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									      February 2009                                                                             ISSN 1440-236X




        The Asia/Pacific Group on Money Laundering Information Quarterly




A newsletter on the APG’s work to
implement the international standards                            APG welcomes Papua New Guinea (PNG)
for anti-money laundering / combating                                      as 39th member
the financing of terrorism (AML/CFT)
                                                                APG Co-Chairs, Commissioner Mick Keelty and Mr Ong
       Message from Executive Secretary                         Hian Sun, have welcomed Papua New Guinea (PNG)
                                                                as the 39th member of the APG effective 17 December
                     Congratulations to PNG for joining the     2008.
                     APG last December as the 39th member.      The voting to admit PNG was unanimous. The
                     PNG is a welcome addition to the Pacific   admission of PNG adds an important strategic partner
                     Islands sub-regional group.                to the regional effort to combat trans-national crime in
                     I am very pleased to inform the            the form of money laundering and terrorist financing.
                     membership that both the United States
                     and New Zealand have provided                 Japanese Government Secondment to
                     additional   funds     for   our   TA&T
                     programme – see more in this
                                                                               Secretariat
newsletter. Thank you to New Zealand and to the United          Mr Hideaki Usami from the Japanese Customs Service
States for this strong support.                                 has been placed in the APG Secretariat, effective 17
In the brief four months since the last Newsletter, the APG     November 2008, for two years as a Senior Project
has been involved in a large number of activities: four         Officer. The APG is grateful to the Japanese
mutual evaluations were conducted, seven TA&T missions          Government for assisting the APG, and the Secretariat
(including SIP missions), the Typologies Workshop in Sri        in particular, to meet its demanding business objectives
Lanka and other activities. These activities are outlined in    over the next two years. Japan is the first country to
greater detail in the Mid Year Report and in this Newsletter.   place an expert with the Secretariat under the
Also please note that two important AML/CFT conferences         Secondment Plan proposed at the 2006 APG Annual
are coming up: one in Sydney and one in Kuala Lumpur            Meeting in Manila, Philippines.
(details and dates are in this newsletter). Mark them in your
diaries and hopefully you can attend.
Finally, also please mark in your diaries that our Annual
Meeting is fast approaching (6 to 10 July, in Brisbane).
Planning is underway for this event. I hope to see everyone
there. It promises to be another success building on last
year’s achievements in Bali.

Gordon Hook
Executive Secretary


                                                       1
                                          MEMBERSHIP OUTREACH
        APG delegation visits Cambodia                                       APG delegation visits Lao PDR
The APG held an outreach mission to Cambodia in                  An APG delegation visited Vientiane, Lao PDR from 26
December 2008 to encourage effective implementation of           to 28 January 2009 to discuss technical assistance and
a national AML/CFT coordination mechanism and to                 training issues with the Anti-Money Laundering
discuss the progress of Cambodia’s related legislation.          Intelligence Unit (AMLIU) of the Bank of Lao PDR - the
The mission met key AML/CFT government officials to              country's Central Bank.
share experience and practical advice on interagency             The APG delegation consisted of the APG Secretariat
coordination at policy and operational levels.                   and Bank Negara Malaysia. The delegation met with
Bank Negara Malaysia was an integral part of this mission        various government ministries and agencies. A number
to share Malaysia’s experience in implementing their             of issues were discussed with officials including the
AML/CFT legal framework and their AML/CFT national               content of the international AML/CFT standards, the
coordination efforts.                                            mechanisms for establishment of a national AML/CFT
                                                                 coordination framework and the status of Lao PDR's laws
                                                                 in relation to these issues.
                                                                 Lao PDR joined the APG in 2007 and is an important
                                                                 member of the South-East Asia sub-regional group of the
                                                                 APG.




   APG Delegation with Governor of National Bank of Cambodia
                                                                             APG Delegation with Bank of Lao PDR officials


                  LOOKING AHEAD TO THE 12TH APG ANNUAL MEETING
                              BRISBANE, AUSTRALIA
                                 6-10 JULY 2009
The 12th APG Annual Meeting will be held in Brisbane, Australia from 6 to 10 July 2009, inclusive. Monday 6 July will
be for APG Working Group meetings, technical information seminars, the APG Steering Group meeting, and other
meetings in the margins. The plenary will take place during the balance of the week.
The purpose of this Annual Meeting is to discuss the APG's strategic direction and work programme, including: the
structure and operation of the APG (including its Terms of Reference, planning issues, budget etc); a number of mutual
evaluation reports of APG members; implementation issues facing APG members; technical assistance and training
issues for member jurisdictions in coordination with donor organisations and jurisdictions; emerging and evolving
money laundering and terrorist financing methods as well as counter-measures; and special issues and developments
of significance to members and observers.
Invitations to the APG Annual Meeting may be extended to non-member jurisdictions and organisations, however,
certain agenda items will be confidential and only members may attend those sessions.
Invitations together with hotel booking information will be sent to members and observers (and posted on the APG’s
website, www.apgml.org ) closer to the event.




