Cash laundering is the method of transferring cash from the illegitimate to the reputable financial system. The crime of cash laundering consists of knowingly disguising the supply, origin or possession of unlawful funds.
Any legal transactions are carried out in money and the operate of the cash launderer is usually to translate these small sums into a bigger, extra liquid sum which will probably be tough to hint and simpler to speculate. Cash laundering has emerged on an enormous worldwide scale with the globalization of the world financial system and the internationalization of organized crime.
Cash earned in a single area can, with growing facility, be transferred to a different a part of the world, stopping its eventual restoration by legislation enforcement. With the globalization of organized crime exercise, cash is earned in all areas of the world and should be collected, consolidated and moved.
This development has been facilitated by new applied sciences, the growing motion of products and folks globally and the declining significance of borders. Numerous professionals, together with legal professionals, accountants and bankers, have emerged to offer providers to this legal and corrupt clientele with massive quantities of cash at their disposal. Not concerned within the unique act, these professionals assist perpetuate legal and corrupt actions by their providers. Organized crime teams have notably benefited from the growth of world monetary markets. They’ve exploited the differential regulatory regimes and the potential for transferring cash throughout jurisdictions quickly with the intention to hinder detection by benefiting from the discrepancies between nation primarily based regulatory programs.
They search out locales which can be much less regulated with respect to worldwide anti-money laundering legal guidelines. These havens, regularly offshore banking facilities, present each banking and company secrecy. In addition they present secrecy for the trusts, that are used to cover large-scale belongings which can be usually illegally diverted from the businesses managed by organized crime teams. In 1996 economists of the Worldwide Financial Fund (IMF) prompt that 2 % of world GDP (gross home product) was associated to drug crime and the laundered sums related to corruption and tax evasion could be a fair bigger share. The share of the world’s financial system could be even larger at the moment for a number of causes as many types of organized crime have grown on this interval and the countermeasures have did not dent the income of this exercise besides on the margins.
A lot laundered cash has been invested in dollarized accounts and different sturdy currencies the place it has escaped vital losses by forex devaluations in origin nations. In offshore regimes the place monetary capital is untaxed, its development is quicker than that of cash that’s a part of taxed and controlled regimes. The vary of companies and monetary establishments used to launder cash has proliferated with the income and the rising sums which have to be laundered. Among the many establishments employed are massive banks, offshore banks and monetary establishments, forex change and wire switch companies, inventory brokerage homes, gold sellers, casinos, insurance coverage and buying and selling corporations.
The power to safeguard the proceeds of transnational legal exercise, tax evasion and corruption have served as vital incentives for the expansion of this exercise. There may be restricted threat and few deterrents for the cash launderers and the professionals who assist their actions. The restricted seizures that do happen are merely “another value of doing enterprise.” The worldwide efforts sponsored by the Organized for Financial Cooperation and Improvement (OECD) to restrict offshore havens and to sanction nations that facilitate cash laundering have but did not sharply curtail cash laundering.
Sources of Laundered Hundreds of thousands
Laundered cash derives from the complete vary of illicit actions linked to organized crime equivalent to narcotics and arms trafficking, trafficking in human beings, extortion, playing, counterfeiting of cash and items, trafficking in endangered species and stolen artwork and cars. Typically, corrupt authorities officers transfer the bribes they’ve obtained or the cash they’ve embezzled to offshore areas for safety. A lot of this can’t be handled as laundered cash in lots of nations as a result of these corrupt actions usually are not predicate offenses to cash laundering.
The necessity to have a pre-existing legal offense beneath many legal codes, is a significant deterrent to efficient cash laundering investigations. The laundering strategies of organized crime teams have turn out to be more and more refined. Specialists are retained who’ve the capability to disguise the supply of funds and make them look reputable. For that reason organized crime teams have more and more penetrated into reputable economies and monetary markets.
Such operators have laundered the belongings from these diversified investments in addition to from the unique illicit actions. The cash laundering related to excessive stage governmental corruption has obtained extra consideration within the post-Chilly Battle period. Corrupt leaders launder cash derived from a number of sources: siphoned out of the nationwide treasury; diverted from international help; pay offs from international traders or contractors engaged on improvement loans from multilateral organizations and proceeds from privatization.
