1. Office of Technical Assistance (OTA) 1 Financial Intelligence Unit Development and the application of technology

2. Building the FIU Issues impacting development Responsibilities Responsibilities Laws Laws Regulations Regulations Mission/Goals Mission/Goals Internal operations and processes (“Business Process”) Internal operations and processes (“Business Process”) Present and future size of the unit Present and future size of the unit Human resource needs Human resource needs Technology needs Technology needs Budget Budget

3. Office of Technical Assistance (OTA)3 Building the FIU Source: Adapted from FINTRAC (Canada) 2001 Annual Report, Appendix III.

4. Office of Technical Assistance (OTA)4 Building the FIU

5. Office of Technical Assistance (OTA)5 Operations and Processes Workflow Workflow Document storage and management Document storage and management Case development Case development Analysis (Operational vs. Strategic) Analysis (Operational vs. Strategic) Investigation Investigation Collaboration Collaboration Management Management

6. Office of Technical Assistance (OTA)6 Operations and Processes “Workflow”

7. Office of Technical Assistance (OTA)7 Systems Planning Technical Assistance (TA) Technical Assistance (TA) Staffing Staffing Systems Design Systems Design Procurement Procurement Proposals & Vendors Proposals & Vendors Software and Hardware Software and Hardware

8. Office of Technical Assistance (OTA)8

9. 9 Operations & Processes Collect data Collect data Analyze information Analyze information Receive transaction reports Receive transaction reports Currency Transactions filing (CTRs) Currency Transactions filing (CTRs) Suspicious Activity filing (SARs), etc. Suspicious Activity filing (SARs), etc. Paper forms and/or electronic filing by Obligated Entities Paper forms and/or electronic filing by Obligated Entities What is the expected volume of filing? What is the expected volume of filing? Compile additional financial records and intelligence Compile additional financial records and intelligence How will you approach document management and storage How will you approach document management and storage Who are the FIU’s clients? Who are the FIU’s clients? Law Enforcement Law Enforcement Prosecutors Prosecutors Other FIU’s Other FIU’s What does the FIU do?

10. Office of Technical Assistance (OTA)10 Operations & Processes Document the processes and assign responsibility Document the processes and assign responsibility Documentation ProcessActorActivityNotes and Comments 1. Data EntryAnalytic Dept.1.Receive documents in data entry office 2.Divide documents among data entry staff 3.Transcribe data onto MS Access forms, enters document control number 4.Telephone submitter for error correction. Minor errors are corrected on the phone. 5.Forms put in holding file while waiting for corrected forms to arrive via fax or mail  No crosschecking of data entry makes transcription errors likely.  90% of reports from Banks  50% of reports hand written  Banks rapidly respond to requests for corrections  Some forms are exempt from entry (not clear what happens to them) 2. Marked Suspicious? Analytic Dept.1.If the document is marked as suspicious then it is transferred directly to the Suspicious Transactions Department 2.Otherwise, the document is transferred to the Pre-Analysis office. 3. Pre-AnalysisAnalytic Dept.1.Work is divided among office staff on the basis of paper reports. 2.Query CTR database using document control number 3.Check data entry for quality 4.Check CTR database for suspicious indicators such as number and timing of previous reports, size of transaction(s), source of funds 5.Check database from Central bank, if appropriate. 6.If suspicious, gather supporting information in a folder in paper form.  Customs forms not searched  No systematic name matching for lists, only ad-hoc and manual checking

11. Office of Technical Assistance (OTA)11 Analytical Process Components Analyst Analytical Tools Analytical Tools Analytical Functions Analytical Functions Analytical Products Analytical Products Information Sources Information Sources

12. Office of Technical Assistance (OTA)12 Analytical Process Data Text Statistics Graphics Analyst Analytical Tools Analytical Tools Analytical Functions Analytical Functions Analytical Products Analytical Products Information Sources Information Sources

13. Office of Technical Assistance (OTA)13 Retrieve Link SortEdit Calculate Digitize Analytical Process Analyst Analytical Tools Analytical Tools Analytical Functions Analytical Functions Analytical Products Analytical Products Information Sources Information Sources

14. Office of Technical Assistance (OTA)14 Word Processing Spread Sheet Graphics Data Bases Analysis Software Statistics Info Analytical Process Analyst Analytical Tools Analytical Tools Analytical Functions Analytical Functions Analytical Products Analytical Products Information Sources Information Sources

15. Office of Technical Assistance (OTA)15 Analytical Process Analytical Tools Analytical Tools Analytical Functions Analytical Functions Analytical Products Analytical Products Information Sources Information Sources Analyst Intelligence Reports Analytical Reports Targeting Reports Threat Assessments Country Studies Cash Flow Analyses

16. Office of Technical Assistance (OTA)16 Data Analysis Types Association & Link Analysis Association & Link Analysis Statistical Analysis Statistical Analysis Aggregate Analysis (between data sets) Aggregate Analysis (between data sets) Trends and patterns Trends and patterns Fraud and ML detection analyses Fraud and ML detection analyses Remember that the analysis techniques used by your FIU must be supported by the technology architecture.

17. Office of Technical Assistance (OTA)17 IT Systems Infrastructure LANs, WANs, Intranets, Extranets, Communication links, etc.

18. Office of Technical Assistance (OTA)18 Environment Office facility and structure Office facility and structure Physical Security Physical Security Computer room requirements Computer room requirements Network and communication wiring Network and communication wiring Air conditioning and humidity controls Air conditioning and humidity controls Etc. Etc.

