Archive for October 2006

Gorenje launches production in Serbia

October 31, 2006

Gorenje, the Velenje-based home appliance maker, has launched a new EUR 20m refrigerator and freezer production plant in the Serbian town of Valjevo.
The new plant, which was officially opened on Monday in the presence of Serbian Minister of International Economic Relations Milan Parivodic, is part of Gorenje’s push on new markets and is the second production location outside of Slovenia after the Czech Republic.

The group plans to produce 840 units a day at the plant in the initial stages, while production capacity is to rise to one million units a year by 2010, Gorenje chairman Franjo Bobinac told the press in Valjevo.

Bobinac said at the opening that Valjevo will be the home to Gorenje’s story of success in Serbia. Moreover, he believes it will help raise the share of Gorenje’s production outside of Slovenia to 25%.

He stressed that the new plant was an important gain for a company that sells 93% of its products outside of Slovenia.

Other production facilities are to follow, Bobinac said, and announced that Gorenje had in recent days bought a plant in Stara Pazova. There it intends to launch production of water heaters in 2007.

Valjevo suits Gorenje as a location because of its proximity to key markets as well as a rail connection. Moreover, the land around the plant allows for expansion.

Furthermore, Bobinac said Gorenje was being treated as a domestic brand in Serbia, with households owning two to three Gorenje products on average.He also said that in planning the investment, Gorenje “believed that we could get good workers and make our investment a success in Serbia, a country with a rich tradition of industry”.

The refrigerators and freezers from the Valjevo plant, which currently employs 330 workers, will be destined for all of Gorenje’s markets.

Adjacent to the plant, the company also launched a modern showroom with all types of Gorenje household products.

Gorenje plans to make a total of 3.7 million household appliances this year and generate EUR 1.1bn in sales revenues.

Source: http://www.uvi.si

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The 50 largest family-owned corporations

October 30, 2006

-2004 data-

1.Wal-Mart Stores
 
Walton/Bentonville, Ark.
Industry: Discount retail chain
Founded: 1962
Revenues: $244.5 billion
Employees: 1.4 million
www.walmartstores.com
From single store in Arkansas in 1962, founder Sam Walton (d. 1992) and younger brother James L. (Bud) built Wal-Mart into world’s largest retailer, with about 4,700 stores today (bigger than Sears, Kmart and J.C. Penney combined). Sam’s descendants own about 38%. Sam’s son Robson, 59, is now chairman.

2.Ford Motor Co.
 
Ford/Dearborn, Mich.
Industry: Auto manufacturer
Founded: 1903
Revenues: $163.4 billion
Employees: 350,321
www.ford.com
Pioneering auto firm now in fourth generation. Henry Ford (1863-1947) introduced mass production and dominated early auto market with Model T. His grandson Henry II (1917-1987) rebuilt company as CEO, 1960-1980, with younger brother William (retired 1995) as finance committee chairman. William’s son William Jr., chairman since 1999, acquired Volvo Cars. Ford family still owns about 40% of voting stock
3.Samsung

Lee/Seoul, South Korea
Industry: Conglomerate
Founded: 1938
Revenues: $98.7 billion
Employees: 175,000
www.samsung.com
Thanks to recent turnaround, now the largest chaebol (family conglomerate) in South Korea. Flagship Samsung Electronics division is one of world’s largest makers of computer memory chips; also makes home electronics equipment, mobile phones, microwave ovens, etc. Other divisions deal in life insurance, securities, trading. Lee family controls about 22%.
4.LG Group

Koo, Huh/Seoul, South Korea
Industry: Conglomerate
Revenues: $81 billion
Employees: 130,000
www.lg.co.kr
LG Group (formerly Lucky Goldstar) is one of the five chaebol (family-run industrial groups) in South Korea. With operations in more than 120 countries, the group organizes its principal activities into chemicals and energy (LG Chemical, Korea’s largest chemical company), electronics and telecommunications (LG Electronics, one of the largest consumer electronics firms in Korea), financial services (LG Investment & Securities), and trading and service (LG International). Currently being reorganized because of the nation’s financial collapse. Koo and Huh families own about 59%.
5.Carrefour Group
 
Defforey/Paris, France
Industry: Retailing
Revenues: $72.035 billion
Employees: 396,662
www.carrefour.com
Europe’s largest retailer operates hypermarkets (groceries, merchandise), supermarkets and discount and convenience stores—9,500 all told—in 30 countries. The name means “crossroads.” Some 60 members of Defforey family hold controlling stock.
6.Fiat Group 
Agnelli/Turin, Italy
Industry: Automobiles
Revenues: $61.014 billion
Employees: 186,492
www.fiatgroup.com
Century-old auto company famous for producing Fiat and sports cars Alfa Romeo, Ferrari, Maserati; expanded into construction equipment, insurance, aviation, publishing. Founding Agnelli family owns about 30%. Third-generation leader Giovanni (“Gianni”) Agnelli died at age 81 in 2003 and was succeded by his younger brother Umberto.

7.Ifi Istituto Finanziario Industriale S.p.A.
 
Agnelli/Turin, Italy
Industry: Diversified holdings
Revenues: $59.239 billion
Employees: 198,764
www.gruppoifi.com
Agnelli family’s holding company owns 20% of Fiat, 50% of Finanziaria di Partecipazioni (Ifil), which in turn owns another 12% of Fiat. Also sports, retail, publishing, insurance, sugar and other businesses.

8.PSA Peugeot Citroën S.A.

Peugeot/Paris, France
Industry: Tires
Revenues: $57.054 billion
Employees: 198,600
www.psa-peugeot-citroen.com
France’s largest auto seller, also Europe’s No. 2 (behind Volkswagen), now expanding into China, Iran, Brazil. Other products include industrial machinery, scooters, light-armored vehicles. Peugeot family holds 42% of voting stock.

9.Cargill Inc.
 
Cargill, MacMillan/Minneapolis
Industry: International commodities trader
Founded: 1865
Revenues: $50.8 billion
Employees: 97,000
www.cargill.com
World’s largest privately held company buys and sells grain, poultry, beef, steel, seeds, salt and other commodities on six continents. Founder William Cargill and brothers provided grain elevators to store wheat after Civil War. His Cargill and MacMillan descendants, now in fourth and fifth generations, have run firm ever since (with occasional non-family CEOs) from 63-room French-style country mansion. Created one of first management training programs, 1930s. Whitney MacMillan retired 1995 after 18 years as CEO. Family members own about 85%, key employees the rest.
10.BMW (Bayerische Motoren Werke AG)

Quandt /Munich, Germany
Industry: Automobiles
Revenues: $44.315 billion
Employees: 101,395
www.bmw.com
One of Europe’s top auto exporters. BMW cars account for 60% of company’s sales. Other products: motorcycles, software. Reclusive family of widowed heiress Johanna Quandt of Bad Homburg controls 47% of stock; family periodically rumored to be selling its stake

11.Hyundai Motor

Chung/Seoul, South Korea
Industry: Automobiles
Revenues: $40.111 billion
Employees: 49,855
www.hyundai.net
Parent Hyundai (means “the present time”) Group broken into five groups by Korean government to diminish influence of founding Chung family. Hyundai Motor considers itself independent. Founder Chung Ju-Yung died in 2001.

12.Koch Industries
 
Koch/Wichita, Kan.
Industry: Oil, gas, agriculture etc.
Founded: 1918
Revenues: $40 billion
Employees: 11,000
www.kochind.com
Founder Fred Koch’s vast empire of oil and gas services, cattle ranches, coal mines, real estate ventures and manufacturing facilities. In 1983 dissident sons Frederick and William, now 68 and 63, filed suit contesting $1.1 billion price that Charles, now 67, and David (William’s twin) paid for their brothers’ share. The dissidents lost after 13 years; Charles and David control company. William filed a lawsuit accusing Koch Industries of stealing oil from federal and American Indian lands and received some $4 million in whistleblower fees. In 2001, William, Charles and David brokered a settlement, which did not include Frederick, and agreed not to sue each other again.
13.Robert Bosch GmbH

Bosch/Gerlingen-Schillerhöhe, Germany
Industry: Auto parts
Revenues: $36.659 billion
Employees: 224,341
www.bosch.com
One of world’s biggest makers of auto components. Also makes industrial machinery, hand tools, appliances. Bosch Foundation owns 92% of company; Bosch family owns remaining 8%.
14.SCH (Banco Santander Central Hispano S.A.)

Botin/Madrid, Spain
Industry: Banking
Founded: 1857
Revenues: $32.524 billion
Employees: 114,927
www.bsch.es
CEO Emilio Botin inherited small regional bank from his father, built it into Spain’s largest banking group, with subsidiaries in Chile, Mexico, other European countries. His daughter Ana Patricia Botin, 41, named 2001 as chairwoman of its retail unit, Banesto. Botin family has managed bank since 1857.
15.ALDI Group

Albrecht/Essen, Germany
Industry: Food retailing
Revenues: $30 billion
Employees:
www.aldi.com
ALDI (short for “Albrecht Discounts”) is Europe’s top private-label, deep-discount food retailer, with 6,100 stores worldwide, including 3,100 in Germany and some 670 in the U.S. Co-founders Theo and Karl Albrecht own the company; Theo’s sons Theo Jr. and Berthold run European division.
16. Auchan Group
Mulliez/Villeneuve d’Ascq, France
Industry: Retailing
Revenues: $28.888 billion
Employees: 143,000
www.auchan.com
One of largest worldwide retailers, Auchan Group operates more than 300 Auchan hypermarkets (groceries, clothing, consumer electronics, etc.), also operates Atac supermarkets, Leroy Merlin home improvement chain, about 640 mini-marts; operations in Europe, Southeast Asia, U.S., Latin America. Some 350 members of highly secretive founding Mulliez family own 84% of Auchan; employees own the rest.
17.Pinault-Printemps Redoute
 
Pinault/Paris, France
Industry: Retailing, etc.
Revenues: $28.692 billion
Employees: 113,453
www.pprgroup.com
Company’s multifaceted operations include retail stores and catalogs (Printemps, Fnac, Conforama, Redoute) that offer apparel, leisure products and home furnishings. Also owns 67% stake in Italian luxury goods company Gucci Group and several perfume lines (including Yves Saint Laurent). François Pinault’s family investment firm, Artemis, owns 57%.
18.Ito-Yokado
 
Ito/Tokyo, Japan
Industry: Convenience stores
Revenues: $28.436 billion
Employees: 125,400
www.itoyokado.iyg.co.jp
Masatoshi Ito, now honorary chairman, introduced convenience stores to Japan in 1974. Company owns 73% of 7-Eleven chain, operates more than 9,700 7-Eleven stores in Japan and 5,800 in North America. Ito and family own 15% of Ito-Yokado.
19.Tengelmann Group

Haub/Mulheim an der Ruhr, Germany
Industry: Retailing
Revenues: $28.227 billion
Employees: 183,396
www.tengelmann.de
CEO Erivan K. Haub and his family inherited 100% control of Germany’s fourth-largest retailer, whose 7,000 supermarkets, drug stores and superstores brought U.S.-style retailing to Germany. Company currently selling or closing hundreds of its poorly performing supermarkets. Also owns 54% of A&P supermarket chain in U.S.
20.J Sainsbury
Sainsbury/London, United Kingdom
Industry: Retail groceries
Revenues: $27.433 billion
Employees: 174,500
www.j-sainsbury.co.uk
U.K.’s third-largest food retailer operates struggling Sainsbury’s Supermarkets chain, with more than 500 stores in U.K. (which account for about 83% of sales). Sainsbury also runs about 185 Shaw’s Supermarkets and Star Markets in New England, plus Sainsbury’s Bank. David Sainsbury, 63, and family inherited 38% of stock on death of David’s father, Sir Robert Sainsbury, in 1999. David left management 1998.
21.Motorola

Galvin/Schaumburg, Ill.
Industry: Telecommunications
Founded: 1928
Revenues: $26.679 billion
Employees: 97,000
www.motorola.com
Founder Paul Galvin (1895-1959) produced first practical radio for automobiles and ran company as one-man show until his death. Son Bob, CEO 1959-90, moved company from TV sets into high-tech commercial and industrial electronics. His son Christopher, 51, took charge 1997, retired 2003 amid difference in opinion with board over strategy.

