a large scale, macroeconomic policymakers must take them into account. But, because these activities are hard to measure, they distort economic data and complicate governments’ efforts to manage economic policy. In addition, the ability to identify statistically the country and currency of issuance and the residency of deposit holders key in understanding monetary behavior.To the extent that money demand appears to shift from one country to another because of money laundering-resulting in misleading monetary data—it will have adverse consequences for interest and exchange rate volatility, particularly in dollarized economies, as the tracking of monetary aggregates becomes more uncertain. The income distribution effects of money laundering must also be considered. To the extent that the underlying criminal activity redirects income from high savers to low savers or from sound investments to risky, low-quality investments, economic growth will suffer.For example, there is evidence that funds from tax evasion in the United States tend to be channeled into riskier but higher-yielding investments in the small business sector, and also that tax evasion is particularly prevalent in this sector. Fraud, embezzlement, and insider trading seem likely also to be more prevalent in rapidly growing and profitable businesses and markets, because â€Å"that’s where the money is. † Money laundering also has indirect macroeconomic effects. Illegal transactions c an discourage legal ones by contamination.For example, some transactions involving foreign participants, although perfectly legal, are reported to have become less desirable because of an association with money laundering. More generally, confidence in markets and in the efficiency-signaling role of profits is eroded by widespread insider trading, fraud, and embezzlement. And, money that is laundered for reasons other than tax evasion also tends to evade taxes, compounding economic distortions. Moreover, contempt for the law is contaminating—breaking one law makes it easier to break others.Accumulated balances of laundered assets are likely to be larger than annual flows, increasing the potential for destabilizing, economically inefficient movements, either across borders or domestically. These balances could be used to corner markets—or even small economies. The above effects are to some extent speculative; however, the Quick study (1996) also conducted empirical test s on the relationship between GDP growth and money laundering in 18 industrial countries for the first time.It found evidence that significant reductions in annual GDP growth rates were associated with increases in the laundering of criminal proceeds in the period 1983-90. 2. 9. 3 How money is laundered in regional basis in Bangladesh. It has found by the research team from both the different secondary & primary sources that, there are regional trends of money laundering in our country. Such as- In Sylhet region there are a lot of people lived in foreign countries. So there are great chances of illegal money transfer in this region i. e. hundi or hawala.This system works without a paper trail. A hawala banker issues neither a written receipt for the sum received nor an order for payment. What he does, make a firm verbal commitment to the seller of dollars to make an equivalent taka payment at the agreed rate of exchange, through his agent in Sylhet region. Then, he sends a coded mes sage, to his agent containing the designated recipients name and time date and address for the payment. As well as chance of gold smuggling in this region from foreign lived people and their local relatives.In Chittagong region there are a lot of cases of drug smugglings and arm smugglings occurring in front of the eye of different law enforcing agencies. In Khulna region there are many incidents of forest materials & other goods of laundering. In Comilla region a lot of suger, sharies, and fensdils are smuggled every year in our country. In the Rajshahi region the occurrence of cattle smuggling are very common, and it has a network to supply cattle all over the country especially in the season of Eid . How money is laundered Smurfing involves the use of multiple cash deposits, each smaller than the minimum cash-reporting requirement. †¢ Misinvoicing of exports and falsification of import letters of credit and customs declarations can conceal cross-border transfers of, say, the proceeds of drug trafficking. †¢ Barter: stolen property (e. g. , antiques or automobiles) can be exchanged, across national borders or domestically, for illegal substances. †¢ Parallel credit transactions can be used to avoid the formal economy, except for the final use made of the net proceeds of illegal activity to purchase legally marketed goods or services. Interbank wire transfers may not be subject to reporting on money laundering; bribery of bank officials can thus make it easier to conceal large illegal transfers between accounts. †¢ Derivatives that replicate insider trading opportunities (e. g. , a synthetic version of a company stock subject to merger or takeover) can be used to avoid detection of an unusual change in a listed stock price. 2. 11 International Anti-Money Laundering Initiatives Money laundering has become a global problem as a result of the confluence of several remarkable changes in world markets (i. . , the globalization of markets). The growth in international trade, the expansion of the global financial system, the lowering of barriers to international travel, and the surge in the internationalization of organized crime have combined to provide the source, opportunity, and means for converting illegal proceeds into what appears to be legitimate funds. In 1986, the U. S. became the first country in the world to criminalize the â€Å"laundering† of the proceeds of criminal activity with the enactment of the Money Laundering Control Act of 1986.Since enacting the law, the U. S. Congress has increased its coverage, reach and scope, making it the broadest, strongest and most far-reaching money laundering law in the world. The U. S. law is a weapon of enormous breadth and power wielded by U. S. prosecutors in that country. Those convicted under the law face a maximum prison term of 20 years and a fine of $500,000 per violation. A legal entity such as a bank or business that is convicted under the law faces fines and forfeitures.In addition, a bank that is convicted of money laundering can lose its charter and federal deposit insurance. Persons and entities also face civil money penalties. Concerted efforts by governments to fight money laundering have been going on for the past fifteen years. The main international agreements addressing money laundering are the 1988 United Nations Vienna Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (the Vienna Convention) and the 1990 Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds of Crime.And the role of financial institutions in preventing and detecting money laundering has been the subject of pronouncements by the Basle Committee on Banking Supervision, the European Union, and the International Organization of Securities Commissions. The Vienna Convention, adopted in December 1988, laid the groundwork for efforts tocombat money laundering by creating an obligation for signa tory states (including Bangladesh) to criminalize the laundering of money from drug trafficking.It promotes international cooperation in investigations and makes extradition between signatory states applicable to money laundering. It also establishes the principle that domestic bank secrecy provisions should not interfere with international criminal investigations. During the past twenty years there have been a number of resolutions passed by the ICPOInterpol General Assembly, which have called on member countries to concentrate their investigative resources in identifying, tracing and seizing the assets of criminal enterprises.These resolutions have also called on member countries to increase the exchange of information in this field and encourage governments to adopt laws and regulations that would allow access, by police, to financial records of criminal organizations and the confiscation of proceeds gained by criminal activity. In December 1988, the G-10's Basle Committee on Ban king Supervision issued a â€Å"statement of principles† with which the international banks of member states are expected to comply.These principles cover identifying customers, avoiding suspicious transactions, and cooperating with law enforcement agencies. In issuing these principles, the committee noted the risk to public confidence in banks, and thus to their stability, that can arise if they inadvertently become associated with money laundering. Over the past few years, the Basle Committee has moved more aggressively to promote sound supervisory standards worldwide.In close collaboration with many non-G-10 supervisory authorities, the Committee in 1997 developed a set of â€Å"Core Principles for Effective Banking Supervision†. Many important guidelines issued by Basle Committee for worldwide implementation for all banks among which, â€Å"Prevention of the Criminal Use of the Banking System for the Purpose of Money Laundering†, December 1988 â€Å"Custome r Due Diligence for Banks†, October 2001â€Å"Sound Practices for the Management and Supervision of Operational Risk â€Å", February 2003; Shell banks and booking offices â€Å", January 2003; relate to money