...VL Bank Case Study You are the chief information security officer (CISO) for the VL Bank based in Atlanta, Georgia. Recently, a highly sophisticated and cleverly orchestrated crime was brought to your attention by the information security analysts in your department and by a growing number of business customers. Your company’s commercial customers utilize a digital certificate multifactor authentication process to access wire transfers, cash management, deposit operations, and account management applications common to all business customers. The problem is that several customers have reported that new user accounts have been set up under their names without their authorization and these accounts are initiating several fund transfers for $10,000. The wire transfers are being sent to various other bank accounts across the United States. As of today, the amount of fraudulent transfers has been over $290,000. The bank’s affected customers are calling to get answers and reclaim lost funds. Your supervisor is demanding answers from you as well. The bank’s general counsel is preparing for litigation threats from the affected customers. This could be a business nightmare, especially if you fail to resolve the situation quickly. After further analysis, you learn some additional information about the case: 1. The $10,000 individual transfers are going to several U.S. bank accounts of individuals before being automatically transferred to several international bank accounts located in Romania...
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...INTERNSHIP REPORT ON “MONEY LAUNDERING AND ITS PREVENTION POLICY: A CASE OF CITY BANK LIMITED” Submitted To: Mr.Shawkat Kamal Assistant Professor & Program Coordinator, Executive MBA BRAC Business School, BRAC University Submitted By Tarek Amin Chowdhhury ID: 08104130 Department of Business Administration BRAC Business School, BRAC University Date of Submission: 22nd April, 2012 INTERNSHIP REPORT ON “MONEY LAUNDERING AND ITS PREVENTION POLICY: A CASE OF CITY BANK LIMITED” Table of Contents Letter of transmittal ............................................................................................................... i) Acknowledgement ................................................................................................................ ii) Executive Summary ............................................................................................................ iii) Acronyms ............................................................................................................................ iv) Chapter 1 ..................................................................................................................................1 Introduction of the report ........................................................................................................1 1.1 Origin of the report ...........................................................................................................2 1.2 Objective of the report ......
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...The Australian Financial System in the 2000s: Dodging the Bullet Kevin Davis* Abstract The global financial crisis (GFC) occupied only a quarter of the decade of the 2000s but, because of its severity and implications for future financial sector development, dominates the decade. The Australian financial system coped relatively well with the GFC, raising the question of whether there was something special about its structure and prior evolution which explains that experience. This paper reviews Australian financial sector performance and development over the decade, then provides a more detailed overview of the Australian GFC experience and its implications, and considers explanations for the Australian financial sector resilience. 1. Introduction The Australian (and global) financial system entered the first decade of the millennium preparing for a systems crisis, in the form of the Y2K computer scare, which on 1 January 2000 passed without event. But towards the end of the decade, the financial sector was faced with, arguably, its most serious systemic crisis ever, which the Australian financial system and economy weathered relatively well compared with advanced nations in the northern hemisphere.1 While the GFC occupied only one-quarter of the past decade (from mid 2007), it prompts the questions which this review must seek to answer. Was there something about the structure and evolution of the Australian financial system which explained its resilience in the face...
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...serious and long-lasting, like the one in Japan from 1991 to 2002. The most recent is the financial crisis that started in the US in July 2007 and is playing out in front of us today. It is also the most serious, systemic, and global since the Great Depression of 1932. A banking or financial crisis can be defined as a dislocation of the banking system where a significant number of banks and other financial institutions become illiquid and insolvent due to massive defaults on bank loans and other assets. An escalation of non-performing assets of banks will result in heavy losses depleting banks' capital. Banks become insolvent when their debt obligations (liabilities) exceed the value of their assets, i.e., the sale proceeds from their assets are inadequate to pay for their debts. Conditions preceding a banking crisis - financial deregulation Unbridled deregulation of the financial industry is at the heart of financial instability and crises. What began as a trickle became a wave and today it has broken loose as a financial tsunami engulfing the whole world. Prior to the 1970s, commercial banks and savings and loans associations (S&Ls) in the US were tightly regulated to protect depositors' money. They could not engage in risky lending, interest was not paid on checking accounts, and there were ceilings on interest paid by these institutions. These were progressively loosened beginning in the early 1970s. In 1982,...