22.Viacom
 
Redstone/New York
Industry: Media and entertainment
Founded: 1954
Revenues: $24.606 billion
Employees: 120,630
www.viacom.com
One of world’s largest media companies: movies, TV (39 stations), radio (185 stations), Internet. Owns BET (Black Entertainment Television), CBS, Paramount Pictures, United Paramount Network (UPN), MTV Networks (MTV, VH1, Nickelodeon), Showtime Networks and Comedy Central (50%), also 39 TV stations, publisher Simon & Schuster, and 81% of Blockbuster (the #1 video rental chain). Michael Redstone started with drive-in movie theater 1954. His son, current chairman and CEO Sumner Redstone, 80, controls 68% of firm; daughter Shari, 49, heads National Amusements theater chain that was nucleus of original company.

23.Novartis Group

Landolt/Basel, Switzerland
Industry: Health and personal care
Revenues: $23.453 billion
Employees: 71,116
www.novartis.com
One of world’s top five pharmaceutical firms (Merck is #1). Pierre Landolt and family, heirs to Sandoz pharmaceutical fortune, own about 4%.
24.Tyson Foods

Tyson/Springdale, Ark.
Industry: Food processor
Founded: 1935
Revenues: $23.367 billion
Employees: 120,000
www.tysonfoodsinc.com
Founder John W. Tyson sold chickens and feed to Arkansas farmers, got into processing and distribution after discovering he could fetch higher prices up North. Today, company is nation’s leading chicken supplier, with 28% of poultry market; also world’s largest meat processing firm since purchase of IBP Fresh Meats. Son Donald, now 73, dropped out of college in senior year to enter business (1952) and was joined at helm by half-brother Randal (d. 1986) after his father died in train accident (1967). Donald retired as chairman 1995 and remains senior chairman. His son John H., 49, is now chairman and controls 80% of company’s voting power.
Bouygues
 
Bouygues/St. Quentin-en-Yvelines, France
Industry: Retailing
Revenues: $23.317 billion
Employees: 121,604
www.bouygues.fr
One of Europe’s largest construction groups also runs more than 40 subsidiaries and affiliates in 80 countries. Chairman Martin Bouygues (pronounced “bweeg”) and brother Olivier indirectly control about 22% of firm.
26.Roche Group
Oeri/Hoffmann/Basel, Switzerland
Industry: Pharmaceuticals
Revenues: $21.422 billion
Employees: 69,659
www.roche.com
Company operates three segments: pharmaceuticals (Hoffmann-LaRoche), diagnostics and consumer health. Descendents of founding Hoffmann and Oeri families vote slightly more than 50%, although they own less than 10% of capital.

27. Bertelsmann
 
Mohn/Gütersloh, Germany
Industry: Publishing, media
Revenues: $19.193 billion
Employees: 80,632
www.bertelsmann.de
One of world’s largest media conglomerates, with interests in 600 companies in 60 countries. Properties include Random House (publishing), BMG Entertainment (music), Gruner + Jahr (magazines), and European broadcaster RTL Group. Carl Bertelsmann founded small religious book publisher 1835; his descendant Reinhard Mohn, now 82, built global empire after World War II. Mohn family owns 20% of company, but until 2000 Reinhard held the sole “golden” voting share. He transferred voting control to a company controlled jointly by Bertelsmann executives and Mohn family members.

28. Weyerhaeuser Co.
 
Weyerhaeuser/Tacoma, Wash.
Industry: Timber products
Founded: 1900
Revenues: $18.521 billion
Employees: 57,000
www.weyerhaeuser.com
One of largest U.S. forest products companies even before acquisition of Williamette Industries. Timber baron Frederick Weyerhaeuser and brother formed Weyerhaeuser Co. 1900; giant paper firm still family-run in fourth generation.
 

29.Loew’s
 
Tisch/New York
Industry: Tobacco, hotels, etc.
Founded: 1919
Revenues: $17.495 billion
Employees: 25,800
www.loews.com
Entrepreneurial brothers Laurence and Preston (Bob) Tisch, now 80 and 77, started in real estate, gained control of Loew’s Theatres 1959; diversified into cigarettes, insurance, oil, hotels, media (CBS). Tisches own more than 30% of stock. Next generation very active: Larry’s son James, 50, took over as Loew’s CEO 1999; his brother Andrew, 53, and Bob’s son Jonathan, 49, are co-presidents.

30.News Corp.
Murdoch/Adelaide, Australia
Industry: Media
Founded: 1923
Revenues: $17.474 billion
Employees: 35,000
www.newscorp.com
Respected journalist Sir Keith Murdoch built Australia’s largest newspaper company, passed it to son Rupert at death, 1952. He built less-respected but huge global media/entertainment empire (world’s fourth largest, behind Time Warner, Viacom and Disney). Holdings today include TV (Fox Broadcasting), movies (20th Century Fox), scores of newspapers (London Times, New York Post, etc.), books (HarperCollins), magazines (Weekly Standard) and sports team (Los Angeles Dodgers). Murdoch family owns about 30% of stock, 40% of voting stock. Rupert, 72, still in charge; son Lachlan, 32, deputy COO, named publisher of New York Post and presumed successor. Son James, 30, is chief executive of BSkyB, Britain’s leading pay-TV company, which is 35% owned by News Corp.

31.Karstadt Quelle 
Schickedanz, Riedel, Herl/Essen,Germany
Industry: Retailing
Revenues: $16.575 billion
Employees: 104,536
www.karstadtquelle.com
Schickedanz family merged its mail order company, Quelle, with the retail chain Karstadt, making it one of largest companies in Europe. Best known for about 190 Karstadt and Hertie department stores but also runs about 295 specialty stores. Schickedanz-Holding, owned by Riedel and Herl family branches, once owned all of Quelle and now has a 36% stake in Karstadt Quelle.

32. Michelin
Michelin/Clermont-Ferrand, France
Industry: Tires, travel
Revenues: $16.398 billion
Employees: 126,285
www.michelin.com
World’s #2 tire maker (behind Goodyear) also makes 36,000 other products, including well-known road maps and travel guides. Has 80 factories in 18 countries. Controlled and run by François Michelin, his son, Edouard, and their partner René Zingraff.

33. Publix Super Markets
Jenkins/Lakeland, Fla.
Industry: Supermarkets
Founded: 1930
Revenues: $16.027 billion
Employees: 123,000
www.publix.com
Founder George Washington Jenkins (d. 1996) hitchhiked from Georgia to Florida to seek fortune in real estate, got job instead at Piggly Wiggly, worked his way up to manager. After snub from owner, opened competing store next door. Chain now operates more than 740 stores in four states. Son Howard, 50, is chairman; Charlie Jenkins Jr., 59, is CEO. Stock offered to employees since 1930; they now own about 27%.
34. Bombardier
 
Bombardier/Montreal, Canada
Industry: Aerospace, defense
Revenues: $15.482 billion
Employees: 70,411
www.bombardier.com
Powerhouse of aerospace and rail transportation makes business aircraft (Challenger, Learjet), rail cars (for Long Island Rail Road, others), much more. Bombardier family owns more than 50%; took recreational-products business private in August 2003.
35. Mars
Mars/McLean, Va.
Industry: Candy, rice, pet food
Founded: 1923
Revenues: $15 billion
Employees: 30,000
www.mars.com
Candy-making Minnesotans Frank and Ethel Mars invented the Milky Way. Their secretive, driven son Forrest, supposed model for Willy Wonka, feuded with his father, started his own candy company in England, then merged with late father’s business 1964. Now #2 U.S. candy maker (behind Hershey). Since 1973, run by Forrest’s three children, CEO John, 71, Forrest Jr., and Jacqueline, 63. Forrest died 1999 at age 95.
 

36.L’Oréal

Bettencourt/Clichy, France
Industry: Cosmetics
Revenues: $14.975 billion
Employees: 50,491
www.loreal.com
World’s largest beauty products company; brands include L’Oréal, Maybelline, Lancôme, Soft Sheen. Indirectly controlled by founder’s daughter Liliane Bettencourt and her family; Nestlé also owns a large, indirect stake.
37.Lagardère
Lagardère/Paris, France
Industry: Defense systems, magazines
Revenues: $14.474 billion
Employees: 45,826
www.lagardere.fr
Company publishes more than 200 magazines and newspapers in 33 countries, including Elle and Car and Driver. Also owns about 15% of European Aeronautic Defence and Space Co., world’s #3 aerospace and defense firm. CEO Arnaud Lagardère, 42, and family control the company.
38.Gap
Fisher/San Francisco
Industry: Apparel stores
Founded: 1969
Revenues: $14.455 billion
Employees: 169,000
www.gap.com
Donald and Doris Fisher, now 75 and 71, opened their first jeans store in 1969, just in time for jeans craze of 1970s. With addition of Banana Republic (1983) and Old Navy (1994), chain now has more than 4,250 stores. Fishers still own about 20%; Donald remains chairman. Sons Robert and William left in 1998 and 1999, but Bob remains on board of directors.
39.LVMH Moët Hennessy Louis Vuitton
 
Arnault/Paris, France
Industry: Luxury goods
Revenues: $14.304 billion
Employees: 56,591
www.lvmh.com
Through multiple acquisitions, company’s luxury brands include Dom Perignon, Hennessy, Christian Dior, Givenchy, Louis Vuitton, also watches, jewelry, retail shops. Chairman Bernard Arnault and his family own 48% through family holding company, Europatweb.
40. Groupe Danone
Riboud/Paris, France
Industry: Food products
Revenues: $14.237 billion
Employees: 92,209
www.danonegroup.com
One of world’s largest food producers; #1 in dairy products (Dannon yogurt, cheese, dairy desserts) and biscuits (cookies, crackers, and snacks). Chairman Franck Riboud took over from his father, Antoine, 1996.

