Chapter 4 - Conducting and responding to investigations

Question 1

Receipt of subpoena - 2 actions required

Answer 1

• Legally fulfil requirements of the subpoena

- Determine if activity in the subpoena warrants filing of a SARs

Question 2

Subpoena - definition

Answer 2

Issues by grand juries, empower a law enforcment agency to compel the production of documents and testimony

Question 3

Search warrant

Answer 3

Permission from a court of law to search premises and seize. specific documents. Probable cause must exist that evidence of a crime will be located, based on affidavit submitted by a law enforcement officer

Question 4

Does search warrant compel testimony?

Answer 4

No

Question 5

Search warrant - which documents may the bank object to being seized?

Answer 5

Docs under attorney client privilege

Question 6

Can banks ask for the affidavit supporting a search warrant?

Answer 6

Yes, but does not have to be provided

Question 7

Key steps to conducting an investigation

Answer 7

• Review internal info
• Review external info
• Contact business line employees
• Generate a written report

Question 8

Where does SARs go?

Answer 8

Country FCIU

Question 9

Can institutions communicate with law enforcement agencies beyond filing a SAR?

Answer 9

Yes

Question 10

Which FATF recommendations govern cooperation between countries?

Answer 10

36-40

Question 11

What is IMoLIN and who administer it?

Answer 11

International Anti Money Laundering Network

Global Program against ML by UN office on Drugs and Crime (UNODC)

Question 12

What are MLATs

Answer 12

Mutual Legal Assitance Treaties (provide legal basis for sharing info)

Question 13

FIU (Definition)

Answer 13

Mandatory national agencies, receive SARs, analyse them and disseminate intelligence to local law enforcement agencies and foreign FIUs

Question 14

UK and US FIUs

Answer 14

UK: part of National Crime Agency (NCA)
US: FinCEN, established 1990

Question 15

Cooperation between FIUs (MoUs)

Answer 15

Memorandum of Understanding (basis for information sharing), not to gather evidence but for obtaining intelligence that may lead to evidence

Question 16

What does Egmont Group “Principles of Information Exchange between FIUs” describe?

Answer 16

Practices to maximise cooperation between FIUs

Best practices for exchange of information

Question 17

Egmont Group Principles of ainformation Exchange Between FIUs (best practices)

Answer 17

• Free / spontaneous exchange based on reciprocity
• Differences in predicate offense definitions should not be an obstacle
• Info exchange should take place rapidly and informally without compromising data security / privacy
• MoUs should be signed quickly
• FIUs should be able to communicate directly without intermediaries
• Consent to disseminate info to law enforcement should be given quickly

Question 18

Egmont Group - practices to be observed by FIU requesting info from other FIU

Answer 18

• Submit requests in compliance with Principles for Information Sharing
• Timely
• Consider supplying info relevant to other FIUs spontaneously
• Use egmont secure web to exchange info