Transcript Slide 1

Money Laundering
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Hide
Disguise
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TRUE ORIGIN OF THE CRIMINAL
PROCEEDS.
Criminals…Law Enforcement
Authorities
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Law Enforcement Authorities
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Reducing Crime
Criminals
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Retain Funds
Recycle for Further Crimes
Predicate Offences (Unlawful
Activities)
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Drug trafficking
Counterfeiting
Smuggling
Theft
Embezzlement
Racketeering
Tax evasion
Kidnapping
Illegal arms sales
Bribery
Illegal trade of cultural property
Laundering Process
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Placement
Layering
Integration
Placement Problems
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50,000$ of 10$ bills=2 feet high
A bill weighs aprrox. One gram
There are aprrox. 454 bills per pound
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50lbs
of 10$ bills
= 227.000$
50lbs
of 20$ bills
= 454.000$
50lbs
of 50$ bills
=1.135.000$
50lbs
of 100$ bills
=2.270.000$
50lbs cocaine
= 600.000$
50lbs marijuana = 300.000$
ECONOMIC IMPACTS OF
MONEY LAUNDERING
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Misallocation Of Funds
Unpredictable Movements Of Funds
Reputation Risk
Undermines the Legitimate Private Sector
Economic Development issues
Loss of Tax Revenue
Loss of Control of Economic Policy
Other
Estimation Of Laundered
Money
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%2-5 World GNP Annually
500 Billion to 1.5 Trillion USD (FATF)
Approaches
Issues
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Hidden activities
Difference in Predicate offences
Black money>Laundered money
INTERNATIONAL EFFORTS
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Financial Acton Task Force-1989
The Vienna Conventinon-1988
Basle Committee Statement of
Principles-1988
European Union Directive-1991
IOSCO-1992
Other
FAFT
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40 Recommendations
Country Evaluations
Typology Studies
Guidelines
Mutual Evaluation
Identifying Non-Cooperative Countries
and Territories
Latest FATF Report About
NCCOT’s
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NCCOT’s
Jurisdictions Subject To The monitoring
Process
Off Shore Centers
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Tax Evasion
Evading Strict Regulation
Money Laundering
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Confidentiality
Weak Supervision
Owning a bank, company
Some Figures
Jurisdiction Banks
Bahamas
305
Liechtenstein 17
Seychelles
Nauru
400
Comp.
47,040
75,000
4,800
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http://www.state.gov
A Brief History of Combating
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1972 Bank Secrecy Act- US
1986 Money Laundering Control Act-US
Enactment Of Otter Countries Acts
Emerge of Financial Intelligent Units
Scope of The ACT’s
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Criminalization of Laundering
Determining Predicate Offences
Establishing Of a FIU
AML Programs (Reporting, Identification,
Recording etc of Transactions.. Etc)
Civil &Criminal Liabilities
Other (Information Exchange, Education..etc)
Basic FIU Model
1-Disclouseres transmitted to FIU
2-FIU receives additional information from law enforcement
3-Possible exchange with foreign counterpart FIU
4-After analysis, FIU provide case ti prosecutor for action
Egmont Group and Definition
of FIU
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EGMONT Group-1995
Central national agency responsible for
receiving, requesting, analyzing and
disseminating to the competent authorities,
disclosures of financial information,
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concerning suspected proceeds of crime
in order to counter money laundering.
FIU’s of Some Countries
Security Markets
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Industry Rely on Commissions
Due Diligence has taken Perception
International, Large, Liquid Nature
Availability of many Instruments and
Institutions
Securities Market (Cont)
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Layering Stage
Lack of Information
IOSCO Resolution-1992
GAO survey of Securities Sector of USA
Patriot ACT –Brokers/Delaers
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Before Patriot Act
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Currency Transaction Reports
Funds Transfers and Transmittals
Suspicious Activity Reporting-Red Flags
Other
Patriot Act-Brokers/Dealers
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SEC 312 Private Banking Account
SEC 313 Correspondent Account
SEC 314 Financial Institution
Cooperation Provision
SEC 319 Domestic and Foreign Bank
Records Production
Patriot Act-Brokers/Dealers
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SEC 352 Anti Money Laundering
Programs
SEC 356 Suspicious Activity Report by
the Securities and futures Industry
SEC 256 Customer Identification and
Verification
Typologies
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Typologies from FATF and Other
Sources
Conclusion
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Reducing Crime
Since 1990’s Significant Steps has taken
Lack of Statistical Data
Isolation of NCCOT’s from Global
Financial Community
New Fighting Means Focusing on
Detecting