41. General Dynamics
 
Crown/Falls Church, Va.
Industry: Aerospace and defense
Founded: 1962
Revenues: $13.829 billion
Employees: 54,000
www.gendyn.com
Peppery Chicago dealmaker Henry Crown (1896-1990) built family’s Material Services Corp. into world’s largest building supply firm, sold it to General Dynamics 1960 and became GD’s largest shareholder. After feuding with GD’s board, Crown sold his stock, then bought back controlling interest and installed himself and his quietly competent son Lester as directors. Lester, now 78, and his son James, 49, remain on GD’s board by virtue of their 16.5 million shares.
42. Anheuser-Busch Cos.
 
Busch/St. Louis
Industry: Beer
Founded: 1860
Revenues: $13.566 billion
Employees: 23,176
www.anheuser-busch.com
Eberhard Anheuser took over struggling St. Louis brewery 1860. Bavarian immigrant Adolphus Busch married Eberhard’s daughter Lilly 1861, joined brewery 1864 and made it successful. His grandson August Jr. (d. 1989), president from 1946, began Budweiser’s “King of Beers” ad campaign, making it nation’s biggest brewer (currently nearly 50% of U.S. beer market). August III, now 65, unseated his father 1975. Presumed heir August IV, 38, now VP/marketing. Family still controls 6% of stock.
 

43. Cathay Life Insurance
 
Tsai/Taipei, Taiwan
Industry: Insurance
Revenues: $13.022 billion
Employees: 30,000
www.cathlife.com.tw
Former fruit vendor Tsai Wan-Lin, now 76, built Taiwan’s largest insurance/construction conglomerate, now expanding into China, Singapore, Japan. Whole family is active in the business. Tsai Hong-Tu is current chairman.
 

44. Magna International
 
Stronach/Ontario, Canada
Industry: Auto parts
Revenues: $12.971 billion
Employees: 73,000
www.magnaint.com
Huge and diverse auto parts maker, also real estate and horse- and sports-betting businesses. Founded and controlled by Frank Stronach, now run by his daughter Belinda Stronach.

45. Otto Group
 
Otto/Hamburg, Germany
Industry: Catalogs, retailing
Revenues: $12.461 billion
Employees: 79,137
www.otto.de
Otto Versand, world’s largest mail-order concern (and first to go online, featuring same-day food delivery via Internet), is 65% owned by chairman and CEO Michael Otto, 62, and his family. Family separately also owns U.S. catalog marketer Spiegel, U.S. home furnishings retailer Crate & Barrel.

46. Comcast
 
Roberts/Philadelphia
Industry: Broadcasting
Founded: 1963
Revenues: $12.46 billiob
Employees: 82,000
www.comcast.com
Belt manufacturer Ralph Roberts launched cable TV service in Tupelo, Miss. Today Comcast is nation’s largest cable company, with 21.3 million subscribers following merger with AT&T Broadband. Roberts family owns only 2% of stock but controls 33% of voting stock. Ralph, 82, turned presidency to son Brian 1990, most of family’s stock to Brian 1998. Brian, 43 and CEO, proved worthy: He convinced Bill Gates to invest $1 billion in Comcast (1997).
47. *Sodexho Alliance
 
Bellon/Montigny-le-Bretonneux, France
Industry: Food services
Revenues: $12.378 billion
Employees: 315,141
www.sodexho.com
World’s second-largest contract food service provider (after Compass Group), serving corporations, colleges, hospitals and public institutions in 70 countries. Chairman and CEO Pierre Bellon and family own about 40% of tcompany.

48. *Winn-Dixie Stores
 
Davis/Jacksonville, Fla.
Industry: Supermarkets
Founded: 1925
Revenues: $12.168 billion
Employees: 99,200
www.winn-dixie.com
Founder William Milton Davis purchased grocery in Lemon City, Fla., for $10,000 1925. His four sons took over nine years later, renamed company 1955 (“To win Dixie was our ambition”) and built it into Sunbelt’s largest grocery chain: 1,070 Winn-Dixie, Thriftway and Marketplace stores in 12 states and the Bahamas. Founder’s descendants own about 41%; three of them sit on Winn-Dixie’s board, headed by chairman A. Dano Davis.

49. Power Corporation of Canada
 
Desmarais/Montreal, Canada
Industry: Mutual funds, utilities
Revenues: $12.061 billion
Employees: 28,000
www.powercorp.ca
Holding company founded in 1920s to develop hydroelectric power; controls one of Canada’s leading mutual fund firms (Investors Group), one of its largest life insurers (Great-West Lifeco); and other financial services firms. Former chairman Paul Desmarais owns about 65% of company; sons Paul and André are co-CEOs.
50. Ikea
 
Kamprad/Helsingborg, Sweden
Industry: Furniture
Revenues: $11.779 billion
Employees: 75,500
www.ikea.com
Founder Ingvar Kamprad, 77, launched company 1943, opened first store in Sweden 1958; now one of world’s top furniture retailers with 175 Scandinavian-style home furnishings stores in 30 countries. Name is acronym for founder and his boyhood home, Elmtaryd, Agunnaryd. Company owned by Kamprad’s Netherlands-based charitable foundation, Stichting Ingka. Three sons in 30s by second wife (Peter, Jonas, Matthias) have worked at company but seem unlikely successors. Kamprad family also owns Ikea’s prime competitor, Habitat, with $800 million sales.

Source : Family business magazine inc.

Greek Army Airforce receives new Apache type helicopters

October 29, 2006

The Hellenic Army Airforce is going to receive the first of the 12 new AH-64D Apache Longbow cobat helicopters. The signed in 2003 agreement, includes the acquisition of the Longbow fire control radar, the new Modernized Target Acquisition Designation Sight-MTADS-, support ecquipment, training services, maintance support and offsets according to Hellenic requirements. The Hellenic Army will this type of Apache hellicopters to its current fleet of 20 AH-64A Apaches which entered service in 1995.

Greece is the 8th country to select AH-64D, and the second to their current fleet size by adding AH-64D. The contract with Greece for the Longbow Apache program is managed by Boeing as the prime contractor.

The richest people in the world-2006-

October 29, 2006

The World
(men)

1. William Gates III (world’s richest person – for 12 years in a row!) $50.0 billion Microsoft  USA  50yo – Married, 3 children
  
2. Warren Buffett  $42.0 billion Berkshire Hathaway  USA  75yo – Widowed, 3 children
  
3. Carlos Slim Helu $30.0 billion Telecom Mexico 66yo – Widowed, 6 children
 
4. Ingvar Kamprad  $28.0 billion Ikea (retail)  Sweden 79yo – Married, 4 children
 
5. Lakshmi Mittal  $23.5 billion Mittal Steel (manufacturing steel) India 55yo – Married, 2 children

6. Paul Allen  $22.0 billion Microsoft, investments   USA 53yo – Single, 0 children
  
7. Bernard Arnault  $21.5 billion LVMH France 57yo – Married, 5 children
 
8. Prince Alwaleed Bin Talal Alsaud $20.0 billion investments Saudi Arabia 49yo – Divorced, 2 children
 
9. Kenneth Thomson & family $19.6 billion publishing Canada 82yo – Married, 3 children
 
10. Li Ka-shing  $18.8 billion diversified Hong Kong 77yo – Widowed, 2 children
The World
(women)
1. Liliane Bettencourt  $16.0 billion L’Oreal France 83yo – Married, 1 child
 
2. Christy Walton  $15.9 billion Wal-Mart USA 51yo – Widowed, 1 child
 
3. Alice Walton  $15.7 billion (inheritance) Wal-Mart  USA 56yo – Divorced
 
4. Helen Walton  $15.6 billion Wal-Mart  USA 86yo – Widowed, 4 children
 
5. Abigail Johnson  $12.5 billion Fidelity investments  USA 44yo – Married, 2 children
 
6. Barbara Cox Anthony  $12.4 billion media/entertainment USA 82yo – Married, 2 children
 
7. Anne Cox Chambers  $12.4 billion media/entertainment USA  86yo – Divorced, 3 children
 
8. Jacqueline Mars  $10.0 billion candy (incl. Mars bar) USA 66yo – Divorced, 3 children
 
9. Birgit Rausing & family  $8.6 billion Tetra Laval (packaging manufacture) Sweden 82yo – Widowed, 3 children
 
10. Susanne Klatten  $8.1 billion BMW Germany 43yo – Married, 3 children

Australia

1. James Packer $5.0 billion inherited (media/Entertainment) (his father, Kerry, died Dec 26, 2005) NSW, Sydney 38yo -Divorced, 0 children

2. Frank Lowy $3.8 billion retail property (shopping centres) NSW, Sydney 75yo – Married, 3 children
 
3. Richard Pratt $2.3 billion paper (manufacturing, recycling) Vic, Melbourne 71yo – Married, 3 children
 
4. Zhengrong Shi  $2.2 billion solar energy Wuxi, China 43yo – Married, 2 children
 
5. John Gandel  $1.4 billion retail property (shopping centres) Vic, Melbourne 71yo – Married, 4 children
 
6. Kerry Stokes $1.1 billion media WA, Perth 65yo – Married, 4 children

7. Harry Triguboff $1.0 billion residential property development NSW, Sydney 73yo – Married, 2 children
 
8. Bob Oatley $900 million wine, property NSW, Denman 76yo – Married, 3 children
 
9. Bruce Gordon $895 million media (was a magician in WWII) Bermuda 76yo – Married, 2 children

10. Stanley Perron $880 million  property (high school drop out) (WA, Perth)? 82yo – Married, 3 children

Brazil
1. Joseph & Moise Safra (brothers could split soon) $7.4 billion banking Sao Paulo  — n/a, 0 children
 
2. Aloysio de Andrade Faria  $3.8 billion banking Sao Paulo 85yo – Married, 5 children
 
3. Jorge Paulo Lemann (onetime tennis champion – he played at Wimbledon) $3.4 billion banking Rio de Janeiro 66yo – Married, 5 children
 
4. Antonio Ermirio de Moraes & family  $3.2 billion diversified Sao Paulo 77yo – n/a, 9 children
 
5. Julio Bozano  $1.6 billion banking Rio de Janeiro 70yo – n/a, 1 child
 
6. Abilio dos Santos Diniz & family  $1.6 billion supermarkets Sao Paulo 69yo – Married, 4 children
 
7. Marcel Herman Telles  $1.5 billion beer Sao Paulo 56yo – Married, 2 children

8. Guilherme Peirao Leal  $1.4 billion Natura Cosmetics Sao Paulo 55yo – n/a, 5 children

9. Antonio Luiz Seabra  $1.4 billion Natura Cosmetics (has 519,000 “consultants” peddling cosmetics door-to-door in South America.) London, UK; and Brazil 63yo – n/a, 0 children
 