The wave of privatizations within the 1990s in lots of elements of the world has contributed to the elevated deposit of funds in unregulated offshore accounts. Within the transitional interval from governmental possession to non-public possession when there’s restricted transparency, most of the insiders have managed to acceptable vital sources of privatizing corporations and have by elaborate belief agreements, in keeping with the legal guidelines of the locale, parked very useful nationwide sources in monetary tax havens. The cash laundering related to the privatization course of has additionally resulted in massive and visual circumstances of worldwide cash laundering investigated such because the Raul Salinas case from Mexico and the Pavel Lazarenko case from Ukraine. Investigations into every of those circumstances, by Swiss and American authorities, in addition to different governments, has totaled within the a whole bunch of tens of millions of . Within the Salinas case, pay offs from drug traffickers had been commingled with pay offs for useful privatizations of key state-owned industries.
A serious query is whether or not mechanisms will probably be made accessible sooner or later to discourage such deposits and whether or not procedures will probably be established to make such sums extra simply recoverable by the supply nation. Because the corruption difficulty is now not a taboo difficulty for workers of multilateral monetary establishments, the numerous cash laundering related to undertaking and structural adjustment loans have turn out to be permissible matters of debate.
For instance, researchers on the IMF now acknowledge that they may observe the monetary flows out of Haiti instantly after worldwide mortgage funds flowed into the nation. An investigator analyzing the diversion of a World Financial institution mortgage to Pakistan traced $30 million to a Swiss financial institution. More and more, the investigators of corruption in these worldwide monetary establishments should be skilled to seek out cash laundering as a result of each bribe cash and precise undertaking loans wind up within the banking facilities of Western nations.
Banks and Different Monetary Establishments Engaged in Cash Laundering
The varieties of monetary establishments exploited for cash laundering have proliferated because the reporting necessities on main banks have elevated. Offshore banks have sprung up in lots of locales to service the calls for of prosperous purchasers who search secrecy and an absence of reporting necessities. By the top of 1997, offshore locales housed greater than half of all cross-border belongings held globally. Only a few nations have been energetic in taking measures to grab laundered belongings.
The exceptions are the US and Switzerland. Nevertheless, the quantity they’ve managed to freeze and confiscate has been very restricted in comparison with the general whole of unlawful monies of their monetary markets. Many different main banking facilities, equivalent to these positioned in England and Germany, have 1000’s of suspicious transaction stories but have comparatively few profitable legal prosecutions or confiscations of belongings. Subsequently, whereas there are vital dangers of getting caught for smuggling medicine, there’s a lot much less likelihood of getting caught and shedding the proceeds of medicine or different legal proceeds. Most cash laundering happens in offshore banking facilities, lots of whose operations are much less extremely regulated than these in main banking facilities.
Not all-offshore banks are laundering cash. Essentially the most flagrant abusers are these offshore locales with none monetary infrastructure or any regulatory mechanisms to watch the banks or to trace the transactions, which cross by their locale. In these conditions people and companies are exploiting the potential for financial institution and company secrecy that these locales present. Many elements of the Caribbean have established massive reputable banking providers which can be offering providers to a big worldwide clientele of reputable companies. This affords proof to point that dimension and site usually are not absolute determinants of whether or not a monetary establishment is used as a laundering facility for the cleaning of questionable proceeds.
At current, there are completely different niches for various classes of cash laundering. Drug sellers have the widest vary of belongings to eliminate and steady monetary flows, subsequently they use all accessible monetary devices. There may be vital differentiation available in the market. For instance, wire switch companies are used primarily by avenue stage drug sellers, whereas the non-public banking providers of main banks can be found solely to large-scale purchasers.
Offshore banks are utilized by people and teams engaged in a variety of illicit and licit actions. There are growing controls on massive monetary establishments, however latest circumstances have revealed that it’s nonetheless potential to launder huge sums by main banks and thru these banks offshore branches. Main American banks equivalent to Citibank, the Financial institution of New York, and Union Financial institution of Switzerland (UBS), in addition to their offshore branches, have figured prominently in latest investigations of cash laundering. As one of many minority congresswomen on the US Home of Representatives Banking and Finance Committee commented, throughout the Financial institution of New York hearings, it was the failure to sanction Citibank within the Salinas case of drug cash laundering which has perpetuated the issue. Whereas such actions as a Geographic Focusing on Order within the New York space has restricted wire transfers out of small companies, it stays frequently potential to maneuver massive, questionable and unlawful sums by the non-public banking operations of main banks.
