SlideShare a Scribd company logo
1 of 23
Money Laundering and
Terrorist Financing in a
Nutshell
C h a p t e r 1
B a s i c K N O W - H O W
Disclaimer
The information set out in this
document is included for information
purposes only and is not an offer or
an invitation to buy or sell or a
solicitation of an offer or invitation to
buy or sell or enter into any
agreement with any respect .
This document is provided by way of
example only and is not a precedent
document. As such no reliance
should be placed on this document
or the information contained herein.
In no way, the author’s any of current
or previous organizational affiliation
have any involvement with its
content directly or indirectly.
Money Laundering and Terrorist Financing as Financial Crime, Link between ML And TF
Preface01
Definition, Methods, Process, Professional Money Laundering
Money Laundering (ML)02
Definition, Sources, Process, Access
Terrorist Financing (TF)03
Global Perspective, Bangladesh Perspective
Evolution of ML and TF Guidelines06
AG E N D A
Key Figures and Facts , Socioeconomic Costs
Why Money Laundering Matters?04
Policies, Procedure and Programs, Pillars of AML/CTF
AML/CTF Policy Guideline07
FICO Asia Pacific Fraud Forum Survey Result
Asian Money Laundering Scandals05
Copyright © Md. Moulude Hossain. All Rights Reserved.
Money
Laundering
Money Laundering is the process of concealing
the illicit proceeds origins of proceeds of crimes
Terrorist financing is the collection or the provision
of funds for terrorist purpose.
M o n e y L a u n d e r i n g a n d T e r r o r i s t F i n a n c i n g a r e L i n k e d
Financial Crime is an increasing concern for all financial institutions, which is developing rapidly and equally
together with technology. May be not limited to money laundering and terrorist financing, these two form of
financial crime deserve to be attended with utmost care.
The evolving challenges of Money Laundering (ML) and Terrorist Financing (TF) lead the evolution of anti-money
laundering and counter terrorist financing convention and regulations. These conventions give birth of several
international organizations to combat the impact of ML and TF.
Terrorist
Financing
$Funds are always of illicit origins
Funds can steam from both legal and illicit
sources.
Not all ML is TF
But most of TF is ML
Copyright © Md. Moulude Hossain. All Rights Reserved.
Money Laundering - Definition
Money-laundering is the process
that disguises illegal profits without
compromising the criminals who
wish to benefit from the proceeds.
United Nations Office on Drugs and Crime
“
Money laundering involves taking proceeds obtained via
criminal activity and disguising their origin to make them
appear to have been derived from a legitimate source.
This allows criminals to realize the benefits of their crimes.
Money laundering is a type of financial crime; other
financial crimes include fraud and terrorism financing. All
financial crimes exact substantial costs to individuals and
institutions and can have potentially devastating
consequences for society.
01
03
02
The conversion or transfer of property, knowing it derived
from a criminal offense, for the purpose of concealing or
disguising illicit origin or of the assisting any person who
involve in commission of the crime to evade the legal
consequences of his actions.
Conversion
The acquisition, possession or use of property, knowing at
the time of its receipt that it was derived from a criminal
offense or from participation in a crime.
Acquisition
The concealment of disguising of the true nature, source,
location, disposition, movement, rights with respect to, or
ownership of the property knowing that it is derived from a
criminal offense.
Concealment
Broadly, the definition of Money Laundering includes but not
limited to the following three components:
Copyright © Md. Moulude Hossain. All Rights Reserved.
01
STRUCTURING
Often known as smurfing,
whereby cash is broken into
smaller deposits of money,
used to defeat suspicion of
money laundering.
02
BULK CASH SMUGGLING
Pysically smuggling cash to
another jurisdiction and
depositing it in a financial
institution, such as an
offshore bank
03
CASH-INTENSIVE BUSINESSES
Business typically expected to
receive a large proportion of its
revenue as cash uses its
accounts to deposit criminally
