The Asia/Pacific Group on Money Laundering Information QuarterlyDocument Transcript
November 2009 ISSN 1440-236X
The Asia/Pacific Group on Money Laundering Information Quarterly
A newsletter on the APG’s work to
implement the international standards
New Australian APG Co-Chair
for anti-money laundering / combating
the financing of terrorism (AML/CFT) Newly appointed Australian Federal Police
(AFP) Commissioner Tony Negus has
assumed the role of Australian Co-Chair
Message from Executive from retired APG Co-Chair, Commissioner
Secretary Mick Keelty in September 2009.
This newsletter contains a variety of items APG Co-Chair, Mr Ong Hian Sun from
about APG activities over the last number of Singapore, congratulated Commissioner Tony Negus on his
months and includes items in relation to appointment as AFP Commissioner and APG Co-Chair, and
technical assistance and training, assessor acknowledged the significant achievements of his predecessor
workshops and others. The most significant during his tenure as APG Co-Chair.
event however was our 12th Annual
Typologies Workshop in Siem Reap,
Cambodia in October.
Thank you to the National Bank of Cambodia and, in particular, to Korea admitted as 35th member of the FATF
Governor HE Chea Chanto and to Secretary General HE Phan Ho
(both pictured on the pages that follow) for an outstanding job in
organising and delivering this Workshop. It was a clearly a Members of the Financial Action Task Force (FATF) welcomed
success and the comments we have received in the Secretariat the Republic of Korea as the FATF's 35th member at the
since have underscored that success. FATF’s plenary meeting in October 2009.
Thank you also to all of the delegates who agreed to participate The FATF noted that Korea’s accession to membership follows
as presenters and group discussion leaders. Our Workshops are the proven commitment made by the Korean authorities to
only as successful as those who agree to take on these ensure it has an anti-money laundering and counter terrorist
responsibilities during the week. financing system which meets the international standards, the
FATF 40 + 9 Recommendations, and to continue to play an
I am sure that all of participants this year left the workshop with a active role in the fight against money laundering and terrorism
greater understanding of some of the emerging money laundering financing, both regionally and worldwide.
and terrorist financing threats and risks in the region. Some new
threats are now on the agenda for further discussion in the new Korea has been active in the Asia-Pacific region and through
year, including money laundering risks in carbon emission trading other regional and bilateral mechanisms.
schemes. This will no doubt prove an interesting and complex
area of research.
Nine APG members are now members of the FATF.
APG delegates are always encouraged to submit new areas of
research and concern to the Secretariat throughout the year and
so I would like to take this opportunity to ask delegates to give
some considered thought to what new areas of money laundering
and terrorist financing risk they would like to examine. These
issues can be brought forward to the wider membership
throughout the year and not just at Annual Typologies Workshops.
2009 APG TYPOLOGIES WORKSHOP
SIEM REAP, CAMBODIA
26-28 OCTOBER 2009
Over 200 delegates and private sector representatives attended the APG's 12th Annual Typologies Workshop hosted by the
National Bank of Cambodia and held in Siem Reap, Cambodia on 26-28 October 2009. H.E. Chea Chanto, the Governor of the
National Bank of Cambodia, and H.E. Phan Ho, the Secretary General of Cambodia's FIU, officially opened the workshop. APG
Typologies Working Group Co-Chairs India and Malaysia co-chaired this event and the Government of Canada's Counter Terrorism
Capacity Building Programme provided financial support for priority delegates.
During the 3-day workshop delegates examined a number of
emerging money laundering and terrorist financing trends
including money laundering through the securities sector; money
laundering links with regional human trafficking and smuggling;
and emerging terrorist financing methods, particularly through non
profit organisations (NPOs). Delegates also discussed and
agreed on important topics to study in the upcoming year. These
include money laundering vulnerabilities in national carbon
emissions trading systems; money laundering and terrorist
financing risks in tax havens; and further examination of the
money laundering and terrorist financing concerns relative to
human trafficking and human smuggling issues in the Asia/Pacific
The typologies work on NPOs complements and supports the
H.E. Chea Chanto
Governor of the National Bank of Cambodia APG NPO Sector Review Program commenced in 2005. A
project team has been formed but there is scope for additional
All members were requested to update their NPO Sector
Reviews, or in the case of a significant number of members,
commence those reviews.
Hong Kong, China (supported by Malaysia) presented a
proposal on Transnational Syndicated Crime Groups Project
(International Telemarketing Fraud). A project plan will be
circulated out of session for consideration and endorsement
H.E. Phan Ho
Secretary General of Cambodia's FIU
The Philippines, Pakistan and Afghanistan made presentations on
kidnapping for ransom and Canada made a presentation on
NPOs. Further information on APG typologies work is available
on the APG website at www.apgml.org under “Typologies”, and
copies of APG Annual Typologies Reports, including the 2009
report, are under "Documents". For APG members, presentations
made at annual typologies workshops, including the 2009
workshop in Siem Reap, are available via the APG secure website
Delegates at the 2009 Typologies Workshop
under “Members login”. The secure website also contains
presentations made at FATF Typologies Workshop.
