Trade Based Financial Compliance Flashcards
Money laundering
To make dirty money obtained through illegal activity look clean
Stages in money laundering
PLACEMENT-LAYERING-INTEGRATION
Phantom shipping
No goods are shipped and all documentation is completely falsified
FATF Financial Action Task Force
FAFT published international standard containing 40 recommendations
Identify risks, develop policies
Investigate money laundering, other illegal activities
Apply preventive measures
Establish powers and responsibilities for the competent authorities
Enhance transparency
Facilitate international co-operation
Network of 204 jurisdictions
The Wolfsberg Group
Outlines the standards for the control of financial crime risks associated with trade finance activities
Financial intelligence units FIU
Serves as a national center for the receipt and analysis of suspicious transaction reports and other information relevant to money laundering, associated predicate offences and financing terrorism and for the dissemination of the results of that analysis
The Egmont Group is united body of 159 FIUs
KYC vs CDD
Know your customer refers to the initial gathering of information
Customer due diligence refers to the assessment of the information gathered and continuous monitoring
Local legislations
UK
The bank of England
USA
The Federal Reserve is the central bank
Also US Department of the Treasury manage government revenues but also evolved to encompass other duties like regulating import/exports taxes and mins US currency
Hong Kong
Hong Kong Monetary Authority, the Securities and Futures Commission, the Office of the Commissioner of Insurance, Mandatory Provident Fund Schemes Authority
Singapore
Monetary Authority of Singapore central bank
China
China Banking Regulatory Commission for combatting financial crime
The Peoples Bank of China is the central bank
The State Administrative of Foreign Exchange is responsible for drafting rules and regulations governing foreign exchange market activities