10. Elie Horn (gives 20% of his earnings to charity) $1.3 billion real estate Sao Paulo 60yo – married, 2 children

Canada
1. Kenneth Thomson & family (has amassed an internationally famous art collection of some 3,000 pieces) $19.6 billion publishing Toronto 82yo – Married, 3 children
 
2. Galen Weston & family $8.4 billion retail Toronto 65yo – Married, 2 children
 
3. James, Arthur & John Irving  $5.5 billion oil (600 gas stations) Saint John n/a – 0 children
 
4. Jeffrey S Skoll  $5.0 billion Ebay USA, CA, Los Angeles 41yo – Single, 0 children

5. Paul Desmarais (bought his father’s one-route Ontario bus company for $1- in 1951) $3.8 billion finance Montreal 79yo – Married, 4 children

6. Bernard (Barry) Sherman  $3.7 billion Apotex pharmaceuticals (seeking over-the-counter-sales approval of its controversial “morning-after” pill ) Toronto 64yo – Married, 4 children
 
7. Jim Pattison  $3.5 billion diversified (incl. Ripley’s Believe It or Not)  Vancouver 77yo – Married, 3 children
 
8. Robert Miller  $3.0 billion Future Electronics (supports cryonics, the science of freezing bodies with the intent to restore life) Montreal 60yo – Married, 2 children
 
9. Edward Rogers $3.0 billion media Toronto 72yo – Married, 4 children
 
10. Charles R Bronfman  $2.7 billion liquor Montreal  74yo – Widowed, 2 children (his wife, Andrea, was tragically killed in January; a taxi hit her while she was walking the dog)
China

1. Larry Rong Zhijian  $1.64 billion  CITIC Pacific Group (steel, property, power) Hong Kong 63yo

2. Zhu Mengyi & family $1.43 billion  Hopson Development (real estate & investment) Guangdong 46yo

3. William Ding Lei  $1.27billion  Netease.com (internet portal & online games) Beijing 34yo

4. Wong Kwong Yu  $1.25 billion  Gome Appliances (& real estate) Beijing 36yo

5. Liu Yongxing $1.16 billion East Hope Group (animal feed, finance, aluminium) Shanghai 57yo

6. Liu Yonghao  $1.12 billion New Hope Group (animal feed, finance, real estate) Chengdu 54yo
 
7. Guo Guangchang $1.09 billion Fosun High-Tech Group (retail, media, real estate)
 Shanghai 38yo
 
8. Xu Ming $1.05 billion Shide Group (insurance & banking)
 Dalian
 34yo

9. Hui Wing Mau  $1.00 billion Shimao Group (real estate)
 Shanghai/H.K. 55yo
 
10. Chen Tianqiao  $1.00 billion Shanda Interactive Entertainment (online games)
 Shanghai 32yo
France

1. Bernard Arnault  $21.5 billion LVMH Paris 57yo – Married, 5 children
 
2. Liliane Bettencourt  $16.0 billion L’Oreal Paris 83yo – Married, 1 child
 
3. Serge Dassault & family  $8.5 billion aviation (manufacturing)  Paris 80yo – n/a
 
4. Alain & Gerard Wertheimer  $7.5 billion Chanel (apparel)  Paris n/a – n/a

5. Francois Pinault  $7.0 billion retail (incl. Gucci) Paris 69yo – Married, 3 children
 
6. Jean-Claude Decaux & family  $4.2 billion advertising Paris 68yo – Married, 3 children
 
7. Gerard Louis-Dreyfus & family  $3.4 billion commodities (inl. natural gas) USA, NY, New York 73yo – Married, 3 children
 
8. Martin Bouygues & family  $3.2 billion Telecom Paris 53yo – Married
 
9. Jean-Louis Dumas & family  $2.5 billion Hermes (luxury-goods/apparel ) Paris  67yo – Married, 2 children
 
10. Didier Primat  $2.4 billion Oil Paris 61yo – n/a, 0 children
Germany
1. Karl Albrecht  $17.0 billion supermarkets Muehlheim an der Ruhr 86yo – Married, 2 children
 
2. Theo Albrecht  $15.2 billion supermarkets Foehr  83yo – Married, 2 children
 
3. Adolf Merckle  $11.5 billion pharmaceuticals  Manheim  71yo – Married, 4 children

4. Michael Otto & family  $10.4 billion retail (mail order) Hamburg  62yo – Married, 2 children
 
5. Susanne Klatten  $8.1 billion BMW Bad Homburg 43yo – Married, 3 children
 
6. Rudolf August Oetker & family  $8.0 billion food Bielefeld  89yo – Married, 8 children
 
7. Reinhold Würth  $7.5 billion manufacturing (screws) Kuenzelsau  70yo – Married, 3 children
 
8. August von Finck  $7.0 billion investments Switzerland, Thurgau   76yo – Married, 4 children
 
9. Maria-Elisabeth & Georg Schaeffler  $6.8 billion Manufacturing (ball bearings)  Herzogenaurach  — n/a
 
10. Stefan Quandt (one of the world’s most eligible bachelors) $6.6 billion BMW Bad Homburg  40yo – Single, 0 children

Hong Kong

1. Li Ka-shing  $18.8 billion diversified Hong Kong 77yo – Widowed, 2 children
 
2. Raymond, Thomas & Walter Kwok  $11.6 billion real estate  Hong Kong n/a – n/a
 
3. Lee Shau Kee  $11.0 billion real estate  Hong Kong 78yo – Married, 5 children
 
4. Stanley Ho  $6.5 billion Macau Casino Hong Kong  84yo – Married, 17 children!!!
 
5. Cheng Yu-tung $5.1 billion New World Development (real estate) Hong Kong   80yo – Married, 2 children
 
6. Nina Wang (Notoriously frugal and paranoid, spends $650 a month and travels with a platoon of 50 bodyguards.) $4.2 billion real estate Hong Kong n/a – Widowed?, 0 children (husband kidnapped in 1990)
 
7. Michael Kadoorie & family  $3.8 billion diversified Hong Kong  65yo – married
 
8. Henry Fok  $3.7 billion Macao casino Hong Kong 82yo – Married

9. Michael Ying  $2.7 billion Esprit (apparel) Hong Kong  56yo – Married
 
10. Chen Din Hwa  $2.6 billion real estate  Hong Kong 83yo – n/a, 0 children
 

India
1. Lakshmi Mittal  $23.5 billion Mittal Steel (manufacturing steel) UK, London  55yo – Married, 2 children
 
2. Azim Premji  $13.3 billion Wipro (software)   Bangalore  60yo – Married, 2 children
 
3. Mukesh Ambani $8.5 billion diversified (manufacturing)   Mumbai  48yo – Married, 3 children
 
4. Anil Ambani $5.7 billion diversified (manufacturing)   Mumbai  46yo – Married, 2 children
 
5. Kushal Pal Singh $5.0 billion real estate  Delhi 74yo – Married, 3 children
 
6. Sunil Mittal  $4.9 billion Telecom  Delhi  48yo – Married, 3 children
 
7. Kumar Birla  $4.4 billion commodities (copper & aluminium) Mumbai   38yo – Married, 2 children
 
8. Shiv Nadar  $4.0 billion technology New Delhi  60yo – Married, 1 child

9. Pallonji Mistry  $3.6 billion construction Mumbai  76yo – Married, 4 children
 
10. Anurag Dikshit (is this for real?)  $3.3 billion online gambling  Gibraltar 34yo – Married, 1 child

Israel
1. Shari Arison  $5.2 billion  inheritance, cruise ships Tel Aviv 48yo – Married, 4 children

2. Sammy Ofer & family  $3.0 billion  shipping Tel Aviv; Monaco 84yo – Married, 2 children
 
3. Arnon Milchan  $2.9 billion  media/entertainment Tel Aviv 61yo – Divorced, 4 children
 
4. Lev Leviev  $2.6 billion  diamonds (cuts and polishes more diamonds than anyone else in the world) B’nei Brak 50yo – Married, 9 children
 
5. Stef Wertheimer & family (grade school dropout) $2.4 billion  tools  Tefen 80yo – Married, 4 children
 
6. Alexander Machkevich  $2.0 billion  mining, metals

7. Almaty, Kazakhstan 52yo – Married, 2 children
8. Yitzhak Tshuva (his road-to-riches story began in Netanya in a single room where his penniless family of 11 lived briefly) $2.0 billion  real estate Netanya 57yo – Married, 5 children

8. Morris Kahn  $1.0 billion  software Israel 76yo – Married, 0 children
Italy

1. Silvio Berlusconi – Italy’s Prime Minister2001=2006 $11.0 billion media North of Milan 69yo – Married, 5 children

2. Leonardo Del Vecchio  $10.0 billion  eyewear (Ray-Ban) Milan 70yo – Married, 4 children
 
3. Michele Ferrero & family  $10.0 billion  chocolates Belgium, Brussels  79yo – Married, 2 children
 
4. Giorgio Armani  $4.1 billion  fashion / apparel Milan 71yo – n/a
 
5. Francesco Gaetano Caltagirone $2.7 billion  diversified Italy 63yo – Married
 
6. Carlo Benetton  $2.5 billion  Benneton (apparel)
 Treviso 62yo – Single, 4 children

7. Giuliana Benetton  $2.5 billion  Benneton (apparel)
 Treviso 68yo – Married, 4 children
 
8. Gilberto Benetton  $2.5 billion  Benneton
 Treviso 64yo – Married, 2 children

9. Luciano Benetton $2.5 billion  Benneton (apparel)  Treviso 70yo – Married, 4 children
 
10. Miuccia Prada & family  $2.5 billion  Prada (apparel)  Rome 56yo – Married
Japan

1. Yasuo Takei & family  $5.4 billion  Takefuji (consumer finance)  Tokyo 76yo – Married, 3 children

2. Kunio Busujima & family  $5.2 billion  pinball machines (manufacturing) Kiryu 80yo – Married, 4 children
 
3. Nobutada Saji & family  $4.7 billion  Suntory (beverages) – recently engineered the world’s first blue rose! Hyogo 60yo – Married