laundering controls.In 1989, the G-7 countries recognized that money laundering had become a global problem, not least due to the increase in drug trafficking. The G-7 Summit in Paris in 1989 took a great step forward in combating international money laundering with the creation of the Financial Action Task Force (FATF) to develop a coordinated international response to mounting concern over money laundering. One of the first tasks of the FATF was to develop steps national governments should take to implement effective anti-money laundering programs.The experts within FATF came up with a list of 40 Recommendations, built on the firm foundations of the 1988 UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and the Statement of Principl es of the Basle Committee on Banking Regulations. The FATF 40 Recommendations set out the basic framework on what countries need to do — in terms of laws, regulations and enforcement — to combat money laundering effectively and were designed with universal application in mind.Over time, they have been revised to reflect new developments in money laundering and experience. The 40 Recommendations have now become the global blueprint in anti- money laundering best practice and set the international standards for money laundering controls. Setting those standards meant that all participating governments committed to moving in the same direction at the same pace, a requirement for success. Through FATF's peer-review process, the participants have pushed each other into implementing the standards.Even the IMF regards the anti-money laundering actions advocated by the FATF as crucial for the smooth functioning of financial markets. In joining FATF, every member nation makes a political commitment to adopt the recommendations and allows itself to be evaluated by the other member nations on whether it has fulfilled that commitment. Today FATF has grown to an organization of thirty-one member countries and has representatives from the Gulf Cooperation Council and the European Commission.Participants include representatives from members' financial regulatory authorities, law enforcement agencies, and ministries of finance, justice, and external affairs. Representatives of international and regional organizations concerned with combating money laundering also attend FATF meetings as observers. This top-down, cooperative approach has been greatly successful in encouraging FATF member nations to improve their money laundering regimes. With expanded membership, FATF has now achieved agreement on money laundering standards and implementation among 31 governments.More than that, FATF has encouraged development of regional groups to adhere to the same standards. B y the last count, about 130 jurisdictions — representing about 85 percent of world population and about 90 to 95 percent of global economic output — have made political commitments to implementing â€Å"The Forty Recommendations. † Another, more controversial initiative that FATF has developed to enhance international cooperation is publication of a list of non-cooperative countries and territories (NCCT) — jurisdictions that lack a commitment to fight money laundering.Following the June 2000 publication of the first such list, a number of the 15 NCCT jurisdictions have acted quickly to implement FATF standards. . Other UN initiatives, such as the 2000 UN Convention against Transnational Organized Crime, have assisted in complementing the work undertaken by the FATF. However, it was the FATF’s exercise on Non-Cooperating Countries and Territories which brought about a sea change in thinking at the highest political levels.The exercise, which identi fies and evaluates the legal, judicial and regulatory framework of countries whose regulatory systems do not appear to meet international standards, has been a success, despite its unpopularity in many quarters. 1. 8. 16. After 11 September 2001, the tragedy in New York highlighted to all civilized nations the need to look at the finances of terrorists and the methods used to transfer funds around the11 world. The FATF expanded its mission beyond money laundering and agreed to focus its expertise on the worldwide effort to combat terrorist financing.The FATF, at its Washington meeting in October 2001, came up with 8 Special Recommendations to tackle this threat. Terrorists use similar systems to money launderers and the 8 Special Recommendations complement the 40 existing Recommendations. The United Kingdom was one of the first countries in the world to have signed and ratified the UN International Convention on the Suppression of the Financing of Terrorists through the Terrorism Ac t 2000. In fact the UK was unique in meeting the requirements of all 8 FATF Special Recommendations immediately.Several regional or international bodies such as the APG (Asia/Pacific Group on Money Laundering), CFATF (Caribbean Financial Action Task Force), the ESAAMLG (Eastern and Southern Africa Anti-Money Laundering Group), GAFISUD (Financial Action Task Force for South America), the MONEYVAL Committee of the Council of Europe (the Select Committee of experts on the evaluation of anti-money laundering measures) and the OGBS (Offshore Group of Banking Supervisors), either exclusively or as part of their work, perform similar tasks for their members as the FATF does for its own membership.Bangladesh is a member of APG. This co-operation forms a critical part of the FATF’s strategy to ensure that all countries in the world implement effective counter-measures against money laundering. Thus the APG, the CFATF, GAFISUD, the MONEYVAL Committee and OGBS carry out mutual evaluatio ns for their members, which assess the progress they have made in implementing the necessary anti-money laundering measures. In the same vein, APG, CFATF and the MONEYVAL also review regional money laundering trends.During the past decade, a number of countries have created specialized government agencies as part of their systems for dealing with the problem of money laundering. These entities are commonly referred to as â€Å"Financial Intelligence Units† or â€Å"FIUs†. These units increasingly serve as the focal point for national anti- money laundering programs because they provide the possibility of rapidly exchanging information (between financial institutions and law enforcement / prosecutorial authorities, as well as between jurisdictions), while protecting the interests of the innocent individuals contained in their data.Since 1995, another forum for international cooperation has developed among a number of national financial intelligence units (FIUs), who beg an working together in an informal organization known as the Egmont Group (named for the location of the first meeting in the Egmont-Arenberg Palace in Brussels). The goal of the group is to provide a forum for FIUs to improve support to their respective national anti-money laundering programs.This support includes expanding and systematizing the exchange of financial intelligence, improving expertise and capabilities of the personnel of such organizations, and fostering better communication among FIUs through the application of new technologies. The Egmont Secretariat, currently hosted by the UK, is the ideal vehicle for FIUs from various countries to talk to one another once they reach the required standard. Financial Crimes Enforcement Network (FinCEN), the U. S. inancial intelligence unit led by the Department of the Treasury, provides training and technical assistance to a broad spectrum of foreign government officials, financial regulators, law enforcement personnel, 12 and ba nkers. This training covers a variety of topics, including money laundering typologies, the creation and operation of FIUs, the establishment of comprehensive anti-money laundering regimes, computer systems architecture and operations, and country-specific antimoney- laundering regimes and regulations.FinCEN also works closely with the informal Egmont Group of more than 50 FIUs to assist various jurisdictions in establishing and operating their own FIUs. Additionally, FinCEN has provided FIU and money laundering briefings and training in many jurisdictions, including Argentina, Armenia, Australia, the Bahamas, Brazil, Canada, China, Costa Rica, Dominican Republic, El Salvador, Germany, Greece, Hong Kong, India, Indonesia, Isle of Man, Jamaica, Jersey, Kazakhstan, Lebanon, Italy, Liechtenstein, Nauru, Nigeria, Netherlands, Palau, Paraguay, Russia, Seychelles, South Africa, Switzerland, St.Vincent and the Grenadines, Taiwan, Tanzania, Thailand, Tonga, and the United Kingdom. FinCEN ha s also conducted personnel exchanges with the Korean and Belgian FIUs. The U. S. Department of State's Bureau for International Narcotics and Law Enforcement Affairs (INL) develops assistance programs to combat global money laundering. INL participates in and supports international anti-money- laundering bodies and provides policy recommendations regarding international money laundering activities.The U. S. State Department has developed a programmatic approach to assist jurisdictions in developing anti-money-laundering regimes to protect their economies and governments from abuse by financial criminals and stem the growth of international money laundering. This approach integrates training, technical assistance, and money laundering assessments on specific money laundering problems or deficiencies to achieve concrete, operational, institution-bui

