What are the main predicate offences for money

What are the main predicate offences for money laundering in the region Jed Abad Anti-Money Laundering Assistance Team Australian Attorney General’s Department

Contents § What are the major underlying crimes that produce money to be laundered in the region?

Predicate Offences for Money Laundering Drug Trafficking Tax Evasion Corporate Crime People Smuggling Money Laundering Corruption Sexual Servitude Illegal Logging / Fishing Fraud & Organised Theft

• Seminal Work: Dr Yunus Husein & Dr. Bambang Setiono – Fighting forest crime and promoting prudent banking for sustainable forest management – the anti money laundering approach §APG Report (Sharman & Chaiken 2007) “For developing countries, corruption offences are probably the main predicate offence for money laundering” “The potential of the AML/CFT System to counter corruption is gravely under exploited. . . great missed opportunity” “Significant gains can be had with existing resources” § 2008 Brisbane FIU Workshop – Indonesia, Pacific, Melanesia

Pacific region entering a stage where basic financial intelligence systems are now in place Need to decide what kind of finance related crime are the highest priority for AML targeting One measure of the priority is the amount of money generated from each major crime type and prevalence in the region

2008 Annual FIU Workshop During the 2008 annual FIU Workshop, participants from around the Pacific completed a basic risk assessment based on their experience The risk assessment scored the threat, vulnerability and impact of predicate crimes

Top sources of tainted money - Pacific

Illegal Logging APG – In Asia/Pacific region – illegal logging and money laundering linked to: corruption & bribery, organised crime, smuggling offences, bank and other fraud Associated corruption affects: customs, tax, ; aw enforcement, military, community health and social welfare Need to integrate AML and asset forfeiture tools into efforts to fight illegal logging and associated corruption APG Typologies Report 2008

BANKS LAWYERS ACCOUNTANTS & DEALERS Information sharing • Specifically Monitor Accounts of Politicians, Senior Officials & High Risk industries & make STRs • Share intelligence & typologies • Regional FIU cooperation CUSTOMS • FIU, Customs, LEA, & Forestry & Fishing Agency cooperation FORESTRY & FISHING OFFICIALS Foreign & Domestic LEA’s