6. Decide which of the following statements are right and which are wrong. Give the correct variants.

1. In Austria lawyers are permitted to conceal the fact that a suspicious transaction report has been made about their clients.

2. Judging by the questions asked at the conferences, the anti-money laundering regime is well understood by professionals.

3. Graham Hooper, head of the anti-money laundering strategy at Barclays Bank, warned that the tipping-off offence was driving most customers into the arms of banks-competitors.

4. Sometimes customers can’t withdraw larger amounts of money from their accounts.

5. Difficulties over complying with the regulations are confined to accountants, bankers and tax collectors only.

6. Many banks have frozen the accounts of their customers because of the threat of “abuse or attack”.

7. Judging be confusions, objections and bureaucracy, the anti-money laundering regime has not been accepted.

8. Simon Farrel QC, a solicitor specializing in fraud, said that countries had implemented the money-laundering directives in a proper way.

7. Make up your own sentences using the words and word combinations given below.

To compromise smb’s confidentiality, aggressive policing, too many unnecessary disclosures, tax evasions, in clear breach of legal principles, to report suspicions, to the annoyance of smb, to manage risks, to tackle smth, to be questioned over transactions.

8. Reread the text. Match the names of the people from the text in the left-side column with the positions they hold in the right-side column.

Fiona Nicolson	Financial crime sector leader at the Financial Service Authority
Edward Nally	Barrister, specialising in fraud
Simon Farrel QC	Principal intelligence officer at National Criminal Intelligence Service
Philip Robinson	Head of the anti-money laundering strategy at Barclays Bank
Graham Hooper	Law Society President

9. In groups discuss the following.

Timothy DeMello would be the first to tell would-be investors that Wall Street is not for the timid. Fortunes gained, fortunes lost, is the theme often played in this “greatest game in town”. For those not ready, financially or emotionally, to play the “great game”, DeMello offers an authentic version of the ultimate financial challenge. Wall Street Games, Inc., (WSG) offers the masses as well as the classes the opportunity to experience the thrill and challenge of Wall Street for only $99.

For this minimum investment, players receive an 800 telephone number, a stock-symbol guide, and $100,000 in bogus buying power. During each market trading day, “investors” can call for quotes, last-sale prices, and stock activity. Of course, they are also able to place orders to buy and sell in the hopes of building their “fortunes”. DeMello strongly encourages competition among game players and this year anticipates more than 26,000 college students will ante up $49.95 each to participate in WSG’s collegiate investment contest. What’s the lure for the students? The chance to learn and experience the market plus possibly share in cash prizes and scholarships offered by AT&T, Dow Jones, and Reebok International.

Timothy DeMello founded his company six years after graduating from college with a B.S. in finance. He experienced Wall Street first hand as a stockbroker at Kidder, Peabody, and Company and L.F.Rothschild. He founded WSG with $20,000 of his own money and decided against immediately pursuing debt financing. Instead, he was able to raise $500,000 in equity financing primarily from past clients and other brokers in return for a 20 percent stake in the company. He approached bankers only after his equity financing was in place and was able to secure a $250,000 line of credit for his venture. Today, DeMello is busy pursuing the prospect of a worldwide market for a WSG game that is playable round-the-clock, trading in securities on foreign exchanges such as Japan as well as Wall Street.

Decision Questions

1. Why do you suppose DeMello chose to seek equity financing as opposed to debt financing to fund his new company?

2. Why is a line of credit important to a new firm such as Wall Street Games, Inc.?

3. Is long-term or short-term financial planning most important to a firm such as Wall Street Games, Inc.? Why?

FINANCIAL TIMES OCTOBER 29 2004