International Standards on the Combating of Money Laundering and Financing of Terrorism Organised Crime Groups - The Impact on Financial Services Businesses ‘Organised Crime Groups - The Impact on Financial Services Businesses’ 2 nd December 2015 STEP Matthew Brehaut Financial Intelligence Service (FIS)

Global Problem for Law Enforcement One or more persons facilitating Crime – Internationally and Domestically One aim – Financial Gain Multiple Sophisticated Crime

2014 Retail profit US$ 1 billion Estimated US$ 6 billion within 10 years

DOMESTIC CRIME OCG committing multiple large scale fraud(s) Funds obtained and moved to multiple countries Method ‘Hacked’ with the OCG taking control of the Clients Request $2.4 Million to be transferred to Hong Kong Company Funds removed Fraud Identified – Funds moved to Hong Kong FIS had the funds stopped and the money was sent back Company identified through Open Source and slightly changed The was from John.smithh.co – the real address is John.smith.comJohn.smith.com Message sent to a staff member requesting a payment to be sent to Australia This was identified and not actioned

DOMESTIC CRIME States of Guernsey Fraud £2.6m Classic Fraud Adrian Taylor and John Woodhatch sentenced to 5 years.

DOMESTIC CRIME How to avoid being a victim of this OCG Previous Case Check account is the right address i.e. No digits or letter missing, spellings Check that the client is happy with the payment Check destination company exists Check the payment (4 or 6 eyes approach) Is this in keeping with previous transactions Similar approach to Invoice Frauds

CARIN is an informal network of English speaking judicial and law enforcement practitioners, who are expert in the field of asset tracing, freezing, seizure and confiscation

GLOBAL CO-OPERATION

Kosovo Latvia Liechtenstein Lithuania Luxembourg Malta Moldova Monaco Montenegro The Netherlands Norway Poland Portugal Romania Russia Serbia Slovak Republic Slovenia South Africa Spain Sweden Switzerland Turkey Ukraine United Kingdom United States of America CARIN MEMBERS - 54 COUNTRIES Albania Australia Austria Belgium Bosnia and Herzegovina Bulgaria Canada Croatia Cyprus Czech Republic Denmark Estonia Finland France FYROM Georgia Germany Gibraltar Greece Guernsey Hungary Iceland Indonesia Ireland Isle of Man Israel Italy Jersey

Group of Financial Intelligence Units Secure platform for the exchange of financial intelligence Strict principles in the Information Exchange Provides an understanding of how money laundering and terrorist financing works Global Fight against Terrorist Financing EGMONT