Leila Etemad’s Post

⚖️ FATF Recommendations ⚖️ ➡️ Money laundering offence (3/40) 🌍 The Financial Action Task Force (FATF) is an inter-governmental organization that sets international standards to combat money laundering, terrorist financing, and other related threats to the integrity of the global financial system. Its 40 recommendations are a crucial framework for countries to adopt measures to combat these threats. This 3rd rec. focuses on the criminalisation of money laundering offenses. ⚖️ It requires countries to apply this crime to all serious offenses, including the widest range of predicate offenses. 🧑⚖️ The FATF recommends the criminalisation of ML on the basis of the Vienna Convention and the Palermo Convention. The Vienna Convention (1988), established the framework for international cooperation in combating drug trafficking, including provisions on asset forfeiture and mutual legal assistance. The Palermo Convention (2000), expanded the scope of the Vienna Convention to cover a wider range of transnational organized crime, including ML. Countries are also required to ensure that ML is an offense under their domestic law and that it is punishable by appropriate sanctions. 📉 ML is a serious crime that undermines the integrity of financial systems. By criminalizing it, countries can better disrupt the flow of illicit funds and deter criminals from engaging in illegal activities. It also enables law enforcement agencies to seize and confiscate the proceeds of crime, thereby depriving criminals of the financial benefits of their activities. 🏦 The responsibility for detecting and preventing ML falls on financial institutions such as banks, securities firms and insurance companies. They are required to implement AML programs to identify and report suspicious activities to the relevant authorities. These latter include customer due diligence, transaction monitoring and reporting of suspicious transactions. Law enforcement agencies also play a critical role in investigating and prosecuting ML offences. ⚙️ The FATF's third recommendation requires countries to have robust legal and regulatory frameworks in place to criminalize ML offences. This includes laws that define ML and prescribe criminal penalties for offenders. Additionally, regulations must require financial institutions to implement AML programs. The FATF also calls for international cooperation and information sharing among countries to combat ML on a global scale. Which is essential because it is often a cross-border activity that involves multiple jurisdictions. Are you passionate about an AML related topic? 🤔 Would you like to write about it and reach over 21k compliance professionals? 🔥 If so, you can check out my newsletter ⬇️ and send me a message to work out the details! 🙂 🗞️ Newsletter: https://lnkd.in/eAsvqEeK #compliance #financialcrime #moneylaundering #aml

Morning all, there's so much fincrime news today as every day, so here's the 'best' of the Monday bunch: 1) With UK elections this week, here's links to the Tory and Labour proposals on fraud and money laundering. Tories say they will ensure open registries of beneficial ownership in British Overseas Territories (that has been said a lot in recent years, so far not implemented); Labour says they will adopt a fraud strategy to focus on public, online and serious fraud, including with tech collaborations. Osborne Clarke https://lnkd.in/eHaT_SnN Link to detailed Labour fraud strategy in Financial Times https://lnkd.in/e56BsuHm 2) FATF updates its high risk country lists - Jamaica and Turkiye are off the grey list; Monaco and Venezuela are now classified as high risk for money laundering and terrorism financing Financial Action Task Force (FATF) https://lnkd.in/eNskSJ-y 3) And happy news, FATF puts out a report for women in financial crime prevention, with women in senior financial crime positions sharing their experiences and challenges Financial Action Task Force (FATF) https://lnkd.in/eJ3f9y2g.

