Gabriel Regino García’s Post

Krolls 2023 Financial Crime and Fraud report key highlights: - Sixty-nine percent of global executives and risk professionals surveyed expect financial crime risks to increase over the next 12 months with cybersecurity and data breaches as the primary drivers, followed by financial pressures on organisations. In the face of this dynamically evolving landscape, the role of the compliance function remains more crucial than ever. Organisations Are Keen to Prepare Themselves for New and Evolving Risk Investments in technology. Increase in cybersecurity budgets and undertaking more frequent business risk assessments have been cited by respondents as the three main steps that firms intend to take during the next year to combat the increase in financial crime. Responding to Risk by Investing in Advanced Technologies is a Priority. To counter a potential uptick in financial crime risks, two-thirds of respondents globally are planning to invest more in technology, with nearly half of respondents citing data integrity as the biggest challenge when implementing new technologies. Governments Are Stepping in With Increased Measures Against Financial Crime - Globally, the anticipation of increased enforcement actions is on the rise, with over 60% of survey respondents predicting an escalation in the next 12 months. Many speculate that regulatory visits will start looking more closely at the use of technology as part of firms’ AML compliance programs. Respondents agree that rapidly evolving technology is the top struggle governments face against financial crime, indicating that governments may face an uphill battle. AML and ABC Functions Need to Work Hand-in-hand - AML and ABC functions are distinct specialisations within most financial crime compliance programs; however, they travel in the same direction and utilise similar tools, methodologies and trainings. Efficiencies can be gained when organisations intentionally seek integration by leveraging shared resources for investigations, audits and risk assessments. Corporations That Are Non-compliant Face Immense Financial and Reputational Consequences. Navigating the complex world of sanctions compliance is a significant challenge for multinational corporations. Forty-four percent of respondents identified geographic consistency as the top challenge for sanctions compliance programs, followed by privacy protections (39%), keeping current with changing regulations (34%) and accessibility of technological solutions to support sanctions screening (33%). Organisations Believe that ESG and transparency is crucial but face procedural challenges. The recurrent theme of balancing transparency and privacy, notably in beneficial ownership, calls for cautious navigation. Likewise, in environmental, social and governance (ESG) reporting, businesses must align with evolving standards to avoid the pitfalls of greenwashing and fraud.

AML/CFT and Predicate Offences   We all know that the FATF has identified 21 predicate offences, and that the EU has 22. But what do we have as predicate Offence in Mauritian Law. These are my findings and happy if you have anything to add/correct! In Mauritian law, the predicate offenses for money laundering align closely with the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) and other relevant legislation. These offenses include a wide range of serious crimes that can generate illicit proceeds, mirroring many of the categories outlined by the FATF. Here are some key predicate offenses under Mauritian law: 1. Drug Trafficking and Related Offenses Illegal possession, sale, and trafficking of narcotics and psychotropic substances are strictly prohibited and serve as significant predicate offenses under the Dangerous Drugs Act. 2. Terrorism and Terrorist Financing Mauritius criminalizes terrorism and terrorist financing activities under the Prevention of Terrorism Act, which is consistent with FATF standards and international conventions. 3. Human Trafficking and Exploitation Human trafficking, including the exploitation of children and forced labor, is penalized under the Combating of Trafficking in Persons Act. 4. Fraud, Theft, and Corruption Fraud and theft, including corporate and financial fraud, are treated as predicate offenses. The Financial Crimes Commission Act outlines various corruption-related offenses, especially for public officials. 5. Environmental Crimes Illicit trafficking in protected species, illegal logging, and other forms of environmental crime are considered predicate offenses and are regulated under environmental protection laws; the Environment Protection Act and the FCCA. 6. Tax Evasion Tax evasion, including avoidance of direct and indirect taxes, is treated as a serious offense under the Mauritian Revenue Authority Act and other tax legislation, making it a predicate offense for money laundering. 7. Forgery and Counterfeiting Offenses like forgery, counterfeiting of currency, and piracy of products fall under Mauritian criminal law and are treated as predicate offenses. 8. Cybercrime Cyber-related offenses, including hacking, identity theft, and cyber fraud, are covered under the Cybercrime and Cybersecurity Act. 9. Extortion and Kidnapping Crimes such as extortion, kidnapping, and hostage-taking are also considered serious offenses with implications for money laundering; Criminal Code. 10. Insider Trading and Market Manipulation Mauritius criminalizes insider trading and other financial market abuses under securities regulations, including the Financial Services Act and the Securities Act. 11. Organized Crime and Racketeering Involvement in organized criminal groups, as well as activities related to racketeering, are treated as predicate offenses, supporting broad-based financial crime prevention. What have I missed?