derived cash
04
TRADE-BASED LAUNDERING
Under- or over-valuing
invoices to disguise the
movement of money.
Money Laundering - Methods
05
SHELL COMPANIES & TRUSTS
Trusts and shell companies
disguise the true owners of
money. Trusts and corporate
vehicles, depending on the
jurisdiction, need not disclose
their true owner.
06
ROUND-TRIPPING
Money deposited in a
controlled foreign corporation
offshore, preferably in a tax
haven where minimal records
are kept, and then shipped
back as a foreign direct
investment.
07
BANK CAPTURE
Money launderers or
criminals buy a controlling
interest in a bank, preferably
in a jurisdiction with weak
money laundering controls,
and then move money
through the bank without
scrutiny.
08
CASINOS
An individual walks into a
casino and buys chips with
illicit cash. The individual will
then play for a relatively
short time.
09
OTHER GAMBLING
Money is spent on gambling,
preferably on high odds
games. One way to minimize
risk with this method is to bet
on every possible outcome
of some event that has many
possible outcomes,
10
BLACK SALARIES
A company may have
unregistered employees
without written contracts
and pay them cash salaries.
Dirty money might be used
to pay them.
11
TAX AMNESTIES
Those that legalize
unreported assets and cash
in tax havens.
12
TRANSACTION LAUNDERING
Merchant unknowingly
processes illicit credit card
transactions for another
business[19]. It is a growing
problem[20][21] and
recognized as distinct from
traditional money laundering
Copyright © Md. Moulude Hossain. All Rights Reserved.
Money Laundering –
Sources, Process,
Access
Goal:
To deposit criminal proceeds into the
financial system
Common Methods:
• Currency Smuggling
• Bank Complicity
• Currency Exchanges
• Securities Brokers
• Blending of Funds
• Asset Purchase
Placement
Goal:
Conceal the criminal origin of
proceeds
Common Methods:
• Wire Transfer
• Cash converted into Monetary
Instruments
• Withdrawal of Cash
• Cash deposit in multiple bank
accounts
• Split and merge of various bank
accounts
Layering
Goal:
Create an apparent legal origin for
criminal processes
Common Methods:
• Property Dealing
• Front Companies and False Loans
• Foreign Bank Complicity
• False Import/Export Invoices
• Disguise ownership of assets
Integration
Sources of Funds
Tax Crimes, fraud,
embezzlement,
drugs, theft,
bribery,
corruption
Sources of Proceeds
For potential benefits
to commit financial
crime purpose.
Copyright © Md. Moulude Hossain. All Rights Reserved.
Individual PML
who possesses specialised skills or
expertise in placing, moving and
laundering funds. They specialise in
the provision of ML services, which
can also be performed while
acting in a legitimate, professional
occupation.
Organizational ML Network based PML
Professional ML organization
(PMLO), which consists of two or
more individuals acting as an
autonomous, structured group that
specialises in providing services or
advice to launder money for
criminals or other OCGs.
Professional money laundering
network (PMLN), which is a
collection of associates or
contacts working together to
facilitate PML schemes and/or
subcontract their services for
specific tasks.
Professional money launderers (PMLs) that specialise in
enabling criminals to evade anti-money laundering and
counter terrorist financing safeguards and sanctions in
order to enjoy the profits from illegal activities.
Professional Money Laundering (PML)
Copyright © Md. Moulude Hossain. All Rights Reserved.
Terrorist Financing- Definition
Receive money, service or any
other property in favour of terrorist
individual or group:
Supply money, services or any other
property to the terrorist individual or
group.
Make arrangement of money,
services or any other property to the
terrorist individual or group.
1
2
3
Terrorist Financing refers to the processing of
funds to sponsor or facilitate terrorist activity. A
terrorist group builds and maintains an
infrastructure to facilitate the development of
sources of funding for their own requirements
and possibly to launder the funds used in
terrorist activity.
If any person or entity knowingly,
from legal or illegal sources, directly
or indirectly with intention to receive
money, services or any other
property, supply or make
arrangement: which has reasonable
ground to believe that may be used
in full or partially in terrorist activities