Understanding Predicated Offences: Key to Strengthening Compliance and Risk Management A predicate offence is a crime that serves as the precursor to more serious offences like money laundering or terrorist financing. Without these "gateway crimes," activities like money laundering would be impossible, as there would be no illicit funds to launder. Common Predicate Offences: Fraud – Criminal activities like credit card fraud or securities fraud, which generate illicit profits needing to be laundered. Bribery and Corruption – Bribery, whether in government or corporate settings, leads to the accumulation of illegal wealth that requires laundering. Embezzlement – The unlawful misappropriation of funds by employees or officials, which are then laundered to hide their origins. Tax Evasion – Illegally avoiding taxes creates proceeds that criminals often need to launder to make them appear legitimate. Theft – Both petty and grand larceny generate illicit funds that require laundering to disguise their criminal source. Drug Trafficking – Profits from illegal drug sales are often laundered through financial systems to appear legitimate. Human Trafficking – Criminals profit from human trafficking, and those illicit proceeds are laundered to hide their origins. Environmental Crimes – Illegal activities like poaching or pollution generate criminal profits that require laundering to integrate into legitimate markets. Why is this important for organizations? Risk Mitigation: Identifying and addressing predicated offences early helps businesses avoid unintentional involvement in larger financial crimes. Regulatory Compliance: Global regulations require businesses to prevent not only money laundering but also the underlying predicate offences driving them. Reputation Protection: Even indirect links to predicate offences can severely harm a business’s reputation, leading to lost trust and damaged relationships with clients, partners, and regulators. Key Steps for Businesses to Tackle Predicated Offences: Know Your Customer (KYC) Practices: Ensure thorough screening of clients to detect early signs of criminal behavior. Regular Audits and Monitoring: Use technology to monitor transactions for suspicious activities and conduct periodic audits. Employee Training: Educate employees on how to recognize red flags related to predicated offences and encourage them to report suspicious activities. Collaboration with Authorities: Foster strong relationships with regulators and law enforcement to help prevent financial crimes. A proactive approach to identifying and preventing predicated offences is not just about compliance—it’s about safeguarding your business’s integrity and maintaining trust with stakeholders. As financial crime continues to evolve, businesses must stay ahead of emerging threats to protect their reputation and financial health. #Compliance #amlinsights #MoneyLaundering #FinancialCrime #KYC #predicateOffences #AmlInsightsbyVasanth

Swiss authorities have charged two Swiss nationals with qualified money laundering in a case involving: 💰 €34 million in cash 🇨🇭 1 million Swiss francs 🏆 830 kilograms of gold (That's heavier than a full-grown male polar bear! 🐻❄️) FASCINATING DETAILS YOU WON'T BELIEVE: 🔍 The suspects moved enough gold to create 207,500 wedding rings! 🚗 Custom-built vehicle hiding spots were so sophisticated they evaded standard border checks 💼 The operation spanned 4 years but was only discovered through a joint Italian-Swiss surveillance operation Key Details of the Operation: 1. Timeline & Scope - Operation ran from 2019 to June 2023 - Part of a larger criminal network - Joint operation between Swiss & Italian authorities - Total of 10 network members arrested 2. The Suspects' Unique Profile: - Two Swiss nationals (ages 56 & 63) - The older suspect worked as driver for the younger one - Younger suspect owned legitimate businesses in Switzerland used as fronts - They managed to conduct operations across 6 countries without detection - Their profit margin was surprisingly low: only 0.7% of total laundered value! 3. The Operation's Ingenious Methodology: 🚗 INCREDIBLE VEHICLE MODIFICATIONS: - Custom-built hydraulic compartments - Thermal shielding to avoid detection - Multiple dummy compartments to mislead searches - Regular vehicle rotation to avoid patterns 4. Complex Money Trail: SURPRISING ROUTE PATTERNS: - Never used the same border crossing twice in a row - Deliberately chose busy crossing times to blend in - Used legitimate business deliveries as cover - Created elaborate paper trail of fake gold trading 5. Criminal Origins & Methods: CLEVER DECEPTION TECHNIQUES: - Used legitimate gold trading prices to avoid suspicion - Synchronized movements with real business cycles - Maintained detailed fake documentation - Operated during normal business hours to blend with legitimate traders 6. Legal Process Innovation: - First case in Switzerland using new accelerated proceedings for financial crimes - Suspects' cooperation revealed previously unknown trafficking routes - Case will set precedent for future prosecutions MIND-BLOWING STATISTICS: 📊 Average per trip: - 41.5 kg of gold (value of approximately €2.5 million) - Required 20+ separate vehicle modifications - Involved coordination across 3-4 countries each time - Each operation took average of 72 hours to complete DID YOU KNOW? 🤔 - The amount of gold seized could fill a small apartment's bathtub - The cash seized, if laid end to end, would stretch 3.4 kilometers - The operation involved crossing borders over 400 times - They never used the same vehicle more than 8 times #FinancialCrime #MoneyLaundering #Switzerland #LawEnforcement #GoldSmuggling #InternationalCrime #FinancialSecurity #CrimePrevention #SwissJustice #InternationalCooperation #TrueCrime #FinancialIntelligence Attribution: Based on official release from the Swiss Federal Council, November 7, 2024!

Canada: Feds look to boost anti-money laundering oversight penalties by 40 times. https://lnkd.in/ejccPx2w "Ottawa plans to boost penalties for anti-money-laundering oversight failures by 40 times as part of several measures it wants to roll out to crack down on the issue. The proposal, outlined in the fall economic statement Monday, would see the maximum administrative penalty against banks and others rise to either $20 million per violation, or three per cent of annual worldwide gross revenue if that’s higher. The government said recent trends have reinforced the importance making sure companies follow anti-money laundering and terrorist financing laws, and not treat penalties for non-compliance as the cost of doing business. It says the new reforms will ensure non-compliance is treated as a serious priority. The plans also include increase fines for criminal offences by 10 times and to provide more guidance on jail terms. The move to boost fines come as money laundering has seen increased attention in recent years, including from the Panama Papers, money laundering issues at B.C. casinos and the revelation earlier this year that criminals in the U.S. used TD Bank to launder more than $969 million in illicit drug profits. U.S. regulators forced TD to pay $4.42 billion for its oversight failures, thanks in part to laws that allow them to charge US$500,000 per day to a bank that isn’t compliant with the rules. In Canada currently, Fintrac can issue a total maximum of $500,000 for each “very serious” reporting violation. The limited fines available meant that Fintrac’s $9.2-million penalty imposed on TD earlier this year was its largest ever. To put in rough perspective, a 40-fold increase in that penalty would work out to $368 million. Along with increased fines, plans also include developing a new task force for law enforcement and the financial sector to share and analyze information related to “high-end” money laundering schemes, including related to fentanyl trafficking. The government also plans to allow Fintrac to share information with election oversight officials to deter and detect illicit financing and foreign interference in Canadian elections."

Predicate offenses, as defined by the EU Anti-Money Laundering Directives (AMLDs), are criminal activities that generate illicit proceeds, which are then laundered to disguise their illegal origin. These offenses form the foundation of money laundering activities, where "dirty" money is processed to appear legitimate. The scope and definition of predicate offenses have been refined over time, especially with the introduction of the Sixth Anti-Money Laundering Directive (AMLD6). Scope and Definition: Predicate offenses encompass a broad range of criminal activities. Initially, the EU directives focused on serious crimes such as drug trafficking, human trafficking, and organized crime. However, as the directives evolved, the list of predicate offenses expanded to include a wider array of criminal acts that produce illegal funds. AMLD6 and Harmonization: AMLD6, effective from 2021, introduced a more harmonized definition of money laundering across EU Member States by specifically listing 22 categories of predicate offenses. This was done to ensure consistency and strengthen the EU’s legal framework in combating money laundering. The key categories of predicate offenses include: - Terrorism and its financing. - Drug trafficking. - Human trafficking and exploitation. - Corruption and bribery. - Tax crimes, including tax evasion. - Environmental crimes, (e.g., illegal wildlife trade). - Cybercrime. - Organized crime. - Counterfeiting of money and products. - Fraud, including VAT fraud. - Insider trading and market manipulation. - Robbery and theft. - Kidnapping, illegal restraint, and hostage-taking. - Murder and grievous bodily harm. - Smuggling of goods and arms. Cross-Border Considerations: AMLD6 also broadens the scope of predicate offenses by including crimes committed outside the EU, as long as they would be considered criminal offenses within the EU. This ensures that money laundering linked to international criminal activities is effectively addressed within the EU's legal framework. Legal Liability: AMLD6 extends criminal liability to legal persons (e.g., companies) involved in money laundering if the offense was committed for their benefit or resulted from a lack of supervision. This provision enhances accountability and ensures that both individuals and organizations can be prosecuted for their involvement in laundering proceeds from predicate offenses. Penalties: Under AMLD6, Member States are required to impose effective, proportionate, and dissuasive penalties for money laundering related to predicate offenses. These penalties include criminal sanctions such as imprisonment, fines, and the confiscation of assets. Importance: Predicate offenses generate illicit funds; targeting them is key to disrupting money laundering. In summary, predicate offenses are central to the EU’s Antimoney laundering efforts, with AMLD6 providing a comprehensive framework to address these crimes consistently across all Member States. #FinancialCrime