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...1. DEFINITION: FOREIGN EXCHANGE One of the largest businesses carried out by the commercial bank is foreign trading. The trade among various countries falls for close link between the parties dealing in trade. The situation calls for expertise in the field of foreign operations. The bank, which provides such operation, is referred to as rending international banking operation. Mainly transactions with overseas countries are respects of import; export and foreign remittance come under the preview of foreign exchange transactions. International trade demands a flow of goods from seller to buyer and of payment from buyer to seller. In this case the bank plays a vital role to bridge between the buyer and seller. H.E. Evitt defined “Foreign Exchange” as the means and methods by which rights to wealth expressed in terms of the currency of one country are converted into rights to wealth in terms of the currency of another country. Foreign Exchange Department is an international department of the bank. It deals with globally and facilitates international trade through its various modes of services. It bridges between importers and exporters. Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign country. This department mainly deals with foreign currency. This is why this department is...
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...dollars from bank costumers, and caused high unemployment rates. This has been going on for a long time and is only getting worse. Some say the government needs to stay out of the crisis and some say the government needs more regulation. In order to save our economy from the financial crisis, the government needs to enact proper regulations. The aim of those regulations must be to release the harms of corrupt business practices, keep bank customers from loosing money, and keep borrowers from being victimized by the fine print of their contracts. The first and most immediate problem of the financial crisis is continually increasing unemployment. The problem is best demonstrated by the threat is poses to the financial well-being of many people. “If there's no money flow, it's pretty hard to make more money and companies start to lay off workers” (Wikihow n.pag.). The whole crisis is like a cycle. Businesses make bad investments, consumers stop buying their product, and it hurts both the businesses and the customers. When the people stop buying, the businesses loose money and cannot pay workers. Therefore, unemployment rates go up. “Historical experience suggests that youth, immigrants, low-skilled and older workers are more likely to bear the brunt of rising unemployment“ (Scarpetta n.pag.). Another problem is, “job losses are spreading to sectors that they were not directly supposed to be” (Scarpetta n.pag.). Construction is among the most affected sector. “Many banks and other...
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...Cyclermate Ltd. Part 1 Historical background In 1988, Lewis Llewellyn and Dai Armstrong were made redundant as a result of the closure of their town’s steel works in south Wales. Both had been employed by the firm for more than 20 years. Lewis had worked his way up from apprentice to be chief mill engineer, and Dai had progressed from “office boy” to a senior marketing post. The men belonged to the local cycle touring club, and through this had become close friends. As the prospects for continued local employment were poor, they decided to use their savings to set up a bicycle manufacturing business – an obvious choice, given their shared interest, and combined expertise. The product they selected was a “traditional” upright cycle, following a design typical of the 1940’s and 1950’s. They believed that there would be a strong “niche” market for such a product, given the upsurge in interest in cycling, and increasing consumer interest in “retro” styles. Working in Lewis’s garage, they built their first prototype. Dai persuaded a local cycle shop to put this on show. Within week they had two orders, and the business was launched. By the end of 1990, the business had grown to such an extent that they were unable to meet demand. Taking advantage of the relatively low prices of commercial and industrial property, they purchased a disused 15,000 square feet warehouse with an included 2,000 square feet of office accommodation for £240,000. The buildings were big for their...
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...loan case, now being dubbed as Hallmark Scam because of its huge size and indifference, deliberate or otherwise, on the part of the management of the country’s largest public sector bank, has come as a real shocker. As the details of the scam are coming out gradually, the people concerned are suspecting that something has gone seriously wrong inside the state-owned banks. The Hallmark corruption with Sonali bank is one of the biggest scam of Bangladesh. The finance minister's initial comment on Bangladesh Bank's authority to recommend the change is not justified. The managerial system errors was the lack of audit teams; special audit teams, investigation team and supervision teams of all the government, non-government and specialized banks and they should be trained to be better adapted. The faulty system of our country led this thing to take place. The people working under the Sonali bank were not fully ethical and loyal and that is one of the reasons for such corruption taking place. The minister, however, did not comment on how strong the presence of political appointments could be on the boards of the state-owned commercial banks (SOCBs). A central bank official alleged that some board members were also involved in the Hall-Mark scam, adding that the Bangladesh Bank informed the finance ministry about it but they were silent where they should have taken necessary steps to get rid of such fraudulent activity. People who have experiences in finance...