(as described in section 6 of ATA
2009) or may be used by terrorist
individual or entities for same reason.
- Anti Terrorism Act 2009, Bangladesh
Copyright © Md. Moulude Hossain. All Rights Reserved.
Terrorist Financing- Sources, Process, Access
Fund raising from
legitimate and
illicit sources for
the purpose of
financing
terrorism.
Raise Move Store Spend
Fund moved to
terrorists
organizations
using formal and
informal methods
Funds streams
and stored in
different
variations for the
purpose of use
Terrorist operators
get access to the
fund and sped to
execute different
terrorist activities
PLACEMENT LAYERING INTEGRATION
Sources:
Donation
Self funding
Criminal
Activities
Undisclosed
Sources
Spending:
Terrorist
Movement,
Buying arms,
explosives,
bribery etc.
Copyright © Md. Moulude Hossain. All Rights Reserved.Copyright © Md. Moulude Hossain. All Rights Reserved.
Trillion Annually in
Money-Laundering
Transactions in
20091
$ 1.6 2.7%
Money Laundering
Transactions are 2.7%
of GDP Worldwide in
20091
0.2% $25.3 BILLION 53%
Global AML seizes
less than 0.2% of
laundered
money2
The cost of AML
compliance across
U.S. financial services
firms per year4
The cost of regulatory
compliance is rising
53% annually3
1. UNODC report: Estimating illicit financial flows resulting from drug trafficking and other transnational organized crimes, October 2011
2. “Why the World is so Bad at Tracking Dirty Money.” Bloomberg 2015
3. Global Anti-Money-Laundering Survey, KPMG, 2014
4. riskscreen.com/kyc360/news/anti-money-laundering-compliance-costs-u-s-financial-services-firms-25-billion-annually-study/
Why Money Laundering Matters: Key Figures and Facts
Copyright © Md. Moulude Hossain. All Rights Reserved.
Social Costs of Money LaunderingWhy Money Laundering Matters: Socioeconomic Costs
Money laundering is a crime
which brings about adverse
effects in a long time by
destroying the balance in
financial markets and volatility
funds in banks and financial
institutions and by influencing
political and economic officials
and authorities.
”
Copyright © Md. Moulude Hossain. All Rights Reserved.
Undermining the Integrity of Financial Markets
Economic Distortion and Instability
Loss of Control of Economic Policy
Increase in social deviations
Risks to Privatization Efforts
Increase cost for law enforcement and health care
Reputation Risk and Loss of Revenue
Undermining the Legitimate Private Sector
01
03
04
05
06
07
08
02
Copyright © Md. Moulude Hossain. All Rights Reserved.
91% 33% 22% 20%
Asia Pacific banks think the
industry is still at risk of
inadvertently facilitating next
money laundering scandal.
Respondents think that
beyond banking biggest
laundering risks
Is cryptocurrenancy.
Respondents think that
beyond banking biggest
laundering risks
Is shadow banking.
Respondents think that
beyond banking biggest
laundering risks
Is property transaction.
Recent Asian money laundering scandals continue to shake up the
financial world, and the ripple effect is still keenly felt across the region.
Silicon Valley analytics firm FICO recently conducted a survey with
regional banks and found that more than 90 percent of them fear they or
their peers, may risk inadvertently facilitating the next money laundering
scandal.
Asian Money Laundering
Scandals: Banks Fear A
Large Breach
FICO Asia Pacific Fraud Forum Survey Result
Thinks LACK OF RESOURCES is the
key reason why banks remain
exposed.
Thinks LACK OF EXPERTISE is the key
reason why banks remain exposed.
Thinks POLITICAL CONSTRAINTS
IMPOSED BY GOVERNMENT is the
key reason why banks remain
exposed.
Copyright © Md. Moulude Hossain. All Rights Reserved.
Evolution of AML and CTF Guidelines – Global Perspective
This is a sample text and here you need to add your own text that describes your own concept in your way and that fit best
for your topic and make it simple as much as you can that is better
1988
1989
Vienna Convention
UN Convention Against Illicit Traffic in Narcotic
Drugs and Psychotropic Substances
FATF (Money Laundering)
The Financial Action Task Force (on Money
Laundering) (FATF), founded on the initiative of
the G7 to develop policies to combat money
laundering. In 2001 its mandate expanded to
include terrorism financing.
Copyright © Md. Moulude Hossain. All Rights Reserved.
1994
IAIS (Insurance)