The next APG Annual Typologies Workshop will be held in
Bangladesh in October 2010.
MOU SIGNING AT APG TYPOLOGIES WORKSHOP
APG members attending the 2009 Typologies Workshop took the opportunity to sign a number of memoranda of understanding
(MOUs) on the exchange of financial intelligence. The Cambodian Financial Intelligence Unit (FIU) signed MOUs with its
counterpart FIUs from Sri Lanka and Bangladesh in the margins of the typologies workshop.
(L) Cambodia and Sri Lanka (R) Cambodia and Bangladesh
Establishing effective gateways for the exchange of information by financial intelligence units (FIUs) is crucial in the fight against
money laundering and terrorist financing. The Egmont Group of FIUs (an international organisation of FIUs), through its Principles
for Information Exchange Between FIUs, provides guidance on the mechanisms for exchanging information between FIUs.
Financial Action Task Force (FATF) Recommendation 40 states, “Countries should ensure that their competent authorities provide
the widest possible range of international co-operation to their foreign counterparts. There should be clear and effective gateways to
facilitate the prompt and constructive exchange directly between counterparts, either spontaneously or upon request, of information
relating to both money laundering and the underlying predicate offences. Exchanges should be permitted without unduly restrictive
conditions...” The definition of “competent authorities” includes FIUs The FATF Interpretative Notes and Assessment Methodology
for Recommendation 26 on FIUs also include specific reference to the Egmont Principles for Information Exchange.
Further information on the Egmont Group of FIUs can be found at its website, www.egmontgroup.org.
PAKISTAN DELEGATION VISITS THE APG SECRETARIAT
The APG Secretariat met on 28 October 2009 with an eight member delegation from the National Management College (NMC) of
Pakistan accompanied by the Consul General in Sydney. The delegation included a senior Jordanian official studying at the NMC.
The purpose of the visit to the APG Secretariat was to enhance participants’ understanding of international AML/CFT standards, the
role of the APG, the key findings of Pakistan's recent mutual evaluation and other developments. The visit was part of a two week
study program to Australia.
Pakistan government officials are required to complete a 7-8 month course at the NMC in order to be eligible for promotion to senior
positions within national and provincial government ministries. On completion, officials are eligible to be promoted to deputy or
additional secretary positions.
APG Assessor Training in Sydney
The APG Secretariat, together with experts from the World Bank, the United Kingdom and the Financial Action Task Force Secretariat,
conducted intensive mutual evaluation training for 36 legal, financial/regulatory and law enforcement representatives from 25 APG
members. The training was conducted in Sydney, Australia from 17 to 21 August 2009. Feedback by course participants was very
The workshop was sponsored by the World Bank and the Canadian Government's Counter-Terrorism Capacity Building Programme.
The APG thanks the Canadian Government, the World Bank, all participants and presenters for their support for this important training
The workshop combined lecture-style presentations with a case study held over an intensive five day period. Successful completion of
this training means that evaluators may be called upon by the APG to form part of an expert team to evaluate jurisdictions within the
region against the FATF international standards concerning money laundering and terrorist financing.
APG Mutual Evaluation of Tonga
The APG mutual evaluation (ME) team for Tonga conducted its on-site visit from 2 to 13 November 2009. The ME team consisted of
evaluators from Australia and the Cook Islands (financial); Hong Kong, China (legal); New Zealand (law enforcement) and a
representative from the APG Secretariat. The team held 34 meetings with public and private sector agencies during the two week visit.
ME team in Tonga and local scenery
Upcoming Mutual Evaluations in 2009/10
The following APG mutual evaluations are scheduled in 2009/10:
• The joint APG/FATF mutual evaluation of India from 29 November to 12 December 2009. The team consists of financial sector
experts from the UK, South Africa and the United States; a New Zealand law enforcement expert; and legal experts from
Belgium and Sweden;
• The World Bank assessment of the Solomon Islands is scheduled from 7 to 18 December 2009. The team includes an APG
financial assessor from Fiji;
• The APG ME of Brunei Darussalam is scheduled from 11 to 25 January 2010. The team consists of expert evaluators from
Indonesia and Malaysia (financial), Fiji (legal), and Australia (law enforcement);
• The IMF assessment of Afghanistan is scheduled in January 2010. The team includes an APG financial assessor from the US.