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...Introduction: Bangladesh is one of the largest Muslim countries in the world. The people of this country are deeply committed to Islamic way of life as enshrined in the Holy Qur'an and the Sunnah. Naturally, it remains a deep cry in their hearts to fashion and design their economic lives in accordance with the precepts of Islam. One of the nation’s leading banking specialists of uncompromising quality in several world class banking. The leading banking company of Bangladesh has been making every effort to ensure the effectiveness and safety of the financing which it makes sure. Islami bank provides the highest quality financing at comfortable facilities to fulfill the needs of the millions of people of the country. The establishment of Islami Bank Bangladesh Limited on March 13, 1983, is the true reflection of this inner urge of its people, which started functioning with effect from March 30, 1983. This Bank is the first of its kind in Southeast Asia. It is committed to conduct all banking and investment activities on the basis of interest-free profit-loss sharing system. In doing so, it has unveiled a new horizon and us hared in a new silver lining of hope towards materializing a long cherished dream of the people of Bangladesh for doing their banking transactions in line with what is prescribed by Islam. With the...
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...Coursework 1 - Microeconomic concepts Every organization has to analyze its business environment before making policies and strategies for its day to day operations, marketing and promotional efforts, and competing with the industry rivals (Loudon, Stevens, & Wrenn 2004). The key factors of the business environment that affect the business operations of a company include political, economic, technological, environmental, cultural, and demographical factors. This essay will explain various markets structures which are monopoly, oligopoly, perfect competition and monopolistic competition. The purpose of this paper is to discuss the impacts of different environmental factors on the business operations of Barclays. The discussion has been made in the light of international accepted microeconomics concepts and practices. Market structures Monopoly is a market structure, where only a single seller producing a product having no close substitutes. This single seller may be in the form of an individual owner or a single partnership or a Joint Stock Company. Such a single firm in market is called monopolist. Monopolist is price maker and has a control over the market supply of goods. On the other hand, Perfect competition a market structure characterized by a large number of firms so small relative to the overall size of the market, such that no single firm can affect the market price or quantity exchanged. Perfectly competitive firms are price takers. Moving on, in an oligopoly...
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...highly efficient provisions for secondary market activities of securities. Origin of the topic This term paper originated as an academic requirement of BBA Program. This is authorized and organized by the department of BBA. After completion of the program period a student must submit the term paper on the assigned topic to the Supervisor and to the department. The program is three months duration. I was assigned to Dhaka Stock Exchange Limited, to complete the program. Objective of the study Objectives of this study are as follows- - To present an overview of Dhaka Stock Exchange. -To identify the trend line of DSE and that of those securities incorporated in DSE. -To identify the strength and performance of DSE 5 Banks. . -To compare among DSE 5 Banks. . -To develop the practical knowledge by the practical orientation of Work. Scope of the Study Scope of the study could be to understand contribution of stock exchange in economic development of a country. The economy of Ban in gaining in confidence and scope for development of capital market is gaining ground. If we can educate the investors regarding risk in management and adopt suitable legal measure to protect the investor’s interest, a substantial volume of saving of masses will flow into capital markets economic growth leads to increase national incomes and thus savings, which in turn are often channeled into the capital market. Limitation of the Study I have been provided with all necessary information at Dhaka ...