Black Holes Essays (1293 words) - Black Holes, Event Horizon

Black Holes Everyday we look out upon the night sky, wondering and dreaming of what lies beyond our planet. The universe that we live in is so diverse and unique, and it interests us to learn about all the variance that lies beyond our grasp. Within this marvel of wonders our universe holds a mystery that is very difficult to understand because of the complications that arise when trying to examine and explore the principles of space. That mystery happens to be that of the ever clandestine, black hole. This essay will hopefully give you the knowledge and understanding of the concepts, properties, and processes involved with the space phenomenon of the black hole. It will describe how a black hole is generally formed, how it functions, and the effects it has on the universe. In order to understand what exactly a black hole is, we must first take a look at the basis for the cause of a black hole. All black holes are formed from the gravitational collapse of a star, usually having a great, massive, core. A star is created when huge, gigantic, gas clouds bind together due to attractive forces and form a hot core, combined from all the energy of the two gas clouds. This energy produced is so great when it first collides, that a nuclear reaction occurs and the gases within the star start to burn continuously. The Hydrogen gas is usually the first type of gas consumed in a star and then other gas elements such as Carbon, Oxygen, and Helium are consumed. This chain reaction fuels the star for millions or billions of years depending upon the amount of gases there are. The star manages to avoid collapsing at this point because of the equilibrium achieved by itself. The gravitational pull from the core of the star is equal to the gravitational pull of the gases forming a type of orbit, however when this equality is broken the star can go into several different stages. Usually if the star is small in mass, most of the gases will be consumed while some of it escapes. This occurs because there is not a tremendous gravitational pull upon those gases and therefore the star weakens and becomes smaller. It is then referred to as a White Dwarf. If the star was to have a larger mass however, then it may possibly Supernova, meaning that the nuclear fusion within the star simply goes out of control causing the star to explode. After exploding a fraction of the star is usually left (if it has not turned into pure gas) and that fraction of the star is known as a neutron star. A black hole is one of the last option that a star may take. If the core of the star is so massive (approximately 6-8 solar masses; one solar mass being equal to the sun's mass) then it is most likely that when the star's gases are almost consumed those gases will collapse inward, forced into the core by the gravitational force laid upon them. After a black hole is created, the gravitational force continues to pull in space debris and other type of matters to help add to the mass of the core, making the hole stronger and more powerful. Most black holes tend to be in a consistent spinning motion. This motion absorbs various matter and spins it within the ring (known as the Event Horizon) that is formed around the black hole. The matter keeps within the Event Horizon until it has spun into the centre where it is concentrated within the core adding to the mass. Such spinning black holes are known as Kerr Black Holes. Most black holes orbit around stars due to the fact that they once were a star, and this may cause some problems for the neighboring stars. If a black hole gets powerful enough it may actually pull a star into it and disrupt the orbit of many other stars. The black hole could then grow even stronger (from the star's mass) as to possibly absorb another. When a black hole absorbs a star, the star is first pulled into the Ergosphere, which sweeps all the matter into the Event Horizon, named for it's flat horizontal

LPI Analysis Paper Research Example | Topics and Well Written Essays - 1500 words

LPI Analysis - Research Paper Example On the other hand – which was a surprise to me! Observers rated me higher than I had rated myself in the following categories: â€Å"Paints big picture of group aspirations†; â€Å"Recognizes people for commitment to shared values†; â€Å"Describes a compelling image of the future†; â€Å"Asks for feedback on how his actions affect people’s performance.† (â€Å"LPI: Leaderships Behaviors Ranking†, p.3) â€Å"Develops cooperative relationships (9.0)†; â€Å"Follows through on promises and commitments† (8.5); â€Å"Sets a personal example of what is expected† (8.5); â€Å"Treats people with dignity and respect† (8.3); â€Å"Makes certain that people adhere to agreed on standards† (8.3); and â€Å"Gives people choice about how to do their work† (8.0). These, then, are, presumably, my strengths (all of them falling in the categories of â€Å"Enable others to Act† and â€Å"Model the Way†). (â€Å"LPI: Leaderships Behaviors Ranking†, p.3) â€Å"Experiments and takes risks† (6.8); â€Å"Searches outside organization for innovative ways to improve† (6.8); â€Å"Talks about future trends influencing our work† (6.5); â€Å"Asks for feedback on how his actions affect people’s performance† (6.5); â€Å"Seeks challenging opportunities to test skills† (6.3). These, then, are my weaknesses, which I need to focus on to improve. The pattern, here, is that most of these behaviors seem to be in the â€Å"Challenge the Process† category, with one in â€Å"Inspire a shared Vision†, and the other in â€Å"Model the Way†. Nevertheless, the â€Å"Challenge the Process† category seems to be that which I most need to focus on (â€Å"LPI: Leaderships Behaviors Ranking†, p.3). On the whole, the Observers perceived my leadership ability as being more average than I perceived it to be myself. The categories, â€Å"Encourage the Heart†, and â€Å"Challenge the Process† toggled the line between Moderate and Low; the latter according to both Co-worker and Others, the former

