The Asia/Pacific Group on Money Laundering Information Quarterly
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The Asia/Pacific Group on Money Laundering Information Quarterly The Asia/Pacific Group on Money Laundering Information Quarterly Document 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. Gordon Hook Executive Secretary 1
  • 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 region. 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 team members. 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 by delegates. 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. 2
  • 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. MOU signing (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. 3
  • MUTUAL EVALUATIONS 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 positive. 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 workshop. 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 4
  • 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. 5
  • 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 6
  • 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 unique workshop. 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 7
  • 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 Taipei. 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 this visit. 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 membership. FATF 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 terrorist financing. 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. 8
  • The APG iQ is a quarterly BRIEF GUIDE TO Calendar 2009/10 publication of the APG. COMMON ACRONYMS Selected AML/CFT events taking place Next edition: February 2010 over the next 6 months: Anti-Money 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 Asia/Pacific Group Please send to: Islands, December APG on Money mail@apgml.org Laundering • Mutual Evaluation of India, Financial Action December Visit our website at: FATF Task Force • Mutual Evaluation of Brunei www.apgml.org Financial Darussalam, January FIU Intelligence Unit • Mutual Evaluation of Afghanistan, FATF-style FSRB January Regional Body International IMF Monetary Fund FATF Events: Middle East and • FATF Typologies, November MENAFATF North Africa FATF • FATF Meeting of Expert Groups A and B, Washington, December Non-profit NPO organisations • FATF Intersessional, Paris, January 2010 Off-shore Group of • FATF Plenary and Working Group OGBS Banking meetings, February 2010 Supervisors United Nations UNODC Office on Drugs and Crime WB World Bank The Asia/Pacific Group on Money Laundering Information Quarterly 9