IAIS represents insurance regulators and
supervisors of some 180 jurisdictions in more
than 130 countries, constituting 97% of the
world's insurance premiums.
1990
Strasbourg Convention
EU Convention on Laundering, Search,
Seizure and Confiscation of the Proceeds
from Crime.
1995
Egmont Group FIU
Development of a financial intelligence units
(FIU) network, a group of FIUs at the Egmont
Arenberg Palace in Brussels.
Copyright © Md. Moulude Hossain. All Rights Reserved.
1997
APG (Money Laundering)
An autonomous and collaborative
international organization founded in
Bangkok, Thailand to provide support for AML
and CTF initiatives by member countries.
1999
Terrorist Financing Convention
Formerly known as (International Convention for
the Suppression of the Financing of Terrorism) is a
United Nations treaty designed to criminalize acts
of financing acts of terrorism. Effective from 2002.
2001
UN Palermo Convention
UN Convention Against
Transnational Organized Crime
Copyright © Md. Moulude Hossain. All Rights Reserved.
2005
UN Merida Convention
UN Convention Against
Corruption
2005
EU Warsaw Convention
Council of Europe Convention on
Laundering, Search, Seizure and
Confiscation of the Proceeds from Crime
and on the Financing of Terrorism.
2012 FATF Revised Standards
The FATF Revised Standards comprise the Recommendations
adopted on 16 February 2012 and updated regularly since.
Copyright © Md. Moulude Hossain. All Rights Reserved.
The first anti-money laundering
legislation in Bangladesh was the
Money Laundering Prevention Act,
2002 and establishment of 'Anti
Money Laundering Department'
Evolution of AML and CTF Guidelines – Bangladesh Perspective
2002
2008
Money Laundering Prevention Act
(2002) replaced by the Money
Laundering Prevention Ordinance
2008
2009
Money Laundering Prevention
Ordinance (2008) repealed by
the Money Laundering Prevention
Act, 2009
2012
Money Laundering Prevention Act,
2012 and Anti Money Laundering
Department transformed as the
Bangladesh Financial Intelligence
Unit (BFIU)
2013
BFIU has also achieved the
membership of Egmont
Group
AML/CTF Policy Guideline: Policies, Procedure and Programs
AML/CTF Policies, Procedures and Programs are the starting point fro reporting entities to comply with
local laws and regulations as well as institutional risk mitigation process.
AML/CTF policy is the highest level of institutional
commitment to mitigate AML/CTF risks and comply with
the laws and regulations
AML/CTF Policies
A detail document that specify AML measures to comply
with AML/CTF policies, laws, regulations and best practices.
Categorizes as Institutional & Operational Procedures.
AML/CTF Procedures
A working document for relevant staffs with detailed
checklist of each component of AML/CTF procedures to
undertake reporting entities day to day activities.
AML/CTF Programs
AML/CTF Policy
Guideline
AML/CTF
Policies
AML/CTF
Procedures
AML/CTF
Programs
Copyright © Md. Moulude Hossain. All Rights Reserved.
Copyright © Md. Moulude Hossain. All Rights Reserved.Copyright © Md. Moulude Hossain. All Rights Reserved.
Thedesignationofan
individualresponsiblefor
day-to-daycompliance
Trainingforappropriate
personnel
Independenttestingof
BSA/AMLcompliance
Risk-basedprocedures
forcustomerdue
diligence
Asystemofinternal
controlstoensure
ongoingcompliance
AML/CTF Policy Guideline:
Pillars of AML/CTF
The U.S. Department of the Treasury’s
Financial Crimes Enforcement Network
issued a final rule in 2016 that imposed
new requirements for identifying and
verifying beneficial owners of legal-
entity customers. This new rule,
amending the Bank Secrecy Act,
became effective in July 2016, and all
federally insured credit unions must
comply fully by May 11, 2018.
This revised rule adds a fifth core element to
the original four core elements of an
effective BSA and anti-money laundering
compliance program. These core elements
are often referred to as the “pillars.
1 2 3 4 5
Copyright © Md. Moulude Hossain. All Rights Reserved.
Anti Money Laundering
and Counter Terrorist
Financing in a Nutshell
C h a p t e r 2
H o w t o C o m b a t M L a n d T F
Coming Up N EX T
Copyright © Md. Moulude Hossain. All Rights Reserved.
a b o u t m e
Find Me
FinTech | Digital Payment | Tokenization | QR
Payment | Entrepreneur | Product Management |
EMV | Business Development
Md. Moulude Hossain
Thank
You

