Paul Manafort surrendered to federal authorities and appeared in court on Monday November 6, 2017 to face charges. It is alleged that Manafort did not declare his foreign accounts in excess of $10,000 to the US Treasury and Internal Revenue Service. Under U.S. law, U.S. citizens must report those accounts. The indictment filed in federal court in Washington alleges that he laundered more than $18 million through shell companies and hidden bank accounts in Cyprus, St. Vincent and the Grenadines, and the Seychelles Cyprus does not require company ownership details he made publicly available online or that company accounts be available on public record. Seychelles has been labeled an offshore magnet for money launderers and tax dodgers by the International Consortium of Investigative Journalists in a 2014 report. The government traces Manafort transactions and found that between 2008 and 2014 he wired US$1,4 million to Cyprus that would have originated from St Vincent and the Grenadines. Having identified this, amount of US$1.4m in his bank account was frozen, then later confiscated by the government. Please Turn over FINA 2001 Sample Test - December 2021 ASI Taxes were not paid on the amount. Manafort owned or controlled two entities incorporated in St Vincent and the Grenadines - Global Endeavour Inc. and Jennet Ltd - which were used in the scheme to hide some of the tens of millions of dollars in income received as unregistered agents of the former Ukraine government. St Vincent says it cooperated with US Authorities in probe that led to indictments. US$1.4 million The island was on an EU black list of states that are insufficiently cooperative with the bloc's financial regulators. 1. Provide a clear technical explanation of what money laundering is. (7 marks) 2. Briefly outline the money laundering regulation implicitly declared in the Case. (6 marks) 3. Identify the enforcement method used to address money laundering and discuss it can affect the country's financial stability (5 marks) 4. Identify and discuss the rationale for money laundering regulation (7 marks) 5. Briefly describe what is meant by TBTF and explain the purpose of two agencies created under 'Title l' of the Act. (6 marks)