Six ME reports, including the joint FATF/APG report of New Zealand and the APG report of Tonga, will be considered at the 2010 APG
Annual Meeting in Singapore. The New Zealand report was recently adopted at the FATF plenary in Paris in October. The India ME
report will also be considered at the FATF Plenary meeting in June 2010 prior to the APG Annual Meeting.
TECHNICAL ASSISTANCE AND TRAINING
Mission to Nepal
The US State Department funded an APG TA&T mission to Kathmandu, Nepal in September to discuss national AML/CFT coordination
mechanisms with relevant government departments. 52 officials from relevant agencies attended a number of information sessions
which were coordinated by the FIU (located in the Nepal Rastra Bank).
Downtown Kathmandu has many Officials from Nepal FIU
ancient temples and buildings
The large number of government officials who attended the information exchange sessions over three days showed the strong
commitment of Nepal to improve its AML/CFT systems.
A separate meeting with Nepal’s Attorney General and the Director General of Revenue Enforcement was also an indication of the high
level government commitment in Nepal to improving its compliance levels with the international standards.
AML/CFT Workshop - Afghanistan
The US State Department sponsored the participation of eight (8) Afghanistan officials to attend
an AML/CFT Workshop immediately following the APG Annual Meeting in Brisbane in July 2009.
Participants from Afghanistan were from FinTRACA, Da Afghanistan Bank (Central Bank);
Afghan Deposit Insurance Corporation, Da Afghanistan Bank; Financial Supervision Department,
Da Afghanistan Bank; Ministry of Finance; and Ministry of Foreign Affairs.
Participants were actively involved in all sessions, including sharing experiences concerning
AML/CFT and information in the context of developing and implementing AML/CFT measures.
Participants provided positive feedback on the importance of the workshop in assisting them in
implementing an effective AML/CFT framework and in preparing for their mutual evaluation.
Afghanistan’s two AML/CFT mentors from the UK and the US also participated. The Workshop
was also supported by experts from the International Monetary Fund, UNODC, FINCEN (US’s
FIU), PPATK (Indonesia’s FIU) and the APG Secretariat.
Outcomes of the workshop included:
Head of FINTRACA
• A better grasp of the requirements of the international standards through the various discussions at the Workshop;
• An in depth understanding of the practical aspects for implementing an effective AML/CFT framework ;
• An understanding of the importance of the involvement of key public and private sector stakeholders in the AML/CFT framework
and the workings of effective national coordination structures in Afghanistan;
• An understanding of the range of required legislation, regulations and instruments that impact upon the implementation of the
AML/CFT framework and a draft plan for the involvement of the other government agencies; and
• An opportunity for these key government officials to develop and build inter-agency cooperation.
Mission to Lao PDR
New Zealand’s Asia Security Fund (ASF) funded a two-day national coordination committee technical assistance mission to Lao PDR
from 10 – 11 November 2009.
Together with the UNODC and the United States Office of Technical Assistance (OTA), 30 members of the Lao PDR AML Working
Group and other relevant officials participated in information exchange sessions to better understand the international requirements for
establishing and maintaining a national mechanism to coordinate AML/CFT efforts in Laos. The mission focused on enhancing Lao
PDR’s existing National Coordination Mechanism (i.e. the AML Working Group) for the upcoming mutual evaluation (ME) in 2010. The
workshop also covered the requirements of the ME process, including the FATF Assessment Methodology and key areas of
implementation challenges for APG members.
Participants included from the Anti-Money Laundering Intelligence Unit (Bank of Lao), Bank of Lao, National Drug Commission, Prime
Minister’s Office, Ministry of Justice, People’s Supreme Court, Supreme People’s Prosecutor, Ministry of National Defense, Ministry of
Public Security, Customs, Ministry of Foreign Affairs, Ministry of Finance, State Inspection Committee (Anti-Corruption), Public
Inspection Agency and Ministry of Information and Culture.
The Bank of Lao reaffirmed its commitment to the APG and its upcoming mutual evaluation.
Participants and experts during the mission
Mission to Maldives
The US State Department funded a two day APG visit by the Secretariat to the Maldives from 9-10 November 2009 to support the
Maldives’ national AML/CFT coordination committee (NCC).
Initial meetings were held with the Deputy Governor of the Maldives Monetary Authority, Ms Aishath Zahira and her Executive Staff.
Working meetings were conducted at the Monetary Authority and included representatives from various Government agencies that
formed the membership of the embryonic NCC.
The Maldives recognised the importance of their NCC in the lead up to their Mutual Evaluation in late 2010. The importance of
progressing the legislative agenda (particularly with respect to the draft AML law) was of particular concern for the Committee. APG
representatives reviewed the requirements of a comprehensive AML/CFT regime and how the NCC plays a critical role in its success.