More Related Content

What's hot

Money Laundering by Vivek Singh,Aryan College
Money Laundering  by Vivek Singh,Aryan CollegeMoney Laundering  by Vivek Singh,Aryan College
Money Laundering by Vivek Singh,Aryan College
Aryan Ajmer
 
Anti-money laundering presentation
Anti-money laundering presentationAnti-money laundering presentation
Anti-money laundering presentation
Elias Mose
 
Chapter 8 aml and ctf
Chapter 8   aml and ctfChapter 8   aml and ctf
Chapter 8 aml and ctf
Quan Risk
 
Basics of Anti-Money Laundering : A Really Quick Primer
Basics of Anti-Money Laundering : A Really Quick PrimerBasics of Anti-Money Laundering : A Really Quick Primer
Basics of Anti-Money Laundering : A Really Quick Primer
complianceonline123
 

What's hot (20)

Money laundering
Money launderingMoney laundering
Money laundering
 
Money laundering
Money launderingMoney laundering
Money laundering
 
Anti Money Laundering Presentation
Anti Money Laundering PresentationAnti Money Laundering Presentation
Anti Money Laundering Presentation
 
AML presentation
AML presentationAML presentation
AML presentation
 
Money laundering
Money laundering  Money laundering
Money laundering
 
Anti money laundering (aml) and financial crime
Anti money laundering (aml) and financial crimeAnti money laundering (aml) and financial crime
Anti money laundering (aml) and financial crime
 
Money Laundering by Vivek Singh,Aryan College
Money Laundering  by Vivek Singh,Aryan CollegeMoney Laundering  by Vivek Singh,Aryan College
Money Laundering by Vivek Singh,Aryan College
 
Anti-money laundering presentation
Anti-money laundering presentationAnti-money laundering presentation
Anti-money laundering presentation
 
ANTI MONEY LAUNDERING REGULATIONS, UAE
ANTI MONEY LAUNDERING REGULATIONS, UAEANTI MONEY LAUNDERING REGULATIONS, UAE
ANTI MONEY LAUNDERING REGULATIONS, UAE
 
Presentation on Money laundering
Presentation on Money launderingPresentation on Money laundering
Presentation on Money laundering
 
Presentation AML
Presentation AMLPresentation AML
Presentation AML
 
Money laundering
Money laundering Money laundering
Money laundering
 
Chapter 8 aml and ctf
Chapter 8   aml and ctfChapter 8   aml and ctf
Chapter 8 aml and ctf
 
Aml / anti money laundering
Aml / anti money launderingAml / anti money laundering
Aml / anti money laundering
 
Money Laundering
Money LaunderingMoney Laundering
Money Laundering
 
AML Presentation 2.pptx
AML Presentation 2.pptxAML Presentation 2.pptx
AML Presentation 2.pptx
 
Basics of Anti-Money Laundering : A Really Quick Primer
Basics of Anti-Money Laundering : A Really Quick PrimerBasics of Anti-Money Laundering : A Really Quick Primer
Basics of Anti-Money Laundering : A Really Quick Primer
 
Anti money laundering
Anti money launderingAnti money laundering
Anti money laundering
 
Money Laundering
Money Laundering Money Laundering
Money Laundering
 
Money Laundering Presentation
Money Laundering PresentationMoney Laundering Presentation
Money Laundering Presentation
 

Similar to Money Laundering and Terrorist Financing in a Nutshell: Chapter One

Know money laundering for no money laundering by SAURAV GUPTA
Know money laundering for no money laundering by SAURAV GUPTAKnow money laundering for no money laundering by SAURAV GUPTA
Know money laundering for no money laundering by SAURAV GUPTA
Saurav Gupta
 
Lalit Srivastava-AML-IBA BANGALORE.ppt
Lalit Srivastava-AML-IBA BANGALORE.pptLalit Srivastava-AML-IBA BANGALORE.ppt
Lalit Srivastava-AML-IBA BANGALORE.ppt
GarimaVohra4
 
