NAEA Seminars – 2014

Content © Copyright NCA $207 Million Cash Seizure NCA Overview SAR Regime Best Practice Case Studies

Trends © Copyright NCA At least 1 in 4 organised crime groups retain a corrupt individual in the legitimate financial sector Illicit profits are often laundered through cash-rich overt businesses, which very often operate on the high street and typically include nail bars, food and licensed premises, companies offering security services, taxi firms and car washes. Complicit, negligent or unwitting professionals in the financial, accountancy and legal professions in the UK facilitate money laundering on behalf of organized criminals. UK organised crime groups also use specialist money launderers, some overseas, who manage laundering for multiple criminal enterprises. Government Serious Crime Review – Oct 2013

National Crime Agency (NCA) © Copyright NCA Keith Bristow Intelligence Hub

Alan Hislop Head of UKFIU Roy Affleck UKFIU Operations Keith White Financial Relationships Donna Carruth Policy, Coordination & Communications International International Corruption Intelligence Cell Consent Terrorist Finance Dialogue Systems and Futures Data Exploitation Policy SAR Management Communications HMRC UKFIU Structure

Money Laundering & UK Legislation

Trends © Copyright NCA

UK Legislation © Copyright NCA Primary Legislation Proceeds of Crime Act 2002 (POCA) Terrorism Act 2000 (TACT) Secondary Legislation Money laundering Regulations 2007

POCA Interpretation © Copyright NCA S.340(9) Any benefit derived from criminal conduct. Property includes money, all forms of property, real or personal, heritable or moveable, things in action and other intangible or incorporeal property POCA – Criminal Property S.340(2) Any conduct which constitutes an offence in any part of the UK or would constitute an offence in any part of the UK if it occurred there POCA – Criminal Conduct

POCA – Money Laundering Offences © Copyright NCA s.327 Concealing, disguising, converting, or transferring criminal property s.328 Being concerned in an arrangement in relation to criminal property s.329 Acquisition, use or possession of criminal property PENALTY – 14 years imprisonment Where a suspicious transaction is pre-advised, Consent must be sought from the NCA to proceed

POCA – Other Offences © Copyright NCA s.330 Failure to disclose – applies to the regulated sector. A person commits this offence if he knows or suspects or has reasonable grounds for knowing suspecting that another is engaged in money laundering and fails to report it PENALTY: 5 years imprisonment s.333 Tipping off “Knows or suspects” that a disclosure (report) has been made & (b)Makes a disclosure which is likely to prejudice any investigation which might be conducted following the disclosure PENALTY: 2 years imprisonment

SAR Best Practice

© Copyright NCA  Put in all KYC / CDD information  Address & date of birth vital if known  Make sure your reason for suspicion is clear  Reason for suspicion should be in first line of text  Glossary code should be used  Always put postcode in even if previously reported on  If you need Consent be specific (and tick the box)  Submit via SAR Online / Fax  Be available during the notice period  Consider business / reputational risk

Consent – Essential Elements © Copyright NCA The information or other matter which gives the grounds for knowledge, suspicion or belief A description of the property that is known, suspected or believed to be criminal or terrorist property A description of the prohibited act for which consent is sought The identity of the person or persons known or suspected to be involved in money laundering or committing or attempting to commit an offence under s15 to 18 of TACT The whereabouts of the property that is known or suspected to be criminal or terrorist property

POCA Interpretation © Copyright NCA

SAR Usage

SAR Submissions by Year © Copyright NCA

Case Studies

Operations Prestige / Gumia © Copyright NCA Koli’s Ferrari

ML Modus Operandi © Copyright NCA Cash Smuggling? Property? Professionals Involved? Foreign Bank Accounts? Front Company? Other Accounts? Rental Properties? Luxury Car Hire Company Building plots, warehouse Bank accounts in names of Limited Companies £400k in solicitor’s client account Bling Lifestyle?Jewellery, cars 14 properties across South East London £5,131,211 recovered

Op Showcase - Smurfing © Copyright NCA Mark Owens 3 Years Fazal Hussain 7 Years Muhammed Habib 3 Years Nasrullah Khan 10 Years

Threat Areas – Property Sector © Copyright NCA Targeting by OCGs – value knowledge / access Identity fraud / false documentation to evade KYC / CDD procedures Complicit / bogus professionals High cash turnover businesses / unusually profitable Increased OCG use of offshore accounts & Company Service Providers Overseas links / international cash flow Protect Yourselves – Be Suspicious

Contact Details © Copyright NCA SAR Online & Glossary of Terms – UKFIU Support desks – UKFIU Dialogue Team via SAR Confidentiality Breach Line – NCA General Enquiries Number – Fraud Reporting

Any Questions? © Copyright NCA