Worldwide, anti-money laundering regulations and legislation have become one of the weapons of choice of governments that are fighting global terrorism and criminality. In this updated edition of Money Laundering, Doug Hopton explains how The Money Laundering Regulations 2007 have extended even further the range of UK businesses covered by the Proceeds of Crime Act to include solicitors, lawyers, accountants, estate agents, high value dealers, trust or company service providers and, in effect, many other companies involved in consultancy or business services. The complexity of the new laws and the limited amount of any case law asks more questions about the responsibilities of these companies and their liabilities. Doug Hopton's highly practical guide explains the basis of international law, regulations and standards in this area and how they affect businesses; and provides down-to-earth advice on the basic rules of good business management: customer due diligence, know your business (and your client's business), which will help companies understand what procedures to establish, and how and when to report suspicious activity. The author explains the basis of money laundering and how it works, along with the development of the law and regulations around the world, and how other countries' laws can affect UK companies.
Although the practice of disguising the illicit origins of money dates back thousands of years, the concept of money laundering as a multidisciplinary topic with social, economic, political and regulatory implications has only gained prominence since the 1980s. This groundbreaking volume offers original, state-of-the-art research on the current money laundering debate and provides insightful predictions and recommendations for future developments in the field. The contributors to this volume academics, practitioners and government representatives from around the world offer a number of unique perspectives on different aspects of money laundering. Topics discussed include the history of money laundering, the scale of the problem, the different types of money laundering, the cost to the private sector, and the effectiveness of anti-money laundering policies and legislation. The book concludes with a detailed and insightful synthesis of the problem and recommendations for additional steps to be taken in the future. Students, professors and practitioners working in economics, banking, finance and law will find this volume a comprehensive and invaluable resource.
"A guide that illustrates the methods, mechanisms, techniques and instruments to launder money and finance terrorism. It explains risk-based approaches to minimise the risk at the national level and for each sector of the eco-system. Mr. T.S. Krishnamurthy Former Chief Election Commissioner, Government of India; Former Chief Commissioner of Income Tax-Mumbai, India. This book not only examines thoroughly the problem in a comprehensive manner with interesting case studies but also provides governance measures to mitigate the evil. Kannan has rightly stressed the need for proper evidence gathering, domestic co-ordination of various agencies and international co-operation to deal with this global priority. His suggestion to implement a National Integrity System is worth the attention of a government. Dr S.Ramamurthy – Fiscal Management Expert, formerly with the IMF The book throws light on relevant methodologies and tools to mitigate the adverse impact of money laundering. It explains a risk-based approach to mitigate the risks at the entity and national levels. It is very valuable book to those practitioners combating money laundering and countering the financing of terrorism world-wide."
"This new work by Margaret E. Beare and Stephen Schneider brings empirical evidence to the study of money laundering in Canada. The authors challenge the dominant, seemingly common-sense notion, fuelled by political posturing and policing rhetoric, that taking the profits away from criminals (proceeds of crime enforcement) is a rational and effective tactic. Using extensive research involving records gathered from police, financial institutions, and legal sources, the authors paint a picture of a dubiousenforcement strategy beset by conflicting interests and agendas, an overly ambitious set of expectations, and reliance on an ambiguous body of evidence as to the strategy's overall merits."--BOOK JACKET.
Money Laundering Law and Regulation is a practical and comprehensive guide to domestic anti-money laundering law and regulation, increasingly seen as key weapons in the fight against serious and organised crime. The book explains the genesis of the current regime, placing it in the international and regional context. It also provides a chapter-by-chapter analysis of the current law, explaining and analysing key concepts; the statutory framework and individual offences; the developing case law; the Suspicious Activity Reporting regime and problems in its implementation, terrorist financing and money laundering; sentencing, civil recovery and confiscation; and jurisdictional issues. They conclude by looking at the practice of those tasked with prosecuting or defending offences by setting out the powers of investigation and prosecution under POCA and SOCPA and analysing the policy of the various prosecuting bodies, and finally looking at the practicalities of defending, particularly in respect of parallel civil and criminal proceedings, funding and Human Rights Act considerations. The authors comprise an expert team of barristers, including Robin Booth, Chair of the Law Society's Money Laundering Task Force and former head of the Fraud Division of the CPS.
Originally developed to reduce drug trafficking, efforts to combat money foundering have broadened over the years to address other crimes and, most recently, terrorism. In this study, [the authors] look at the scale and characteristics of money laundering, describe and assess the current anti-money laundering regime, and make proposals for its improvement.-Back cover.