Money laundering
Money launderingMoney laundering
Money laundering
saadiakh
 
Risk Management in Capital Markets and Pension Funds, September 25, 2014
Risk Management in Capital Markets and Pension Funds, September 25, 2014Risk Management in Capital Markets and Pension Funds, September 25, 2014
Risk Management in Capital Markets and Pension Funds, September 25, 2014
Benjamin Musau
 
Money laundering has become a mechanism for financing terrorist acti.pdf
Money laundering has become a mechanism for financing terrorist acti.pdfMoney laundering has become a mechanism for financing terrorist acti.pdf
Money laundering has become a mechanism for financing terrorist acti.pdf
arorasales234
 

Similar to Money Laundering and Terrorist Financing in a Nutshell: Chapter One (20)

Money laundering-ppt
Money laundering-pptMoney laundering-ppt
Money laundering-ppt
 
AMLA-KYC-REPORT (2).pptx
AMLA-KYC-REPORT (2).pptxAMLA-KYC-REPORT (2).pptx
AMLA-KYC-REPORT (2).pptx
 
AML Presentation 2 - Nigeria.pptx
AML Presentation 2 - Nigeria.pptxAML Presentation 2 - Nigeria.pptx
AML Presentation 2 - Nigeria.pptx
 
AML Presentation 2 - Nigeria.pptx
AML Presentation 2 - Nigeria.pptxAML Presentation 2 - Nigeria.pptx
AML Presentation 2 - Nigeria.pptx
 
Money laundering
Money launderingMoney laundering
Money laundering
 
Know money laundering for no money laundering by SAURAV GUPTA
Know money laundering for no money laundering by SAURAV GUPTAKnow money laundering for no money laundering by SAURAV GUPTA
Know money laundering for no money laundering by SAURAV GUPTA
 
Money Laundering (by BU AIS 2nd Batch)
Money Laundering (by BU AIS 2nd Batch)Money Laundering (by BU AIS 2nd Batch)
Money Laundering (by BU AIS 2nd Batch)
 
Money laundering.pptx
Money laundering.pptxMoney laundering.pptx
Money laundering.pptx
 
Lalit Srivastava-AML-IBA BANGALORE.ppt
Lalit Srivastava-AML-IBA BANGALORE.pptLalit Srivastava-AML-IBA BANGALORE.ppt
Lalit Srivastava-AML-IBA BANGALORE.ppt
 
Aml presentation
Aml presentationAml presentation
Aml presentation
 
Money laundry-rAzik's
Money laundry-rAzik'sMoney laundry-rAzik's
Money laundry-rAzik's
 
Preventing Money Laundering and Combating the Financing of Terrorism (2006)
Preventing Money Laundering and Combating the Financing of Terrorism (2006)Preventing Money Laundering and Combating the Financing of Terrorism (2006)
Preventing Money Laundering and Combating the Financing of Terrorism (2006)
 
Risks of money laudering
Risks of money lauderingRisks of money laudering
Risks of money laudering
 
Money laundering
Money launderingMoney laundering
Money laundering
 
A brief study on the situation of Money Laundering in Nepal (1).pdf
A brief study on the situation of Money Laundering in Nepal    (1).pdfA brief study on the situation of Money Laundering in Nepal    (1).pdf
A brief study on the situation of Money Laundering in Nepal (1).pdf
 
National Money Laundering Strategy 2007 A Review
National Money Laundering Strategy 2007 A ReviewNational Money Laundering Strategy 2007 A Review
National Money Laundering Strategy 2007 A Review
 
Risk Management in Capital Markets and Pension Funds, September 25, 2014
Risk Management in Capital Markets and Pension Funds, September 25, 2014Risk Management in Capital Markets and Pension Funds, September 25, 2014
Risk Management in Capital Markets and Pension Funds, September 25, 2014
 
Moneylaundering 120115060133-phpapp02
Moneylaundering 120115060133-phpapp02Moneylaundering 120115060133-phpapp02
Moneylaundering 120115060133-phpapp02
 
AML_Draft.pptx
AML_Draft.pptxAML_Draft.pptx
AML_Draft.pptx
 
Money laundering has become a mechanism for financing terrorist acti.pdf
Money laundering has become a mechanism for financing terrorist acti.pdfMoney laundering has become a mechanism for financing terrorist acti.pdf
Money laundering has become a mechanism for financing terrorist acti.pdf
 