4. Akira Mori  $4.5 billion  Mori Trust (real estate)  Tokyo 68yo – Married, 3 children
 
5. Eitaro Itoyama  $4.2 billion  golf courses  Tokyo 63yo – Married, 2 children
 
6. Tadashi Yanai & family  $4.2 billion  retail Yamaguchi 57yo – Married, 2 children
 
7. Masatoshi Ito  $3.6 billion  retail Tokyo 81yo – Married, 3 children

8. Yoshitaka Fukuda & family  $3.2 billion  Aiful (consumer finance) Kyoto 58yo – Married, 3 children
 
9. Masayoshi Son  $3.1 billion  Softbank (software)  Tokyo 48yo – Married, 2 children

10. Hiroshi Mikitani  $3.0 billion  e-commerce (Rakuten Internet shopping mall) Japan 41yo – n/a, 0 children

Malaysia
1. Robert Kuok  $5.0 billion diversified (including Shangri-la hotels) Hong Kong 82yo – Married, 8 children
 
2. Ananda Krishnan  $4.3 billion diversified Kuala Lumpur 67yo – Married, 3 children
 
3. Lim Goh Tong (high school drop out) $2.8 billion gaming Kuala Lumpur 88yo – Married, 6 children

4. Teh Hong Piow  $2.1 billion banking (Public Bank’s Islamic banking is interest-free because Islam prohibits taking or giving interest) Kuala Lumpur 76yo – Married, 4 children
 
5. Quek Leng Chan  $2.0 billion banking Wee 65yo – Married, 3 children
 
6. Lee Shin Cheng  $1.6 billion agriculture Jeram 66yo – Married, 6 children
 
7. Yeoh Tiong Lay & family  $1.1 billion construction Malaysia 76yo – Married, 0 children
 
8. Tiong Hiew King  $1.0 billion timber Sibu 70yo – Married, 3 children

Mexico
. Carlos Slim Helu (just call him Midas) $30.0 billion Telecom Mexico City  66yo – Widowed, 6 children
 
2. Jeronimo Arango  $4.6 billion retail (was a Wal-Mart partner) Mexico 80yo – n/a

3. Ricardo Salinas Pliego & family  $3.1 billion retail/media (facing business scandal) Mexico City  50yo – Married, 3 children

4. Alberto Bailleres  $2.8 billion mining silver  Mexico City  73yo – n/a

5. Maria Asuncion Aramburuzabala & family  $2.0 billion beer (Corona)  Mexico City  42yo – Married, 2 children

6. Roberto Hernandez Ramirez $2.0 billion Banamex (banking)  Mexico City  64yo – n/a

7. Lorenzo Zambrano & family  $1.8 billion cement Monterrey 62yo – Single
 
8. Emilio Azcárraga Jean  $1.7 billion media Mexico City  38yo – Married, 1 child

9. Alfredo Harp Helu  $1.4 billion Banamex (banking)  Mexico City 62yo – Married, 4 children

10. Isaac Saba Raffoul & family  $1.4 billion diversified (incl. Marriott hotels) Mexico City 82yo – n/a
Russia
1. Roman Abramovich  $18.2 billion oil (fled Russia in 2000 to escape fraud charges) UK, London 39yo – Married, 5 children
 
2. Vagit Alekperov  $11.0 billion Lukoil (oil)  Moscow 55yo – Married, 1 child

3. Vladimir Lisin  $10.7 billion Novolipetsk steel mill  Moscow 49yo – Married, 3 children

4. Viktor Vekselberg  $10.0 billion oil / metals (laying low to avoid Kremlin scrutiny) Moscow 48yo – Married, 2 children
 
5. Mikhail Fridman  $9.7 billion oil / banking Moscow 41yo – Married, 2 children 

6. Oleg Deripaska  $7.8 billion Russian Aluminum (Married into family of former President Yeltsin) Moscow 37yo – Married
 
7. Alexei Mordashov  $7.6 billion Severstal (steel) Moscow 40yo – Married, 3 children
 
8. Suleiman Kerimov  $7.1 billion stocks Moscow 40yo – Married, 3 children

9. Vladimir Potanin  $6.4 billion metals Moscow 45yo – Married, 3 children

10. Mikhail Prokhorov  $6.4 billion metals (often featured in gossip pages for his parties)  Moscow 40yo – Single
Saudi Arabia

1. Prince Alwaleed Bin Talal Alsaud (nephew of the Saudi king ) $20.0 billion investments Riyadh 49yo – Divorced, 2 children
 
2. Sulaiman Bin Abdul Al Rajhi  $11.0 billion banking Jeddah 86yo – Married, 23 children
(yes … 23!!!!)
 
3. Mohammed Al Amoudi (Born in Ethiopia) $6.9 billion oil Jeddah 60yo – Married, 0 children
 
4. Saleh Bin Abdul Aziz Al Rajhi  $6.5 billion banking Jeddah 94yo – Married, 61 children (yes, 61!!!! – 22 sons, 39 daughters, from 7 wives)
 
5. Saleh Kamel (denies allegations of ties to Osama bin Laden brought in two Sept. 11th related lawsuits) $5.0 billion diversified (banking/media) Makkah Al-Minkarramah 64yo – Married, 0 children
 
6. Saad Hariri (second son of Rafik Hariri, slain prime minister of Lebanon ) $4.1 billion inherited, construction, investments Riyadh 35yo – Married, 2 children
 
7. Abdullah Al Rajhi  $3.8 billion banking Saudi Arabia n/a – Married, 0 children

8. Khalid Bin Mahfouz & family  $3.2 billion banking Jeddah 59yo – Married, 3 children
 
9. Ayman Hariri (One of five children of slain Lebanese prime minister Rafik ) $2.7 billion inheritance Riyadh 27yo – Married, 1 child
 
10. Mohammed Al Issa  $2.3 billion food Saudi Arabia
 n/a – 0 children

Spain
1. Amancio Ortega  $14.8 billion Zara (apparel) La Coruna 70yo – Married, 3 children
 
2. Rafael del Pino & family $6.50 billion Ferrovial (construction) Madrid 85yo – Married, 5 children
 
3. Esther Koplowitz  $3.4 billion construction Barcelona 55yo – Married, 3 children

4. Jesus de Polanco  $2.7 billion Grupo Prisa (media) Madrid 76yo – Married, 4 children

5. Manuel Jove  $2.7 billion FADESA Immobiliaria (real estate) La Coruna 64yo – Married, 2 children

6. Rosalia Mera  $2.2 billion Zara (apparel) La Coruna 62yo – Divorced, 2 children
 
7. Isak Andic  $1.8 billion Mango (apparel)  Barcelona 51yo – Married, 3 children
 
8. Emilio Botin  $1.7 billion banking Santander 71yo – Married, 6 children

9. Gabriel Escarrer  $1.7 billion Sol Melia (hotels) Palma de Majorca 71yo – Married, 6 children

10. Alicia Koplowitz  $1.5 billion investments Madrid 53yo – Divorced, 3 children

Sweden
1. Ingvar Kamprad  $28.0 billion Ikea (retail)  Switzerland, Lausanne  79yo – Married, 4 children
 
2. Stefan Persson  $12.3 billion Hennes & Mauritz (retail) Stockholm 58yo – Married, 3 children
 
3. Birgit Rausing & family  $8.6 billion Tetra Laval (packaging manufacture) Switzerland, Vaud  82yo – Widowed, 3 children
 
4. Hans Rausing  $8.5 billion Tetra Laval (packaging) – Moved to England in 1980 to avoid punitive Swedish taxes. UK, Wadhurst  80yo – Married, 3 children

5. Antonia Johnson  $4.1 billion A. Johnson & Co. (diversified) Stockholm 62yo – Married, 4 children

6. Fredrik Lundberg  $2.1 billion real estate / investments Stockholm 54yo – Married, 2 children

7. Gustaf Douglas  $1.7 billion Assa Abloy (locks) / security Stockholm 68yo – Married, 2 children

8. Liselott (Lottie) Persson $1.5 billion Hennes & Mauritz (clothing retail chain) Stockholm n/a – 0 children

Switzerland
1. Ernesto Bertarelli  $5.8 billion Sereno (biotech) – yachtsman who won the America’s Cup in 2003  Geneva 39yo – Married, 2 children

2. Thomas Schmidheiny  $3.8 billion Holcim (cement) Balgach 59yo – Married, 4 children

3. Walter Haefner  $4.3 billion Computer Associates (software) Zurich 94yo – Married, 2 children
 
4. Bahaa Hariri (Eldest son of slain Lebanese prime minister Rafik) $4.1 billion inheritance Geneva 39yo – Married, 0 children

5. Stephan Schmidheiny  $2.8 billion investments Zurich 57yo – Married, 2 children

6. Gianluigi & Rafaela Aponte $2.5 billion Mediterranean Shipping Company Geneva n/a – Married, 2 children

7. Nicolas Hayek  $2.5 billion Swatch (world’s largest manufacturer of finished watches with 156 factories) Biel 77yo – Married, 2 children

8. Sergio Mantegazza  $3.0 billion Globus & Cosmos (travel) Lugano 77yo – Married, 1 child
Turkey

1. Rahmi Koc  $1.7 billion inherited (diversified) Istanbul 75yo – Divorced, 3 children
2. Omer Sabanci  $1.7 billion inherited (diversified) Istanbul 47yo – Married, 3 children
 
3. Sevket Sabanci  $1.7 billion diversified Istanbul 70yo – Married, 3 children

4. Aydin Dogan  $1.6 billion media Istanbul 70yo – Married, 4 children

5. Turgay Ciner (Personally pays for much school construction throughout Turkey) $1.5 billion diversified Istanbul 50yo – Married, 1 child

6. Hasan Colakoglu  $1.5 billion diversified Turkey
 50yo – Married, 2 children

7. Ferit Sahenk  $1.5 billion inherited (diversified) (bankrolled “Gallipoli” movie)  Istanbul 42yo – Married, 1 child

8. Husnu Ozyegin  $1.5 billion banking Izmir 61yo – Married, 2 children

9. Semahat Arsel  $1.3 billion inherited (diversified) Istanbul 78yo – Married, 0 children
 
10. Erol Sabanci  $1.3 billion inherited (diversified) (incl. Akbank, second largest bank in Turkey)
 Istanbul 68yo – Married, 2 children
United Kingdom
1. Philip & Cristina Green  $7.0 billion retail (Acadia Group) Monaco n/a – Married, 2 children

2. Gerald Cavendish Grosvenor & family
(6th Duke of Westminister) $6.0 billion real estate (incl. Mayfair) Chester 54yo – Married, 4 children
 
3. David & Simon Reuben (two brothers born in Bombay ) $3.6 billion investments, real estate London n/a – 3 children

4. Bernard Ecclestone & family  $3.4 billion Formula One (car racing)
 London 75yo – Married, 2 children
 
5. David & Frederick Barclay (twins) $2.8 billion media, retail (manage their businesses from the island tax haven of Jersey) Island of Brecquou n/a – n/a

6. Richard Branson (high school dropout) $2.8 billion Virgin (airlines, etc) London 55yo – Married, 2 children
 
7. Charles Cadogan & family  $2.8 billion real estate  London 69yo – Married, 3 children

8. Bruno Schroder & family  $2.5 billion Schroders Plc. (banking) London 73yo – Separated, 1 child

9. Clive Calder  $2.4 billion Zomba Recordings (incl. Britney Spears, ‘N Sync and the Backstreet Boys ) Cayman Islands 59yo – Married, 2 children

