Anti Money Laundering Investigations

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					Anti Money Laundering
     Investigations


 The Investigators Tool Box
       UN CONVENTION ON
          CORRUPTION
SHALL                          Consider
• Establish a domestic         • Establishing an FIU
  regulatory and supervisory   • Monitor cash movements
  regime to determine            across borders
  money laundering             • Require FI.s to track
• Agencies have ability to       electronic transfers and
  cooperate and exchange         other transactions
  information on National      • Develop and promote
  and International levels       international agencies and
                                 cooperation
           Predicate Crimes

• Underlying crimes or offences generating
  illegal proceeds
• Crimes range from fraud, corruption and
  bribery, theft, organized crime, trafficking
  in human beings and drugs, smuggling,
  counterfeiting of currency and
  environmental crime (e.g. illegal logging)
             Predicate Crimes
• Specifically money laundering includes:
• The conversion or transfer of property knowing
  that such property is the proceeds of some form of
  unlawful activity, for the purpose of concealing or
  disguising the illicit origin of the property, and/or
• The concealment or disguise of the true nature,
  source, location, disposition, movement, or
  ownership of or rights with respect to property,
  knowing that such property is the proceeds of
  some form of unlawful activity
Money Laundering Cycle
         Funds Identified From
           Predicate Offence


                    Funds from Predicate Crime


   Corruption           Money Generated       Funds laundered
 Drug trafficking                                Identified by
Organized Crime                               law enforcement
                                             part of investigation
   UN Conventions Which Have
    AML AS A TECHNIQUE
• Against drugs and
  Psychotropic
  substances
• Against Organized
  Crime
• Trafficking in Humans
• Terrorist Financing
  CORRUPTION
United Nations Global Program
Against Money Laundering
               • Conventions
               • Established best
                 practices
               • Mentor program
               • Analysis of legislation
               • Assistance in T.A.
The Financial Sector
    • Money needs to be
      moved into the
      financial sector
    • Move money through
      Financial sector
    • Around the world
Financial Action Task Force
• Established standards
• 40+9
  Recommendations
• Mutual Evaluations
• DSI Evaluations
• NCC list / Tour de
  Table
FATF Predicate Crime
  Recommendation
 Predicate Crimes/Offences in FATF
 Recommendation 1
 Country should apply the crime of ML to:
 -all serious offences, with a view to including
 the widest range of predicate offences; or
 -a threshold linked either to a category of
 serious offences or to the penalty of
 imprisonment applicable to the predicate
 offence (threshold approach); or
 -a list of predicate offences; or
 - a combination of both.
                              Peps
•   Politically Exposed Persons: Defined in FATF Standards as –
•   “Individuals who are or have been entrusted with prominent
    public functions in a foreign country, for example Heads of State
    or of government, senior politicians, senior government, judicial
    or military officials, senior executive of state owned
    corporations, important political party officials”
•    However, under the standards, countries are only required to
    cover foreign PEPs in their legislative and regulatory
    frameworks
•    Enhanced customer due diligence and monitoring of business
    transactions including beneficial owner identification
                   FSRB
• FATF-Style Regional
  Body
• Dar es Salaam
• 14 county members
• Country Strategies
• Stakeholder group
• Technical Assistance
           The Egmont Group
• Financial Intelligence
  Units
• World wide
  organization
• Research
• Exchange information
               What Is a FIU?
• To primary function of an
                                   Reporting Entity
  FIU is to;
                                                      Prosecutorial
                     Other FIUs
                                      FIU               Agencies
   – collect
   – analysis and                      Law
                                   Enforcement
   – disseminate                     Agencies



                                  Other domestic
financial intelligence               agencies
           Functions of an FIU
• Collection.                  • Dissemination
                                  – Evidence of money
   – Information is                 laundering is reported to
     collected from                 law enforcement agencies
     reporting entities such        for further investigation
     as financial                 – Strong evidence of money
                                    laundering is reporting to
     institutions, and              the prosecutor
     insurance brokers.           – Information is disseminated
                                    spontaneous or upon
   – FIUs must educate              request to other FIUs
     reporting entities on
     their reporting
     responsibilities.
      Cooperation With Other
            Agencies
Domestic cooperation can be best achieved
 where mutual sharing of information between
 agencies and departments is legally
 authorized, where such cooperation is
 explicitly endorsed by an intergovernmental
 group overseeing AML, and where the nature
 and extent of cooperation is reported to and
 reviewed by that group. For the AML regime
 to achieve its maximum potential, these
 domestic relationships need to be clearly
 understood by all players.
      Cooperation With Other
            Agencies
• Each ESAAMLG country has a AML Task
  Force
• Meet regularly and identify issues related to
  legislation, cooperation or enforcement
FIU Intelligence Information to
      Law Enforcement


                          FIU Intellegence
                            Information


Financial Institution            FIU             Law Enforcement obtain
       STR                 Evaluates STR                FIU report
 Threshold Repot        intellegence indicates    expected to investigate
       KYC              suspeciouns possibly       expected to feedback
            International Cooperation
• Interpol is an agency
  for first resort
• Cross border
  investigations
• Requests go to the
  local police in the area
  where information is
  requested.
• No confidentiality
      Global Organization of
Parliamentarians Against Corruption

                  •    GOPAC is a global
                      organization     of     self
                      governing regional and
                      country     chapters     of
                      parliamentarians,
                      committed to reducing
                      corruption by improving
                      the    effectiveness     of
                      parliaments as institutions
                      of      oversight       and
                      accountability.
                 Thank You

          Wayne Blackburn, UN Mentor, ESAAMLG
  Eastern and Southern Africa Anti-Money Laundering Group
PO. Box 9923, Ex-Kamata Building Nyerere/ Msimbazi Junction
                   Dar es Salaam, Tanzania

                 Tel (+255) 22 2180560
                 Fax (+255) 22 2180553
               Mobile (+255) (0) 784-207406
Email wblackburn@esaamlg.or.tz or wblackburn2@hotmail.com