Managing information risk and security Essay Example | Topics and Well Written Essays - 4250 words

Managing information risk and security - Essay Example Information technology and systems have provided companies and organization such exceptional innovation in data and information management deemed essential for organizational capacity development and corporate business strategizing. However, as much as it has fared sophistication in this knowledge-based economy, organizations have likewise put up imperative measures to safeguard critical IS assets from system abuse and misuse by constantly upgrading and installing firewalls, anti-virus, use of encryption keys, protectors, use of comprehensive monitoring system, and of scaling control from access. IT-based corporation has also made it as standard policy to restrict employees from breaching organizational rules and requirements in the use of information systems and security policy (ISSP) to ascertain that their behaviours are also aligned on the need to secure company’s database. This paper will qualitatively discuss the importance of managing information risk and security using peer-reviewed journals and books from online sources. Researcher will attempt to bridge the theoretical constructs to advance the need of improving security management control to attain, prevent and protect internet systems from security threats and from cyber-criminalities. Recent research pertaining to internet study depicted information of data theft and establishment of malicious code to steal confidential information (Symantec Corporation, 2007). Most of these breached in the system were undertaken with gross negligence of employees in safekeeping the system. Computers and servers left open and accessible to those who have variant interests may make use of data base and information for negative actions. As IT has influenced business and government system in discharging their functions, the risks too doubled with the increasing number of hackers and cyber criminals. Cybercriminals refer to those web-based activities that include illegally downloading music files, stealing of mi llions of money from bank accounts, creating and distribution of viruses on other computers, and posting confidential information on internet, including sex videos that are illegally taped. The most modern form of cybercrime is identity theft where criminals use personal information from other users, including pictures. This is known technically as phishing  and  pharming (Techterms, 2013, p. 1). Criminals use others information to attract other users to fake websites appearing to be legitimate and where personal information are asked, such the use of usernames and passwords, phone numbers, addresses, credit card numbers, bank account numbers, and other information criminals can use to "steal" another person's identity (Techterms, 2013, p. 1). Many of this information are circulated on emailing system, thus, thousands are victimized and were unfortunately advantaged by those who are unscrupulous in using technology (Techterms, 2013, p. 1). Easy preys are those people with comput ers lacking antivirus and are bereft of spyware blocking software (Techterms, 2013, p. 1). Cases of Cybercrimes Some of the cybercrimes are also undertaken to embarrass governments due to resource-based conflicts with other nations. In effects, a number of government websites are defaced by group of hackers to embarrass the IT security management of the state and to

Health Promotion Essay Example | Topics and Well Written Essays - 2750 words

Health Promotion - Essay Example It has been seen that the period of adolescence is like a conversion phase which brings unpredictable emotional sufferings, and it takes a shape of depreciation and anxiety. Similarly like young adults, middle aged people also suffer from severe mental disorders because women and men in their mid life think themselves as a old generation who have difference needs and choices than the younger ones, thus in many cases they feel a sense of loneliness and ignorance. During the age of 50, people experience transitions and changes in their decision regarding work and life balance, death of older parents and children growing up and creating their separate lifestyle. It is the when men and women find that their taste and preferences are changing, mood swings, anxiety about spouse and children. Mental issues should be resolved before it creates any serious situation and life risk. This part of the project includes the reason behind carrying out the project. This research has been undertaken to understand about the difficult part of human psychology and the various mental disorders that are faced by young adults and middle aged people. The research has mainly focused on the population of UK. Participants are residents of UK and the target groups are young adults who belong to the age group of 14-25 and middle aged people. Several questions and approaches have been taken for the intervention process. Different types of mental disorders and theories of health promotion have been discussed in the project. This project will be useful for general public to understand about mental health disorders and it will also be helpful for future researchers to understand the concept. Aim of the research is to create various policies for several mental disorders that are affecting the young adults and the middle aged people throughout the world. It also aims to create

Business plan for a new business Essay Example | Topics and Well Written Essays - 2000 words

Business plan for a new business - Essay Example here are still people who are willing to invest part of their earnings in maintaining their gardens because they understand that a neat, planned and lush green lawn is a status symbol and adds pride to their property. The mission of Ladybird Lawn Care is to offer its customers a valuable source for maintaining their lawn and landscaping needs. We believe in exceeding the expectations of our customers by delivering superior quality and innovation. We strive to develop and retain long term relationships with our customers and employees. To be known as the premium landscape and lawn maintenance company in the city of New York; and to expand our operations worldwide. Honesty, innovation and dependability form the foundation for building strong customer relationships. The internal environment of Ladybird Lawn Care considers treating its employees with respect and care which makes their job enjoyable; as a result, the company flourishes. Ladybird Lawn Care is owned by Marina Rivera who is the CEO of the company. He holds the vision that maintaining lawns is equally important as maintaining customer loyalty and employee commitment. Ladybird Lawn Care is a USA based lawn care business which will initially provide service to customers in the city of New York and later expand to the suburbs. The company makes sure that the products it uses to treat lawns are organic and free of harmful chemicals. At Ladybird Lawn Care, the employees are highly trained and best quality lawn care equipments are used to exceed customers’ expectations. Ladybird Lawn Care has established its first office in New York. The target market of the company includes lawn owners that fall between the age group of forty to sixty five. The customers are educated and have an income level slightly above average. These customers are usually busy employees or business owners who believe that a well organized lawn reflects their social status but do not find enough time to manage the lawns on their

Seminar inCriminology Discussion 4 Essay Example | Topics and Well Written Essays - 250 words