10. Nadhmi Auchi  $2.0 billion diversified London 68yo – Married, 4 children 

United States
(men)

1. William Gates III $50.0 billion Microsoft  WA, Medina  50yo – Married, 3 children
 
2. Warren Buffett  $42.0 billion Berkshire Hathaway  NE, Omaha  75yo – Widowed, 3 children
 
3. Paul Allen  $22.0 billion Microsoft, investments   WA, Seattle  53yo – Single, 0 children
 
4. Michael Dell  $17.1 billion Dell (world’s biggest PC maker) TX, Austin  41yo – Married, 4 children
 
5. Sheldon Adelson  $16.1 billion casinos, hotels  NV, Las Vegas  72yo – Married, 5 children 

6. Lawrence Ellison  $16.0 billion Oracle (database s’ware)  CA, Silicon Valley  61yo – Married, 2 children
 
7. Jim Walton  $15.9 billion Wal-Mart  AR, Bentonville  58yo – Married, 4 children
 
8. S Robson Walton  $15.8 billion  Wal-Mart AR, Bentonville  62yo – Divorced, 3 children
 
9. Steven Ballmer  $13.6 billion Microsoft WA, Redmond  50yo – Married, 2 children
10. Sergey Brin  $12.9 billion Google
CA, San Francisco 32yo – Single, 0 children

United States
(women)

1. Christy Walton  $15.9 billion Wal-Mart (husband, John Walton, died in an ultra-light aircraft crash 5th June 2005) WY, Jackson 51yo – Widowed, 1 child

2. Alice Walton  $15.7 billion (inheritance) Wal-Mart  TX , Fort Worth  56yo – Divorced
 
3. Helen Walton  $15.6 billion Wal-Mart  AR, Bentonville 86yo – Widowed, 4 children
 
4. Abigail Johnson  $12.5 billion Fidelity investments  MA, Boston 44yo – Married, 2 children
 
5. Barbara Cox Anthony  $12.4 billion media/entertainment HI, Honolulu  82yo – Married, 2 children

6. Anne Cox Chambers  $12.4 billion media/entertainment GA, Atlanta  86yo – Divorced, 3 children
 
7. Jacqueline Mars  $10.0 billion candy (incl. Mars bar) NJ, Bedminster  66yo – Divorced, 3 children
 
8. Martha Ingram & family  $2.7 billion Ingram Industries  TN, Nashville 70yo – Widowed, 4 children

9. Barbara Piasecka Johnson  $2.6 billion Johnson & Johnson Monaco, Monte Carlo 69yo – Widowed

10. Barbara Davis & family  $2.5 billion inheritance (oil) CA, Beverly Hills 76yo – Widowed, 5 children
  
Under 35

1. Sergey Brin  $12.9 billion Google (internet gateway)
 USA 32yo – Single, 0 children 
 
2. Larry Page  $12.8 billion Google (internet gateway) USA 33yo – Single, 0 children
 
3. Anurag Dikshit  $3.3 billion online gambling  India 34yo – Married, 1 child

4. Fahd Hariri (youngest son of Rafik Hariri) $2.7 billion inheritance Lebanon 25yo – Single, 0 children
 
9. Ayman Hariri (one of five children of slain Lebanese prime minister Rafik ) $2.7 billion inheritance Riyadh 27yo – Married, 1 child
 
6. Andrei Melnichenko (uni dropout) $2.7 billion banking, energy Russia 34yo – Married, 0 children
 
7. Sergei Popov  $2.7 billion banking, energy Russia 34yo – Married, 0 children

8. Prince Albert von Thurn und Taxis (lives in one of the family castles)  $1.9 billion inherited, diversified Germany 22yo – Single, 0 children 

9. Daniel Ziff  $1.5 billion inheritance, hedge funds

 USA 34yo – Single, 0 children 

10. Hind Hariri (Youngest child of Rafik Hariri and YOUNGEST BILLIONAIRE) $1.4 billion inheritance Lebanon 22yo – Single, 0 children
 
11. Henrique Constantino  $1.1 billion GOL airlines Brazil 34yo – n/a, 0 children 

Celebrity Billionaires

1. George Lucas  $3.5 billion Star Wars (director/producer) USA 61yo – Divorced, 3 children
 
2. Steven Spielberg  $2.8 billion movies (director/producer) – incl. War of the Worlds, Raiders of the Lost Ark, E.T., Jurassic Park, Schindler’s List, Men in Black, etc USA 59yo – Married, 7 children
 
3. Oprah Winfrey  $1.4 billion The Oprah Winfrey Show (Miss Black Tennessee age 19) USA 52yo – Single
 
4. Joanne (JK) Rowling  $1.0 billion Harry Potter (6 Harry Potter books have sold 310 million copies; grossed over $3 billion in movie/DVD sales) UK/Scotland 40yo – Married, 2 children
Sources, Forbes, Fortune, BBC, entrepreneur.com and numerous news articles.

Intelligence and Airport Security

October 29, 2006

By Robert R. Raffel
The role of intelligence in an airport environment has long been a subject of debate and uncertainty. How much intelligence is out there? Of what quality or usefulness is available information relative to airport security? Could airport security officials properly use intelligence if they could receive it?

Appropriate collection, analysis and dissemination of information useful to an airport is problematic enough; the availability and usefulness of intelligence is even more so.[1] Further, even given the availability of information, what processes have been, or need to be established to leverage the product into something useful? Despite these issues, which are daunting, there are avenues open to the airport security practitioner to receive useful information and to maximize intelligence collection, reception and dissemination.

The Issues

Civil aviation has often been an area of terrorist interest and activity. Long before the events of 11 September 2001, terrorists targeted airports and aircraft. The Rome and Vienna massacres of 1985 were launched against airports themselves. The hijacking of TWA 847 that same year, together with a variety of attacks occurring before and after those events served to identify aviation with terrorism in the public mind. For the terrorist, civil aviation assets remain high-value targets. The vulnerability of general aviation, an area subject to little regulation or security oversight, adds other issues to the calculus of security.[2]
Despite the historical connections between terrorism and civil aviation, public discussion of how best to address issues of information and intelligence in this sphere has been drawn-out, confusing and inconclusive. Each aviation incident brings forth an outcry for better information and intelligence sharing; why, the critics ask, didn’t we know more beforehand? Or, conversely, if you knew, why weren’t we told?[3]

These issues are also discussed in the airport environment. Airport operators have long felt that timely information and intelligence sharing could help them in their handling of security operations. Proactive security managers realize the importance of preparedness: information outlining threats to airports can help reduce risk. However, most managers are constrained by their inability to access accurate, systematically collected and processed information and by staffing limitations. Little, if any information or intelligence is airport-specific and information that is broader in scope is seldom useful. Finally, an individual airport security coordinator (ASC), depending on his or her own interests and unique capabilities, may have access to varying sources of information.[4] However, the data are often captured on an ad hoc basis rather than in a coordinated, process-driven approach to information sharing and analysis.

Another discrepancy exists in the distinction between openly acquired information and classified intelligence involving the clandestine collection of data or the accumulation of potentially sensitive information. Given the technological explosion of the past decade, information of all types has become ever more readily accessible. In fact, the very availability of information creates a dilemma for the airport security analyst: it is often difficult to separate the useful from the merely repetitive. Intelligence, on the other hand, becomes restricted from public dissemination, is closely held and controlled, and subject to rigorous requirements governing need-to-know. Although efforts have been made at higher governmental levels to share classified information with airports, a lack of standardization and consistency—indeed, the absence of an organized program—have hampered communications.[5]

The issues then, are several:

What types of information are helpful to the airport security operator?

Is it feasible, or even appropriate, for the airport to receive intelligence?

What organizations presently exist to facilitate this function?

Finally, is there a system-wide approach or model that might be used to facilitate the best use of these products?

Open-source information

One of the products of our national effort to counter terrorism since 9/11 has been the application of various types of open-source information to airport security. Pre-9/11 information-sharing groups supporting airports, such as the Airport Law Enforcement Agencies Network (ALEAN), have organized to assist in this task.[6] In its Web page, ALEAN states one of its goals is to “facilitate the rapid exchange of information concerning airport-related crimes.” Since 9/11, ALEAN has served as a conduit for information and open-source material directed primarily at the airport law enforcement manager and practitioner. Other national airport and air carrier organizations predating 9/11, such as the American Association of Airport Executives (AAAE), the Airports Council International–North America (ACI-NA), and the Air Transport Association (ATA), among others, have also served to facilitate the full and rapid flow of information to the airport and air carrier communities. Although these entities do not convey intelligence they nonetheless provide means by which useful facts may flow quickly to predesignated groups.

Since 11 September, other groups have formed, some with the primary purpose of forwarding information of use in counter-terrorist activities. One example is the Florida THREATCOM network, which functions at a state level. It is part of the state of Florida’s Regional Domestic Security Task Force. It provides information and links for security and law enforcement practitioners. The Florida Department of Law Enforcement (FDLE) also mounts an informative page on domestic security, with a tip line to their Office of Statewide Intelligence.

Cognizant of terrorists’ ability to leverage electronic information systems, Florida has also set up “Secure Florida”, which seeks, as its Web page states, “To protect…Florida by safeguarding our information systems, reducing our vulnerability to cyber attacks, and increasing our responsiveness to any threat.”[7] Groups such as these exist in many other states and throughout the Web, sponsored by everyone from federal and state organizations to think tanks to individuals. Finally, the Florida Division of Emergency Management publishes a daily status briefing, which covers a wide range of topics of interest to the emergency management and law enforcement communities. Many other states have similar organizations that make such information available on a regular basis. The challenge in this area is to identify and prioritize sources that are helpful to the airport security manager.

Local Intelligence
Given the lack of specificity involved with most national-level intelligence, the best information is often local. Most airports, especially those located near large population centers, have access to local law enforcement intelligence groups. Most law enforcement agencies now keep close track of gang-related activity, for example. They also contain intelligence units that have the potential to provide useful information on airport-related activities of these groups and individuals, who also can do great harm. Given criminal activity at airports (e.g., narcotics and arms smuggling, organized and gang-related theft rings, etc.), area-specific information may actually prove better able to identify threats and thus be more useful than information at higher levels.

