Money Laundering Awareness Objectives l Define Money Laundering

Money Laundering Awareness

Objectives l Define Money Laundering l Recognize the Three Stages l Work through a practical exercise

Definitions… l OECD Attempt to conceal or disguise the ownership or source of the proceeds of criminal activity and to integrate them into the legitimate financial systems in such a way that they cannot be distinguished from assets acquired by legitimate means. Typically this involves the conversion of cashbased proceeds into account-based forms of money.

Definitions… l EC directive 1990 Conversion or transfer of property, knowing such property is derived from serious crime, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in committing such an offence or offences to evade the legal consequences of his actions and the concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of property.

So there are three key elements l Proceeds l Transaction l Knowledge

The international dimension l FATF – 40 recommendations predominately covering aspects of money laundering. l Produce typologies and best practice papers on specific risk areas. A useful online resource. l Refreshing mutual evaluation criteria. Discussing feasibility of evaluating effectiveness of implemented AML regimes

The international dimension(2) l Each FATF member will have its own AML legislation, which may use different language to describe threat but the main ML processes are: l PLACEMENT l LAYERING l INTEGRATION Justification Investment

Putting you to the test! l You have generated $5 million from criminal activity. l Devise a scheme to launder the proceeds based on the main laundering processes. l This is a one-time scheme so make it realistic and practical. l The best scheme will be suitably rewarded… but be warned on Day 2 that might change!