**Understanding the Sixth Anti-Money Laundering Directive (6AMLD)** Key Features 1. **Expansion of Predicate Offenses**: 6AMLD broadens the scope of predicate offenses to include environmental crime, cybercrime, and tax-related crimes. This expansion ensures a more comprehensive approach to identifying and prosecuting money laundering activities. 2. **Harmonization of Definitions**: By standardizing definitions of money laundering and related offenses across EU member states, 6AMLD aims to create a more consistent legal framework, facilitating cooperation and enforcement across borders. 3. **Extended Liability**: The directive extends criminal liability to legal entities, meaning that companies, not just individuals, can be held accountable for money laundering activities. This includes penalties for aiding and abetting, inciting, and attempting to commit money laundering. 4. **Increased Penalties**: 6AMLD imposes harsher penalties for money laundering offenses, with a minimum prison sentence of four years. It also includes additional measures such as fines, temporary or permanent exclusion from public procurement, and judicial supervision. 5. **Centralized Beneficial Ownership Registers**: Member states are required to implement centralized registers containing information on the beneficial ownership of corporate and other legal entities, enhancing transparency and traceability of financial transactions. 6. **Cooperation and Information Sharing**: The directive emphasizes the importance of cooperation and information sharing between member states and between financial institutions and authorities, improving the effectiveness of AML efforts across the EU. Implications for Businesses: - Compliance Requirements**: Businesses must update their AML policies and procedures to comply with 6AMLD. This includes revising risk assessments, customer due diligence processes, and reporting mechanisms. - Training and Awareness**: Companies must ensure that employees are adequately trained to recognize and report money laundering activities in line with the new directive. - Enhanced Due Diligence**: Increased scrutiny and due diligence are required, particularly in sectors identified as high-risk for money laundering and terrorist financing. Stay compliant for Safer financial environment. Conclusion: The implementation of 6AMLD marks a significant step forward in the EU's fight against money laundering and terrorist financing. By expanding the scope of predicate offenses, standardizing definitions, and increasing penalties, the directive aims to create a more robust and effective framework for combating financial crime. Businesses operating within the EU must ensure they understand and comply with these new requirements to avoid severe penalties and contribute to the broader effort to enhance financial integrity and security. #6AMLD #AntiMoneyLaundering #AMLCompliance #EURegulations #CorporateGovernance #RiskManagement #RegulatoryCompliance

🚨 Combating Financial Crime: A Global and National Imperative 🚨 Financial crime poses a severe threat to economies and societies worldwide. From fraud and money laundering to cybercrime and insider trading, these illicit activities not only result in substantial financial losses but also undermine trust in institutions and the rule of law. In India, the challenge is significant. Organized crime has evolved, leveraging advanced technology and exploiting socio-economic and political vulnerabilities. In 2020 alone, economic offenses resulted in losses exceeding ₹1.85 lakh crore ($25 billion). 🔍 Key Points: Types of Financial Crimes: Fraud, Money Laundering, Terrorist Financing, Bribery & Corruption, Insider Trading, Cybercrime. Legal Framework: International efforts led by FATF, and national measures like the Prevention of Money Laundering Act (PMLA) of 2002. Challenges: Social impact, political corruption, institutional weaknesses, economic consequences, and the transnational nature of organized crime. Prevention Strategies: Strengthening international cooperation, enhancing national capabilities, leveraging technology, and implementing robust regulatory frameworks. The fight against financial crime requires a coordinated global response and robust national measures. Governments, financial institutions, and the public must work together to create a secure financial environment. For a detailed analysis and comprehensive strategies to combat financial crime, read the full article here: https://lnkd.in/gRvXCaZt #FinancialCrime #AntiMoneyLaundering #Cybercrime #FraudPrevention #GlobalSecurity #EconomicStability #Governance #LawEnforcement #India