Strategic Implementation Planning (SIP) Framework
Strategic Implementation Planning (SIP) Framework, Train-the-Trainers Workshop
in Kuala Lumpur
With the financial support of Canada's Counter Terrorism Capacity Building Programme and the World Bank, the APG and World Bank
held a Strategic Implementation Planning (SIP) Framework, Train-the-Trainers Workshop, in Kuala Lumpur, Malaysia, from 6 – 9
October 2009. Experts from Malaysia, Canada, the World Bank, UNODC and Australia participated as trainers.
The workshop was hosted for APG members whose mutual evaluation reports were recently adopted and for other FATF-style regional
bodies or “FSRBs” (regional bodies similar to the APG). Delegates from Bangladesh, the Cook Islands, Pakistan, Philippines and
Vietnam, and Secretariat staff members from CFATF (Caribbean), ESAAMLG (East Africa) and GIABA (West Africa) attended this
The goal of the workshop was to instruct trainers on the practical use and benefits of the SIP Framework as a post-mutual
evaluation implementation tool. Similar workshops are being planned for the upcoming year. More information on the SIP Framework
is available on the APG website under “implementation issues”.
In-country SIP workshops are planned for Bangladesh, Cook Islands, the Philippines, Pakistan and Vietnam as part of the program of
post-ME support to members. Participants trained at the SIP train-the-trainer workshop in Kuala Lumpur will act as facilitators with the
support of the APG Secretariat and members of the APG Donors and Providers (DAP) Group. The workshops will enable draft risk
assessments and strategic implementation action plans prepared at the train-the-trainer workshop to be discussed, amended and
refined by larger groups of AML/CFT officials.
Participants at APG/World Bank SIP Workshop in Kuala Lumpur
Visit to Taipei City, Chinese Taipei
The APG Secretariat visited Taipei City in September
2009 to conduct information exchange sessions with
officials from a variety of government agencies in Chinese
Topics included discussions on the FATF International
Cooperation Review Group (ICRG) procedures,
international cooperation, strategies to implement the
FATF standards and the role of supervisory authorities in
mitigating money laundering and terrorist financing risks.
Chinese Taipei’s Anti-Money Laundering Division funded
Chinese Taipei was one of the 13 original founding
members of the APG in 1997. Its FIU is active in the
region and its officials regularly participate in FATF
meetings as APG delegates.
Officials from Chinese Taipei’s Anti-Money Laundering Division Chinese Taipei’s Anti-Money Laundering Division also
sponsors other regional FIUs for Egmont Group
FATF Plenary, Paris
The most recent FATF Plenary from 14-16 October 2009 has taken important new steps to protect the international financial system
from abuse by:
• Responding to the call by the G20 Leaders to identify high risk jurisdictions by February 2010.
• Issuing a statement reaffirming its call on members and others jurisdictions for effective counter-measures concerning the risks
to the integrity of the international financial system emanating from Iran. The FATF remains concerned about the money
laundering and terrorist financing risks emanating from Uzbekistan, Turkmenistan, Pakistan and São Tomé and Príncipe.
• Adopting evaluations of the anti-money laundering and counter-terrorist financing systems in Aruba, Kingdom of the
Netherlands and New Zealand.
• Publishing a detailed examination of the risks of money laundering and terrorist financing in the securities sector.
• Publishing new guidance for the life insurance sector on applying a risk-based approach to combating money laundering and
FATF President (centre) and Vice President (L), during Plenary session on ICRG report-back
The next FATF plenary will be held in February 2010. Separate project team meetings and inter-sessional meetings will be held in
December and January respectively prior to the next FATF plenary.
The APG iQ is a quarterly BRIEF GUIDE TO Calendar 2009/10
publication of the APG.
Selected AML/CFT events taking place
Next edition: February 2010 over the next 6 months:
Please submit any articles by 1 Laundering/ APG Events:
February 2010 AML/CFT Combating the • SIP Missions to the Philippines,
Financing of Bangladesh, December
All contributions are welcome! Terrorism
• Mutual Evaluation of Solomon
Please send to: Islands, December
APG on Money
firstname.lastname@example.org Laundering • Mutual Evaluation of India,
Financial Action December
Visit our website at: FATF
Task Force • Mutual Evaluation of Brunei
Financial Darussalam, January
• Mutual Evaluation of Afghanistan,
Monetary Fund FATF Events:
Middle East and • FATF Typologies, November
North Africa FATF • FATF Meeting of Expert Groups A
and B, Washington, December
organisations • FATF Intersessional, Paris, January
Off-shore Group of
• FATF Plenary and Working Group
meetings, February 2010
UNODC Office on Drugs
WB World Bank
The Asia/Pacific Group on Money Laundering Information Quarterly