The income for the establishments and notably for the officers of those divisions have made bankers usually flip a blind eye. A not too long ago launched U.S. Common Accounting Workplace (GAO) report, carried out by the investigative department of the company, examined the potential for laundering cash in the US. The investigators traced US$800 million of such funds that had been moved into U.S. banks by one Russian. He did this by registering corporations within the “offshore location” of the State of Delaware, which protects the anonymity of firms. The cash was subsequently moved into accounts within the non-public banking sector of Citibank. No authorized motion had been taken towards the banks, any of the account holders or towards the person who had managed to maneuver these funds of unknown origin by the American banking system. This investigation reveals how refined cash launderers can exploit vital loopholes in United States to maneuver massive quantities of questionable cash by a number one American establishment.
Cash Laundering within the Mercosur
Cash laundering is changing into an more and more significant issue in a number of of the nations of the Mercosur. A part of that is associated to the necessity of Colombian and Mexican drug lords to launder their cash, and the larger facility with which they will do that in Spanish talking nations. It is also as a result of proliferation of offshore banks in Latin America and the Caribbean, which now symbolize 43% of the worldwide whole. Essentially the most seen manifestation of this phenomenon has been the development of the resorts of Cancun that was accomplished with drug cash. But the usage of resorts by which to launder cash just isn’t confined to Mexico, because the proliferation of luxurious resorts in Argentina with restricted clientele is additional seen proof of this drawback. Harder to detect and examine is the cash laundering by the Mercosur banking sector, shell corporations, commodities brokerages and forex exchanges.
A joint investigation carried out by the Brazilian Federal Police, Central Financial institution and different entities reported that between 1998-99, US$18 billion was laundered by Brazil. Brazilian cash launderers, in keeping with the U.S. Division of State, eliminate drug cash and the income of white-collar crime. A lot of the arms and medicines commerce happens by the border city of Foz de Iguacu. The proximity to Paraguay, which is a significant money-laundering middle for Latin America, exacerbates the issue. Roughly, 20% of Paraguayan cash laundering is expounded to medicine, whereas the overwhelming majority emanates from smuggling and contraband.
No main scandal has disrupted the Uruguayan banking system however the dependence of the Uruguayan financial system on its banking sector has did not make it very vigilant in reviewing the supply of consumer funds. A serious cash laundering scandal erupted in early 2001 with the Argentine Central Financial institution President Pedro Pou accused of masking up illicit money being moved by native and international banks. He tried to cover from the Argentine congress info on these unlawful transactions. This public scandal emerged after a report by an U.S. Senate Subcommittee on cash laundering traced drug cash from Citibank again to an Argentine financial institution. As a lot as US$10 billion might have been laundered by Buenos Aires. In response to those issues, the South American Monetary Motion Job Drive (Grupo de Accion Finaciero de Sudamerica contra el Lavado de Avisos-GAFISUD) was established on December eight, 2000. Its member states’ embrace Argentina, Bolivia, Brazil, Colombia, Chile, Ecudor, Paraguay, Peru and Uruguay. The very important operate of this group is to enhance coordination in monitoring and combating cash laundering within the area.
Why has it been so exhausting to maneuver towards cash laundering?
Till not too long ago it has been tough to undertake measures towards cash laundering as a result of absence of a obligatory political will and the cumbersome worldwide authorized mechanisms which presently exist. Moreover, the income of this exercise, notably inside non-public banking, have been very profitable for monetary establishments and the registration and related providers. The offshore locales have offered an incentive for a lot of locales with out options. Cash laundering on a big scale has existed because the 1960s. Dictators have moved cash to protected havens and with the rise of the worldwide drug commerce because the late 1960s, there was an growing want to maneuver massive quantities of cash into the reputable monetary system. Covert arms gross sales have been facilitated for many years by cash laundering. Despite the fact that many knew this was occurring, the struggle towards cash laundering has been handled as a secondary concern to the preservation of affect inside a selected geographic area. With the top of the Chilly Battle, the will to guard sure dictators who had been key figures on this technique collapsed.
