Presentation is loading. Please wait.

Presentation is loading. Please wait.

OFFICE OF TECHNICAL ASSISTANCE Trade-Based Money Laundering Kabul, Afghanistan April, 2006 Kabul, Afghanistan April, 2006.

Published byBuddy Griffin Modified over 9 years ago

Similar presentations

Presentation on theme: "OFFICE OF TECHNICAL ASSISTANCE Trade-Based Money Laundering Kabul, Afghanistan April, 2006 Kabul, Afghanistan April, 2006."— Presentation transcript:

1 OFFICE OF TECHNICAL ASSISTANCE Trade-Based Money Laundering Kabul, Afghanistan April, 2006 Kabul, Afghanistan April, 2006

2 OFFICE OF TECHNICAL ASSISTANCE Financial Transparency Successful in War on Narcotics Unsuccessful in War Against Terrorist Finance Terrorism Finance is “Inverse Partner” of traditional Money Laundering New tools necessary

3 OFFICE OF TECHNICAL ASSISTANCE Growing Threat of Alternative Remittance Systems “ Systems” bypass, in whole, or part financial transparency network Little or no financial intelligence/paper trail generated Indigenous/ethnic based systems Systems developed to avoid taxes and government scrutiny Difficult to penetrate “ Systems” bypass, in whole, or part financial transparency network Little or no financial intelligence/paper trail generated Indigenous/ethnic based systems Systems developed to avoid taxes and government scrutiny Difficult to penetrate

4 OFFICE OF TECHNICAL ASSISTANCE Examples of Alternative Remittance Systems Hawala Black Market Peso Exchange Misuse of international gold and diamond trade Chinese “chit” system Common denominator: TRADE Hawala Black Market Peso Exchange Misuse of international gold and diamond trade Chinese “chit” system Common denominator: TRADE

5 OFFICE OF TECHNICAL ASSISTANCE Examples of Trade-Based Money Laundering Fictitious invoicing Double invoicing Barter trade Export incentive fraud Counter valuation Over/under invoicing Fictitious invoicing Double invoicing Barter trade Export incentive fraud Counter valuation Over/under invoicing

6 OFFICE OF TECHNICAL ASSISTANCE Overvaluation to Facilitate Money Laundering Export cargo with a value of $100,000 Falsify the invoices and other documents to show a value of $200,000 $200,000 is sent in payment, which includes laundered $100,000 Invoices, bills of lading, export documents, etc. $200,000

7 OFFICE OF TECHNICAL ASSISTANCE Example of Under Invoicing Talat owes Ahmed $200,000 as part of previous business transaction Decides to pay debt by “under invoicing” shipment of goods Talat sends $500,000 worth of goods, but only invoices Ahmed for $300,000 The extra value of goods ($200,000) covers the original debt

8 OFFICE OF TECHNICAL ASSISTANCE True Examples of Abnormal U.S. Trade Prices High U.S. Import Prices Plastic Buckets from Czech, $972 /unit Briefs and panties from Hungary, $739/doz Cotton dishtowels from Pakistan, $153/unit Ceramic tiles from Italy, $4,480 sq. meter Metal tweezers from Japan, $4,896 per unit Razors from the U.K., $113 /unit Camshafts from Saudi Arabia, $15,200/ unit Iron bolts from France, $3,067 /kg Toilet tissue from China, $4,121 /kg High U.S. Import Prices Plastic Buckets from Czech, $972 /unit Briefs and panties from Hungary, $739/doz Cotton dishtowels from Pakistan, $153/unit Ceramic tiles from Italy, $4,480 sq. meter Metal tweezers from Japan, $4,896 per unit Razors from the U.K., $113 /unit Camshafts from Saudi Arabia, $15,200/ unit Iron bolts from France, $3,067 /kg Toilet tissue from China, $4,121 /kg Low U.S. Export Prices Live cattle to Mexico, $20.65 / unit Radial truck tires to U.K., $11.74 /unit Toilet bowls to Hong Kong, $1.75/unit Bulldozers to Colombia, $1,741/unit Color video monitors to Pakistan, $21.90/unit Gold Watch Casings to Colombia $8.68/unit Prefabricated buildings to Trinidad, $1.20/unit Low U.S. Export Prices Live cattle to Mexico, $20.65 / unit Radial truck tires to U.K., $11.74 /unit Toilet bowls to Hong Kong, $1.75/unit Bulldozers to Colombia, $1,741/unit Color video monitors to Pakistan, $21.90/unit Gold Watch Casings to Colombia $8.68/unit Prefabricated buildings to Trinidad, $1.20/unit

