Writing

1. Translate into Ukrainian.

Corruption also undermines economic development by generating considerable distortions and inefficiency. In the private sector, corruption increases the cost of business through the price of illicit payments themselves, the management cost of negotiating with officials, and the risk of breached agreements or detection. Although some claim corruption reduces costs by cutting red tape, the availability of bribes can also induce officials to contrive new rules and delays. Where corruption inflates the cost of business, it also distorts the playing field, shielding firms with connections from competition and thereby sustaining inefficient firms.

Corruption also generates economic distortions in the public sector by diverting public investment into capital projects where bribes and kickbacks are more plentiful. Officials may increase the technical complexity of public sector projects to conceal or pave way for such dealings, thus further distorting investment. Corruption also lowers compliance with construction, environmental, or other regulations, reduces the quality of government services and infrastructure, and increases budgetary pressures on government.

Express in 100 words: What are roots of corruption in Ukraine?

Speaking tasks

You are expected to speak for about three minutes:

1/. What do you know about the origin of the term ‘money laundering’?

2/. Prove that money laundering is a truly global phenomenon.

3/. What do you know about money laundering process ( placement )?

4/. What do you know about money laundering process ( layering and integration)?

5/. Speak about money laundering methods.

6/. What do you know about money laundering in business area ?

7/. What do you know about offshore zones? What is the aim of their creation?

8/. Speak about your understanding of corruption. Argue your answer.

9/. Speak about your understanding of bribe. Argue your answer.

10/. What are reasons of corruption ?

SUGGESTED TOPICS FOR STUDENTS’ PROJECT WORK:

1. Money Laundering Trends in the EU.

2. Measures to Prevent Money Laundering.

3. Corruption and Remedies Against It.

4. Political Corruption.

5. Forms or Aspects For Corruption.

6. Conditions Favorable for Corruption.

7. The Social Origin of Corruption.

8. Corruption in Central and Eastern Europe.

9. Underground Banking.

10.Bribery: Bribe-Takers and Bribe-Givers.

Supplementary reading and writing

TASK 1

Read the text ‘ Money Laundering Offences’ and give your opinion of the material. Discuss it with your classmates.

Translate into Ukrainian any paragraph of the article.

Money Laundering Offences the offences

There are now five basic money-laundering offences:

1/ assisting another to retain the benefit of crime;

2/ acquiring, possession and use of criminal proceeds;

3/ concealing or transferring proceeds to avoid prosecution or a confiscation order (also called Own Funds money laundering).

4/ failure to disclose knowledge or suspicion of money laundering;

5/ tipping off.

Assisting another to retain the benefit of crime.

Assistance occurs where a person is involved in an arrangement with another person, and knows or suspects that the other person is, or has been involved in, or has benefited from drug trafficking or criminal conduct if the arrangement helps the other person to retain or control proceeds directly or indirectly or enables the other person to use the proceeds or to invest them for his benefit. The legislation allows ‘disclosure to a constable’ which is normally to the FIU of the NCIS. This covers terrorist related activities as well. The penalty for commission of an offence under this section is imprisonment of up to six months, or a fine not exceeding the statutory maximum, or both, on summary conviction. On conviction on indictment, the penalty is imprisonment of up to 14 years, or a fine, or both.

Acquisition, possession or use of criminal proceeds.

 

Acquisition is the offence of use or possession of property which you know or have reasonable grounds to suspect to be the proceeds of drug trafficking or criminal conduct and have acquired at less than full value. The aim of the offence is to prevent criminal proceeds being passed on by criminals to be enjoyed by third parties. Here, the reference is to ‘property’, rather than to ‘funds or investments’ as in section 93A (‘property’ including money).

The penalty for commission of an offence under this section is the same as for assisting another to retain the benefit of crime.

Concealing or transferring proceeds to avoid prosecution or a confiscation order (also called Own Funds money laundering).

 Concealing is disguising, removing or transferring proceeds (directly or indirectly) of drug trafficking or criminal conduct for the purpose of avoiding or helping someone else avoid prosecution. The offence is committed by a person who assisted in the offence if s/he knows or has reasonable grounds to suspect the nature of the property.

Concealing or disguising any property includes concealing or disguising its nature, source, location, disposition, movement or ownership or any rights with respect to it. The penalty for commission of an offence under this section is exactly the same as for the assisting and acquisition offences.

Failure to disclose knowledge or suspicion of money laundering.

This offence only relates to drug trafficking and terrorism and not to proceeds of crime in general. A person is guilty of an offence if, as a result of something he learns in the course of his trade, profession or employment, he does not report a suspicion to a police or customs officer.

There is a question as to whether disclosure is a waiver of professional privilege or a breach of any express or implied duty of confidentiality owed to a customer or client. For example, legal privilege for solicitors. If there is a criminal transaction then disclosure to the police will not constitute a waiver of professional privilege nor will it give actionable grounds for a claim for breach of confidence.

The penalty for commission of an offence under this section is imprisonment of up to six months, or a fine not exceeding the statutory maximum, or both, on summary conviction. On conviction on indictment, the penalty is imprisonment of up to five years, or a fine, or both.

Tipping off.

The requirement to report suspicions is not much use if the suspected person is tipped off to the fact that s/he is under investigation. In order to preserve the integrity of an investigation, the offence of ‘tipping off’ occurs when information or any other matter which might prejudice the investigation is disclosed to the suspect of the investigation (or anyone else) by someone who knows or suspects (or, in the case of terrorism, has reasonable cause to suspect) that: a police investigation into money laundering has begun or is about to begin, or the police have been informed of suspicious activities, or a disclosure has been made to another employee under internal reporting procedures.

The penalty for tipping off is the same as for the failure to disclose offence.

TASK 2

Read the text “World banking system…”, give your appreciation of the material.

Write your answers on the following questions: