...Since the 1970s financial regulators around the world have increasingly focused on introducing Anti Money Laundering (“AML”) measures to fight organised crime and tax evasion. While several national and international acts have set a legal framework for enforcement, the terrorist attacks on 11th September 2001 (“9/11”) have established fighting terrorist financing as another major objective among regulators. In subsequent years AML measures have constantly been revised to adjust to the complexity of the international financial markets. As a result financial institutions have to cope with additional costs, more difficult customer relations and legal as well as geographical constraints. More comprehensive customer due diligence and complex mandatory monitoring system in particular cause difficulties for the banking sector. Consequently several big institutions such as HSBC and Citigroup have already been fined for failing to comply with AML laws. Regulations have changed the financial sector. This essay will analyse the impact of the 9/11 attacks on the regulatory framework as well as the effects of AML on the financial industry. Page 3 of 16 2. MEASURES TAKEN AML has been on the agenda of regulators well before 9/11. However, the actions of prosecutors were more focused on fighting organised crime, drug and weapon dealing as well as tax evasion. 9/11 shifted the attention towards fighting terrorism and initiated Counter Terrorist Financing (“CTF”) laws. It was not until 9/11...
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...Practice of Regulation of Anti-Money Laundering for Banks and NonBanks Hayford Kwesi Annor Manager, Risk & Compliance/AMLRO, ABii National Savings & Loans Ltd. Doctorate of finance student, SMC University, Switzerland. FAAFM, Ch.FE, ACCPA, MBA, BSc, HND h.k.annor@gmail.com Abstract A deregulated financial sector is free to accumulate and allocate funds from anywhere irrespective of the nature, form, intent and source. Without regulatory oversight, this poses zero risk to banks and nonbanks no matter how they finance the capital structure. In the real world, banking is an outcome of interactions between the regulator and the regulated. Regulatory consequences apply for failure to comply with the acceptable standards of best practices of banking regulation which include fines, sanctions, jail terms and revocation of the banking license for willful or non-willful noncompliance. The physical disposal of proceeds of funds’ from crime with aim of separating same, through creation of layers to disguise trails of the source and make it seem legitimate undermines the integrity of the financial system. It is required of the banking sector to build a comprehensive framework that identifies, assesses, monitors, mitigates and reports perceptions of suspicious activities of money launderers under the discipline of the regulator to avoid being sanction for the related offences. This paper reviews theory to link practice towards money laundering risk assessment of banking...
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...CAVEHILL SCHOOL OF BUSINESS | Code and Title: Business Research GEMA6160 | Lecturer: Professor Jason Marshall | | Student ID: | 3/28/2014 | | RESEARCH TOPIC: Preventing Money Laundering: An assessment of an indigenous and a International Bank operating in Antigua and Barbuda Table of Contents Executive Summary…………………………………………………………………………………………………………………………3 Introduction……………………………………………………………………………………………………………………………………4 Background………………………………………………………………………………………………………………………..5 Rationale……………………………………………………………………………………………………………………..…….5 Purpose of Study………………………………………………………………………………………………………………..6 Literature Review…………………………………………………………………………………………………………………………...6 Methodology………………………………………………………………………………………………………………………….………9 Research Design………………………………………………………………………………………………………………..9 Participants……………………………………………………………………………………………………………………….9 Material…………………………………………………………………………………………………………………………….9 Procedures………………………………………………………………………………………………………………………..10 Limitations…………………………………………………………………………………………………………………………11 Presentation of Findings…………………………………………………………………………………………………………………15 Analysis of Findings………………………………………………………………………………………………………………..………17 Recommendations………………………………………………………………………………………………………………………...18 Conclusion……………………………………………………………………………………………………………………………………..19 References……………………………………………………………………………………………………………………………………..20 Appendices…………………………………………………………………………………………………………………………….………21 Appendix A………………………………………………………………………………………………………………………...
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...October 11, 2010 All Registered Housing Finance Companies Dear Sir, GUIDELINES ON ‘ KNOW YOUR CUSTOMER’ & ‘ANTI MONEY LAUNDEERNG MEASURES’ FOR HFCs Please refer to our Circular NHB(ND)/DRS/POL. No. 13/2006 dated April 10, 2006 and circulars issued subsequent thereto from time to time on the above subject advising Housing Finance Companies (HFCs) to ensure that a proper policy framework on ‘Know Your Customer‘ and ‘Anti money Laundering Measures’ is put in place with the approval of their Board. In this connection we wish to inform that the said Guidelines have since been reviewed in the light of subsequent developments including amendments in the Prevention of Money Laundering Act and Rules framed there under.The revised Guidelines on ‘Know Your Customer‘ and ‘Anti money Laundering Measures’ that are to be followed are enclosed. HFCs are advised to amend their existing policy framework keeping the above Guidelines in view with the approval of their Board within one month from the date of issue of this circular and ensure their strict compliance. A copy of the modified policy should be sent to the National Housing Bank. Please acknowledge receipt. Yours faithfully, (R.S.Garg) General Manager Department of Regulation and Supervision Annexure : Guidelines on ‘Know Your Customer’ and ‘Anti Money Lending Measures’. GUIDELINES ON ‘KNOW YOUR CUSTOMER’ AND ANTI-MONEY LAUNDERING MEASURES 'Know Your Customer' Guidelines The objective of ‘Know Your Customer (KYC) Guidelines’ is to prevent...
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...Obstruct Terrorism Act of 2001, hence the acronym USA PATRIOT Act. It deals primarily with combating terrorism and gives the executive branch of the federal government more tools to fight suspected terrorist activity, but it also aroused the anger of civil libertarians. Critics of the act have charged that the government gained the power to investigate and detain persons with little oversight from the courts. In the aftermath of the September 11, 2001, terrorist attacks, U.S. political leaders sought to address terrorism with new vigor. President George w. Bush and Attorney General John Ashcroft presented Congress with proposed legislation on September 17, 2001, that focused on intelligence gathering, immigration, criminal justice, and money laundering. The administration sought new powers to conduct searches of people suspected of terrorism; to detain and deport persons suspected of terrorist involvement; and to remove statutes of limitations on terrorism. In addition, the administration wanted the justice department to have the power to place wiretaps on the phones and computers of anyone suspected of terrorism. This initial proposal became the framework for the USA PATRIOT Act, which was first introduced in the House of Representatives on October 2, 2001. A similar law was introduced in the Senate on October 4, and on October 12 it passed on a vote of 96–1, with only Senator Russell Feingold (D-Wisc.) dissenting. The House passed its version the next day on another lopsided vote...
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...Is money laundering a real problem in the world today? Ashford University By: A’ Lexis Gailes BUS670: Legal Environment Professor Robert Tocker May 25, 2014 Abstract Money laundering the process whereby the proceeds of crime are transformed into apparently legitimate money or other assets has been recognized as a criminal activity which causes serious social and economic damages. The traditional method of money laundering is through financial institutions. However, with the development of new science and technology the approaches of money laundering have become more and more diverse. This paper is discussing the legal and ethical issues which surround this topic, as well as, develop an analysis for the ethical concerns raised by the laundering of money. The writer will then provide explanations from at least three relevant areas of law that have been discussed throughout the course and assess each area as it applies to money laundering. Finally, the write will provide recommendations on this situation to reduce liability exposure and improve the ethical climate or the overall ethics of money laundering. Is money laundering a real problem in the world today? I. Introductions There are many ethical issues that can arise in the course of operating a small business. A comprehensive understanding of the different types of ethical issues will help you to identify and handle this situation’s responsibility to maintain core business values. Let’s look at this scenario...
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...(i) Discuss – What is money laundering? How does it differ from terrorist financing? The term money laundering was first pioneered in the early 20th Century. The disguising of income derived from illegitimate activities date back as far as the 13th Century B.C. The infamous Alphonse “Al” Capone who was an infamous organised criminal figure in America during the 1920s during the US Prohibition Era, was grossing criminal proceeds estimated to $100,000,000 of which he laundered through a series of businesses. Lansky who was known as the 'Mob's Accountant' unitised the worth of foreign countries that provide havens for criminal activities. Through laundering Lansky held untraceable millions in Swiss bank accounts and in banks and corporations abroad....
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...Anti-Money Laundering Act 2010 2. Definitions.-In this Ordinance, unless there is anything repugnant in the subject or context,- (a) “attachment” means prohibition of transfer, conversion, disposition or movement of property by an order issued under section 8; (c) “CTR” means report on currency transactions exceeding such amount as may be specified by the National Executive Committee; (d) “Court” means the Court specified under section 20 (e) “Director General” means the Director General of FMU appointed under section 6; (f) “financial institutions” includes any institution carrying on any or more of the as listed in section 2(f). (g) “fiscal offence” means an offence punishable under the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Excise Act, 2005, the Customs Act, 1969 (IV of 1969), the Sales Tax Act, 1990 and any other law as the Federal Government may notify in this behalf; (h) “FMU” means the Financial Monitoring Unit established under section 6; (i) “foreign serious offence” means an offence – (i) against the law of a foreign State stated in a certificate issued by, or on behalf of, the government of that foreign State; and (ii) which, had it occurred in Pakistan, would have constituted a predicate offence; (j) “investigating or prosecuting agency” means the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Anti-Narcotics Force (ANF) or any other law enforcement agency as may be notified by the Federal Government for the investigation...
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...Legal Discussion/Analysis In the Bank of New York case, the original indictment against Edwards and Berlin fell short of federal money laundering charges. Since U.S. prosecutors could not show that the money the couple transmitted derived from one of the Specified Unlawful Activities (SUAs) listed in Section 1986 of Title 18 of the U.S. Code, the prosecutors had to charge them with the lesser offense of transmitting money without a license. Prosecutors had established, however, that the money was laundered in a manner designed to evade Russian tax law. Under the FMDLA, if the crime of tax evasion had allowed Russia to extradite the couple and thus qualified as an SUA, (see Appendix A2) then U.S. prosecutors could have immediately charged...
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...prior to the call from the Royal Canadian Mounted Police (RCMP) are as follows:- Regardless of the further background checks undertaken by myself, the Bank should already have had cause for concern with this client. A major worry being the multi-jurisdictional aspect of the LLC business; registered in St.Luke but not incorporated there, the Head Office in Canada, business based in Belgium, clientele Canadian and U.S. based and using offshore jurisdictions around the world. There is no clear commercial rationale behind the reason for this which must be a major consideration when assessing client due diligence (CDD) as multi-jurisdictional structures are vulnerable for money laundering and terrorist financing. Concern is heightened further given that “95 per cent of its dealings involved legitimate money management in offshore jurisdictions around the world” and yet the company is registered for securities business in Canada. There is no precise understanding as to why this is and any account administrator picking up the file for the first time (or anytime) wouldn’t have a clear picture as to the exact nature of this business. The Financial Action Task Force (FATF) issued a paper (1) on the misuse of corporate vehicles which illustrated four typologies; typology one highlighted the problems behind multi-jurisdictional structures. The report supports the findings of the OECD (2) who have stated that “the types of vehicles most frequently misused are those that provide the...
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...Fraud and Money Laundering Definition Money laundering is defined as: ‘The funnelling of cash or other funds generated from illegal activities through legitimate financial institutions and businesses to conceal the source of the funds.’ Anti-Money Laundering, 2nd ed., IFAC, 2004 Fraud is a general term for deliberate misrepresentation and may include money laundering. The problems of fraud and especially money laundering are increasing at an unprecedented rate. Governments worldwide are introducing new legislation and penalties for such white collar crimes. However, the huge amounts of money involved in these illegal activities ensure that criminals continue to exploit ways of increasing their activities. They clearly weigh up the potentially vast profits against their chances of being caught and the subsequent penalties. Context It is a fact that legitimate financial institutions and businesses may be involved in fraud and money laundering. It is therefore crucial that CIMA members, whether in practice or in business, are fully aware of this possibility and are alert to the signs of money laundering which can affect their business. Examination candidates should be aware of the risks involved, especially at strategic and TOPCIMA level. They should ensure that they know the signs of possible money laundering and the steps they must take to report it. 3 Topic Gateway Series Fraud and Money Laundering Overview There are a number of ways in which criminals commit...
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...NAME OF GROUP MEMBERS: HON HAO KONG TP027895 THOR LIH YIN TP024383 YUVARAJ MURALITHARAN TP028059 GROUP : GROUP C2I INTAKE CODE : UC3F1402IT{FC} MODULE CODE : CT040-3.5-3-LEAFC MODULE TITLE : LEGAL EVIDENTRARY ASPECTS OF FORENSIC COMPUTING, LEAFC PROJECT TITLE : LEAFC 2nd Group Assignment HAND-OUT DATE : 27th MAY 2014 HAND-IN DATE : 16TH JUNE 2014 LECTURER : MR. ALI JAVAN Table of Contents 1.0 Workload Matrix 3 2.0 Executive Summary 4 3.0 Case Detail and Assumptions 5 4.0 First Responder 7 4.1 Overview 7 4.2 First Responder Procedures 7 4.2.1 Securing and evaluating electronic crime scene 7 4.2.2 Documenting electronic crime scene 10 4.2.3 Collecting and preserving electronic evidence 15 4.2.4 Packaging electronic evidence 21 4.2.5 Transporting electronic evidence 22 4.3 Chain of Custody 23 5.0 Critical Analysis 24 5.1 Forensic Analysis 29 6.0 Case Reconstruction 40 6.1 Functional Analysis 40 6.2 Timeline Analysis 42 6.3 Relational Analysis 43 7.0 Apply and Result of Subpoena 44 8.0 Legal Discussion and Implication 45 8.1 Legal Discussion Perspectives 47 9.0 Conclusion and recommendations 51 9.1 Conclusion 51 9.2 Recommendations 51 10.0 References 52 Appendix A– Affadavit 54 Appendix B- Subpoena 59 1.0 Workload Matrix | Thor Lih Yin (TP024383)...
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...Information Technology Act Greg Bennett BIS/220 January 15, 2013 Nikia Johnson Information Technology Act Information technology continues to forge ahead and has done so from day one. Technology, moving forward, and becoming more advanced and sophisticated, adds growing concern over the ethical integrity of that technology. In correlation with those concerns, the United States government implemented various acts to aid control in these concerns and combat unethical behavior. Given the number of implemented acts, this paper focuses on two specific sections: the Fair Credit Reporting Act of 1970, and the U.S. Patriot Act of 2001. The implementation of the Fair Credit Reporting Act of 1970 enabled each American to be on an even plane with credit opportunities. The government executed the U.S. Patriot Act in 2001, in part because of the atrocity of 9/11, to lessen terrorist activities by the use of the Internet and cyberspace. Fair Credit Reporting Act of 1970 The Fair Credit Reporting Act (FCRA) ordained to “protect consumers from the disclosure of inaccurate and arbitrary personal information held by consumer reporting agencies” (Consumer Privacy Guide (2001). The Fair Credit Reporting Act (1970). 2001). At the time when this act was established, American citizens were not viewed equally by credit facilities when attempting to purchase homes or vehicles. This act was a means of governing and guaranteeing equal opportunity and consideration for these...
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...does, play a role in money laundering. In addition to serving as a 'tutorial' on hawala transaction, this paper will also discuss the way in which hawala is used to facilitate money laundering. What is hawala? | | | Hawala (1) is an alternative or parallel remittance system. It exists and operates outside of, or parallel to 'traditional' banking or financial channels. It was developed in India, before the introduction of western banking practices, and is currently a major remittance system used around the world. It is but one of several such systems; another well known example is the 'chop', 'chit' or 'flying money' system indigenous to China, and also, used around the world. These systems are often referred to as 'underground banking'; this term is not always correct, as they often operate in the open with complete legitimacy, and these services are often heavily and effectively advertised. The components of hawala that distinguish it from other remittance systems are trust and the extensive use of connections such as family relationships or regional affiliations. Unlike traditional banking or even the 'chop' system, hawala makes minimal (often no) use of any sort of negotiable instrument. Transfers of money take place based on communications between members of a network of hawaladars, or hawala dealers (2). How does hawala work? | | | Hawala works by transferring money without actually moving it. In fact 'money transfer without money movement' is a definition...
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...Legal and Regulatory Environment Walmart provide information on common scams to their customers such as fraud awareness sign and brochure. They also help their associates understand how to spot signs of fraud and protect the financial interests of their customers. They trained their associates on fraud and money laundering as part of their prevention strategy. In addition, Walmart uses an anti-money laundering software solution to monitor financial services activity for potential financial crimes. Walmart reports suspicious activity to the Financial Crimes Enforcement Network and law enforcement. d. Available Pmt. Instruments Walmarts’s available payment instruments is card-based systems including credit or debit cards with MasterCard or Visa logo, Walmart credit Card, Bill Me Later, PayPal, Walmart Gift Card, cash and American Express. 7. Management of Inventory Walmart has a highly efficient distribution system enables it to be the lowest cost provider of many goods. It makes the firm to maintain very low levels of inventory. Walmart continued improvement in inventory turnover over the years, therefore there is no sign that their competitors can catch up with Walmart’s lowest cost provider of many products. a. Elements of Basic Inventory Policy Walmart has its own satellite communication system since 1983. It allows them to monitor each activity going on in a particular store at any point of the day. Walmar allows the store to manage their own stocks...
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