"Man is not what he thinks he is; he is what he hides." – André Malraux This statement underscores the importance of conducting thorough due diligence. In today’s world, where financial crimes are increasingly sophisticated and regulatory pressures are mounting, businesses cannot afford to overlook this critical process. A robust due diligence framework not only ensures compliance but also fosters trust among clients, investors, and regulators. Due diligence is no longer a mere regulatory formality; it is a proactive strategy to safeguard against financial crimes, maintain integrity, and build enduring stakeholder relationships. At Due Diligence Advisory Africa, we prioritize the essential elements of due diligence to help your organization remain compliant and secure: 1. Customer Identification and Verification (KYC) We confirm the identity of clients and partners by verifying personal and business information through trusted documentation, protecting your business against fraud and identity theft. 2. Risk Profiling and Assessment By assessing potential risks for each relationship, we identify vulnerabilities linked to financial crime, fraud, and reputational damage. 3. Screening for Sanctions, PEPs, and Watchlists Our advanced tools ensure clients and partners are not listed on sanctions, Politically Exposed Persons (PEP), or global watchlists. This helps mitigate risks related to corruption, terrorism, and other illegal activities. 4. Source of Funds and Wealth Verification We rigorously verify the origins of funds and wealth to prevent involvement in money laundering and illicit financial activities while promoting transparency. 5. Ongoing Monitoring and Regular Reviews Compliance is a continuous process. We monitor transactions and update records regularly to ensure sustained compliance. 6. Enhanced Due Diligence (EDD) for High-Risk Cases For high-risk clients or transactions, we perform in-depth investigations, including reviews of ownership, financial histories, and business structures. 7. Data Privacy and Security Compliance Adhering to data protection regulations (e.g., GDPR, CCPA), we prioritize safeguarding sensitive customer information to reduce the risk of breaches. 8. Third-Party and Supplier Due Diligence We extend due diligence to third-party vendors and suppliers, evaluating their compliance practices to mitigate supply chain risks. Why Due Diligence Matters: • Legal Compliance: Avoid penalties, lawsuits, and reputational damage. • Risk Mitigation: Minimize exposure to financial crimes and fraud. • Reputation Management: Build trust through a commitment to ethics and compliance. • Operational Efficiency: Streamline processes for efficient onboarding while maintaining full compliance. For more information, contact us: 📧 Email: hello@diligence.co.ke 🌐 Website: www.diligence.co.ke 📞 Phone: +254 743 558 953

Continuing our discussion around Forensic Investigation, there are many but let's talk about few types of Forensic Investigations: Data Breach: Investigates unauthorized access to sensitive data, identifying the source, extent, and impact of the breach to mitigate further exposure. Business Email Compromise (BEC): Examines fraudulent email activities where attackers impersonate executives or vendors to trick organizations into transferring funds or sensitive information. Ransomware: Investigates cyberattacks where malicious software encrypts data, demanding ransom for decryption, focusing on identifying the attackers and restoring compromised systems. White Collar Crime Investigations: Looks into non-violent, financially motivated crimes committed by business professionals, such as fraud, insider trading, or embezzlement. Financial Crime: Involves the detection and investigation of crimes such as fraud, money laundering, or misappropriation of funds affecting the financial integrity of an organization. Anti-Bribery & Corruption (ABAC): Investigates violations of anti-bribery laws and corruption, focusing on identifying illicit payments and unethical practices within or involving an organization. Anti-Money Laundering (AML): Investigates methods used to disguise illicit income as legitimate, ensuring compliance with laws designed to prevent the laundering of criminal proceeds. Each of these investigations focuses on uncovering critical evidence to address legal, regulatory, or financial concerns. #ForensicInvestigation #DigitalForensics #FinancialForensics #Ankura

🚀 Unraveling the EPPO VAT Fraud Network: Can iCognative™ Be the Key? 🚀  The staggering €195 million EPPO VAT fraud investigation, spanning a vast network across 17 countries, reveals the transnational nature of these crimes. Traditional investigative methods often struggle against schemes of this scale and complexity. It's time for a breakthrough. 🚨 Key Challenges  Unmasking Masterminds: Shell companies and false identities hide the true criminals.  Cross-Border Bottlenecks: Bureaucratic hurdles and delays in evidence gathering hinder international investigations.  Criminals Adapt, We Must Innovate: Law enforcement needs cutting-edge technology to match ever-evolving criminal tactics. 🔍 Why iCognative?    Imagine a tool that can see through deception and expose hidden connections. iCognative™ uses brainwave analysis to identify individuals with knowledge about the crime, and reveals hidden connections, aiding in the exposure of the complete network responsible. This can: Unmask masterminds behind the fraud. Reveal their tactics, money laundering techniques, and supply chains. Provide solid evidence to expedite prosecution. Unleash the Power of iCognative™ Accelerate investigations, slash costs, and dismantle criminal operations at their core. This is the future of combating transnational financial crimes. Explore how it could crack the EPPO VAT fraud network's hidden connections and accelerate the investigation: https://lnkd.in/dSdsprTD  #EPPOVATFraud #FinancialCrime #iCognative #LawEnforcement #GameChanger 