9 OFFICE OF TECHNICAL ASSISTANCE Cash for high-value orders Items priced well over or under market value Mismatch between customer and items ordered Business transfers made for no apparent reason Third-party financing Packaging inconsistent with contents Routing is circuitous or economically illogical. Size or weight of goods is inconsistent with contents Cash for high-value orders Items priced well over or under market value Mismatch between customer and items ordered Business transfers made for no apparent reason Third-party financing Packaging inconsistent with contents Routing is circuitous or economically illogical. Size or weight of goods is inconsistent with contents Indicators and Trends Trade-Based Money Laundering

10 OFFICE OF TECHNICAL ASSISTANCE Abnormal Import Weights PortProductCountryWeight San FranBrief Cases Indonesia 98kg/unit San Fran Carpet Iran 63kg/sq meter L.A.Pens Malaysia 8.7 kg/unit L.A. Televisions Malaysia 202 kg/unit L.A. Carpet Pakistan 62/kg/sq meter

11 OFFICE OF TECHNICAL ASSISTANCE 4590106690719941230452064040$125,160.00$30.98 4590106729319950111452066000$187,740.00$31.29 4590106772319950118452065000$156,450.00$31.29 4590106818419950125452066000$187,740.00$31.29 4590106869719950131452066000$187,740.00$31.29 4590107054519950223452066000$187,740.00$31.29 4590107176619950316452066000$202,860.00$33.81 4590107428119950424452067000$236,000.00$33.71 4590107391119950424452066200$212,400.00$34.26

12 OFFICE OF TECHNICAL ASSISTANCE Gold Bullion delivered from Brazil (in grams) Gold Scrap from Argentina

13 OFFICE OF TECHNICAL ASSISTANCE Gold Exported From Guyana, 8 Arrested Gold Exported From Surinam, 40 Arrested

14 OFFICE OF TECHNICAL ASSISTANCE Gold Exported From Guyana, 8 Arrested Gold Exported From Surinam, 40 Arrested

15 OFFICE OF TECHNICAL ASSISTANCE Trinidad: No Gold Production Netherlands Antilles: “Miraculous Gold Strike”

16 OFFICE OF TECHNICAL ASSISTANCE Operation Meltdown

17 OFFICE OF TECHNICAL ASSISTANCE METHODS OF SMUGGLING GOLD OUTBOUND

18 OFFICE OF TECHNICAL ASSISTANCE Exports of VCRs to Colombia

19 OFFICE OF TECHNICAL ASSISTANCE Exports of Refrigerators to Colombia

20 OFFICE OF TECHNICAL ASSISTANCE Countermeasure: Trade Transparency Units Borrowing from the successful Financial Intelligence Unit (FIU) model, create an international network of Trade Transparency Units (TTUs) that will collect, analyze, and disseminate narrowly focused trade data to help combat trade related crime.

21 OFFICE OF TECHNICAL ASSISTANCE Advantages Proven concept – this works! Little cost Excellent tool to monitor/investigate/disrupt all forms of trade based money laundering Customs fraud reduced Government revenues increased

22 OFFICE OF TECHNICAL ASSISTANCE Summary Need to develop new tools Trade is common denominator in many underground finance systems Enforcement can use trade as the “back door” for intelligence and investigations “Trade Transparency” is the next frontier in anti-money laundering

23 OFFICE OF TECHNICAL ASSISTANCE Thank You ! Questions? J ohn Cassara

Download ppt "OFFICE OF TECHNICAL ASSISTANCE Trade-Based Money Laundering Kabul, Afghanistan April, 2006 Kabul, Afghanistan April, 2006."

Similar presentations

$ LAUNDERING – HOW ITS DONE WHY WE CANT FIND THE $ www.The-Infiltrator.com.

$ LAUNDERING – HOW ITS DONE WHY WE CANT FIND THE $
Terrorist Finance Kabul, Afghanistan April 2006. History of Financial Transparency Follow-the-Money U.S. Bank Secrecy Act - 1970 Creation of financial.

