The Washing Machine: How Money Laundering and Terrorist Financing Soils Us

The perverse pursuit of the terrible twin peaks of power and pleasure has, from time immemorial, driven human beings to engage in truly astonishing flights of creative genius, not least with regard to matters financial. Aficionados of the money launderer's art will find much to engage them in The Washing Machine as Nick Kochan, the distinguished investigative journalist, cruelly and clinically strips away not only the glittering corporate fa?ade of many an august institution to reveal the greedy, cynical inner launderer, but also the glittering Armani suit of many a Mafiosi cash smuggler to reveal the commodiously customised inner boxer shorts. Kochan takes absolutely no prisoners in this pitiless forensic dissection of the modus operandi of both primary and secondary players of the game - the criminals and terrorists and those who provide succour and assistance in the intricate business of transforming the fruits or means of their nefarious activities into apparently legitimate sources of income to be safely deposited in one of the many idyllically located, fabulously discreet and oh so conveniently "tax neutral" offshore jurisdictions. For those of a Panglossian disposition - who inhabit a world in which an occasional proverbial bad apple may turn up in an otherwise virtuous corporate or political barrel - this book may prove to be a truly disturbing read. It will, however, be warmly welcomed by those who affect a more jaded attitude to world affairs as an assiduously researched and deeply satisfying rounding up of both the usual- and some of the more unusual - suspects. But for those who are perched precariously on the fence that lies between these two extremes and are engaged in the anti- money laundering industry as regulators, practitioners or educators, this book will prove to be an invaluable resource. The first UK anti money laundering statute, the Drug Trafficking Offences Act of 1986 simply addressed the obvious target of dope dealers seeking to slide duffel bags stuffed with cocaine dusty fivers over the counters of their local high street banks. In the mid 1980s, traditional organised crime groups, such as the Sicilian and Detroit Mafia were very much in the frame of those seeking to outlaw money laundering. The Medin case was a classic example of the use of London solicitors and offshore Jersey shell companies to launder the proceeds of the US Mafia cocaine trade at the rate of $500,000 per week. Meanwhile, the Brinks- Mat bullion robbery was one of the high profile cases from that era which created pressure for the scope of laundering liability to be extended beyond merely the proceeds of drug trafficking. Members of that syndicate notoriously would withdraw enormous sums of money in cash and carry it from high street banks in black bin liners to the extent that so many notes were supplied to the regional office of one particular bank that the Bank of England had to notify the Treasury. No alarm bells were sounded by any of the

With huge swaths of the world's economy taking place in the black market, money laundering has turned into an intractable problemw with wide-ranging consequences. British journalist Nick Kochan offers an intriguing study of this shadowy world. He argues that laundering was an overlooked problem in the U.S. before the Sept. 11, 2001, attacks pushed the issue to the fore. Indeed, he says, Americans were oblivious to the effects of dirty money. Kochan details the sordid sagas of Russian gangsters, Colombian kingpins and corrupt Mexican bankers. At times, his broad approach hinders his prose, and his examples aren't always as compelling as they should be. Still, we recommend this eye-opening study to anyone who deals with the global movement of money.

The last time I was involved in money laundering was when I forgot I had left a couple of dollars in the pocket of my pants and put them into the washing machine, only to realize when I transferred the pants to the dryer that I had, in fact, laundered some money. Other than that encounter, I had no knowledge whatsoever about, nor experience with, what is now referred to as "professional" and "criminal" money laundering. Of course, my activity was neither professional nor criminal. But, after reading Nick Kochan's book, "The Washing Machine," I now know a lot about a particular nefarious enterprise which is both professional and criminal. And, unfortunately, a continually growing threat to world peace and security. Mr. Kochan is just the right person to write this book. An investigative reporter, Kochan has investigated a number of financial frauds and scams for many years and has written for such prestigious publications as "The Economist," "Financial Times," and other well-respected media. He is also a well-known broadcaster who appears regularly on the BBC television and radio networks, and has served as a consultant to a number of British and international corporations on political and economic risk. Many ordinary readers may not at first see the relevance of the money-laundering problem to their daily life. Kochan will convince you otherwise. The problem is truly serious, non-endemic, and affects us all in a very direct way. Moreover, money laundering is not just a matter of "criminal" activity anymore, committed by those who simply want to hide their ill-gotten gains from the authorities, but money laundering is now used by international terrorists to hide their sources of revenue for the financing of their attacks on civilized societies. This raises the bar and should convince any citizen, whatever his or her position in any society or nation, to acquire some information about the current threat in order to help combat what has become an increasingly threatening situation. We are at risk. The world is at risk. The author of this book makes that clear. He provides the facts and asks the reader to consider the probabilities. Don't know anything about the Russian Mafia? Read and learn. Don't know anything about the reputable banks (many who advertise their services on American television) who "somehow" have been involved in the money-laundering schemes of criminals and terrorists? Read and learn. Don't know that some so-called "friends" of the United States, such as Ireland, Turkey, and Sri Lanka, are involved in terrorist finance? Read and learn. And on and on. You'll be surprised, and maybe somewhat depressed, with the facts that Kochan presents in his book. You will go deep into a world you probably don't know much about, the world of international business, the whole globalization thing you read about in the newspapers and magazines and most likely don't pay much attention to. You will learn how financial criminals and internationa

One of the best reads of the year, The Washing Machine details how various banks, politicians, terrorists groups, black market dealers, and others launder illegal money to give the appearance of coming from legitimate enterprises. The author is not shy about naming specific banks, groups, and techniques that have been used and follows the money trail from beginning to end. Some of the companies and groups mentioned include the Bank of New York, the Russian Mafia, Al Qaida, and offshore financial entities in Ireland, Turkey, Sri Lanka and other places. The final chapters deal with what the various countries and law enforcement are doing today to help curb the problem. This is a real education in what goes on in the underworld of illegal activities and how the income gets reintegrated back into business enterprises that appear legitimate. The Washing Machine is a highly recommended read for anyone interested in the financial underworld.