                                                     Brisbane City Skyline




                                                           2
                                             MUTUAL EVALUATIONS
     APG/FATF Mutual Evaluation of Korea                          World Bank/APG Assessment of Pakistan
The joint APG/FATF Mutual Evaluation team for Korea              The onsite for the World Bank-led Assessment of
visited the capital Seoul from 3 to 14 November 2008.            Pakistan took place from 26 January to 7 February 2009.
The evaluation team included experts from Hong Kong              The team consisted of World Bank officials and the APG
(legal); Japan (law enforcement); Macao, China; Spain and        Secretariat, with APG experts (New Zealand and United
U.S.     (financial   and     regulatory);  together  with       States) participating as World Bank contractors.
representatives from the APG and FATF Secretariats.              The onsite included two weeks of intensive meetings in
This is the second mutual evaluation for Korea. Korea is         Islamabad and Karachi with all relevant AML/CFT
currently an observer in the FATF and has applied for            stakeholders (57 meetings in total).
FATF membership.                                                 This is the second mutual evaluation of Pakistan - the
                                                                 first was in 2004 by the APG under the old FATF
                                                                 methodology.




                                                                                  Supreme Court of Pakistan
             Joint mutual evaluation team at Korea’s
                 Financial Services Commission

       APG Mutual Evaluation of Vietnam                             APG Mutual Evaluation of Cook Islands
The on-site of the APG Mutual Evaluation of Vietnam was          The    APG and the Off-Shore Group of Banking
conducted from 6 to 21 November 2008 in Hanoi.                   Supervisors (OGBS) conducted a joint second round
The team consisted of assessors from Australia (financial        mutual evaluation of the Cook Islands between 2 and 16
and regulatory), Hong Kong (legal), the Philippines              February 2009 in Rarotonga.
(financial and regulatory), Thailand and Afghanistan (law        The evaluation team consisted of experts from the
enforcement).                                                    OGBS/Guernsey        Financial   Services   Commission
This is the first mutual evaluation of Vietnam since             (financial and regulatory); Malaysia (financial and
becoming a member in May 2007.                                   regulatory); New Zealand and Solomon Islands (law
                                                                 enforcement); and Australia (legal).
                                                                 This is the third mutual evaluation of Cook Islands. The
                                                                 first was in 2001 by the APG and OGBS, and the second
                                                                 in 2004 by the IMF and APG under the old FATF
                                                                 methodology.




   Mutual Evaluation team with Vietnamese government officials          Mutual Evaluation team with government officials




                                                             3
                            Publication of Palau's Mutual Evaluation Report
The Detailed Assessment Report of Palau (adopted at the July 2008 APG Annual Meeting) is now available on our
website at www.apgml.org. The report was prepared by the IMF with the participation of the APG.
APG members considered and adopted six Mutual Evaluation Reports (MERs) in 2008, including the Palau report. The
public release of MERs provides public and private sector stakeholders with the opportunity to assess members’
progress in implementing the global AML/CFT standards. APG rules require automatic publication of MERs following
adoption by the membership. The timing of publication is subject to any internal procedures by joint evaluation bodies,
and as the IMF has recently completed its internal processes, the APG has published the MER.
A copy of this report may be downloaded from the "documents" section of the APG’s website under "Mutual Evaluation
Reports: Round 2 (2005-2010)".
               APG/World Bank Workshop for Jurisdictions to be Evaluated in 2009
The APG is conducting its next “APG Workshop for Jurisdictions to be Evaluated” in March 2009 in Brunei Darussalam
at the Rizqun International Hotel. This Workshop is open to APG jurisdictions that will be evaluated in late 2009,
namely: Afghanistan, Brunei Darussalam, India, Solomon Islands and Tonga. The workshop is hosted by the Brunei
Darussalam Ministry of Finance, with sponsorship from the World Bank and the support of experts from the World
Bank, the IMF, the FATF (UK), Singapore, Malaysia and the APG Secretariat.