Assesses the extent to which currency & monetary instruments are being smuggled out of the U.S. in order to avoid reporting requirements. Identifies what efforts are being taken to prevent the smuggling & discusses how efforts to combat money laundering are affecting the laundering & smuggling. Charts & tables.
It is estimated that between 2 and 5 per cent of global GDP (over $3 trillion) is laundered by criminals around the world every year. Once thought to be a problem which only affected banks and the financial services sector, high profile cases, such as the recent leak of the Panama Papers in 2016, have thrust the issue into the public arena, and governments around the world are being forced to put robust systems and controls in place. Anti-Money Laundering offers a cost-effective self-development tool for the busy compliance professional eager to progress their career and in need of an accessible, practical and jargon-free introduction to anti-money laundering (AML). Anti-Money Laundering offers a practical guide to navigate the maze of requirements needed to counter money laundering in an organization. This book separates the different elements of AML practice, featuring a range of case studies and scenarios highlighting issues and best practices around the world. The text demonstrates that it is by foresight and methodology that AML can be mitigated, and provides clarity on complex points to better enable readers to gain the expertise they need to achieve success in practice.
Banks and banking, International by Zoë Ruth Lester
Money laundering and terrorism financing are global crimes capable of transcending geographic boundaries. Increasingly sophisticated and transnational in nature, such crimes have the ability to inconspicuously exploit the differences between the laws, regulations and financial systems of different nation states. As such, they are capable of undermining the integrity of the global financial system, heightening the volatility of international capital flows, and destabilising financial institutions. The events of 11 September 2001 (September 11) have had a profound impact on the way that many financial institutions must now conduct their business and manage their money laundering/terrorism financing (ML/TF) risk. The terrorist attacks carried out on that day generated unprecedented concern for money laundering and terrorism financing, and became the precursor for a raft of new institutional risk management obligations. They ushered in a new regulatory era and are responsible for the sizeable role that many institutions are now expected to play in protecting the sanctity of national and international financial systems. Following the September 11 attacks, a number of national governments enacted risk-based AntiMoney Laundering/Counter-Terrorism Financing (AML/CTF) legislation. In recognising their role as gatekeepers of the international financial system, such legislation requires financial institutions to proactively assess their own levels of ML/TF risk, and implement appropriate systems and controls commensurate to that risk. Typically, these systems and controls must include an AML/CTF compliance program, customer due diligence procedures, AML/CTF training, transaction monitoring and regulatory reporting. Whilst there has been much rhetoric about the risks that institutions face when operating under risk-based AML/CTF regimes, there is seemingly little evidence to support it. Many commentators have held that any involvement in a money laundering or terrorism financing event will carry disastrous, financially debilitating, and at times irreversible consequences for an organisation. However, when the experiences of institutions operating in the U.S. and the U.K. (two of the most developed and long-standing AML/CTF regimes) are reviewed, these claims appear to be largely unfounded. Whilst there are certainly a number of financial, reputational and legal consequences that may stem from an institution's breach of AML/CTF legislation, these consequences appear to be significantly overstated- least of all by financial institutions themselves. During the past few years, a number of regulatory and law enforcement authorities have deliberately shifted their activities away from the initiation of criminal proceedings, towards the use of cooperative regulatory outcomes and agreements. Thus, the level of risk faced by many institutions is certainly not as pronounced as it was several years ago, in the immediate aftermath of September 11. That is not to say that financial institutions will always have the ability to avoid the legal penalties, financial loss and reputational damage attached to an AML/CTF compliance failure. Indeed, there are some notable limitations on the ability of institutions to manage their risks, and an unmitigated risk exposure can translate into domestic and/or extraterritorial enforcement actions. Even in risk-based regimes where regulatory authorities display a preference for less intrusive, more cooperative outcomes, decisive action may nevertheless be taken against institutions that have committed legislative contraventions considered to be pervasive, unresolved, or of serious regulatory concern. A greater understanding of risk-based approaches to AML/CTF can enrich institutional understandings of the phenomena of risk. By gaining greater knowledge about the types and levels of risk apparent in several risk-based regimes, institutions may be better placed to identify and address their individual risk exposures. Further, they may be better able to determine the likely ramifications associated with any breach of risk-based legislative requirements. Without such an acute understanding of the operation of risk-based approaches, institutions may find themselves adopting flawed risk management strategies, spending copious amounts of money on poorly designed AML/CTF controls, and/or otherwise taking steps to undermine the alleged benefits of risk-based regimes- flexibility, cost-effectiveness, and enhanced engagement with the concepts of AML and CTF.
