Methods of Financial Monitoring February 22, 2008 Kalendar Ekaterina

Content 1. Financial intelligence and financial monitoring 2. Money laundering and the reasons for fighting it 3. Financial intelligence units 4. The fight against money laundering in Russia 5. Summary

1. Financial intelligence and financial monitoring

2. Money laundering and the reasons for fighting it

3. Financial intelligence units

4. The fight against money laundering in Russia

5. Summary

Financial intelligence and financial monitoring “ Financial intelligence” is the gathering of information about the financial affairs of entities of interest, to understand their nature and capabilities, and predict their intentions “ Financial monitoring” is the measures that are accepted by state authorities or financial institutions for combating the legalization (laundering) of illegally obtained revenue and the financing of terrorism

“ Financial intelligence” is the gathering of information about the financial affairs of entities of interest, to understand their nature and capabilities, and predict their intentions

“ Financial monitoring” is the measures that are accepted by state authorities or financial institutions for combating the legalization (laundering) of illegally obtained revenue and the financing of terrorism

Methods of financial monitoring primary (in-house) financial monitoring state monitoring

primary (in-house) financial monitoring

state monitoring

Money laundering “ T he practice of engaging in financial transactions in order to conceal the identity, source, and destination of money, and money laundering is a main operation of the underground economy”

“ T he practice of engaging in financial transactions in order to conceal the identity, source, and destination of money, and money laundering is a main operation of the underground economy”

Reasons for combating money laundering To enable law enforcement authorities to confiscate the proceeds of predicate criminal activities A means of gathering evidence against the organized crime The prejudicial influence money laundering may have on the financial sector

To enable law enforcement authorities to confiscate the proceeds of predicate criminal activities

A means of gathering evidence against the organized crime

The prejudicial influence money laundering may have on the financial sector

Stages of money laundering Placement Layering Integration

Placement

Layering

Integration

The Financial Action Task Force on money laundering (FATF) The work of the may be divided into three main sub-groups: setting standards for national anti-money laundering and counter terrorist financing programs; evaluating the degree to which countries have implemented measures that meet those standards; and identifying and studying money laundering and terrorist financing methods and trends.

The work of the may be divided into three main sub-groups:

setting standards for national anti-money laundering and counter terrorist financing programs;

evaluating the degree to which countries have implemented measures that meet those standards; and

identifying and studying money laundering and terrorist financing methods and trends.

Financial intelligence units “ A central, national agency responsible for receiving , analyzing and disseminating to the competent authorities, disclosures of financial information” Functions: repository function analysis function clearing house

“ A central, national agency responsible for receiving , analyzing and disseminating to the competent authorities, disclosures of financial information”

Functions:

repository function

analysis function

clearing house

The fight against money laundering in Russia Concept of the national strategy of combating legalization (laundering) of criminally gained income and financing of terrorism

Concept of the national strategy of combating legalization (laundering) of criminally gained income and financing of terrorism

The fight against money laundering in Russia the law-enforcement bloc financial monitoring

the law-enforcement bloc

financial monitoring

The fight against money laundering in Russia methods  of primary financial monitoring: primary control of clients, the subsequent control of the identification data of the client, the general supervision over financial activity of various objects  of the control, monitoring over financial operations of  the certain object, which can participate in criminal activity methods  of the state financial monitoring: the supervision of the implementation and observance of AML laws by financial  institutions  and other persons; the primary or operational analysis of  the submitted information about financial transactions; the tactical analysis or financial investigation; the strategic analysis of the unusual and  suspicious operations

methods  of primary financial monitoring:

primary control of clients, the subsequent control of the identification data of the client, the general supervision over financial activity of various objects  of the control, monitoring over financial operations of  the certain object, which can participate in criminal activity

methods  of the state financial monitoring:

the supervision of the implementation and observance of AML laws by financial  institutions  and other persons; the primary or operational analysis of  the submitted information about financial transactions; the tactical analysis or financial investigation; the strategic analysis of the unusual and  suspicious operations

Thank you!

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