A complex global network transforms money coming from the illicit sale of drugs (including cigarettes), arms, or human slaves into respectable, invest-able, untraceable wealth. Add in corrupt politicians, tax evasion and fraud in global corporations (like Enron, Tyco and WorldCom), and the complicity of giant financial institutions (like Bank of New York, Citibank and the Bank of Credit and Commerce International), it becomes dramatically clear just how severe the problem of dirty money really is.

Implicating everyone from global corporations and banks, to drug cartels, the mafia, oligarchs, dictators, arms dealers, terrorists, and traffickers in human body parts, The Washing Machine is a no-holds-barred, meticulously researched and comprehensive real life "thriller" that illustrates the paths of black market money. Veteran financial investigative journalist Nick Kochan names names, then considers what is being done to stem the tide. He spent thousands of hours interviewing law enforcement on the front lines and combing through tens of thousands of pages of documentation, as he delved into the tangled web of dirty money.

Says Kochan, "Those who secretly manipulate the sources and movement of money affect the security of nations and the wealth of people. We are all victims. Money laundering affects everybody who participates in the world?s economy? Dirty money is a tax on the global economy as well as a threat to the stability of the weaker parts of the global system."

Kochan?s research reveals some surprising insights:

• The red flags of criminal moneymaking differ from those thrown up by terrorist moneymaking. Solving the problems will require different institutions and strategies addressing each.
• Existing financial laws and practices designed to identify dirty money are ineffective at addressing high-level, well-financed and sophisticated criminal activity operating through large companies and banks.
• If such powerful corporate and governmental interests are at stake, just how effective will global policing be? Laws are on the books, but implementation and cooperation remain problematic.

Journalist and financial researcher Kochan describes the major problems that arise from the existence of money laundering and introduces some of the efforts being made to combat it. He presents four sections on the "greatest threats" posed by money laundering: the growth of Russian organized crime, terrorism financing, the injection of black money into the financial systems through the sale of black market goods, and corrupt banks undermining criminal investigations. He concludes with a discussion of government and bank officials' efforts to curb money laundering.
Annotation ©2004 Book News, Inc., Portland, OR (booknews.com)

The Washing Machine takes the reader deep inside the world of money laundering and shows it to be a highly sophisticated, global business that poses a serious and systemic threat to the world's financial institutions, as well as the global economy. Investigative journalist and financial expert Nick Kochan profiles the perpetrators, the investigators, and explains the methods employed by international criminals and terrorists to turn dirty money into untraceable wealth. The effort to stop this sinister financial pipeline to terrorist activities is one of the highest profile law enforcement activities in the world at present. Will we lose this battle? The Washing Machine reveals that the dual forces of globalization and a lack of true international cooperation are playing directly into the hands of the criminals.

Understand the intricacies of money laundering with THE WASHING MACHINE; HOW MONEY LAUNDERING AND TERRORIST FINANCING SOILS US! This text takes you deep inside the world of money laundering and shows it to be a highly sophisticated, global business that poses a serious and systemic threat to the world's financial institutions, as well as the global economy. Investigative journalist and financial expert Nick Kochan profiles the perpetrators, the investigators, and explains the methods employed by international criminals and terrorists to turn dirty money into untraceable wealth.

Taking readers deep inside the world of money laundering, this intriguing book shows it to be a highly sophisticated business that poses a threat to the world's financial institutions and global markets.

Nick Kochan is an investigative reporter who has written on many complex financial frauds. He worked on the Sunday Times business team where he investigated the Guinness scandal. He pioneered reporting of this complex financial scam, and led coverage of its many ramifications for over a decade. He has written for almost every important British publication, including the Economist, Sunday Times, Financial Times The Banker and The Observer and has many sources in government as well as finance. He is also extensively connected within the law enforcement and police services domestically and internationally. He was educated at the University of Cambridge before embarking on a journalistic career.

1. Getting started 2. The change process 3. Net present value 4. Comparing net present value, decision trees, and real options 5. Numerical methods for simple options 6. Compound and switching options 7. Going from one step per time period to many 8. A four-step process for valuing real options 9. Estimating volatility: consolidated approach 10. Keeping uncertainties separate 11. Case examples 12. Final thoughts and unfinished business Appendix A Appendix B Notes About the authors Index