19. Office of Technical Assistance (OTA)19 Network Architecture Local Area Network (LAN) components Local Area Network (LAN) components Network Hub(s), switches, routers, firewall Network Hub(s), switches, routers, firewall Fast Ethernet (100Mb/sec), Cat.5 cable Fast Ethernet (100Mb/sec), Cat.5 cable Plan for: Plan for: network management and control network management and control Power requirements Power requirements UPS requirements UPS requirements

20. Office of Technical Assistance (OTA)20 LAN Server(s) Hardware Considerations Based on your size of organization and applications supported Based on your size of organization and applications supported Expandable and easy to support in your local environment Expandable and easy to support in your local environment Capacity planning / Scalability / Upgradable Capacity planning / Scalability / Upgradable Redundancy Redundancy Backup and recovery Backup and recovery Security controls Security controls

21. Office of Technical Assistance (OTA)21 LAN Server Functions Centralized storage Centralized storage Small databases, documents, spreadsheets, etc. Small databases, documents, spreadsheets, etc. Email server Email server MSExchange, Unix Sendmail, etc. MSExchange, Unix Sendmail, etc. Other needed functions Other needed functions LAN printing, calendar LAN printing, calendar Redundancy, backup and recovery Redundancy, backup and recovery What do servers provide?

22. Office of Technical Assistance (OTA)22 Dedicated Server(s) for DB Server(s) for Database(s) Server(s) for Database(s) CTR Database CTR Database SAR Database SAR Database MIS Database MIS Database Others Others Considerations Considerations Scalability, compatibility, ease of use Scalability, compatibility, ease of use Redundancy, backup and recovery Redundancy, backup and recovery Systems security and access controls Systems security and access controls Power requirements Power requirements UPS requirements UPS requirements

23. Office of Technical Assistance (OTA)23 Database Architecture Relational database Relational database SQL based database SQL based database Logical Data Model(s) Logical Data Model(s) Strive for standardization & interoperability Strive for standardization & interoperability Client-side Database access tools Client-side Database access tools modification, queries, manipulation, etc. (Sybase MS SQL, Oracle, Informix…, etc.) modification, queries, manipulation, etc. (Sybase MS SQL, Oracle, Informix…, etc.) Database Examples Internal DB Server CMIR SAR Other CTR Choose a database software package that best satisfies your requirements and fits your environment.

24. Office of Technical Assistance (OTA)24 Logical and Common Data Model Report Transaction Participant Address Request Subject Identification Intelligence Transaction Entity Model Request Entity Model Intelligence Entity Model

25. Office of Technical Assistance (OTA)25 Small FIU Data Standards – why? Country-specific Data Common / Core Data Large FIU

26. Office of Technical Assistance (OTA)26 Analytical Tools Tools for data presentation, visualization, link/association, statistical analysis, data mining, pattern discovery, etc. Tools for data presentation, visualization, link/association, statistical analysis, data mining, pattern discovery, etc. Visual Analytics (VisuaLinks, DIG) Visual Analytics (VisuaLinks, DIG) SAS (AML Suite) SAS (AML Suite) SPSS (Clementine) SPSS (Clementine) Xanalys (Watson) Xanalys (Watson) i2 (Analyst Notebook, etc.) i2 (Analyst Notebook, etc.) NetMap NetMap Which tools best meet your FIU needs and environment?

27. Office of Technical Assistance (OTA)27 “Workstation/PC” Hardware and Software Example: Hardware (Compaq, Dell, etc.) 256 MB Ram 40 GB hard drive CD-ROM/DVD Operating environment Windows NT, 2000, XP Internet Connectivity Network card, modem, WiFi, etc. Software Word processor (MSWord) Email (Outlook, Netscape, …) Analysis tools Database application (Access, etc.) Internet browser (MS Explorer, Netscape, …) Database client (Sybase, Oracle, MS SQL, …)

28. Office of Technical Assistance (OTA)28 “Server” Hardware and Software Example: Hardware (Sun/etc.) Sun, DELL, HP, … Operating environment Solaris, Unix, Linux, etc. Network Connectivity Network card, modem, WiFi, Ethernet, … Configuration RAID5, load balancing, … Software/Server AntiVirus Proxy & Domain Firewall Email Web File DB ISA VPN

29. Office of Technical Assistance (OTA)29 Communication Considerations Access to external systems (Gov’t or Commercial DBs) Access to external systems (Gov’t or Commercial DBs) Providing access to in-house systems Providing access to in-house systems Dial-up or dedicated access Dial-up or dedicated access File transfers to/from FIU File transfers to/from FIU secure email secure email Data and communication security controls Data and communication security controls Authentication, encryption & access audit Authentication, encryption & access audit

30. Office of Technical Assistance (OTA)30 Technical Support Staff Network installation, configuration and support Network installation, configuration and support Systems and communication administration Systems and communication administration Database / software development and support Database / software development and support Desktop support Desktop support Consider current and future technical support staff needs.

31. Office of Technical Assistance (OTA)31 Maintenance and Support of Key Systems Maintenance and service level agreements to support mission critical systems for hardware and software Maintenance and service level agreements to support mission critical systems for hardware and software Type of service(s) required Type of service(s) required 24/7 24/7 telephone help line telephone help line Upgrades and patches Upgrades and patches Vendors on-site or phone support Vendors on-site or phone support

32. Office of Technical Assistance (OTA)32 Training Staff Technology training Technology training Use of computers & Software Use of computers & Software Databases Databases Internet Internet other tools other tools Functional / Analytical training Functional / Analytical training Financial / Intelligence analyses Financial / Intelligence analyses Reporting, etc. Reporting, etc.

33. Office of Technical Assistance (OTA) 33 Thank You Joe Bognanno Enforcement Advisor joe.bognanno@ota-it.us T: +1 571.275.7480 F: +1 703.573.6660 Office of Technical Assistance (OTA) US Department of the Treasury