There was now not a have to “shield our dictator,” whose corruption grew to become a humiliation to the states and consequently multilateral lending establishments. The large cash laundering out of the states of the previous Soviet Union, within the 1990s, has revealed that the budgets and economies of total nations will be devastated by the power to launder cash to main monetary facilities and offshore areas. The credibility of such multilateral establishments because the World Financial institution and the IMF has been known as into query. This tolerance of corruption has been a extremely vital issue within the lowered legitimacy of those establishments that haven’t been essentially vigilant in monitoring the diversion of the loans they’ve made abroad.
Their new emphasis on corruption is an try to reverse this pattern. The rise of the Web and the velocity of monetary transactions facilitated by computer systems have expanded cash laundering alternatives and actions within the latter half of the 1990s. There are growing variety of Webs websites that solicit cash for switch offshore, the rise of web playing and of digital banking have made it potential to launder cash with none infrastructure to run or regulate worldwide banking operations. As an alternative, the rise of data expertise and the expansion of untraceable encryption have offered the potential for laundering cash with larger facility and with nearly excellent anonymity. All that’s wanted is a pc. The rise of the brand new info expertise has facilitated an unbelievable communications revolution, however it has led to the proliferation of cash laundering in among the most distant locations on the earth. Such areas embrace Vanuatu, Nauru, and the Marshall Islands by whose “banks” billions have been laundered within the final couple of years.
Facilitating the rise of digital banking in offshore areas has been the willingness of main banks to obtain funds which were routed by these locales. Whereas well-written software program may display screen these transactions and forestall the absorption of those funds into mainstream banking facilities, this has not occurred. The authorized establishments to fight cash laundering are a lot slower than these constructed on an order earlier than the data age. Subsequently, a wire switch which is moved amongst 4 jurisdictions in an hour, a typical transfer for a cash launderer, will take legislation enforcement in the US a yr to unravel due to the necessity to current paperwork to 4 completely different jurisdictions to acquire info on the transaction. Legislation enforcers in nations with out such sources as the US might by no means be capable of hint these transactions. In some circumstances, it’s both legally not possible or bodily not possible to acquire wanted info on the cash motion due to the financial institution secrecy or the presence and safety of trusts. In the US, a predicate offense is required to show cash laundering. Nevertheless, this requires cooperation of legislation enforcement within the supply nation. In circumstances the place the cash is related to a excessive stage official or his/her associates, or the place home legislation enforcement has been neutralized by corruption from crime teams, that essential cooperation won’t ever be forthcoming. In lots of nations, many classes of crime usually are not predicate offenses for cash laundering or there’s an absence of cash laundering legislation, leaving many monetary transactions exterior the attain of American legislation enforcement. A novel scenario now exists.
The complexity of the circumstances of cash laundering implies that the quantity and experience of the enforcement required to deal with these crimes is so very important that even effectively staffed American legislation enforcement can handle only some main legislation enforcement circumstances yearly. Moreover, between the corruption of home legislation enforcement in lots of nations and financial institution secrecy in others, most cash laundering investigations are condemned to failure from the beginning. Because the quantities of cash laundered develop, the capability to deal with the issue stays perpetually behind.
Why the present marketing campaign towards cash laundering?
A rising consensus is creating in lots of developed nations that the issue of cash laundering should be addressed each inside their economies and in offshore areas. A lot of that is continuing on a diplomatic stage and is aimed toward monetary establishments as a result of the earlier authorized technique has inherent limitations. Focus is now on prevention somewhat than on authorized cures. The current motion towards cash laundering is the results of a convergence of mutual pursuits somewhat than as a consequence of a unified view of the harms of cash laundering. For the US, the driving power has been the rise of the worldwide drug commerce, a commerce that has monumental monetary and social implications for the US. American coverage makers have turn out to be more and more involved that cash laundering permits the perpetuation of the drug commerce and terrorism.
The chance to park funds in offshore havens provides these illicit operators the working capital to perpetrate and perpetuate their exercise. However cash laundering just isn’t confined to offshore locales. American authorities now estimate that US$9 billion in narco is laundered in New York Metropolis and US$30 billion of drug cash is laundered in Texas. For European nations, the opening of borders and the institution of the Euro in 2002 have positioned their territory and monetary programs at larger threat. The specter of transnational crime just isn’t solely larger charges of violence, undesirable immigrants but in addition massive scale monetary crime and cash laundering throughout the European monetary system. The motion of capital to offshore areas has had extreme penalties for Europe’s income assortment. The growing quantities of capital sheltered in offshore areas is stopping the gathering of wanted taxes, making the upkeep of offshore accounts a fair larger drawback for European nations that want substantial revenues to keep up costly social welfare programs and deal with getting old populations. Subsequently, income issues are extra of an impetus for European than American motion towards offshore havens.