Seminar inCriminology Discussion 4 - Essay Example After this period, the use of force reduced when the police were dispersing crowds during riots or human rights groups and activists on strike. From the study that I selected on police use of force, there are several findings that Langston and Durose established in year 2011 regarding the use of police brutality and their behavior on streets and highways. On page 21, the study shows that the percentage of persons stopped in table 12 and 13 increased when the persons were stopped for no reason. However, despite being stopped for no reason, table 12 shows that 9.0% of the police behave appropriately. According to Langston and Durose (2013), persons who were stopped from any other reason, only 3.9% of the police behave appropriately. In table 13, the rate of people who reported that they thought excessive force was used and rated at 3.5% (Langston & Durose, 2013). The findings in the study show that there was a drop in instances when the police used force in 2011. This is a drop compared to the 1970s, when there were more instances recorded where the police used a lot of

American Health System Research Paper Example | Topics and Well Written Essays - 1750 words

American Health System - Research Paper Example The United States of America spends almost two trillion dollars on health care making it the country spending the most money per capita and with the most technologically advanced medical practice. Despite this, it only ranks 37th in the World Health Organization’s ranking of the World Health Systems. (WHO, 2000) Such state of affairs exists primarily because the American system of health is extremely fragmented. Along with past of half-hearted efforts to form a universal system of health while at the same time bending to the interest of large private sector insurance companies has reduced the American health system to a patchy arrangement with complicated rules ( which differ in different areas) and huge wastage of resources. This fragmentation of the system has developed due to the multiple stakeholders in the system coupled with the rising costs for healthcare provision. (Arthur Garson, 2010)   One fact that cannot be ignored is that a lot of money is being invested each year on healthcare in America. More percentage of GDP is spent on health care than on food. The governmental expenditure on healthcare sums up to 18.9 percent of the total federal and state budget (WHO). Then there are the private and employment-based insurances which are continuously rising. Despite the increased spending on health care, we find that it has not translated into a universal or better health system. This is partly due to the gross inefficiency in the system. As the health sector becomes a larger fraction of the economy the inefficient functioning of the sector become even more costly. Despite this, some health policy analyst argues that increased expenditure on health is necessary to cover the population and continue the cutting edge advancement in technology.     

A Letter Format About the Advancements Essay Example for Free

A Letter Format About the Advancements Essay Dear Mr. Darwin, I am writing this letter to inform you of the current status of the finches you were so fascinated with what has changed since your visit, modern theories, and all of the currently identified species. First and foremost, I would like to tell you that your works and studies on the finches have become the most closely tied to you out of all of your other various studies. Modern-day scientists have become just as intrigued (if not more so) with the drab-colored little birds as you were. They show a great promise in explaining how evolution and natural selection works, and could easily be considered one of the most important scientific discoveries in history. Though the finches have not changed much in and of themselves since your last visit, much has been discovered about them that was not previously known. Although including all such discoveries in this text would be far too time and space consuming, I will inform you of some of the main changes below. Although you originally grouped all of the various types of finches into four genera, many modern-day scientists have decided that there are in fact six different genera: the Geospiza, Camarhynchus, Cactospiza, Platyspiza, Certhidea, and the Pinaroloxias. In addition, scientists have identified 14 species of finches, and there may be more scientists are still discovering things. Below I shall include a chart detailing the species in relation to the genera: Common Name Genus Species Small Ground Finch GeospizaFuliginosa Medium Ground Finch GeospizaFortis Large Ground Finch GeospizaMagnirostris Sharp-beaked Ground Finch GeospizaDifficilis Cactus Ground Finch GeospizaScandens Large Cactus Ground Finch GeospizaConirostris Small Tree FinchCamarhynchusParvulus Medium Tree FinchCamarhynchusPauper Large Tree FinchCamarhynchusPsittacula Woodpecker FinchCactospizaPallidus Mangrove Finch Cactospiza Heliobates Vegetarian FinchPlatyspizaCrassirostris Warbler Finch CerthideaOlivacea Cocos Island FinchPinaroloxiasInornata Although the above list is quite detailed, it doesnt include all of the various finches many are slightly different from the above species, but not so different as to count as a separate species. Many finches have similar coloration but slightly posses different beaks, or vice versa. It should also be noted that the above list only includes the finches discovered thus so far. There could very well be more finches that modern scientists are unaware of. The new species and genera are all new discoveries, and it is not certain whether or not they are newly evolved since your visit or simply hadnt been found by you. Either way, their discovery has helped the scientific world immensely in its attempt to understand evolution and natural selection. To draw a conclusion to this letter, I must once again congratulate you on your efforts all those many years ago they have helped to shape modern science, and have provided us with a greater understanding of the workings of the world. The world is indebted to you.