Praise and Reviews `Entertaining, well written and well presented.` JOHN MULQUEEN, The Irish Times `Paints an alarming picture of the power and scale of today`s crooked and corrupt financial world. Lilley has done his homework.` THE IOD`S DIRECTOR MAGAZINE`S `Choice of the Month` `[Peter Lilley is] the leading British money laundering expert.` DAILY MAIL `Paints an alarming picture.` THE INSTITUTE OF DIRECTORS Over US$1.5 trillion in 'dirty' money is washed and moved around the world every year, much of it by organized crime syndicates grossing more than many developed economies. And amazingly all the facilities you need to launder money can be bought off the Internet. Dirty Dealing is the first book to truly expose the awesome scale and scope of global money laundering and its infiltration into the world's legitimate business structures. Peter Lilley lifts the lid on this murky and frightening underworld to reveal how highly organized and sophisticated criminal organizations and terrorist groups are seriously undermining the economies of many countries, their financial systems, governments and businesses. Full of incredible stories, facts and figures, it has been extensively revised and includes information on: the funding of international terrorism; major national and international criminal groups; the impact of the Internet and 'cyber laundering'; anti-money laundering strategies for all types of businesses. A shocking and eye-opening account, Dirty Dealing is the first book to show how the proceeds of global organized crime are laundered throughout the world's banking systems to emerge without a hint of a stain, and more than likely into your bank account or pocket. CONTENTS Preface: My beautiful launderette 1. In the beginning... 2. The nth largest global business activity 3. The nearest thing to alchemy 4. Lost in the wash: the business of money laundering 5. Complete anonymity 6. Washed in space: cyber laundering in the 21st century 7. The laundering of terror 8. Whiter than white: the official response 9. Coming clean: preventative strategies for business 10. The final spin Appendix I: Country index Appendix II: Web directory Appendix III: Glossary of terms References and further reading Index
Money laundering law and practice is found in three branches of the law - criminal, civil and regulatory. Often these are approached separately but the authors of Graham, Bell and Elliott Money Laundering believe that a full understanding of the issues requires dealing with all three areas at once while remaining sensitive to the connections between them. In recent years there have been major developments that make this new work both timely and important. The new Proceeds of Crime Act 2002 creates a much strengthened set of money laundering offences which are expected to be extensively used by prosecutors. The creation of the Assets Recovery Agency, with new powers to seek the civil recovery of the proceeds of crime, significantly enhances the scope of action that may be taken against property suspected to be derived from criminal conduct. In addition, there have been significant changes to the regulatory components of UK money laundering law brought about by the introduction of the FSA's Money Laundering Sourcebook, amendments to the Money Laundering Regulations 1993 and enhancements to the Joint Money Laundering Steering Group's Guidance Notes. These are all covered in this book. This key new work is designed for the non-specialist and specialist practitioner alike, offering a complete overview of all these and other important topics. The precise and wide-ranging nature of the new burdens which the law imposes on practitioners makes keeping up essential in the proceeds of crime field. Graham, Bell and Elliott Money Laundering meets that need. Money Laundering Reporting Officers ('MLROs'), compliance officers, senior officers with FSA approval, lawyers and accountants will all find this book essential. It is written in a clear, practical style, and is right up-to-date, with legislation included up to 31 January 2003.
Outside of crimes of passion, criminals, criminal organizations, kleptocrats, and some businesses and corporations are motivated by greed. In today's increasingly interconnected world, the criminal manifestations of unchecked avarice impact all of us - politically, socially, economically, and culturally. Transnational crime effects our individual and collective security. The magnitude of crime is measured in the multi-trillions of dollars annually. Laundering or hiding and disguising the proceeds of crime is essential for criminal organizations. Unfortunately, the last thirty years have demonstrated that our anti-money laundering (AML) countermeasures are not effective. Examining the "metrics that matter," we are a "decimal point away from total failure." The outlook going forward is not promising. Money Laundering and Illicit Financial Flows - Following the Money and Value Trails is the first book to take a hard look at our AML track record. Written primarily from a law enforcement perspective, the book examines old and new money laundering methodologies. It exposes threats, enablers, and facilitators. Making the case for an AML paradigm shift, the book offers alternative steps forward. Combining facts, straight-forward explanations, case studies, as well as the author's personal experiences, views and commentary, this book is valuable to the public and private sectors, policy makers, as well as students and concerned citizens. As a former Treasury Special Agent, John Cassara has investigated and studied money laundering for over 30 years. Equally at home in back streets or government bureaucracies, he has a unique perspective and offers an insider's knowledge. He delights in telling it as it is. The author of five books and countless articles on money laundering and threat finance, Cassara continues to surface important issues that deserve our attention.
