Money Laundering Awareness

Objectives Define Money Laundering Define Money Laundering Recognize the Three Stages Recognize the Three Stages Work through a practical exercise Work through a practical exercise

Definitions… ttempt to conceal or disguise the ownership or source of the proceeds of criminal activity OECD Attempt to conceal or disguise the ownership or source of the proceeds of criminal activity and to integrate them into the legitimate financial systems in such a way that they cannot be distinguished from assets acquired by legitimate means. Typically this involves the conversion of cash- based proceeds into account-based forms of money.

Definitions… EC directive 1990 Conversion or transfer of property, knowing such property is derived from serious crime, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in committing such an offence or offences to evade the legal consequences of his actions and the concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of property.

So there are three key elements Proceeds Proceeds Transaction Transaction Knowledge Knowledge

The international dimension FATF – 40 recommendations predominately covering aspects of money laundering. FATF – 40 recommendations predominately covering aspects of money laundering. Produce typologies and best practice papers on specific risk areas. A useful online resource. Produce typologies and best practice papers on specific risk areas. A useful online resource. Refreshing mutual evaluation criteria. Discussing feasibility of evaluating effectiveness of implemented AML regimes Refreshing mutual evaluation criteria. Discussing feasibility of evaluating effectiveness of implemented AML regimes

The international dimension(2) Each FATF member will have its own AML legislation, which may use different language to describe the threat but the main ML processes are: Each FATF member will have its own AML legislation, which may use different language to describe the threat but the main ML processes are: PLACEMENT PLACEMENT LAYERING LAYERING INTEGRATION INTEGRATION JustificationInvestment

Putting you to the test! You have generated $5 million from criminal activity. You have generated $5 million from criminal activity. Devise a scheme to launder the proceeds based on the main laundering processes. Devise a scheme to launder the proceeds based on the main laundering processes. This is a one-time scheme so make it realistic and practical. This is a one-time scheme so make it realistic and practical. The best scheme will be suitably rewarded… but be warned on Day 2 that might change! The best scheme will be suitably rewarded… but be warned on Day 2 that might change!