Another point in favor of paying close attention to local intelligence is that it tends to be more attainable. As mentioned above, most law enforcement agencies have criminal intelligence capabilities, which can be accessed and leveraged by the airport security manager. This information is especially helpful in airport vulnerability analyses, where thorough knowledge of threats helps produce a better understanding of risk.[8]

Some airport managers, recognizing the importance of this type of information, have established groups composed of local and federal law enforcement agencies that meet at regular intervals. At these meetings, principals discuss and exchange local threat information, status of current operations and other matters of mutual interest. Along with information exchanges, groups such as these benefit from the expanded network created and avail themselves of the opportunity to be woven into the tapestry of airport-related law enforcement. This is especially vital today, when an increasing number of law enforcement agencies are involved in aspects of airport security.[9]

Finally, airports themselves can leverage information collection opportunities. Most airport employees require ID media to accomplish their tasks, and airport security staffs receive information relating to each badged individual. This information, although subject to strict rules regarding dissemination, may be and has been used for counterterrorist and criminal investigations. Airport employees themselves, if given guidance and the right incentives, can be used as sources of information about suspicious activities and persons. Orlando International Airport, for example, has established close relationships with local police intelligence units. Gang activity is present both in the community and the airport, in itself a small city that tends to mirror the surrounding area. The airport-police partnership has resulted in the identification and arrests of suspicious individuals on several occasions.

DHS/TSA Information-Sharing Opportunities

Although the process is still evolving, TSA is working on methodologies to collect, analyze and appropriately disseminate intelligence to airports. The Federal Security Director (FSD) is the designated point of contact for the Airport Security Coordinator (ASC). This relationship is partly regulatory but is also a vehicle for sharing aviation-security-related information. [10] FSD’s and ASC’s who work to develop and cement close working relationships have a unique opportunity to engage in information and intelligence-sharing. In such an arrangement, the FSD gains the airports’ insights into local threat groups and airport history with regard to terrorist and criminal activity. The airport, for its part, gains the FSD’s access to wider sources of information.[11] Possibilities also exist in the area of vulnerability analysis. The FSD has the bigger picture and should be aware of national and international threat activity; the airport recognizes its inherent vulnerabilities. This situation is ideal for partnership and development of risk identification and mitigation strategies.

A good example of TSA airport coordination involved dissemination of information by TSA to airports concerning the threat of portable anti-aircraft missiles. Following a terrorist attempt to down a civilian aircraft over Mombasa, Kenya, in 2002, US officials began a concerted effort to educate local law enforcement and security officials about these weapons. TSA officials contacted airports and passed on information and graphics outlining the threat. Airports and their law enforcement entities then teamed with TSA, FBI, and other agencies to take remedial actions. Although the efficacy of this effort may be a matter of debate, it is an example of the possibilities of collaborative approaches to information-sharing.

Trend Analyses
One of the most valuable deliverables in a well-organized information-sharing environment involves trend analysis. Airports, as has been pointed out, are usually acutely aware of local events and, to a somewhat lesser extent, demographics. Governmental organizations, at local and federal levels, have a wider scope of information collection capabilities. The opportunities for airport-local-federal partnerships abound. Using some of the collection sources mentioned above or by creating and leveraging new ones the security manager can attain unique capabilities. Information about seemingly unrelated activities can be collected, analyzed and culled for possible trends. Although some of this is already underway, greater emphasis can and should be placed on it.

The communications infrastructure to carry out the activity needed for effective trend analysis exists in various degrees of maturity. The civil aviation community, multifaceted and even chaotic to the untrained eye, is actually an interconnected network of entities that has spent years perfecting communications.

Some work of that type is being accomplished by different agencies, most at the federal level. A notable example is a new partnership program between elements of the Department of Homeland Security and local law enforcement. The program involves training local police to make and report spot observations. These reports are entered in a database available to other local and federal law enforcement groups around the nation. The database can be used to search for and produce information on similar events. As this program expands, the potential for trend analysis will grow exponentially.

This type of innovative approach to data collection and federal/local partnership is indicative of the wider federal vision involving airport security assets in addition to law enforcement.[12] These initiatives appreciably widen the intelligence collection effort and greatly enhance information gathering capabilities.

Conclusion

Information and intelligence are useful to the airport security practitioner. Much information is available through open sources, but challenges involve prioritization and analytical capability. Local intelligence, given the relative ease of collection and immediate applicability to the individual airport, has value to the airport security manager. Issues involving appropriate collection, analysis and utilization of information can be addressed through innovation and partnerships with local and federal actors. Even intelligence may be shared, given the proper foundation and development of a suitable process. Finally, more work needs to be done in the area of trend analysis. The full realization of the potential in airport security assets is contingent upon leveraging existing infrastructures and designing a useful process for exploiting them.

Footnotes:

[1]Information used here in contrast to intelligence, as in the collection of “secret information” (Webster’s, Fourth Ed.). For purposes of this article, the words information and intelligence shall be considered separately.

[2]General aviation aircraft and airports continue to grow in size and complexity. The growing popularity of fractional aircraft sales and rentals further adds to the complexity.

[3]This kind of information became an issue of debate after the bombing of PAA 103 on 21 December 1988. Investigators discovered that on 5 December 1988 a threat had been sent to the US Embassy in Helsinki, Finland. The threat stated that “some time within the next two weeks” a bomb would be placed upon a Pan Am flight flying from Frankfurt into the United States. This information was distributed selectively by the Federal Aviation Administration and the State Department, giving rise to the charge of “a double standard—the intentional choice to warn some people but not others.” Report of the President’s Commission on Aviation Security and Terrorism, May 15, 1990.

[4]Airport operators are required to designate an “airport security coordinator” (ASC) to (among other tasks) “…serve as the airport operator’s primary …contact for security-related activities and communications with TSA [Transportation Security Administration]”. 49 CFR 1542, Sec. 1542.3.

[5]Following the PAA 103 bombing, the position of Federal Security Manager (FSM) was established, in line with the recommendations of the President’s Commission on Aviation Security and Terror­ism. One of the duties of the FSM was to “…serve as the conduit for all aviation-related intelligence.” President’s Commission on Aviation Security and Terrorism, 60. This function included the sharing of certain levels of classified information with designated civilian airport security managers, who were granted a security clearance by the FAA’s Office of Civil Aviation Security. This program fell into disuse after the events of 9/11 and the subsequent transfer of aviation security responsibilities from FAA to TSA.

[6]Since its beginnings in 1990, ALEAN has grown to include over 85 domestic airports and several foreign airports. Information and training in airport-specific areas of interest to airport law enforcement officers has long been an ALEAN strength.

[7]Mission Statement, Secure Florida Web page.

[8]The model referred to here is the threat + vulnerability = risk equation. Airport security managers should know their air­ports’ vulnerabilities; consequently, the more he or she understands about the threat, the more accurate the assessment of risk becomes.

[9]In the pre-9/11 airport security environment, FAA Federal Security Managers (see below) often developed such groups. Commonly called Threat Assessment Groups, or “TAG Teams”, they played an important role in bringing law enforcement, information and airports together. Normally composed of federal, local and state law enforcement organizations having interests in and operations involving airports, they became a valuable tool for the Security Managers. Never formalized, this approach in most instances, did not survive the tidal wave of change that followed the US governmental response to the 9/11 attacks.

[10]The FSD position was created under the Aviation and Transportation Security Act (ATSA) Public Law 107-71. See 49 USC, Section 44933. Under the ATSA, each commercial service airport is assigned an FSD. The “legacy” position was the FAA’s Federal Security Manager (FSM), itself formed by Public Law following the PAA 103 disaster. However, under the FAA, FSM’s were never allowed the wide range of powers and authority that FSD’s currently enjoy. The position of Airport Security Coordinator (ASC) predated that of the FSD, but was also recodified under the ATSA (See Section 1542.3). Under the ATSA, the ASC “Serves as the airport operator’s primary and immediate contact for security-related activities and communications with TSA.”

[11]Before 9/11, the FSM was authorized to share certain levels and types of classified information with the ASC, who was permitted to apply for the appropriate clearance through FAA. Although this arrangement fell into disuse after the events of 9/11 and subsequent reorganizations, there are indications that TSA is seeking to reestablish the process.

[12]Law enforcement and security are not synonymous terms, although DHS has often confused the two. For more detail on this subject, refer to my article “Security and Law Enforcement: An Airport Model” in Aviation Security International, February 2005.

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Robert T. Raffel is Senior Director of Public Safety for the Greater Orlando Aviation Authority and a member of the US Army Reserve. He has published articles in law enforcement and other journals on airport security issues.
 

Money laundering

October 28, 2006

Modern development of money laundering
The act of “money laundering” was not invented during the Prohibition era in the United States, but many techniques were developed and refined then. Many methods were devised to disguise the origins of money generated by the sale of then illegal alcoholic beverages. Following Al Capone’s 1931 conviction for tax evasion, mobster Meyer Lansky transferred funds from New Orleans slot machines to accounts overseas. After the 1934 Swiss Banking Act which created the principle of bank secrecy, Meyer Lansky bought a Swiss bank where he would transfer his illegal funds through a complex system of shell companies, holding companies and offshore accounts [1]..

The term of “money laundering” itself does not derive, as is often said, from the story that Al Capone used laundromats to hide ill-gotten gains. It was Meyer Lansky that perfected money laundering’s older brother, “capital flight”, transferring his funds to Switzerland and other offshore places. The first reference to the term “money laundering” itself actually appears during the Watergate scandal. US President Richard Nixon’s “Committee to Re-elect the President” moved illegal campaign contributions to Mexico, then brought the money back through a company in Miami. It was Britain’s Guardian newspaper that coined the term, referring to the process as “laundering.” [2]
International initiatives against money laundering
The 1980s witnessed the international trend for the criminalization of money laundering as a discrete crime. The US and the UK have done so in 1986, and the 1988 Vienna Convention has required State Parties to introduce this crime in their domestic legal systems. In 1989, the FATF was created. Its first report, issued in 1990, recommended the criminalization of money laundering. In 1991, the European Union required its Member States to ‘prohibit’ the laundering of funds derived from drug offences; the original Directive was revised in 2001 and replaced by another in 2005.
September 11, 2001 and the international response to the underground economy

After September 11, 2001, money laundering become a major concern of the US Bush administration’s war on terror, although critics argue that it has become less and less an important matter for the White House. Based in Luxembourg, Clearstream a clearing house or “a bank of banks” which practice “financial clearing”, centralizing debit and credit operations for hundreds of banks, has been accused of being a major operator of the underground economy via a system of un-published accounts; Bahrain International Bank, owned by Osama bin Laden, would have profited from these transfer facilities [1]. The scandal prompted André Lussi, Clearstream CEO, to resign on December 31, 2001; several judicial investigations were opened; and the European Commission was interpelled by Members of the European Parliament (MEPs) Harlem Désir, Glyn Ford and Francis Wurtz, who asked the Commission to investigate the accusations and to ensure that the 10 June 1990 directive (91/308 CE) on control of financial establishment was applied in all member states, including Luxembourg, in an effective way [3].

