Transcript Document
NAEA ARLA Conference Newmarket 08
th
October 2014
Content NCA Overview SAR Regime Best Practice Case Studies
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National Crime Agency (NCA)
Keith Bristow
Intelligence Hub OFFICIAL © Copyright NCA
UKFIU Structure
Policy and Communications SARs Data Exploitation Team Dialogue Alan Hislop Head of UKFIU Donna Carruth Consent Keith White International Corruption Intelligence Cell Systems and Futures International Terrorist Finance Team SAR Management OFFICIAL
UK Financial Intelligence Unit
National responsibility for receiving, analysing and disseminating financial intelligence submitted through the Suspicious Activity Reports (SARs) Regime Delivers the day-to-day operation of the SARs database (ELMER) Provides agreed support to the regime's end users, reporters and other stakeholders, including international partners OFFICIAL
Money Laundering & UK Legislation
The Problem 105 Kilos of Heroin ….generates £2,760,000 cash
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Trends
At least 1 in 4 organised crime groups retain a corrupt individual in the legitimate financial sector Illicit profits are often laundered through cash-rich overt businesses, which very often operate on the high street and typically include nail bars, food and licensed premises, companies offering security services, taxi firms and car washes. Complicit, negligent or unwitting professionals in the financial, accountancy and legal professions in the UK facilitate money laundering on behalf of organized criminals. UK organised crime groups also use specialist money launderers, some overseas, who manage laundering for multiple criminal enterprises.
Government Serious Crime Review – Oct 2013 OFFICIAL © Copyright NCA
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UK Legislation Primary Legislation
Proceeds of Crime Act 2002 (POCA) Terrorism Act 2000 (TACT)
Secondary Legislation
Money laundering Regulations 2007 OFFICIAL © Copyright NCA
POCA Interpretation
POCA – Criminal Conduct S.340(2) Any conduct which constitutes an offence in any part of the UK or would constitute an offence in any part of the UK if it occurred there POCA – Criminal Property S.340(9) Any benefit derived from criminal conduct. Property includes money, all forms of property, real or personal, heritable or moveable, things in action and other intangible or incorporeal property
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POCA – Money Laundering Offences
s.327
Concealing, disguising, converting, or transferring criminal property s.328
Being concerned in an arrangement in relation to criminal property s.329 Acquisition, use or possession of criminal property PENALTY – 14 years imprisonment
Where a suspicious transaction is pre-advised, Consent must be sought from the NCA to proceed OFFICIAL © Copyright NCA
POCA – Other Offences
s.330
A person commits this offence if he knows or suspects or has Failure to disclose – applies to the regulated sector.
reasonable grounds another is engaged in money laundering and fails to report it for knowing suspecting that PENALTY: 5 years imprisonment s.333
Tipping off “Knows or suspects” that a disclosure (report) has been made & (b)Makes a disclosure which is likely to prejudice any investigation which might be conducted following the disclosure PENALTY: 2 years imprisonment
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SAR Best Practice
SAR Best Practice
Put in all KYC / CDD information
Address & date of birth vital if known
Make sure your reason for suspicion is clear
Reason for suspicion should be in first line of text
Glossary code should be used
Always put postcode in even if previously reported on
If you need Consent be specific (and tick the box)
Submit via SAR Online / Fax
Be available during the notice period
Consider business / reputational risk
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Consent – Essential Elements
The information or other matter which gives the grounds for knowledge, suspicion or belief A description of the property that is known, suspected or believed to be criminal or terrorist property A description of the prohibited act for which consent is sought The identity of the person or persons known or suspected to be involved in money laundering or committing or attempting to commit an offence under s15 to 18 of TACT The whereabouts of the property that is known or suspected to be criminal or terrorist property
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POCA Interpretation
OFFICIAL www.nationalcrimeagency.gov.uk
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SAR Usage
SARs Breakdown by Sector 2012-2013
Accountants 2.06% Other 6.03% MSBs 8.40% Banks 78.24% Building Societies 3.36% SA Legal 1.51% Estate Agents 0.05% Gambling 0.34% Accountants Banks Building Societies Estate Agents Gambling Legal MSBs Other OFFICIAL
SAR Usage Oct 2011 – Oct 2012
Investigations featuring a SAR:
£108.1 million subject to Restraint Orders £49.8 million in Confiscation Orders £8.7 million in Cash Forfeitures
Interventions arising from Consents :
£110.3 million subject to Restraint £36.7 million returned to HMRC
Asset Denial 2011 / 12:
Assets denied by SOCA - £100.6m
Assets denied by partners (UK & Overseas) - £299.7m
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Intelligence vs. Evidence
•Strictly for intelligence purposes only •Managed in accordance with your agreement with UKFIU & HO Circ 53/2005 •SARs information should always be on the sensitive schedule for CPIA •Any potential disclosure MUST be discussed with UKFIU •If evidential material required then ILOR through the UK Central Authority (Tel: 0207 035 4040) OFFICIAL
Case Studies
Operation Numerator
London Connection
Aras Karkuti (23 years) Naveed Butt Farhad Ibrahim* (20 Years) Khalid Durani (18 Years) (Iraqi Kurds) Khalid Malik (25 Years) Stephan Osborne Malik’s ‘Banker’ (Deceased) Shadab Khan Solicitor (4 Years) Balkees Begum Wife (10 Years) Tanveer Cheema Mortgage Advisor (3 Years) Paul Morgan Property Dev (5.5 Years) Shanaz Afzal Begum’s Sister (4 Years) Davinder Singh OCG Member (15 Years) Mohammed Khan OCG Member (14 Years) Shafiq Rehman Courier (200 hrs CS) OFFICIAL Parmjit Singh Courier (200 hrs CS) © Copyright NCA
ML Modus Operandi
Front Company?
Unique Car Care Company Cash Smuggling?
Property?
Rental Properties?
Professionals Involved?
£860k flat in Dubai £900k land in Bulgaria £1.2m across Yorkshire Foreign Bank Accounts? ?
Other Accounts?
Bling Lifestyle?
£100K £29k jewellery, cars
OFFICIAL Malik’s Lamborghini & SL55 © Copyright NCA
Estate Agents - Smurfing
Nasrullah Khan 10 Years Fazal Hussain 7 Years Muhammed Habib 3 Years
OFFICIAL
Mark Owens 3 Years
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Threat Areas – Property Sector
Targeting by OCGs – value knowledge / access Identity fraud / false documentation to evade KYC / CDD procedures Complicit / bogus professionals High cash turnover businesses / unusually profitable Increased OCG use of offshore accounts & Company Service Providers Overseas links / international cash flow
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Contact Details
• SAR Online & Glossary of Terms –
www.nationalcrimeagency.gov.uk
• UKFIU Support desks – • UKFIU Dialogue Team via
• SAR Confidentiality Breach Line –
0207 238 8282 0800 234 6657
• NCA General Enquiries Number –
0370 496 7622
• Fraud Reporting
www.actionfraud.org.uk/report_fraud
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Any Questions?
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