Preventing, Detecting and Investigating Financial Crime Training Course

Understanding Money Laundering

• What is Money Laundering?
• Why does the international community need to combat Money Laundering?
• The Criminalisation of Money Laundering – and how more crimes are now interpreted as Money Laundering
• The expansion of Money Laundering: from drugs to corruption to terrorism

• Types of products and services used by Money Launderers
• Money Laundering techniques explained:
  • Placement
  • Layering
  • Integration

• Combating Terrorist Financing (CTF)
• OFAC: the Office of Foreign Assets Control – which has global reach
• The US Patriot Act – which also has global reach
• International Sanctions

• The International Anti-Money Laundering Effort
• The Financial Action Task Force (FATF):
  • FATF’s membership categories
  • FATF’s 40 Recommendations on Money Laundering
  • FATF’s guidance on CTF
• UK Regulations and Legislation and how they have become the template for many countries’ legislation
• The Problem of Offshore Finance and Tax Havens

• Internal Controls, Procedures and Policies
• Arrangements required to combat Money Laundering
• Compliance Monitoring
• Cooperation with the Authorities and the Regulators
• “Know Your Customer” Rules
• Identification and Verification (ID&V)
• Impact on Strategy, Client Relations and Human Resources

• Statutory Obligations
• Internal reporting of suspicious transactions
• External reporting procedures
• Record-keeping
• Document retention
• Document retrieval

• Prevention, Detection and Due Diligence
• “Red Flags” on client transactions
• Suspicious transactions
• Early-Warning Mechanisms

• Profiling a company’s clients
• Using the information companies have about their clients to try to predict who might be involved in Financial Crime

• What are Bribery & Corruption?
• The UK’s Bribery & Corruption Act 2010
  • N.B Although this is a piece of UK legislation its impact is truly global: it “catches” all UK companies’ overseas offices and all UK nationals working for companies outside the UK
• Its offences and protections

• Recognising those clients most likely to become involved in Fraud
• Recognising Types of Fraud
• Detection, Red Flags and Early-Warning Mechanisms

• Payment Fraud
• Plastic Card Fraud
• International Trade Fraud – especially in Documentary Letters of Credit
• Prime Bank Instrument Fraud and Ghost Money
• …and, of course, fraud that is perpetrated by bank staff: Internal Fraud

• Identity Theft and “Phishing”