The international response to the underground economy has been co-ordinated by the Financial Action Task Force on Money Laundering (“FATF”, also known by its French acronym of “GAFI”), whose original 40 principles form the basis of most international responses to money laundering activity. A further 8 principles, designed to counteract funding to terrorist organisations, were added on June 30, 2003 in response to the September 11, 2001, with another added 22 October 2004, to form what are now known as the “40 + 9” principles of anti-money laundering and counter-terrorism funding (AML/CTF). Compliance with, or a movement towards compliance with, these principles is now seen as a requirement of an internationally active bank or other financial service entity.

Several FATF-style regional bodies exist, such as the Asia/Pacific Group on Money Laundering.
Process
Money laundering is often described as occurring in three stages: placement, layering, and integration.[4]

Placement: refers to the initial point of entry for funds derived from criminal activities.
Layering: refers to the creation of complex networks of transactions which attempt to obscure the link between the initial entry point and the end of the laundering cycle.
Integration: refers to the return of funds to the legitimate economy for later extraction.

Examples

If a person is making thousands of dollars in small change a week from a business (not unusual for a store owner), and wishes to deposit that money in a bank, it cannot be done without possibly drawing suspicion. In the United States, for example, cash transactions and deposits of more than $10,000 are required to be reported as “significant cash transactions” to the Financial Crimes Enforcement Network (FinCEN), along with any other suspicious financial activity as “suspicious activity reports”. In other jurisdictions suspicion based requirements are placed on financial services employees and firms to report suspicious activity to the authorities. Methods to conceal the source are therefore required.
Irregular Funding
One method of keeping this small change private would be for an individual to give money to an intermediary who is already legitimately taking in large amounts of cash. The intermediary would then deposit that money into an account, take a premium, and write a check to the individual. Thus, the individual draws no attention to himself, and can deposit his check into a bank account without drawing suspicion. This works well for one-off transactions, but if it occurs on a regular basis then the check deposits themselves will form a paper trail and could raise suspicions.
Captive business
Another method involves establishing a business whose cash inflow cannot be monitored, and funneling the small change into this business and paying taxes on it. All bank employees however are trained to be constantly on the lookout for any transactions which appear to be an attempt to get around the currency reporting requirements. Such shell companies should deal directly with the public, perform some service related activity as opposed to providing physical goods, and reasonably accept cash as a matter of business. Dealing directly with the public ensures plausible anonymity of source. An example of a legitimate business displaying plausable anonymity of source would be a hairdresser. Since it would be unreasonable for them to keep track of the identity of their customers, a record of their transaction amounts must be ostensibly accepted as primae facia evidence of actual financial activity. Service related businesses have the advantage of anonymity of resources. A business that sells computers has to account for where it actually got the computers, whereas a plumbing company merely has to account for fictitious labor. Reasonably accepting cash means the business must regularly perform services that total less than $500 on average, since above that amount most people pay with a check, credit card, or other traceable payment method. The company should actually function on a legitimate level. In the plumbing company example, it is perfectly reasonable for a lot of the business to involve only labor (no parts), and for some business to be paid for in cash, but it is unreasonable for all of their business to involve no parts and only cash payment. Therefore the legitimate business will generate a legitimate level of parts usage, as well as enough traceable transactions to mask the illegitimate ones. Each of the above examples is flawed in one or more ways and serves only to illustrate the specific feature being discussed. Hairdressers are flawed because they would have to account for their employees, plumbers usually provide warranties on their work, which necessarily includes the names and addresses of the customers.

Corrupt politicians and lobbyists also launder money by setting up personal non-profits to move money between trusted organizations so that donations from inappropriate sources may be illegally used for personal gain.

Legal considerations

By the strictest definition of the term, anyone who assists in concealing the proceeds from his transactions is considered a money launderer. An individual therefore may be unwittingly employed by money launderers, and may still be criminally liable in many jurisdictions. However, the act of concealing money is different from that of laundering it, though many make the mistake of putting both actions under the term of laundering

Agencies involved in countering money-laundering
AUSTRAC (Australia)
FinCEN (United States)
FINTRAC (Canada)
Serious Organised Crime Agency (United Kingdom)
Tracfin (France)
Unidad de Inteligencia Financiera (Argentina)
Italian Guardia di Finanza
{http://www.geocities.com/dbdoggle Tech Dot Com Money Launderign]

Notes

1) Lucy Komisar. “Tracking Terrorist Money – ‘Too Hot for US to handle?'”, Pacific News Service, October 4, 2001. Retrieved on February 2006.
2) (See Jeffrey Robinson’s three books on money laundering, The Laundrymen, The Merger and The Sink.)
3)(French) Official March 2000 French Parliamentary Report on the obstacles on the control and repression of financial criminal activity and of money-laundering in Europe by French MPs Vincent Peillon and Arnaud Montebourg, third section on “Luxembourg’s political dependency toward the financial sector: the Clearstream affair” (pp.83-111 on PDF version)
4) See for example, “2. Stages of the Money Laundering Process”, A report in accordance with § 356(c) of the USA PATRIOT Act
Source: English Wikipedia

RUSSIAN ORGANIZED CRIME

October 28, 2006

By Roustam Kaliyev
The Russian Mafia poses serious obstacles for Russia’s development and has been perceived as a threat to its neighbors and even the West. Yet few seem to have a clear understanding of how Russian criminal syndicates are organized. The structure of criminal syndicates has evolved considerably due to the changing political circumstances of the late Soviet period and the subsequent upheavals in the Russian Federation. Criminal networks have grown to represent an attribute of the country’s national character. Many in the West expected President Vladimir Putin, who had made his career in the Security Services, to herald a new approach to law enforcement. However, the problem of criminalization of the state at all levels remains.

The problem is not simply corruption, such as bribe taking, that infects the public sphere, but actual criminal activity by governmental and law-enforcement agencies. The organized crime groups in Russia can be divided into 3 major categories: “classic,” “governmental,” and “national.” The classic Mafias are the familiar structures known throughout the world. The governmental structures are the security services and private security agencies that run substantial criminal enterprises. The national Mafias sprang from ethnically Chechen groups, which were initially set up explicitly to protect Chechen business interests but then diversified their activities and membership.

Among the “classic” groupings we find many ethnic, territorial and other criminal groups that formed and functioned along established systems, and were familiar to the law enforcement community. Famous groups include the Tambovskaya, Solnetzevskaya, Tul’skaya and Armenian Mafias. Their activities include: the drug trade, arms trade, smuggling, robbery, contract murder and more recently kidnapping and trade in people.

Prior to the 1990s the security services of the USSR used fairly primitive methods of law enforcement to deal with these classic syndicates. The main mechanism of this system was that the government tolerated the existence of a criminal elite – the so-called “thieves in the law” – 20 or 30 persons who maintained authority by having certain powers, such as influence over criminals in prison, delegated to them. This institution of the “thieves,” which existed in most union republics, was reasonably effective. Besides giving the authorities a lever of influence in the criminal world, the “thieves” were also useful in limiting the formation of new criminal syndicates. To identify and liquidate such networks would otherwise have required tremendous effort and resources. This way the thieves had an incentive to limit competition and the new groups that sprouted up were cut off at the root.

In the early 1990s as Russia’s market became liberalized, the “classic” criminal groupings turned out to be unprepared for the outbreak of new criminal groupings. These new Mafias began a very energetic assault against the old criminal system. According to criminologists, the 1990s were a watershed for Russia’s underworld: the authoritative “thieves” suddenly lost the levers of influence. The “thieves” had no authority with the new groups and had to cede “market-share” to them.

“Governmental” syndicates, an important post-Soviet phenomenon, are a relatively new category of organized crime. They comprise MVD and FSB cadres and members of the multitude of non-governmental security services and mainly seek to profit financially from exercising their powers. For instance, a recent scandal described in Russia’s Moskovsksi komsomolets and Novaya gazeta newspapers revealed high-ranking FSB officials, including Deputy Director Yurii Zaostrovtsev, as well as officials from the procuracy and the customs service illegally importing furniture for sale in a chain of warehouse style stores in Moscow. Instead of paying tariffs into the budget, the owners of such stores were paying protection money to various customs and security officials.

Business has been rife with corruption since the early 90s, when small and medium sized foreign businesses arrived in Russia. A business would not be able to function on the Russian market without paying “tribute.” Worse still, the various racketeers are constantly warring with each other over spheres of influence. The businessman finds himself the object of competing gangs’ attention, and suffers each time there is a rearrangement of spheres.

In Russian slang, protection is called krysha (literally roof). Typically the switch to a new krysha proceeds as follows: two presentable young men appear in the company offices. They ask to see the owner or manager and sit down with him in private. The “guests” question the manager in detail about the business. Then they offer their own protection services. The manager typically responds that he does not need their services because he already has protection (in which case he offers the visitors the phone number of the krysha), or because the company pays its taxes and otherwise obeys the law.

The racketeers leave the office calmly, but check into the information. Depending on what they find they will proceed as follows: 1) If the company has no krysha, they will force the owner to pay tribute. 2) If the company has a weak krysha, the racketeers will take over as a new krysha. 3) The racketeers will leave the company alone only if the existing krysha is connected to the security services or to the Chechens. These last two arguments have almost magical powers to rid the businessman of the racketeers. If it’s fairly obvious why connections to the security services would have this effect, the assertion concerning Chechens requires some elaboration.

Chechen business in Russia is fairly substantial in finance, banking, oil, metallurgy and bulk sale, and operates on a refusal to pay tribute. Chechens were determined to remain independent for the sake of honor, even when this meant open confrontation with the racketeers. Chechens used every resource available to them: family connections, the police and the courts, and if that failed they used force. This posture owed a great deal to the fact that, unlike Western or other newcomers, Chechens had strong networks to protect themselves. When thugs pressured Chechen businesses, other Chechens would do the maximum in their power to limit the activities of the racketeers.

In short time, Chechens became virtually the only category of business that could resist krysha (though some Chechens did affiliate themselves with governmental syndicates). Word about the Chechens spread among foreign executives, who began to include Chechens in investment projects – Chechens with experience in protection became the preferred source of it over time, and Chechen groups formed initially to protect Chechen business became Mafia groupings. The now notorious Chechen Mafioso Khozh A. Noukhaev got his start this way. Syndicates in this category are called “national” because they formed initially on the basis of nationality and due to particular cultural traits. However after the formative stage the groups developed a multinational character employing Russians, Armenians, Georgians, Ukrainians and others.

Analysts in Russia and in the West had interpreted the Putin presidency as the start of a vigorous campaign against the criminalization and corruption of the Yeltsin period. The last two years have seen a substantial increase in the growth and power of the security services, which is connected to their role in the war in Chechnya. These changes have altered the balance of power among the Mafia types but has not altered the overall system or brought about a greater attention to the rule of law.

Roustam Kaliyev has traveled repeatedly in Chechnya during the present war, and has contributed articles to Moskovskiye Novosti and Obschaya Gazeta. Miriam Lanskoy translated this article from Russian into English.