🇬🇲 we need to have a national conversation on matters concerning local government administration rather than taking an aggressive stance based on party lines if we are to develop as a country. In other words, we must stop the politics and acknowledge that we have serious problems in our country because a critical sector of the economy has been plagued with fraud and embezzlement, rendered administratively ineffective with weak fraud mitigation strategies and tools, and used as a personal 🏧 milking cow for those employed and tasked to handle and manage the affairs of our local councils or authorities. For example, the ongoing Local Government Commission of Inquiry (LGCI) continues to unearth a seemingly intractable challenge: the anvil of corruption and corrupt practices in our local government authorities. Thus, the LGCI has significantly highlighted weak revenue and budgetary allocation mechanisms, poor policies, and procedures, implying that people entrusted and tasked to collect and deposit funds to the bankable revenue pools of our councils for local development tend to be trafficking the delights of "seedoo" in their pockets as if the collected funds or revenues are their inheritance to use anyhow "teh kenn dousi waah waalah bough, kenn munousi daara." To get our country - The 🇬🇲 out of this unprecedented devil taking a nasty delight in our scarce local resources, I suggest the following: ✅ Digitalization of revenue collection is critical as the use of technology cannot be overemphasized in shaping the future of local government authorities in the Gambia. That is by ensuring that all transactions are channeled through the internet of things (IoT). This will significantly help in reducing money exchanging hands between the revenue collectors and the payors. ✅ Ensure accountability and transparency through the enforcement of monthly, bi-annual, and annual audits. ✅ Implement and enforce quarterly fraud risk assessment. This will help in eliminating potential fraud, and ensuring that collected revenues are put to good use in improving the lives and livelihood of the local people and small businesses. ✅ Bring the corrupt actors to justice using the courts to prove their level of complicit acts, aiding and betting in the grand corruption scheme. If they are found wanton, let them face the wraths of the law by repaying and in return sanctioned as bad omens in our local government or public seevice. ✅ End the payment of honorarium as that's an unjustifiable cost in employment contract, as such is indicative of having to pay the same person twice for doing the same job that he/she is contracted/employed to prrform for in the first instance. We must do away with that resource waste "status quo" as it defies the logic of effective financial management, resource utilization and rationalization.

SURVEILLANCE CAPTURES FORMER SAINT KITTS PRIME MINISTER TIMOTHY HARRIS ACCEPTING CASH PAYOFF FROM HIS CHINESE MASTERS IN PUBLIC IN SAINT LUCIA The arrogance of the central figures in the USD$2.5bn dollar Citizenship by Investment (CBI/CIP) fraud, money laundering and corruption scandal on Saint Kitts and Nevis apparently knows no bounds. Here's former Saint Kitts & Nevis Prime Minister TIMOTHY HARRIS, accepting a cash kickback in public, all caught on a surveillance video after he arrived in Saint Lucia, on a flight from Saint Kitts. He was met and greeted at the airport by a representative of CARIBBEAN GALAXY GROUP, and immediately handed a briefcase. The contents of that briefcase I choose not to disclose in this article, but I am sure that our readers have a pretty good idea, given the allegations of corruptions made against Harris. Harris' then departed with his Galaxy escort; according to Saint Lucia government records, they departed in a vehicle owned by CARIBBEAN GALAXY REAL ESTATE LTD. Given that Harris had a local banking destination on his schedule yesterday, remember that all deposits of US Dollars must transit the American financial structure when being wired abroad, irrespective of their final destination. When the proceeds of crime are sent to a correspondent account in the United States, not only does a violation of the Money Laundering Control Act of 1986 occurs,regarding Mr. Harris, but the American bank also incurs liability. For those who wonder how we were able to obtain this illicit exchange from yesterday, when law enforcement typically never allows their surveillance of targets of a criminal investigation to be released until the trial, law enforcement is not the only party having Mr. Harris under constant surveillance. We obtained the tape from our own source, and it is damning. The world is watching, Mr. Harris; we trust that you have engaged a competent criminal defense attorney in the United States. You will probably need one, sooner rather than later. (more still photos from the video on my blog https://lnkd.in/d-QJRY4)