RMRamirez Money Laundering

8/12/2019 RMRamirez Money Laundering

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Robert Ramirez

Money Laundering
http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/cover/


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Definition: The process of disguising theproceeds of crime in an effort to conceal theirillicit origins and legitimize their future use.

Objective: To conceal true ownership andorigin of the proceeds, a desire to maintain

control, a n

eed to change the form of theproceeds.

Techniques: They can be simple, diverse,complex, subtle, but secret.

Proceeds = any economic advantagederived directly or indirectly fromcriminal offenses


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The conversion or transfer of property, knowing that suchproperty is derived from any offence or offences or froman act of participation in such offence or offences, for thepurpose of concealing or disguising the illicit origin of theproperty or of assisting any person who is involved in thecommission of such an offence or offences to evade the

legal consequences of his actions; The concealment or disguise of the true nature, source,

location, disposition, movement, rights with respect to, orownership of property, knowing that such property isderived from an offence or offences or from an act ofparticipation in such an offence or offences; and

The acquisition, possession or use of property, knowing atthe time of receipt that such property was derived from anoffence or offences or from an act of participation in suchoffense or offenses.


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How is it done?????


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2.

PLACEMENT

3.

LAYERING

4.

INTEGRATION

The last stage in the laundering

process. Occurs when the laundered

proceeds are distributed back tothe criminal.

Creates appearance oflegitimate wealth.

Involves distancing the moneyfrom its criminal source:

movements of $ intodifferent accounts

movements of money todifferent countries

Increasingly difficult to detect

Initial introduction of criminalproceeds into the stream ofcommerce

Most vulnerable stage of moneylaundering process

1.

Predicate Crimes

Corruption and Bribery Fraud Organized crime Drug and human trafficking Environmental crime Terrorism Other serious crimes

Money Laundering Cycle


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Simple Bribe and Money Laundering

Transaction

Company

A Needs togenerate $1million for bribe to

Finance Minister.

Uses invoicesfrom company inCountry 2

Country 1

Country 2

Company Bank Account

Country 3

Company owned by Ministers

cousin

Country 4

$500,000 -Purchase of RealEstate

$500,000 -Purchase ofBearer Share


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The technique of illegal money import Technique of smurfing or nominalpartnership Gambling Self-financing loan (Dutch sandwich) Establishing fictitious business organization Fictitious transactions Creating a cover company Method of acquisition and selling ofcompanies


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The use of virtual casinos sitesand onlinesport bet sites The possibility of opening online bankaccountand the banking and electronicpayment systems Use of virtual money


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Notorious Cases & Statistics


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After foreign exchange and theoil industry, the laundering ofdirty money is the worlds third-largest business - IMF

How Much Is LaunderedIMF ESTIMATE = 2-5% Global GDP1.5 - 3.4 Trillion a year


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http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/nauru/http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/londono-2/http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/benex/http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/bcci/http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/sani-abacha/


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http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/pablo-escobar/http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/president-suharto/http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/ferdinand-marcos-2/http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/meyer-lansky/http://www.businesspundit.com/10-most-notorious-money-laundering-cases-of-the-20th-century/al-capone/


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Why is it an Issue inInternational Law?


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Traditional view of sovereignty - a state is solelyresponsible for the creation and implementation ofinternational law.

The diversity of national legal systems - a crucial

obstacle that discourages cooperation in internationallaw enforcement efforts is the differences inlegislation among countries

Capability to perform international cooperation - Thisis particularly true for several states that lack offinancial and technical resources, administrative andlanguage barriers, lack of necessary expertise, andlack of clarity on the nature and relevance of theinformation that is requested.


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Philippine Laws


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Criminalizes money laundering Creates a Financial Intelligence Unit (FIU)

Imposes requirements on customeridentification, record-keeping and reportingof covered and suspicious transactions.

Relaxes strict bank deposit secrecy laws.

Provides for freezing/seizure/forfeiture

recovery of dirty money/property. Provides for international cooperation


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Lowers the threshold amount for single covered transactions (cash or otherequivalent monetary instrument) from P4M to P500,000.00 within one (1) bankingday.

Expands the reporting requirements to include the reporting of suspicioustransactions regardless of the amount involved

Authorizes AMLC to inquire into or examine any particular deposit or investment,with any banking institution or non-bank financial institution and theirsubsidiaries and affiliates upon order of any competent court in cases of violation

of this Act, when it has been established that there is probable cause that thedeposits or investments are related to an unlawful activity. However, no courtorder is required in cases involving unlawful activities of kidnapping for ransom,narcotics offenses and hijacking, destructive arson and murder, including thoseperpetrated by terrorists against non-combatant persons and similar targets.

Authorizes the Bangko Sentral ng Pilipinas to inquire into or examine any depositor investment with any banking institution or non-bank financial institution andtheir subsidiaries and affiliates when the examination is made in the course of aperiodic or special examination, in accordance with the rules of examination ofthe BSP to ensure compliance with R.A. No. 9160, as amended.

Transfers the authority to freeze any money/property from the AMLC to the Courtof Appeals


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Conclusion


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Interstate cooperation in countering thecross-border nature of money laundering isextremely important. This means that anycountry cannot solely deal with the problem

of transnational money laundering usingunilateral action, but rather needs interstatecooperation in law enforcement matters. Inother words, the problem of cross-bordermoney laundering cannot be solved withouteffective international cooperation.


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Recommendation


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Enhance cooperation among law enforcement, financialinstitutions, and judiciary: a coordinated responseinvolving the financial industry, the judiciary, and lawenforcement is necessary to address the issues regardingeffective counter-laundering measures.

Criminalize laundering: adopt legislation that criminalizesthe laundering of the proceeds of all serious crime.

Establish a financial intelligence unit (FIU): an FIU is acentral office, generally composed of investigators,banking experts, and financial analysts, that obtains and

analyses information from financial indicative oflaundering to an appropriate government authority forinvestigation.


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Repeal bank secrecy laws: laws that unduly restrict the flow ofinformation between financial institutions and law enforcement shouldbe repealed and specific protections afforded those appropriatelydisclosing information to the authorities.

Report large/suspicious transactions: to obtain needed information on a

reliable basis, banks and other covered institutions should be required

to report all suspicious transactions and all large transactions, wherethe reports on large transactions would help law enforcement agenciesin a manner that is not cost prohibitive.

Identify bank customers: because launderers covet anonymity for their

clandestine activity, institutions must identify their customers and passpertinent information to the appropriate authorities.

Record customer and transaction information: banks and other covered

institutions must record information obtained in identifying theircustomers and certain transactions and keep such records for up to 5years.


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Establish effective anti--money laundering programs in banks:banks should establish effective internal anti--launderingprogram, conduct laundering-detection training for officers andemployees, and provide for meaningful institutionalaccountability.

Ensure international cooperation: given the ease and speed thatcriminals can layer and integrate funds across internationalboundaries, cooperation among enforcement authorities on aninternational basis is essential. Countries should adopt laws tofacilitate such international cooperation.

Adopt forfeiture laws: countries should adopt laws that permit

the forfeiture of property connected to laundering offenses andthe pretrial restraint and seizure of property subject to forfeiturein domestic cases and upon request by authorities from foreign

jurisdictions.

RMRamirez Money Laundering

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