Money Laundering & Terrorist Financing Flashcards
Differences between ML & TF
- TF often smaller sums of money
- TF can be legit funds
United Nations Office on Drugs and Crime (UNODC)
Member states resolved to fight all transactional crime
International Monetary Fund (IMF)
Lending of money to certain governments
Confirming need for AML assessments
Funding comes from member states voluntarily over 5 years
World Bank
Loans for environment improvement projects, health and education
The World Bank promotes measures to counter the flow of illicit funds into the financial systems of countries and arranges for external assistance
Made up of
International Bank of Reconstruction and Development
International Development Association
Financial Action Task Force (FATF)
Inter-governmental policy- making body
40 recommendations
Combat money laundering and terrorist financing
Risk based approach to combatting ML & TF
Reviews of mission every 5 years
Fradulent Act
Intentional, wilful or knowing act to deceive. omitting material facts
Misuse of Power
Bribery
Corruption
Securities fraud
Encouraging others to trade on misleading info
e.g. insider dealing & theft
Embezzlement
Dishonestly appropriating or secreting assets
Ponzi scheme
Returns paid from contributors of subsequent investors
Boiler Rooms
Pressure selling without assessing suitability or disclosing full information
Offshore trusts
Used to disguise ownership of assets
Mortgage fraud
lying on mortgage application
Beneficial ownership
not necessarily legal ownership
Corporate Fraud
Conduct by persons in position of trust that illegal
Dual Criminality
action both crime in state where was committed and state where it was committed
Extradition
Person fleeing country
Mutual Legal Assistance
OECD Convention need to provide prompt and effective legal assistance to other countries
Topical Trust Funds
provides technical assistance for range of causes
AML
natural resource wealth, tax policy
Stolen Asset Recovery Initiative (StAR)
partnership between
World Bank
UNODC
Incident summary of case
High level description of the case
Greater attention to aml greatest amount of business
Quantum- based approach
The Wolfsberg Group of banks do
Publish guidance for money laundering procedures for private banking
Fuzzy matching
Fuzzy matching describes any process that identifies non-exact matches.
