11

FP Sustrans: the role of Europol in cross-border cash detection operations

Tri-fold Expert Working Group

on Financial Flows

EUROPOL, The Hague, Netherlands

13 February 2013

FP Sustrans

Agenda:

• FP Sustrans in a nutshell

•analysis techniques in cross-border cash movements

•A few practical examples:

� Operation ATHENA III – Strategic analysis

� Operation SUNDAY – Operational analysis

3

FP Sustrans intelligence base

3

Analysis

Suspicious Transaction Reports (STRs)

InvestigationsCash Transaction Reports (CTRs)

Country C

Drug seizure at the airport

Country B

Case 1 –Predicate offence detection

Examples of added value

Country A

FP SUSTRANS

FP HEROIN

INDEX

SAR

Analysis tools used in cash detection operations

3

2

1

0

100%

75%

50%

25%

%

i2 Data Miner 8 is a numerical analysis tool. It allows you to analyze large amounts of data and find whether patterns exist in subsets of data, and whether these patterns repeat in predictable ways

Air route SPAIN/FRANCE�CHINA

French cash seizures 2007-2008

Cash Routes Detection

Analysis tools used in cash detection operations

By following the branches of the “tree” a profile can be detected.

Region

Year

Count

Gender

Age

Nationality

2005 2006

NORTH CENTRE

FEMALE

30-50 >50

OTHER NIGERIA

2007

SOUTH

MALE

20-30

RPC

Analysis tools used in cash detection operations

Geocoding of information to plot data on a map

GIS Analysis

Geographical

Information

System

Suspicious transactions plotted on the basis of ZIP code of people involved

Map Point

Operation Athena III: Strategic analysis

Background:

•A joint police and customs operation on cash couriering was proposed by the Danish Presidency in 2012.

•Operational activities/threat assessments show laws on declaration of cash often violated: larger amounts of cash are transported from one Member State to another or to a third country

•Cash amounts are often transported with a view to repatriate criminal proceeds or to carry out money laundering

Operation Athena III

Athena III divided into different phases:

•Pre-operational phase:

26 countries: 25 EU + 1 Non-EU

Analysis of over 70,000 records 31/01/2011 –31/12/2011

•Operational phase

38 countries: 25 EU + 13 Non-EU

Mobile office deployment - 16/10/2012 – 22/10/2012, over 800 records checked

Analytical approach: Athena III

Inbound movements of cash to EU

Mining by geographical regions: routes

Operation Sunday

•A network based in The Netherlands and engaged in money laundering activities derived from international cocaine trafficking

•Initiative launched by FP Sustrans from scratch with support from FP COLA and 3 EU MS

•2 Analytical phases:

� Expanding the network

� Establishing key targets

From 4 initial cases…

P1327 P0923 P0522 P1300

Links with data held in FP Sustrans

Developing the links…

…Revealing a network

Analysis techniques

Analytical methodology to analyse the network from three different perspectives:

Transaction Analysis – find who the top senders are: the suspects that either sent more transactions or sent higher amount of money.

Social Network Analysis (SNA) – focus on centrality measure betweenness – find the suspects that link people who would not be otherwise linked.

Link Analysis – besides the transactions, are the suspects linked through other means, e.g. like addresses?

Op Sunday – Conclusions

-Intelligence exchange via Europol/ Sustrans – links between drug seizures, STRs/ CTRs, ongoing investigations to develop cases/ revealing criminal patterns

-Application of specific analysis techniques

-Model for data exploitation in analysis of financial intelligence

-Interoperability between available databases

-Domestic information on ML trends should be extracted from dedicated threat assessments

Thank you for your attention

FP SUSTRANS

Financial Intelligence Group, O42

Operations Department

EUROPOL