2 million Suspicious Activity Reports (approximately) ÿled by banks annually
FATF Country reports
2.1 trillion is the total annualcriminal proceeds(3.6% Global GDP)
1.6 trillion available for laundering
Less than 1% seized by authorities
Money laundering
global top 10 industry
Arms dealers Financial institutions Cash intensive business
Casinos & internet gambling Gatekeepers, lawyers, accountants, trustees & etc.
High value goods dealers Agents & intermediaries Money services business
Politically exposed persons Precious metals & stones dealers
Private military ÿrms Real estate agents Sanctioned parties
Product & channels risk
MONEYLAUNDERING(ML)
Source: United Nations Ofÿce on Drugs and Crime (UNODC). 2011 issued/2009 ÿgures. Figure excludes tax evasion.
3 STAGES OFMONEY LAUNDERING
USD
690bn
Counterfeit & Piracy
USD
411bn
Drug Trafÿcking
USD
162bn
Smuggling
USD
140bn
Illegal Gambling
USD
150bn
Human Trafÿcking
Sources: United Nations Ofÿce on Drugs and Crime (UNODC), International Labour Organisation (ILO) and Havocscope.
Total of USD2.1 trillion, of which USD870 billion
by organised crime 41%
TOP 5 MONEY LAUNDERING CRIMES
Placement into the ÿnancial system of criminal monies
Integration absorbed into the ÿnancial system appearing legitimate
Layering moving money in the ÿnancial system to disguise its criminal origin
2 31
MAJOR ML CONTROLS
Name screening
Transaction monitoring
Customer Due
Diligence (CDD)
Training & awareness
Governance, culture & resources
Investigations & disclosures
Independent assurance
Risk assessment
INHERENT MLRISK CATEGORIESExamples Customer risk
Private banking Foreign correspondent banking Non face-to-face customers
Suspicious & unusual transactions Wash & pass through Suddenly active
High risk third country Smurÿng Large in & out
Suspicious Activity Report (SAR) True match Production order
LARGEST CRIMINAL MARKETS
Source: Havocscope
20% Others
20% EU
35% North America
5.5% Japan
6.5% Mexico
13% China
UNODC 2.1 trillion ÿgures do not include fraud, tax evasion or corruption
USD53 billion available to be laundered of which
COCAINE TOTAL ANNUAL PROCEEDS
USD
85bn
TOP
5 49% moved internationally
Transaction risk
Geographies risk
High risk countries including sanctioned countries
Behaviour risk
BE DILIGENT. BE CURIOUS. BE VIGILANT.
Figures used from various public sources 2011/14