Many of the techniques that drug traffickers and organized crime figures use to launder money are also employed by terrorist groups - as those involved in investigating the attacks of September 11, 2001 soon discovered. These techniques and their perpetrators have grown in number and sophistication, creating an urgent need for investigators to develop strategies that will help keep them one step ahead of the game. Authoritative and accessible, Money Laundering: A Guide for Criminal Investigators, Second Edition is based on the author's extensive experience in law enforcement. It provides a clear understanding of money laundering practices and explains the investigative and legislative processes that are essential in detecting and circumventing this illegal and ultimately dangerous activity. In addition to being an informative and straightforward resource for those investigating complex narcotics cases or other cases in which there is a financial component, this new edition addresses techniques used to track down the money trail of terrorists who are highly motivated, well-trained, organized, disciplined - and well-funded. What's New in the Second Edition: þ Explains money laundering provisions under the U.S. Patriot Act þ Explains how the changes in federal forfeiture law affect existing money laundering law þ Clarifies current legislation and how it affects money laundering investigation þ Outlines the basics as well as the emerging trends of terrorist financing þ Includes two new chapters on the investigation of terrorist activities
Banks and banking, International by William C. Gilmore
Anti-Money Laundering is the definitive reference on money laundering and practice. First an outline will be given of the general approach taken by supra-national organisations like the United Nations and the European Council. Next the approach taken by international organisations and initiatives on the basis of the supra-national initiatives will be outlined by senior members of those organisations. A number of countries will then describe their specific prevention legislation. Countries involved will all be member-countries of the FATF (Financial Action Task Force on Money Laundering). Finally there will be an overview to enable the reader to make a comparison between the most important topics of money laundering legislation and rules in the different countries.
Reviews the regulatory role of the Financial Crimes Enforcement Network (FinCEN), which is a Dept. of the Treasury organization to support law enforcement agencies by analyzing and coordinating financial intelligence information to combat money laundering. In 1994 FinCEN's anti-money laundering role was expanded to include responsibility for promulgating regulations under the Bank Secrecy Act (BSA). In 1994 Treasury was directed to take certain actions regarding the use of money transmitting businesses by criminals involved in money laundering. This report assesses FinCEN's efforts to issue regulations pursuant to the BSA.
. . . a stimulating look at the hard work done in many specialisms that collectively seek to combat money laundering. Sally Ramage, The Criminal Lawyer While there is much noise about the control of money laundering, there are few whose work is able to rise above the din and in clear notes contribute in a constructive manner to the debate. This work is not only an intelligent discussion of many of the substantive issues relating to the control of money laundering, but a great deal more. Drawing on systems theory and seeing the control of money laundering particularly from the standpoint of technology as complex and integral to the proper and effective operation of financial institutions, the author addresses in a novel and practical way the design and management of risk based compliance. The theory is tested, not only in terms of viable technology, but also in an actual case study involving real issues in a bank. Consequently, those concerned with the formulation of policy, the design of controls and procedures and the implementation of such will find the contribution that this book makes of great significance. Barry Rider, Bryan Cave LLP, UK This book avoids the usual trap of interminably listing AML war stories. Instead Dr. Demetis presents a solid theoretical foundation for AML research and practice. He gives a damning critique of the way so-called technological solutions are used uncritically by some AML professionals, and analyses the risk-based approach, describing its problems and ways of avoiding them. He presents a fascinating in-depth case study of a financial institution, and a short case of a bank using technology to improve its True Positive Rate substantially to 17 per cent. Ian Angell, London School of Economics, UK Dr Demetis makes a great contribution to our understanding of anti-money laundering at both a systems and practical level. [He] writes as someone who not only thinks deeply about these issues but, as the in-depth case examples show, has tried to see how far technology can address some audacious goals. Readers will learn that while risk-based approaches to anti-money laundering have been an interesting regulatory development, practical implementation, despite the hype of technology vendors, is still at a primordial state . Michael Mainelli, Gresham College and Z/YEN Group, UK This insightful book examines the influence of information systems on anti-money laundering (AML). It builds on systems theory in order to develop a coherent theoretical framework that can be used for AML research. By using a case study of a major financial institution in the EU-area, a number of technological influences on AML are deconstructed and are used to examine the role that technology plays within AML. The book provides a systems theoretical description of the effects of technology on AML and offers considerations on the risk-based approach the most important contemporary evolution within regulatory initiatives on AML and terrorism financing. Technology and Anti-Money Laundering will appeal to researchers of financial crime and AML as well as those interested in information systems and systems theory. A number of considerations for practitioners are also discussed, including the risk-based approach and the integration of AML-technology in financial institutions, as well as an important data-mining application. Money Laundering Reporting Officers (MLROs) in financial institutions and central bankers will also find much of interest in this book.