33rdrd Annual Enhanced AML/CTF Tools & Techniques-SingaporeAnnual Enhanced AML/CTF Tools & Techniques-Singapore
Agenda33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
Preparing for the Global Growth of Electronic Payments and their Impact on
Financial InstitutionsAnthony Lai &
Yarochkin Fyodor
17 October 2011
ACAMS Asia-Pacific Live Seminar Series
Electronic Payments in Online Crime
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Electronic payment systems: case studies
• “red flag” criminal activities
• Discussion: – Regulatory requirements regarding electronic payment transactions
– New tools and best practices to enhance AML/CTF control in addressing
these payments
– Strengthening your AML program to monitor these payment vehicles
Agenda33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
3
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• What will you learn here:
– Exposure to real cases and examples of “red flag” activities
– Channels and patterns
We are cybecrime experts, so....
4
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
You probably know about “HAWALA”
Hawala (also known as hundi) is an informal value transfer system based on the performance and honour of a huge network of money brokers
5
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
Many of electronic payment systems are following the HAWALA principleAnd built on the top of similar infrastructure
Now backed by digital inftastructure
No traces in banking network
Money disappear in one place, pop up in another
6
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Lets look at some examples
6
There is more than one way to transfer money
7
33rdrd Annual Enhanced AML/CTF Tools & Techniques-Hong KongAnnual Enhanced AML/CTF Tools & Techniques-Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Of course you know paypal and other “white” payment electronic
systems. They are simple, and uninteresting
7
8
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Controlled by regulatory acts. (http://www.ffiec.gov/PDF/EFS.pdf)
• Similar to conventional payment systems (not much space for
anonymized fraud :-))
8
9
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• WMZ - web money - one wmz = one USD
• Drop - money mule• CC - creditcards• Abuse resistant - Safe to host
any kind of fraudulent service • Partnerka - partnership program
9
Getting to know “Underground” money systems
10
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• There are many:
10
• Web Money (WMZ)• Yandex Money• LR (liberty reserve• Epassporte (dead!)
Where is webmoney office in Thailand?
Pataya!! Where gangsters are ;-)
11
33rdrd Annual Enhanced AML/CTF Tools & Techniques-Hong KongAnnual Enhanced AML/CTF Tools & Techniques-Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Credit card “dumps” websites, work only with “trusted” systems.
Why?
11
AlertPay, SMS, LiqPay
12
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• They feature “awesome” geographical locations
12
13
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• As with real currency, exchange points exist. Percent charged:
13
14
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• WMZ - widely used on black markets
14
15
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Credit cards: easily available and covertable into non-traceable
currency
15
16
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Such data is also on sale (note LR -> Liberty Reserve payment
system)
16
17
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• “cleaning” dirty cash - services available
17
Accepting dirty cash. 40% feeIe 100 of dirty units, u get 60 clean back.Payment in alfabank, or yandex money
18
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Done through money mules:
18
19
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• FBI arrests last year
19
20
33rdrd Annual Enhanced AML/CTF Tools & Techniques-Hong KongAnnual Enhanced AML/CTF Tools & Techniques-Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Another way of “cleansing” cash through sale of charged skype
accounts. Exchange rate is 1 to 2.5
20
21
33rdrd Annual Enhanced AML/CTF Tools & Techniques-Hong KongAnnual Enhanced AML/CTF Tools & Techniques-Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Similar method in china. Conversion through online goods.
21
22
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Passport scans sale: big market for the same reason
22
4-5USD/scan avg.eu, .ru, .us, asianOne-hand salesAlso offered - scan “redraw”Special prices for bulk
23
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• So “cleansing” packages could be arranged
23
24
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Explanation:
24
Под средства любой загрязненности! For money of any state of dirtinessВ комплект входит: Pack includes1.Банковский акк(online доступ) Online bank account access2.АТМ картa(Дневной лимит на снятие средств 1000$/6000$ В МЕСЯЦ-Возможно увеличение лимита +30$-) ATM card (1000/6000USD per month withdrawal limit)3.Карта кодов (для online доступа) online access passwords4.Копия паспорта дропа Passport copy of “poor john”5.Sim-ka SIM card
Also can be pre-ordered on custom passport scan (25USD)
25
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Other monetizations: SMS
25
26
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• SMS in. Money out
26
27
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• This year, going international, utilizing localized payment
systems:
28
33rdrd Annual Enhanced AML/CTF Tools & Techniques-Hong KongAnnual Enhanced AML/CTF Tools & Techniques-Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Spanish version
28
29
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
• Very “international” operations.
29
Registration Service Provided By: Bizcn.comWebsite: http://www.cnobin.comWhois Server: whois.bizcn.com
Domain name: bundespol.net
Registrant Contact: Whois Privacy Protection Service Whois Agent [email protected] +86.05922577888 fax: +86.05922577111 No. 61 Wanghai Road, Xiamen Software Park xiamen fujian 361008 cn
person: Ionut Triparemarks: SC GoldenIdeas SRLaddress: Str. Drumul Sarii, nr.
57Caddress: Sector 6, Bucuresti
phone: +0744885334abuse-mailbox:
[email protected]: IT1737-RIPE
source: RIPE # Filteredmnt-by: GOLDENIDEAS-MNT
person: Ionut Triparemarks: SC GoldenIdeas SRLaddress: Str. Drumul Sarii, nr.
57Caddress: Sector 6, Bucuresti
phone: +0744885334abuse-mailbox:
[email protected]: IT1737-RIPE
source: RIPE # Filteredmnt-by: GOLDENIDEAS-MNT
30
33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
– Regulatory requirements regarding electronic payment transactions
– New tools and best practices to enhance AML/CTF control in addressing these payments
– Strengthening your AML program
Discussion
31
33rdrd Annual Enhanced AML/CTF Tools & Techniques-SingaporeAnnual Enhanced AML/CTF Tools & Techniques-Singapore
ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques
Questions?