What’s the present marketing campaign towards cash laundering?
In 1989 the Monetary Motion Job Drive (FATF) was established to coordinate a response to the issue of cash laundering. The next yr FATF issued 40 suggestions towards cash laundering which had been subsequently revised in 1996. FATF, now consists of 29 nations, and two worldwide organizations and represents the bigger developed nations in addition to among the extra prosperous creating nations. The primary advice requires that nations turn out to be signatories to the Vienna Conference towards cash laundering. The Vienna conference solely issues the proceeds of cash laundering associated to the drug commerce.
Nevertheless, it doesn’t embrace the opposite severe classes of crime with which cash laundering could also be related. Consequently, the suggestions additionally recommend that prohibitions towards cash laundering be prolonged to different severe offenses. This discretion has led to many nations differing legislative measures. Some haven’t made human trafficking, one of many quickest rising types of organized crime, a predicate offense for cash laundering. Likewise, corruption stays in most nations, together with the US, exterior the record of many severe crimes, that are predicates to cash laundering.
The suggestions additionally take care of measures to establish, hint and confiscate laundered belongings. Varied measures should be taken by monetary establishments to make sure that they keep correct file conserving, know their clients and maintain information for at the least 5 years time to allow reconstruction of monetary transactions. Financial institution officers are required to watch massive and questionable transactions and to report suspicious transactions to competent authorities with out advising the purchasers in query. These ideas are utilized not solely to the home banks but in addition to their subsidiaries which can be positioned exterior of the nation. Signatory nations are to accentuate controls on the borders with the aim of limiting the motion of huge quantities of money. Moreover, nations are anticipated to develop trendy strategies of cash administration equivalent to checks and direct deposits that cut back reliance on a money financial system. Efficient regulatory our bodies are to be established to make sure that there are enough measures and sufficiently skilled personnel to appreciate the implementation of those rules.
Regulators should take efforts to make sure that criminals don’t purchase or obtain vital management over monetary establishments. Worldwide cooperation should be prolonged near to suspicious transactions, confiscation, mutual help and extradition. Cooperative investigations ought to be inspired and launched when potential. To make sure cooperation amongst states, there should be selections made as to the most effective venues by which to prosecute offenders. Annual Studies are issued by the FATF inside which the nation groups have monitored the progress of member states and points typologies. The Typologies Report comply with an annual assembly by which legislation enforcement, authorized, monetary and regulatory specialists talk about latest developments in laundering legal proceeds, rising developments that arouse concern and countermeasures which have proved efficient. In June 2000, the FATF listed a gaggle of 15 jurisdictions with severe deficiencies in anti-money laundering efforts. This “blacklist” was primarily based on extent of compliance with 25 printed standards.
Three of the fifteen jurisdictions are positioned within the Caribbean and embrace Dominca, St. Kitts-Nevis and St. Vincent. In response to the Annual Report issued on the identical time, the member nations of the FATF group are largely in compliance with the rules. This analysis is predicated largely on the mutual evaluations of the member states. A dichotomy exists between the notion of the developed nations and the offshore facilities. The tax havens or worldwide monetary facilities declare that the laws and infrastructure are in place and most cash laundering happens by massive monetary facilities. On the opposite facet, the mainland nations understand that cash laundering is going on in offshore locales. The issue stays that cash laundering persists in each sorts of locales. The FATF is now turning its consideration to such issues as cash laundering by on-line banking, trusts and different non-corporate automobiles, the professionals who facilitate cash laundering, the position of money vs. non-cash actions and the cash laundering of terrorists. The FATF is just one of a number of seen multilateral our bodies engaged on cash laundering. It has regional job forces that embrace the Caribbean Monetary Motion Job Drive and Asia/Pacific Group on Cash Laundering. The United Nations and its Workplace of Drug Management and Crime Prevention (ODCCP) has a program towards cash laundering.