Augmented Reality Applications. Challenges and Future Trends

Augmented Reality Applications. Challenges and Future Trends Augmented Reality (AR) Abstract Augmented reality presents a mix of real world information and additional computer generated information to a user. Such a mix of information is usually presented by superimposing two distinct sets of images on to a monitor or a head mounted display which enables a viewer to observe a mix of the real world and computer generated text or images. Even though the visual sense is not the only sense which can be used to present and perceive computer altered reality, visual presentations are the most used in augmented reality systems. The additional presentations that are generated by a computer can substantially assist users in a number of ways including provision of textual information about what is being viewed, presentation of hidden information or images associated with a visual scene as well as the results of planned alterations to reality such as the presentation of the results of a construction or a demolition of physical structures. Augmented reality may be considered as being a b ranch of virtual reality research, but unlike virtual reality, in which everything that is presented to a user is generated by a computer, augmented reality only presents an alteration to the reality that is being sensed. There are very many interesting applications of augmented reality which are proving to be useful to human users. From assisting surgeons to perform delicate surgery, helping archaeologists collect excavation data to assisting rescuers after a natural disaster or aiding soldiers in urban combat, augmented reality systems are achieving even greater success as technological advances on a broad front enable even more sophisticated systems to be designed. Miniaturisation and the design of rugged, low power consumption components have resulted in portability. This essay presents a discussion of the potential and the problems of augmented reality systems. Contents (Jump to) 1. Introduction 2. A Description of the Operation of an Augmented Reality System 3. The User Benefits of an Augmented Reality System 4. Portable Augmented Reality Systems in Wearable Computers 5. The Outdoor Use of an Augmented Reality System 6. The Potential Sources of Error in an Augmented Reality System 7. Conclusion References / Bibliography List of Figures The Generation of Visual Augmented Reality using Head Mounted Displays, Cameras and Diverters for the Mixing of Real and Virtual Spaces Managing Multiple Spaces for Generation of Augmented Reality Sources of Error in Augmented Reality Systems 1. Introduction Augmented reality refers to the utilisation of computers to modify reality, usually in order to provide additional assistance when a human user is interacting with the real environment. The real world around humans provides a wealth of information which the human user must absorb and process through their senses. The most useful and informative of all human senses is the sense of vision and a huge amount of information about the ambiance is required to be sensed as well as processed by the human visual system. Computers are useful because they can provide an overlay of information to assist with the human processing of the information which they perceive through their senses, mostly the visual sense. [1] As an example, a human who is walking around an urban area can be provided additional information through a head mounted display which superimposes textual information about identification of buildings and other important landmarks so that the human is provided additional guidance ab out identification of buildings and landmarks or other useful information about what they are viewing. [2] Obviously, the computer too has to sense the environment in order to provide any additional information and this is done through a camera that captures the same view as the human. The camera provides images which are identified by a computer and virtual scenes are created in the virtual world generated by a computer. The computer program then generates additional assistive information that is presented to the human user in order to assist them in their interactions with their environment. Augmented reality software program is required to process information which a computer senses through sensors and the real space is transformed into a virtual space within the computer, with computer software identifying, recognising and transforming the external inputs from the real world in order to transform these inputs into assistive outputs for the user of an augmented reality system. Au gmented reality can, therefore, be considered to be a variation of virtual reality which completely immerses a user inside a synthetic environment. Augmented reality makes it possible for a human user to view the world with virtual objects that are generated by a computer and then superimposed or merged with it. The characteristics of virtual reality systems include a combination of the real and the virtual, interactions in real time and registration in 3 – D. [3] Augmented reality has proven itself to be useful in a wide variety of applications. From assisting surgeons to perform delicate surgery to assisting soldiers in battlefield or helping with education as well as assisting archaeologists gather field data on a site, virtual reality has proven to be of great benefit to humans in a very wide range of applications. [4] However, virtual reality technology is still evolving and with advances in computer science, even greater sophistication is likely to be possible in a large number of applications. Advances in wearable computing, software, miniaturisation, display technologies as well as sensors and radio networking have had a profound impact on the application of augmented reality. [5] Augmented reality systems are now far less bulky, portable and can be worn by a human user who may want to be assisted in a variety of ways in order to perform a task. Systems making use of augmented reality are now often used outdoors in harsh weather condit ions. Despite the possibilities, virtual reality implementations do have some limitations as well as difficulties with implementation. Registration errors or problems associated with sensing or bandwidth of the display devices can cause deterioration in the performance of augmented reality systems. Objects in the real and the virtual world have to be aligned correctly in relation to each other otherwise the illusion which is created as a result of the two worlds coming together will not be comfortable for humans. Sensing devices which provide data inputs for the augmented reality computer have to be able to track the field of vision of a user. Sensing errors, mechanical alignments, incorrect viewing parameters such as field of view or tracker –to- eye position or orientation as well as optical distortion in the display system are some of the problems which can affect the performance of an augmented reality system. [6] In this essay, an attempt has been made to discuss various aspects of augmented reality systems, including perspectives associated with their construction, portability, user benefits for those using augmented reality, outdoor use of augmented reality systems and the problem of errors in such systems. It is hoped that the readers will benefit from such a discussion and gain a broader understanding of the current state of augmented reality. The next few sections of this essay discuss the previously mentioned issues. 2. A Description of the Operation of an Augmented Reality System Augmented reality systems usually add to the information that is received from the real world. In augmented reality vision systems, objects from the virtual world generated by a computer can be added to the scene from the real world. However, augmented reality systems can also remove sensations from the real world and as an example; it is possible to remove a table which a human using the augmented reality system may be viewing as a result of the computer painting it over. Although augmented reality usually refers to a computer modifying the real information that is presented to the human vision system, vision is not the only sense which a computer can interfere with. A system in which multi – sensory input is provided may turn on a heat lamp when a user approaches a spot in the virtual environment that is exposed to the sun or the smell of roses may be directed to a user when they approach a rose garden in mixed environment. A computer can also direct that a fan be switched o n in order to provide a flow of air to a user when they approach a spot in the virtual environment that is exposed to wind. [7] Thus, augmented reality involves modification of reality that is presented to a user by a computer which also senses reality and which has created a virtual model based on what has been sensed. Examples of the application of augmented reality include superimposition of internal information over external surfaces or the augmentation of viewed environment with informational labels. [8] When thinking about augmented reality, it is appropriate to think about the physical space, the virtual space and the measured space. The concept of physical and virtual space should be clear, however the concept of measured space refers to the representation of the physical space inside a computer and the manner in which sensory data is used to present the real space to a user. The generation of augmented and virtual spaces require the joining together or overlapping of the space maps associated with the physical and the virtual spaces, with the interaction being managed by computers and people using their sensory capabilities. Virtual space does not necessarily represent the physical space and this space is a model of the physical space that is created the real world and its views as perceived by sensors. Virtual space contains inputs from the physical space which are incorporated into the electronic space by