Terrorist Finance Kabul, Afghanistan April History of Financial Transparency Follow-the-Money U.S. Bank Secrecy Act Creation of financial.
Costs and Benefits of Decentralization SATI Workshop on Tax Policy and Administration, University of Pretoria, June 18-20, 2006.

Costs and Benefits of Decentralization SATI Workshop on Tax Policy and Administration, University of Pretoria, June 18-20, 2006.
Chapter 10 Derivatives. 10-2 Introduction In this chapter on derivatives we cover: –Forward and futures contracts –Swaps –Options.

Chapter 10 Derivatives Introduction In this chapter on derivatives we cover: –Forward and futures contracts –Swaps –Options.
Kirt C. Butler, Multinational Finance, South-Western College Publishing, 3e 10-1 Chapter 10 Multinational Treasury Management 10.1Determining the Firm’s.

Kirt C. Butler, Multinational Finance, South-Western College Publishing, 3e 10-1 Chapter 10 Multinational Treasury Management 10.1Determining the Firm’s.
Homeland Security Investigations

Homeland Security Investigations
16. FOREIGN COLLECTIONS 1. 2 TYPES OF COLLECTIONS Both parties gain from efficient collection transfer document processing.

16. FOREIGN COLLECTIONS 1. 2 TYPES OF COLLECTIONS Both parties gain from efficient collection transfer document processing.
Ch. 10: The Exchange Rate and the Balance of Payments.

Ch. 10: The Exchange Rate and the Balance of Payments.
1 CSI COMPLIANCE AWARENESS TRAINING ANTI MONEY LAUNDERING July 2004 This is confidential proprietary and trade secret information of American Express Travel.

1 CSI COMPLIANCE AWARENESS TRAINING ANTI MONEY LAUNDERING July 2004 This is confidential proprietary and trade secret information of American Express Travel.
Chapter 16 International Finance and Exchange Rates Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Chapter 16 International Finance and Exchange Rates Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
Collecting and Reporting Accounting Information Design of an effective AIS begins by considering outputs from the system. Outputs of an AIS include: 1.

Collecting and Reporting Accounting Information Design of an effective AIS begins by considering outputs from the system. Outputs of an AIS include: 1.
International Finance

International Finance
Global Financial Services Outline –Why and how U.S. banks engage in international banking –Foreign banks in the U.S. –International lending –Foreign exchange.

Global Financial Services Outline –Why and how U.S. banks engage in international banking –Foreign banks in the U.S. –International lending –Foreign exchange.
Sanctions screening as a service Sibos 2010, Amsterdam Andy Schmidt, TowerGroup Nicolas Stuckens, SWIFT.

Sanctions screening as a service Sibos 2010, Amsterdam Andy Schmidt, TowerGroup Nicolas Stuckens, SWIFT.
© Lloyd’s Regional Watch Content Guide CLICK ANY BOX AMERICAS IMEA EUROPE ASIA PACIFIC.

© Lloyd’s Regional Watch Content Guide CLICK ANY BOX AMERICAS IMEA EUROPE ASIA PACIFIC.
 Only 9 countries have iPhone 6’s available.  The US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the UK.  One unit costs.

 Only 9 countries have iPhone 6’s available.  The US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the UK.  One unit costs.
Gert Eidherr Global Project Manager, ITS Information Technology Service United Nations Office on Drugs and Crime.

Gert Eidherr Global Project Manager, ITS Information Technology Service United Nations Office on Drugs and Crime.
Topic #5: Circular Flow of Transactions in the Economy Dr David Penn Associate Professor of Economics and Director of the Business and Economic Research.

Topic #5: Circular Flow of Transactions in the Economy Dr David Penn Associate Professor of Economics and Director of the Business and Economic Research.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Multilateralism and Regionalism: Trade Agreement Effects on Southern Agricultural Products Lynn Kennedy, Brian Hilbun, and Elizabeth Dufour LSU AgCenter.

Multilateralism and Regionalism: Trade Agreement Effects on Southern Agricultural Products Lynn Kennedy, Brian Hilbun, and Elizabeth Dufour LSU AgCenter.

Similar presentations

Ads by Google