The Group of American States (OAS) Inter-American Fee on Drug Management, in addition to the Council of Europe, have launched particular initiatives on cash laundering. A lot has additionally been accomplished on the nationwide stage. The Bureau of Worldwide Narcotics and Legislation Enforcement of the U.S. Division of State releases yearly its Worldwide Narcotics Management Technique, roughly 1 / 4 of it’s dedicated to actions towards cash laundering and compliance with cash laundering rules. The report assesses not solely drug-related cash laundering however that associated to different offenses. A big group of nations are recognized as of main concern primarily based on their failure to satisfy a variety of standards regarding asset and data sharing, in addition to the deficiencies of their authorized framework. Particular person nations have established home Monetary Intelligence Items to deal with issues of monetary crime with the intention to formulate simpler countermeasures.
These nations share some info throughout the framework of the Egmont Group. This casual alliance consists of over 45 nations facilitating the change of information and evidentiary supplies amongst member states. The United Nations Conference In opposition to Transnational Organized Crime, was signed in Palermo, Italy by 123 nations (December 12-14, 2000). It comprises provisions to fight cash laundering as it’s associated to organized crime. These embrace enough system of inside regulation throughout the signatory nations, cooperation on the regional, worldwide and multilateral ranges, and the mechanisms wanted to detect the cross border actions of capital. Moreover, it requires buyer identification, file conserving, reporting of suspicious transactions. Cash laundering on this conference is tied not solely to conventional types of organized crime but in addition to the corrupt practices facilitating it.
The big development of cash laundering outcomes from a number of components concurrently: the rise of transnational organized crime, the globalization of corruption and the competitors for capital in an more and more globalized worldwide financial system. The most important actors on this basically legal enterprise follow are main banking facilities and offshore locales, though many different establishments and companies take part. The potential of laundering cash in so many areas of the world has resulted within the huge switch of sources from creating and transitional nations to protected havens within the extra developed nations and extra protected offshore areas.
Placement of cash abroad, permits criminals and corrupt people to evade the management of native authorities, keep away from the instability of home banking establishments whereas securing entry to their funds internationally. Combating cash laundering requires a multi-faceted method. It’s obligatory not solely to focus on the recipients of the laundered cash but in addition to acknowledge the instability of the monetary system within the supply nation. The capability of various states to fight organized crime and cash laundering should even be enhanced. This can be a tough drawback in states that usually do not need the ample sources to offer for the fundamental academic, medical and social wants of their citizenry. The worldwide actions towards cash laundering are actually centered extra on prevention and sanctions somewhat than the multi-faceted methods wanted to deal with the precise causes of the issue.
Prevention works extra successfully within the worldwide monetary group than in a single nation the place corruption and coercion by crime teams or excessive stage corrupt officers might stop the implementation of wanted controls. Sanctioning may match in embarrassing main banking facilities into larger compliance however the monumental income of personal banking providers make many establishments adhere to the letter however not the spirit of cash laundering controls. Their inside audit guidelines display screen out among the most blatant violators however the proliferation of belief agreements and entrance corporations make it very tough to display screen purchasers successfully. Many bigger monetary programs, equivalent to Switzerland, which have served as main repositories for drug kingpins, corrupt officers, and oligarchs are evaluated as in compliance of cash laundering provisions.
But they don’t present sufficient legislation enforcement sources to research the huge quantities of cash and the range of actors who’re laundering cash by their monetary system. Subsequently, the chance of efficiently laundering massive sums could also be larger and there are numerous jurisdictions which can be thought-about medium or excessive threat for cash laundering by the FATF. In creating nations, which home many offshore areas, there’s determined competitors for capital. Some Caribbean nations recommend that the drive towards offshore areas just isn’t motivated a lot by the will to fight cash laundering however to counter the competitors for monetary providers. Within the absence of improvement options, there’s usually little incentive to get out of the cash laundering enterprise. The sanctioning regime that has been instituted is being executed with out fairness. Nations positioned on the high-risk record, in any other case often called the “black-list,” by the FATF usually are not essentially the worst offenders. Some nations with very vital issues of cash laundering have escaped sanctioning due to their political connections. Some small nations within the Caribbean or territories of bigger nations do not need the general public relations or the regulatory capability to stop their sanctioning have been uncovered to the complete power of the FATF. Whereas a rustic like Liechtenstein has the considerable sources to place in the direction of the rent of lobbyists to clear its title and in addition handle some features of the issue.