AMLP Forum UK AML/CTF & Financial Crime Seminar. It's a wrap! So what happened at the main plenary session of the 20th Annual Seminar on 25th April? The session was conducted under Chatham House rules and it was certainly worth being in the room or virtually online as the insights were informative, valuable and a refreshingly open. With 200+ in the room and 180 online this was certainly a popular event and am sure that all attendees would agree the insights provided have an lens into the here and now as well as what the future holds. What I can share is broad themes that came up during the day. The whole day was certainly fast and furious - in a good way. A great selection of presentations and panels including not just the public and private sector but also trade associations and suppliers. A truly rounded view of things. So now for the all important take aways! - data sharing, now don't yawn. Yep heared it all before. Well that was before the Economic Crime and Corporate Transparency Act and it's younger sibling Data Protection and Digital Information. Game changers they certainly are. If you don't know what these deliver and you are in the UK it's time to read up and get involved. - the Online Fraud Charter obligations had a 6 month timeline. That leads us to the end of next month. Certainly some changes and positive engagement from theTech and Telco sector but does it deliver against the intent of the Charter. More to follow. - review of Fraud Act and particularly penalties is underway. Is the sentencing and incentives set in the original act appropriate in 2024? - 80% of fraud is Cyber linked. Bringing Fraud and Cyber together is essential now. If you don't have interaction between those teams you should. - need to turn police response to fraud on its head. It's started but more to happen. - follow the money, develop intelligence to tackle the crimes not just inform. - de risking and financial inclusion will remain a focus. - 4 key focus areas data and technology, true collaboration, customer awareness and metrics / outcomes. - balancing Consumer Duty and Economic Crime is not easy but need to focus and ensure fair customer outcomes. - sanctions evasion needs to be a focus of Risk Based Approach. How do you identify and act? - evasion and circumvention will be a focus in H2 and into 2025. It's here and now and needs to be tackled. Ignore it at your peril. - Companies House reform is now in place. It's already delivering value and making a difference. Is there more to do? Of course but the powers are here now and the step change has started. - mules, mules, mules. Be aware of what's on your book and ensure you know. Don't wait until October 2024 to start to get your house in order. - victim reparation of money is on the rise. Those impacted where the perpetrator is know now have the better opportunity to get recompense. So much more but hopefully gives a flavour. #economiccrime #financialcrime #scams

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

In 1991 when I first properly encountered the investigation industry in the UK it was a very modest size industry.   Back in the late 70's to 80's the investigation industry at least in Asia was largely focussed on tracking down counterfeit brands. When I returned to the UK towards the end of the 80's it had expanded to pre-employment checks and due diligence for Private Banks prior to onboarding clients. There was one stand out player who went on to have a life and career changing impact on me and in fact on the litigation department of Mishcon. That was a fella called Mike Comer. If I'm not mistaken Mike had spent a large part of his career in HMRC and then I think in the oil business before starting a company called Network Security Ltd. He was a truly gifted investigator and a visionary in the way investigators sold their services. He realised before most investigators that financial fraud was going to grow into a multi billion dollar industry and that most corporates had little idea how to prevent it or how to react when it happened. Assessing the value of the investigation industry is a bit tricky because some figures include security services as well as investigations. For example the Office of National Statistics shows the value of "security and investigation services" in the UK as at the end of 2023 to be £10 billion. As at 2020 the value was around £8.38 billion. That's around a 25% growth in a four year period. Mike was prescient. Mishcon de Reya LLP International Fraud Group (IFG) #businessintelligence #investigations  

