Mag. Mahr A-FIU 2010 Competences of A-FIU The only unit to receive STRs STRs – money laundering STRs – TF STRs – corruption All STRs are analysed

Mag. Mahr A-FIU 2010 Austria Money laundering – illegal source TF – illegal/legal source – relevant is the use of the money Corruption – mainly legal source – relevant is the use of the money

Mag. Mahr A-FIU 2010 Austria Knowledge – used invoices look similar Need to prove the transactions Faked/real invoices Over- and underinvoicing – delivery of goods Consulting agreements Feasibility studies

Mag. Mahr A-FIU 2010 High risk business Non face to face business PEP‘s, terrorists Correspondent bank accounts

Mag. Mahr A-FIU 2010 Client Plenty of lists (PEP‘s, terrorist) New/old customer Individual/company Resident/non resident person Home/foreign countries Trustee Offshore companies Customer products (e.g. weapons)

Mag. Mahr A-FIU 2010 Sphere of the client Loophole of transparency Geographical and political circumstances (support for terrorists, high crime rates eg. corruption; transparancy index) Resident companies (foreign CEO‘s, shareholders)

Mag. Mahr A-FIU 2010 Pattern of transactions Cash (maybe HAWALLA) Interim account Business with offshore companies Non face to face business

Mag. Mahr A-FIU 2010 Search warrant A - FIU Criminal Intelligence Service Austria Statistics EnforcementAuthority Prosecutor Court Disclosures InterpolEuropolFIU´sEgmontFATF WireTape Trustee Arrest warrant Infos Request InternationalAuthorities Analysis Own Investigation Liason Officer StaffBudget National and international Law DEA FBI BKA- Wiesbaden WEGA EKO Cobra A-FIU

Mag. Mahr A-FIU 2010 Hawalla based on trust Legal and illegal sources donations (humanitarian aid) transfers by foreign workers payments for imports payment for services abroad income from tourism capital flight tax offences payment of inflated (fake) invoices proceeds from crimes

Mag. Mahr A-FIU 2010 HAWALLA –Low Costs  no company registration  no nominal capital  no cash reserves  no taxes  almost no personnel costs,  almost no equipment, etc.

Mag. Mahr A-FIU 2010 HAWALLA –Anonymity  avoiding currency controls  capital flight  evasion of taxes  evasion of customs duties  smuggling  money laundering  financing of terrorism

Mag. Mahr A-FIU 2010 HAWALLA –Anonymity  avoiding currency controls  capital flight  evasion of taxes  evasion of customs duties  smuggling  money laundering  financing of terrorism

Mag. Mahr A-FIU 2010 HAWALLA –High degree of flexibility and versatility  avoiding sanctions  hardly any banking system (strictly regulated)  quick response to economic crises  humanitarian aid, etc.

Mag. Mahr A-FIU 2010 HAWALLA  avoiding sanctions  hardly any banking system (strictly regulated)  quick response to economic crises  humanitarian aid, etc.

Mag. Mahr A-FIU 2010

 no activity in the registering country  no decision takers in the registering country  no liability to pay taxes  no proof of the paid-up capital  no double taxation agreement  no duty to keep books of account  strict banking secrecy  liberal foreign exchange control  excellent infrastructure  quick, discrete and low-cost  establishment of companies  excellent on site-services  no activity in the registering country  no decision takers in the registering country  no liability to pay taxes  no proof of the paid-up capital  no double taxation agreement  no duty to keep books of account  strict banking secrecy  liberal foreign exchange control  excellent infrastructure  quick, discrete and low-cost  establishment of companies  excellent on site-services Characteristic features of offshore destinations Characteristic features of offshore destinations it is a special feature of the “offshore business” that the transactions are conducted on a purely international basis and do not involve national interests.

Mag. Mahr A-FIU 2010