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...Gross Settlement System (RGTS) 15 Wireless Application Protocol (WAP) 16 Mobile Banking: 17 Direct Benefit Transfer 21 ABSTRACT With rapid advances in technology, changing according to modern times has become a prerequisite to survive in this highly competitive world. As people are becoming increasingly aware of the consequences of their financial decisions, their needs and expectations have rose to high levels. Banking institutions are facing competition not only from each other but also from non-bank financial intermediaries as well as from alternative sources of financing. Almost everything is available to the customer at his/her doorstep and is just a click away. All this cannot be done with the facility of online financial transactions. Thus, internet banking is the need of the hour. This report gives a detailed overview of e-banking services, why it has become so prevalent and what are the advantages/ disadvantages of using e-banking. It highlights the way banks can ensure secure online transactions and how they prevent online thefts. It also touches upon the latest updates in the field of e-banking...
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...a period of two years. Out of the total project cost, 49% is brought in by General Motors and the rest is tied up with financial institutions, international banks and Indian banks. The working capital is financed by a consortium of banks in which Global bank, Pune branch, is the leader. The company imports many parts of the car engine in a CKD (completely knocked down) condition from General Motors, Detroit, after establishing import letters of credit through its main bankers, Global Bank, Pune Branch. M/S Auto India approached Global Bank, Pune for opening of import letter of credit as per UCP ICC 600 for USD 100,000, on sight basis, in favour of General Motors, Detroit. Type of credit Application Applicant Beneficiary Issuing Bank Advising Bank Negotiating Bank Reimbursing Bank Availability Expiry Amount Merchandise Quantity and price - Irrevocable negotiable - UCP ICC 600 - M/S Auto India, Pune, India - M/S General Motors, Detroit, USA - Global Bank, Pune, India - The American Bank, New York - The American Bank, New York - International Bank, New York - Negotiable at sight - At the counters of The American Bank, New York - USD 100,000 - Car engine parts - 50 units @ USD 2000 per unit Circumstances Issuing Bank Global Bank, Pune issued its irrevocable negotiable credit through its head office in Pune since Global Bank co-ordinated all...
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...shareholder and management. How to Reduce (1) Threat of job (2) Stock / Share offering (3) Centralized Decision (4) Monitoring Financial Market The market where securities are sold and purchase is called financial market. Financial System The system in which the surplus and deficit which meets together for their mutual benefits. e.g. Bank loan. Surplus Unit The units which have excess money. Deficit Unit The units which need money. Financial Intermediaries The bank, person or party, financial institution which act as a middle man between surplus and deficit units are called financial intermediaries. Three types of financial intermediaries (1) Investment Bank (2) Broker (3) Dealer Investment Bank (a) Under Writing or Initial Public Offering (IPO) IPO: The first prize of the security (b) Best Efforts Offering Underwriting In under writing the bank took the security from the company and tries to sell them in the market. The unsold securities should be purchased by bank. Purchased these securities less than “IPO” price. Best Efforts Offering In this service the bank took the securities from the company and tries to sell in the market. The amount of sold securities and unsold securities return back to the company. Broker (Agent) It is a person which act or perform on the behalf of the owner. Dealer It is a person which work independently Types of Financial Market There are five major types 1 Primary Market ...
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...OVER VIEW OF THE BANK Janata Bank Limited, one of the state owned commercial banks in Bangladesh, has an authorized capital of Tk. 20000 million (approx. US$ 250 million), paid up capital of Tk. 11000.00 million, reserve of Tk.17234 million. The Bank has a total asset of Tk. 508567 million as on 31st December 2012. Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were renamed as Janata Bank. On 15th November, 2007 the bank has been corporatised and renamed as Janata Bank Limited. Janata Bank Limited operates through 892 branches including 4 overseas branches at United Arab Emirates. It is linked with 1202 foreign correspondents all over the world. The Bank employees more than 15(fifteen) thousand persons. The mission of the bank is to actively participate in the socio- economic development of the nation by operating a commercially sound banking organization, providing credit to viable borrowers, efficiently delivered and competitively priced, simultaneously protecting depositors funds and providing a satisfactory return on equity to the owners. The Board of Directors is composed of 13 (Thirteen) members headed by a Chairman. The Directors are representatives from both public and private sectors. The Bank is headed by the Chief Executive Officer & Managing Director, who is a reputed banker. The corporate head office is located at Dhaka with 10 (ten) Divisions comprizing of 38 (thirty eight)...
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