Transcript Money Laundering

The challenge of global
enforcement –
fight against money
laundering
Group
1 Presentation
Money Laundering
•The phrase "money
laundering" covers all
procedures to change the
identity of illegally obtained
money so that it appears to
have originated from a
legitimate source.
Money Laundering
•criminals need to conceal the true
ownership and origin of the money;
•they need to control the money; and
•they need to change the form of the
money.
Money Laundering- 3
stages
1. Placement - the physical
disposal of cash proceeds
derived from illegal activity.
Money Laundering- 3
stages
2. Layering - separating illicit
proceeds from their source
by creating complex layers of
financial transactions
designed to disguise the
audit trail and provide
anonymity.
Money Laundering- 3
stages
3. Integration - If the layering
process has succeeded,
integration schemes place the
laundered proceeds back into
the economy in such a way
that they re-enter the financial
system appearing to be
normal business funds.
The legislation on money
laundering in Hong Kong
• money laundering=criminal
offence
• 14 years' imprisonment
• a maximum fine of HK$5 million
Case 1
money laundering of warez group
Case 1: Warez group
• Background: Jacky Chan
• Sales and produce warez (Placement)
• Money laundering : investment for
assets and horse club (Layering )
• Sales the assets (Integration)
• A legal money
How to detect dirty money?
Money Laundering by Secured and
Unsecured Lending
• repay problem loans unexpectedly
• refuses to state a purpose of a loan
‧Money Laundering by
Cash Transactions
‧Money Laundering though
Bank Accounts
International co-operation
• FATF
• Communicate , share experience
International Conference
• Case---Mr Lai
Prevent Money Laundering
internationally
What is FATF?
• The FATF is an inter-governmental body
whose purpose is the development and
promotion of national and international
policies to combat money laundering
and terrorist financing.
What’s FATF do?
• (1) Setting standards for national anti-money
laundering and counter terrorist financing
programmes;
• (2) evaluating the degree to which countries have
implemented measures that meet those standards;
and
• (3) identifying and studying money laundering and
terrorist financing methods and trends
Any’s members?
• The FATF membership is currently
made up of thirty-one countries and
territories and two regional
organizations.
• E.g. Japan, Italy, Hong Kong, Argentina,
France, Germany, Mexico, USA, UK
• The FATF also works in close cooperation with a number of international
and regional bodies involved in
combating money laundering and
terrorist financing.
• E.g. Asia / Pacific Group on Money
Laundering (APG)
Public Promotion
HKMA and The Hong Kong Police Force
had made an TV advertisement.
Have you seen it before?
Video
Thank you!