the computer. The generation of augmented reality involves superimposing electronic generated space on to the real objects and space. The virtual space inside a computer must correspond to the real space which has to be mapped into the computer using some sort of a global reference such as a global positioning system. [9] Relative measurements of objects in physical space are transferred to the computer so that the electronic space may be generated, even though it may not be known where the physical space is with regard to the rest of the universe. Thus, a car’s interior dimensions are relative to each other, although it may not be known where the car is in the universe. A close mapping may exist between the physical and the virtual space if the electronic space is required to be a close representation of the physical space. It may be required to represent different parameters from the real space into a virtual space, such as the variation of light intensity or temperature. Some event in the physical space may also be required to generate a trigger and some how alter the electronic virtual space. Different types of sensors may be used to provide information about the physical space such as the dimensions of the physical space being measured by ultrasound or sonar. Sensor inputs are required to be fed into a computer, processed and then used to present a reflection in the electronic space. Triggers from the physical space are also measured by sensors and as an example; the presence of a human object in an area of the physical space may be registered by a capacitive sensor which will transmit this information into the computer. The computer that is being used may then take some action to process this trigger and generate some outputs or variations in the electronic space. Virtual spaces that are generated inside a computer after some processing of the data related to physical spaces are translated and made available in the real world by projection involving video, audio, tactile or hepatic devices or even by using the sense of smell. The virtual world of the computer is projected at some point or location in the physical world which is known as the point of projection. Device such as a screen, a virtual reality goggle or PDA etc are used for such projections. Projections of the virtual world into the real world through devices present users with an illusion of occupying some part of the physical space such as the space behind a projection screen or in front of a holographic plate. In purely virtual reality environments, the sensing of an object from the physical space may have an impact on the projection of the virtual space into the physical space, however, the object that is being sensed will not be a part of the virtual space. In mixed or augmented spaces, however, the sensed object will be incorporated into the virtual space and hence the link between the object that is being sensed and the projection is important. Location in space is usually measured in terms of some sort of coordinates which could be Euclidean coordinates such as polar, spherical or ordinance grid coordinates or alternatively, the location may be relative to a zone with objects being detected as being in a zone such as a room or a part of a room. Information about position may also be relational with some object being detected as being close to another object. The level of accuracy with which measurements in the physical space need to be made and information in the virtual space need to be displayed will vary for different applications, but the requirements related to accuracy will determine the amount of data that needs to be exchanged between the physical and virtual spaces. [10] As an example, head mounted displays and cameras that are mounted on these displays can be used to present computer modified reality to a user. The cameras sense reality and feed a video signal to a computer which is then modified by the computer according to the programmed algorithms for the generation of virtual space involving identification of objects, addition of data to images, image manipulation or object cancellation etc. The desired additions or modifications to the human view of reality are then projected on to the human eye through head mounted monitors or optical diversion and mixing of the real and virtual space. This is illustrated in the diagrams below. The Generation of Visual Augmented Reality using Head Mounted Displays, Cameras and Diverters for the Mixing of Real and Virtual Spaces [11] [12] Managing Multiple Spaces for Generation of Augmented Reality [13] Apart from optical see – through augmented reality displays, it is also possible to generate augmented reality using monitors and video see-through displays. Optical see-through displays in which the real world images are mixed with the virtual reality images that are generated by a computer using optical mixing are different from video see-through displays which project images that are desired to be seen by a human user on to the eye using a video display without any optical mixing from the real world. [14] The next section of this essay takes a look at the user benefits of an augmented reality system. 3. The User Benefits of an Augmented Reality System Augmented reality systems attempt to present a world which consists of a combination of computer generated imagery or other sensory inputs and real world perceptions that are available to a human user. Thus, augmented reality systems can present an enhanced view of the world to the users and the enhancements provide additional information which can be of benefit to the user in a variety of ways. The additional information which can be superimposed on the perception of a user can take a variety of forms depending on the application or the intended use of the augmented reality application. As an example, an augmented reality system may be designed to superimpose a pipeline system which has been designed for an industrial setting, or the system may assist a surgeon by superimposing internal imagery of a patient’s diseased organs on the image of their exterior anatomy, assisting the surgeon to perform surgery. All augmented reality systems assist humans to perform a task by enabli ng the human user to visualise, readily access additional information or to superimpose objects that are not visible on to real views. Augmented reality systems can enhance human understanding of what they are able to perceive and thus humans are assisted in solving problems which may be difficult if they were not provided any additional pieces of information. However, the applications of augmented reality are very broad and this technology has proven to be useful in very many applications. Thus, augmented reality may be used for entertainment or gaming, providing additional input on views of sporting events as well as assisting humans in more serious endeavours such as the battlefield, archaeology or architecture or urban design etc. Objects that are superimposed on real world views using augmented reality may be required to be presented in correct perspective depth as well as being accurately positioned with respect to other real or virtual objects and this can assist in human use rs being able to perform delicate work due to the additional understanding that they are able to acquire as a result of using augmented reality systems. Miniaturisation of computing elements and advances in wireless as well as general technological advances on a broad front have made it possible for augmented reality systems to be miniaturised and to be made wearable or portable, adding to their general usefulness both indoors and outdoors. Thus, augmented reality systems are able to assist, entertain, inform or aid humans by enhancing their perceptions in a wide variety of applications. [15] [16] [17] [18] The next section of this essay presents a brief discussion on portable augmented reality systems in wearable computers. This topic is important because portable and wearable systems have added considerably to the utility of augmented reality systems. 4. Portable Augmented Reality Systems in Wearable Computers Portability is required if an augmented reality user has to change their position in the world. Unlike virtual reality, augmented reality users cannot change their position by changing their location in the computer generated virtual world and have to be able to move around in the physical world. Portability is essential for a wide variety of augmented reality applications because users may be required to roam around in large areas. However, such requirement means that the augmented reality equipment has to be self contained as well as portable and that it should be possible to track users outdoors. The requirements for being able to track a user means that markers or communication relays will have to be utilised, especially if the computational requirements associated with augmented reality cannot be fully catered for on the portable end of the equipment and signals have to be relayed to a desktop, mainframe or networked computer. Because augmented reality does not replace the real world as virtual reality does, therefore, the resolution requirements associated with display devices or sensors are generally less stringent then those for virtual reality applications. Full colour displays are usually required for virtual reality applications, but monochrome displays may be sufficient for augmented reality. Requirements associated with rendering are also not a problem with augmented reality applications because images are only required to add to the real world visual inputs. However, tracking and sensing requirements for augmented reality applications are far more stringent then those for virtual reality applications because objects in the virtual space have to be correctly aligned with objects in the real world. As a result of the requirement to accurately track a user’s head and objects in the surrounding area, a large volume of tracking data is likely to be generated