🕶️ “Compliance: The Unseen Superstar of the Financial Crime Industry!” 🕶️ “Naan oru thadava sonna nooru thadava sonna maadhiri!” (If I say it once, it’s as good as saying it a hundred times!) — That’s the power of a strong Compliance Team! 💪 In the world of financial crime, the Compliance Team is the unsung hero — silently working behind the scenes, ensuring the system stays clean, just like Thalaivar’s iconic clean sweeps in every movie! 🎉 Here’s how the Compliance Team plays a MASS role in the Financial Crime Industry: 🎯 The Gatekeeper (Vettiyan Role): Just like “Vayasanalum un style-um azhagum unna vittu pogala” (Age may pass, but your style and charm remain timeless), the Compliance Team’s vigilance never fades. They screen every customer and transaction, making sure only the clean ones get through. 💣 The Bomb Defuser (Silent Protector): You may not see them, but they are always on alert to identify and diffuse potential threats like fraud, money laundering, and terrorist financing. Like Thalaivar, they handle pressure with a calm mind. “Padikkaadhavan naan padichavanuku bayapada maatan” (An uneducated man will not fear a highly educated man) — Compliance Teams are the most learned minds in the room! 🕵️♀️ The Detective (Ultimate Spy): They investigate unusual activities, identify suspicious transactions, and file SARs (Suspicious Activity Reports). Think of them as the “Idhu eppadi irukku?” (How’s that?) moment when a key clue is revealed in a Thalaivar movie! ⚖️ The Law Enforcer (Thalaivar Justice): They ensure the company stays on the right side of the law. No shortcuts, no excuses. “Naalu perukku nalladhu nadakanumna, edhiriya naan edirka bayapada matten” (If it’s for the greater good, I won’t hesitate to oppose) — Compliance ensures that financial institutions remain ethical and accountable. 🔥 The Protector of Reputation (Brand Saver): Just like Thalaivar’s “En vazhi, thani vazhi” (My way is a unique way), the Compliance Team has a unique way of safeguarding the company’s reputation. Their job is not easy, but they do it with unmatched class and precision. Without Compliance, financial institutions are like a Rajini movie without his iconic entry scene — no power, no style, no substance! 😎 If you’re part of a Compliance Team, remember this — “Naan eppo varuven eppadi varuven nu yarukum theriyathu, aana varavendiya nerathula correct-a varuven” (Nobody knows when or how I will arrive, but I always arrive at the right time) — and that’s exactly how the Compliance Team shows up when the organization needs them most. 🎉 To all the Compliance Superstars out there — YOU are the Thalaivar of the financial crime world! This post is not just about compliance; it’s about delivering it “Thalaivar Rajinikanth way” — with style, punch, and maximum impact! 🚀 Drop a 🔥 if you agree! #Compliance #FinancialCrime #ThalaivarStyle #AML #KYC #FinancialCrimeFighters

UNMASKING THE TRUTH Untitled 8 Sept 2024 NEWS BULLETIN: UNMASKING THE TRUTH INVESTIGATE CRIMINAL SUDHIR SHARMA In today’s special investigative bulletin, we expose the dark truth behind Sudhir Sharma, an individual deeply involved in a series of serious criminal activities. These are facts not allegations, and they demand immediate action. Sharma's crimes have allegedly been shielded by individuals connected to the Freemason brotherhood and two corrupt lords, resulting in an ongoing police cover-up. The Facts About Sudhir Sharma Sudhir Sharma has been linked to numerous criminal activities, yet he remains protected by an alarming network of corruption. Here are the key facts 1. Rape – Sharma has committed sexual assaults, raping two women. 2. Money Laundering – He is involved in complex international money laundering schemes. 3. Fraudulent Companies – Sharma has opened fraudulent companies under the names of deceased individuals. 4. Multiple Bank Accounts – He holds 11 bank accounts in India, many of which are tied to suspicious activities.5. Director of 46 Companies – Sharma controls a network of 46 companies, many of them suspected to be fronts for illegal activities.6. Fraudulent Signatures – He uses three different signatures to defraud business associates, targeting different individuals with different forgeries.7. Fake Degree – Sharma holds a fake degree to further his fraudulent schemes.8. Freemason Protection – He is reportedly protected by high-ranking Freemasons, including Lord Ashcroft and Lord Ramger who help him attack and silence his victims.9. Blacklist Victims– Sharma actively blacklists those who seek to expose him, ensuring they are marginalized and unable to fight back.10. Deception of Law Enforcement– He lies to law enforcement officers, manipulating the legal system to escape consequences. 11. Forgery in Court – Despite using his own signatures for business, Sharma denies any involvement when questioned in court. 12. Criminal History – In his younger years, Sharma was imprisoned and allegedly involved in the murder of women. 13 The relationship between Rami Ranger and Sharma raises significant questions, particularly regarding Ranger's motivations for protecting Sharma. Considering Rami Ranger has distribution in stagring 150 countries quite questionable. One could speculate whether Sharma is safeguarding Ranger's financial interests, though this remains uncertain and warrants further investigation.