                           TECHNICAL ASSISTANCE AND TRAINING
            TA&T Mission to Mongolia                                   TA&T Mission to Timor-Leste
In December 2008, an APG mission visited Mongolia to         An APG mission visited Timor-Leste in November 2008 to
work with government agencies to enhance inter-agency        assist with implementation of their AML/CFT framework.
cooperation and coordination; to raise awareness of the      AMLAT, of the Australian Attorney-General’s Department,
gaps in the legal framework to criminalise money             collaborated in the delivery of this mission.
laundering; and to follow-up on progress against the         The APG mission met with the various stakeholders to
recommendations made in Mongolia’s 2007 mutual               identify Timor-Leste’s TA&T needs. The mission also
evaluation report.                                           took the opportunity to raise awareness amongst various
APG officials met with key stakeholders and assisted         government officials of the requirements of the AML/CFT
Mongolia’s ongoing work to plan and undertake AML/CFT        standards.
implementation.                                              The APG will be collaborating with the DAP Group in
                                                             developing and delivering TA&T programmes for Timor-
                                                             Leste to meet their identified needs.




                   Mongolian Parliament
                                                                            Timor Leste Government Officials

                    United States and New Zealand provide TA&T grants to APG
The Governments of the United States and New Zealand have generously provided additional funding to support
technical assistance and training programmes to priority APG members.
The United States has provided a significant fund to assist the APG’s technical assistance and needs programmes in
the area of national coordination mechanisms and frameworks. This grant recognises the importance of strategic
national mechanisms to coordinate AML/CFT efforts. The Secretariat has, in consultation with the U.S. State
Department, established a list of priority APG jurisdictions that will benefit from this funding arrangement.
New Zealand has provided a one-off grant to the APG from its Pacific Security Fund (administered by the Ministry of
Foreign Affairs and Trade) to assist priority Pacific Island jurisdictions to enhance their counter-terrorist financing
structures in accordance with the global standards. The APG will work with the New Zealand government to establish
a list of priority jurisdictions.
Both of these funding arrangements recognise the continuing need for coordinated and targeted AML/CFT technical
assistance and training in the region.



                                                       4
                      Strategic Implementation Planning (SIP) Framework
             SIP Mission to Myanmar                                         SIP Mission to Indonesia
An APG delegation undertook a post mutual evaluation An APG delegation, comprising representatives from
mission to Yangon, Myanmar from 19 to 23 January              World Bank, Bank Negara Malaysia and the APG
2009 to undertake a Strategic Implementation Planning         Secretariat visited Jakarta, Indonesia from 20 to 21
(SIP) workshop to assist Myanmar to prioritise and            January 2009, to undertake a Strategic Implementation
implement the APG recommendations contained in                Planning (SIP) workshop to provide Indonesia with a tool to
Myanmar's 2008 mutual evaluation report.                      assist them in the prioritization and implementation of
The delegation consisted of representatives from the          recommendations made in the mutual evaluation report of
APG Secretariat, Bank Negara Malaysia, the Attorney           Indonesia which was adopted in July 2008.
General’s Chambers of Malaysia and AUSTRAC,                   The SIP Workshop is one of the steps taken by Indonesia
Australia.                                                    to implement the recommendations of the mutual
Senior Myanmar officials participated in all aspects of the   evaluation report.
workshop's three and half day programme. Key
outcomes included an enhanced understanding among
participants     of      the APG's         implementation
requirements and a commitment by Myanmar to
implement the priority APG recommendations as soon as
possible.




                                                                           APG delegation with the head of PPATK
                  SIP Workshop in Yangon

                                               SIP Mission to Palau
An APG delegation comprising of representatives from the World Bank, AML/CFT mentors from the Pacific Anti-Money
Laundering Programme (PALP) and from the APG Secretariat visited Koror, Palau to facilitate a Strategic
Implementation Planning (SIP) workshop to assist Palau to prioritise and implement the recommendations contained in
their mutual evaluation report.
The SIP workshop was held from 3 to 6 March 2009 at the Palau International Coral Reef Research Center. There
were up to 27 participants from government agencies including from the Office of Attorney General, Financial
Institutions Commission, Office of the Special Prosecutor, Customs, Bureau of Criminal Investigation and Drug
Enforcement, Financial Intelligence Unit, Bureau of Revenue and Taxation and the Bureau of Immigration. Participants
gained an enhanced understanding of the key FATF requirements, and Palau reaffirmed its commitment to enhance its
compliance with international standards.