which must be processed in real time. If a portable or wearable computer is incapable of catering to these processing requirements, then reliable communications links must carry the tracking or associated data to remote computers. Thus, trackers or sensors are required to have a longer range, greater input variety and bandwidth as well as better accuracy. [19] [20] [21] Advances in portable augmented reality systems have been made possible as a result of faster, more rugged and better computing devices which consume low power. Wearable computers are required to be comfortable, safe and adjustable for an individual’s personal preferences. The user interfaces for such systems have to be user friendly as well as being capable of operating correctly in a harsh and noisy environment. Gesture and hand motion based interfaces have shown a promise in wearable computing, but such systems are required to be able to interface with a user in a reliable manner. Software for augmented reality substantially increases in complexity with complex applications. Short range wireless communication technologies such as Bluetooth have made it possible for sensors to be readily placed on all parts of the human body. Thus, it may be concluded that portable augmented reality systems are required and useful but their widespread use and acceptance will depend on the rel iability, ruggedness, comfort as well as computing power which can be packed into such systems. However, technological advances on a broad front have resulted in many portable augmented reality systems being developed including systems for military, field archaeology or navigational assistance to name a few. [22] [23] The human factors requirements associated with wearable computing demand that aspects related to safety, ergonomics, anthropometry and ease of use or usability be considered in the design of portable or wearable augmented reality systems. Human users should be able to comprehend information that is being presented to them without any perceptual interference. The design of the wearable system should be based on ergonomic studies with good visually coupled display design. The user interface design should promote reliability in interactions with the system and usability for the human user. The augmented reality system is required to minimise the cognitive load on the human user and not add to the problems. It should be possible to indulge in team collaboration through the wearable augmented reality system. [24] The design of usable interfaces for human interactions is of the greatest importance in the design of wearable augmented reality system design. There are many usability guidelines which should be considered for designs and the quality of the design for usability can also be used to evaluate an augmented reality system. The design of a user interface should take into consideration factors including the level of user experience, support for interactions with other users, number and location of users, ease of calibration, support for body centred interactions, reduced relative latency and provide the user with a tracking system that is accurate to a small faction of a degree in orientation and a few millimetres in position. The overall system processing delay should be minimised and there should be a level of consistency in the visual or sensory cues that are presented to the user. It is desirable that the errors which affect the performance of an augmented reality system and which are discussed in section 6 are minimised. The considerations associated with a good design of a wearable augmented reality system are too numerous to be tabulated here, but a detailed discussion about these issues is presented in Gabbard, Joseph. L. â€Å"Researching Usability Design and Evaluation Guidelines for Augmented Reality (AR) Systems†. Virginia Tech. 2001. [25] In the next section of this essay, a discussion is presented about the outdoor use of an augmented reality system. 5. The Outdoor Use of an Augmented Reality System Augmented reality systems are increasingly being used outdoors. Whereas, it is obvious that the use of augmented reality is gaining greater acceptance because there is a need for applications to assist humans with various activities outdoors, it is also important to understand that the outdoor use of augmented reality presents some technical challenges. Examples of the outdoor use of augmented reality include assistance with rescue operations after a natural disaster such as an earthquake or assisting with military operations in urban environment. [26] [27] Both of the previously mentioned applications require the augmented reality equipment to operate in a harsh environment in which any existing communications infrastructure is likely to have been obliterated or in danger of being destroyed. The military application can assist soldiers in identifying buildings, getting a feel for their interior and to be informed about potential threats such as the location of snipers from battlefie ld intelligence network, with such information being conveniently displayed on their field of vision. However, communication links are important because sophisticated computations on data cannot be performed on portable augmented reality units. Disaster relief can be aided by augmented reality as a result of rescuers being provided with on the spot information about buildings, terrain and the likely results of any planned rescue operations such as the likely impact of clearing a path through rubble. Although the additional information that is presented by outdoor augmented reality systems is likely to be of great benefit, it has to be realised that the generation of such information is only possible after extensive digital surveys of the areas for which augmented reality is being used are available. The likely design of such augmented reality systems will also mean that not all computation or data storage is capable of being performed on the portable units which are provided to the field users. The need to establish and maintain communication links as well as sophisticated computer equipment with which portable units are connected through communication links as well as the requirements to collect detailed data such as airborne laser scanning data under conditions of war or immediately after a natural disaster are some of the difficulties associated with the previously outdoor augmented reality applications. The equipment has to be extremely rugged and reliable as well as capable of being worn over long periods. In the military applications, the communication system which consists of fixed transmitters can be vulnerable and there is a requirement to maintain the large bandwidth communication links between the portable units and a central computer so that the augmented reality system can superimpose virtual scenes on real world information with accuracy as well as reliability. It will be undesirable to have augmented reality system malfunctions in situations whi ch require that users concentrate on other critical tasks rather then fixing any idiosyncrasies associated with the augmented reality equipment. Generally speaking, it is difficult for the existing tracking technology to track a user with sufficient accuracy when a portable augmented reality system is being used outdoors. [28] The next section of the essay presents a discussion about errors in augmented reality systems. 6. The Potential Sources of Error in an Augmented Reality System An important problem which has been observed in augmented reality systems is that objects which have been generated by the computer in a virtual environment for superimposition on to the view of the real environment do not remain correctly aligned or locked onto the real world objects. The degree of misalignment can vary as the user changes their field of view and thus, with a changing field of vision due to a user moving their head, objects that are being viewed through the augmented reality displays can appear to swim as a user moves their head. [29] The errors which create problems in augmented reality systems can be broadly classified as static or dynamic errors. Static errors refer to those sources of error which can cause problems with the presentation of augmented reality when the user and the objects within the environment are completely still. Dynamic errors do not have an impact until there is a movement of the viewpoint or the objects. Some of the sources of error which ca n have an impact on the visual performance of augmented reality systems are as follows: [30] Static Errors Optical distortion caused by distortions or imperfections in the camera and lens systems especially in objects which are away from the optical axis. Errors in the tracking and sensing system which result a distorted output from such systems. Mechanical misalignments that exist within the components of the augmented reality system such as combiners, optics or monitors due to factors such as not having a sufficiently rigid mechanical frame. Incorrect viewing parameters due to a lack of calibration that has an impact on how the reported head or camera locations are translated into viewing matrices which are used by scene generators for drawing images that are required to be superimposed on to the real world inputs. Dynamic Errors End –to- end system delays cause problems because each component in the augmented reality system require some time to produce an output for a given input. Any change in the position or orientation of a user will take some time before being processed and registered on the augmented reality picture that is presented to a viewer. Delays associated with the tracking subsystem, communication links and scene generation as well as time delays that are associated with frame buffers will prevent an immediate updating of the augmented reality picture that is presented to the viewer. A certain level of delay or lag is acceptable and these delays will not cause a serious deterioration in the augmented reality presentation. Typi