                                                   SIP Workshop in Palau




                                                         5
                                                 TYPOLOGIES
                         APG 2008 Typologies Workshop, Colombo, Sri Lanka
Over 105 APG delegates attended the 11th Annual APG Typologies Workshop hosted by Sri Lanka. Co-chairs for the
meeting included Sri Lanka, Malaysia and the APG Secretariat. The APG Typologies Working Group, chaired by
Malaysia, met to confirm the finalisation of the draft casino project report and to discuss future work.

The Workshop discussed key findings from the APG/FATF casinos project. Macao, China and Chinese Taipei both
gave interesting presentations, including a presentation on investigations involving casino ‘junkets’.
The Workshop also discussed proceeds of crime investigations and prosecutions with presentations by Fiji; Singapore;
Thailand; Australia; Nepal; Chinese Taipei; Canada; Macao, China; Japan; Hong Kong, China; the ADB; and UNODC.




                       FATF and MONEYVAL joint typologies meeting, Monaco
The FATF and MONEYVAL held a joint typologies meeting in the Principality of Monaco from 24 to 26 November 2008
to explore emerging trends and methods of money laundering and terrorist financing.
In order to effectively combat money laundering and terrorist financing government officials and the private sector need
to understand and keep pace with evolving methods used to launder money and finance terrorism. With this in mind,
yearly typologies workshops are held by the FATF and other Financial Action Task Force Regional bodies (FSRBs). In
2008, MONEYVAL (the European FSRB) hosted a joint meeting with the FATF. In 2007, the APG hosted a joint
meeting with the FATF in Bangkok, Thailand.

Some of the issues discussed at the meeting in Monaco included:

    •   Money laundering and terrorist financing typologies in the securities industry;
    •   Money laundering through sporting clubs and money service businesses; and
    •   Issues associated with the FATF’s suggestion to produce a Global ML and TF Threat Assessment



                                       Diary Note!
                         th
                The 12 APG Typologies Workshop in Siem Reap, Cambodia, 2009
The next APG Typologies workshop will be held in Siem Reap, Cambodia from 25 to 28 October 2009.




                                                       6
                                                 FATF UPDATE

                                      Paris Plenary, 25-27 February 2009
The FATF Plenary in Paris has taken important new steps to protect the international financial system from abuse,
agreeing to:
     •   Issue a Statement calling on its members, and urging all jurisdictions, to apply effective counter-measures to
         protect their financial sectors from the money laundering and terrorist financing risks emanating from Iran.
         The FATF also updated its previous Statement on the money laundering and terrorist financing risks
         emanating from Uzbekistan, Turkmenistan, Pakistan and São Tomé and Príncipe.
     •   Adopt an in-depth evaluation of the anti-money laundering and counter terrorist-financing system in South
         Africa.
     •   Publish a detailed study on the money laundering and terrorist financing vulnerabilities in the casinos and
         gaming sector.
     •   Analyse the impact of the global financial and economic crisis on efforts to combat money laundering and
         terrorist financing.

The APG was represented by the APG Secretariat’s Executive Secretary and Manager, TA&T; and by representatives
from Pakistan and Chinese Taipei. As an Associate Member, all APG members are entitled to attend FATF Plenary
meetings as part of the APG delegation.

                                  AML/CFT EVENTS IN THE REGION
    Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Conference 2009
                                Sydney, 1- 2 April 2009




The AML/CTF Conference 2009 is co-hosted by the Australian Transaction Reports and Analysis Centre (AUSTRAC),
Attorney-General's Department (AGD), Australian Institute of Criminology (AIC) and the Australian Bankers'
Association (ABA) and is to be held on 1-2 April 2009 at the Hilton Hotel in Sydney.
This two day event will provide an excellent opportunity to hear views on AML/CTF from across the globe, including
regulatory, law enforcement, private sector and government perspectives. It will also provide networking opportunities
with other attendees from banking and finance, gambling, money services and other businesses, industry bodies,
government, education and law enforcement.
Confirmed Australian and International speakers include: Antonio Gustavo Rodrigues, President, Financial Action Task
Force (FATF); Dr Gordon Hook, Executive Secretary Asia/Pacific Group (APG) on Money Laundering; Roger Wilkins
AO, Secretary, Attorney-General’s Department; Neil Jensen PSM, CEO Australian Transaction Reports and Analysis
Centre (AUSTRAC); William F. Baity Deputy Director, Financial Crimes Enforcement Network, United States; Mike
Smith Executive Director, United Nations Counter-Terrorism Executive Directorate; Michael Matossian Executive Vice
President and Global Head Regulatory Compliance, Arab Bank, Jordan; and Razim Buksh, Director Fiji Financial
Intelligence Unit Fiji.

Topics that will be discussed include:
        Prevention and combat of money laundering and terrorist financing;
        Impacts of the global financial crisis ; Assessing the effects of the AML regime;
        identifying success, the relevant outcomes and metrics;
        Wickenby Investigation - a whole of government case study; and
        United Nations and counter-terrorism – a global strategy.

Further information and online registrations can be accessed via the official Conference website.
                              www.aic.gov.au/conferences/2009-anti-money_laundering


                                                        7
               International Conference on Financial Crime and Terrorism Financing
                                Kuala Lumpur, Malaysia, 16-17 April




An International Conference on FINANCIAL CRIME AND TERRORISM FINANCING 2009 will be held in Kuala Lumpur
from 16-17 April 2009 at the Mandarin Oriental Hotel.

The Conference is organized by the Compliance Officers Networking Group of Malaysia and the Institute of Bankers of
Malaysia in collaboration with the Securities Industry Development Corporation, The Malaysian Insurance Institute and
supported by the Financial Intelligence Unit in Bank Negara Malaysia.

The theme of the Conference is “Strengthening Vigilance During Turbulent Times” covering issues of financial
institutions, capital market participants, regulators and law enforcement agencies.    It brings together renowned
speakers and leading experts who will provide valuable insights on practical day-to-day challenges of implementing
measures to counter money laundering and terrorism financing. Topics covered include the following:-

        Best approaches and techniques in setting a robust AML/CFT framework, managing CDD and monitoring
        transactions;
        Issues in automating transaction monitoring and detecting suspicious transactions;
        Institutional vulnerabilities and ways to mitigate them; and
        Current topics deliberated at international level which are of concern to AML/CFT policy makers.

Registration

Please e-mail farishatulaa@ibbm.org.my / norazlima@ibbm.org.my to register for the Conference.




                                                        8
The APG iQ is a quarterly           BRIEF GUIDE TO                       Calendar 2009/10
publication of the APG.
                                    COMMON ACRONYMS
                                                                   Selected AML/CFT events taking place
Next edition: May 2009                                             over the next 6 months:
                                    AML/CFT   Anti-Money
Please submit any articles by                 Laundering/          APG Events:
30 April 2009                                 Combating the        •   APG/FATF Mutual Evaluation of
                                              Financing of             New Zealand, April 2009
All contributions are welcome!                Terrorism
                                                                   •   SIP Mission to Vanuatu
                                    APG       Asia/Pacific Group
Please send to:                               on Money             •   Pre-ME Missions to Tonga and
mail@apgml.org                                Laundering               Solomon Islands

Visit our website at:
                                    EAG       The Eurasian         •   APG Annual Meeting, Brisbane,
                                              Group on Money           July
www.apgml.org                                 Laundering
                                                                   •   Mutual Evaluation of Tonga,
                                    FATF      Financial Action
                                                                       September
                                              Task Force
                                    FIU       Financial            •   Mutual Evaluation of Solomon
                                              Intelligence Unit        Islands, October
                                    FSRB      FATF-style           •   APG Annual Typologies Meeting,
                                              Regional Body            Siem Reap, October
                                    IMF       International
                                                                   •   Mutual Evaluation of Brunei
                                              Monetary Fund
                                                                       Darussalam, November
                                    OGBS      Off-shore Group of
                                              Banking              FATF Events:
                                              Supervisors          •   FATF Plenary and Working Group
                                    UNODC     Nations Office on        meetings, Mexico, June 2009
                                              Drugs and Crime      Other Events:
                                    WB        World Bank
                                                                   •   U.S Treasury NPO Workshop in
                                                                       New Delhi, April
                                                                   •   World Bank Regional Workshop on
                                                                       Supervision, Jakarta, May
                                                                   •   MENAFATF Plenary, Bahrain, May
                                                                   •   Egmont Meeting, Doha, May




                 The Asia/Pacific Group on Money Laundering Information Quarterly




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