More from Md. Moulude Hossain

Content marketing strategy and implications for higher educational instituti...
Content marketing  strategy and implications for higher educational instituti...Content marketing  strategy and implications for higher educational instituti...
Content marketing strategy and implications for higher educational instituti...
Md. Moulude Hossain
 
Pattern and Determinants of Export Diversification in Bangladesh
Pattern and Determinants of Export Diversification in BangladeshPattern and Determinants of Export Diversification in Bangladesh
Pattern and Determinants of Export Diversification in Bangladesh
Md. Moulude Hossain
 

More from Md. Moulude Hossain (10)

Balancing Centrality and Distinctiveness for Mapping Brand Strategy
Balancing Centrality and Distinctiveness for Mapping Brand StrategyBalancing Centrality and Distinctiveness for Mapping Brand Strategy
Balancing Centrality and Distinctiveness for Mapping Brand Strategy
 
RevOps Framework: Getting Ready to Drive Business Growth
RevOps Framework: Getting Ready to Drive Business GrowthRevOps Framework: Getting Ready to Drive Business Growth
RevOps Framework: Getting Ready to Drive Business Growth
 
Moulude cv summary v2
Moulude cv summary v2Moulude cv summary v2
Moulude cv summary v2
 
Problems and prospects of film insutry in bangladesh
Problems and prospects of film insutry in bangladeshProblems and prospects of film insutry in bangladesh
Problems and prospects of film insutry in bangladesh
 
A framework for e commerce marketing in bangladesh
A framework for e commerce marketing in bangladeshA framework for e commerce marketing in bangladesh
A framework for e commerce marketing in bangladesh
 
Content marketing strategy and implications for higher educational instituti...
Content marketing  strategy and implications for higher educational instituti...Content marketing  strategy and implications for higher educational instituti...
Content marketing strategy and implications for higher educational instituti...
 
Extended GAPs Model to Assess the Quality of Education for Higher Educational...
Extended GAPs Model to Assess the Quality of Education for Higher Educational...Extended GAPs Model to Assess the Quality of Education for Higher Educational...
Extended GAPs Model to Assess the Quality of Education for Higher Educational...
 
Handbook of Entrepreneurship Development by DCCI
Handbook of Entrepreneurship Development by DCCI Handbook of Entrepreneurship Development by DCCI
Handbook of Entrepreneurship Development by DCCI
 
Problems and Prospects of Poultry Industry in Bangladesh: An Analysis
Problems and Prospects of Poultry Industry in Bangladesh: An Analysis Problems and Prospects of Poultry Industry in Bangladesh: An Analysis
Problems and Prospects of Poultry Industry in Bangladesh: An Analysis
 
Pattern and Determinants of Export Diversification in Bangladesh
Pattern and Determinants of Export Diversification in BangladeshPattern and Determinants of Export Diversification in Bangladesh
Pattern and Determinants of Export Diversification in Bangladesh
 

Recently uploaded

Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacji
klaudiafilka
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
joshuaclack73
 
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
atedyxc
 
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
atedyxc
 
Bahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttxBahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttx
AbdulNasirNichari
 
一比一原版(Caltech毕业证书)加州理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加州理工学院毕业证成绩单学位证书一比一原版(Caltech毕业证书)加州理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加州理工学院毕业证成绩单学位证书
atedyxc
 
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
atedyxc
 
一比一原版(UCSB毕业证书)圣塔芭芭拉社区大学毕业证成绩单学位证书
一比一原版(UCSB毕业证书)圣塔芭芭拉社区大学毕业证成绩单学位证书一比一原版(UCSB毕业证书)圣塔芭芭拉社区大学毕业证成绩单学位证书
一比一原版(UCSB毕业证书)圣塔芭芭拉社区大学毕业证成绩单学位证书
atedyxc
 
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
atedyxc
 

Recently uploaded (20)

Economic Risk Factor Update: May 2024 [SlideShare]
Economic Risk Factor Update: May 2024 [SlideShare]Economic Risk Factor Update: May 2024 [SlideShare]
Economic Risk Factor Update: May 2024 [SlideShare]
 
Production and Cost of the firm with curves
Production and Cost of the firm with curvesProduction and Cost of the firm with curves
Production and Cost of the firm with curves
 
Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacji
 
20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf
20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf
20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
 
1. Elemental Economics - Introduction to mining
1. Elemental Economics - Introduction to mining1. Elemental Economics - Introduction to mining
1. Elemental Economics - Introduction to mining
 
Managing personal finances wisely for financial stability and
Managing personal finances wisely for financial stability  andManaging personal finances wisely for financial stability  and
Managing personal finances wisely for financial stability and
 
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
 
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加利福尼亚理工学院毕业证成绩单学位证书
 
Maximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice DiscountingMaximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice Discounting
 
Bahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttxBahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttx
 
一比一原版(Caltech毕业证书)加州理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加州理工学院毕业证成绩单学位证书一比一原版(Caltech毕业证书)加州理工学院毕业证成绩单学位证书
一比一原版(Caltech毕业证书)加州理工学院毕业证成绩单学位证书
 
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
 
Economics - Development 01 _ Handwritten Notes.pdf
Economics - Development 01 _ Handwritten Notes.pdfEconomics - Development 01 _ Handwritten Notes.pdf
Economics - Development 01 _ Handwritten Notes.pdf
 
Falcon Invoice Discounting: Boost Your Cash Flow Effortlessly
Falcon Invoice Discounting: Boost Your Cash Flow EffortlesslyFalcon Invoice Discounting: Boost Your Cash Flow Effortlessly
Falcon Invoice Discounting: Boost Your Cash Flow Effortlessly
 
一比一原版(UCSB毕业证书)圣塔芭芭拉社区大学毕业证成绩单学位证书
一比一原版(UCSB毕业证书)圣塔芭芭拉社区大学毕业证成绩单学位证书一比一原版(UCSB毕业证书)圣塔芭芭拉社区大学毕业证成绩单学位证书
一比一原版(UCSB毕业证书)圣塔芭芭拉社区大学毕业证成绩单学位证书
 
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
 
How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.
 
Understanding China(International Trade-Chinese Model of development-Export l...
Understanding China(International Trade-Chinese Model of development-Export l...Understanding China(International Trade-Chinese Model of development-Export l...
Understanding China(International Trade-Chinese Model of development-Export l...
 
How to exchange my pi coins on HTX in 2024
How to exchange my pi coins on HTX in 2024How to exchange my pi coins on HTX in 2024
How to exchange my pi coins on HTX in 2024
 

Money Laundering and Terrorist Financing in a Nutshell: Chapter One

  • 1. Money Laundering and Terrorist Financing in a Nutshell C h a p t e r 1 B a s i c K N O W - H O W
  • 2. Disclaimer The information set out in this document is included for information purposes only and is not an offer or an invitation to buy or sell or a solicitation of an offer or invitation to buy or sell or enter into any agreement with any respect . This document is provided by way of example only and is not a precedent document. As such no reliance should be placed on this document or the information contained herein. In no way, the author’s any of current or previous organizational affiliation have any involvement with its content directly or indirectly.
  • 3. Money Laundering and Terrorist Financing as Financial Crime, Link between ML And TF Preface01 Definition, Methods, Process, Professional Money Laundering Money Laundering (ML)02 Definition, Sources, Process, Access Terrorist Financing (TF)03 Global Perspective, Bangladesh Perspective Evolution of ML and TF Guidelines06 AG E N D A Key Figures and Facts , Socioeconomic Costs Why Money Laundering Matters?04 Policies, Procedure and Programs, Pillars of AML/CTF AML/CTF Policy Guideline07 FICO Asia Pacific Fraud Forum Survey Result Asian Money Laundering Scandals05
  • 4. Copyright © Md. Moulude Hossain. All Rights Reserved. Money Laundering Money Laundering is the process of concealing the illicit proceeds origins of proceeds of crimes Terrorist financing is the collection or the provision of funds for terrorist purpose. M o n e y L a u n d e r i n g a n d T e r r o r i s t F i n a n c i n g a r e L i n k e d Financial Crime is an increasing concern for all financial institutions, which is developing rapidly and equally together with technology. May be not limited to money laundering and terrorist financing, these two form of financial crime deserve to be attended with utmost care. The evolving challenges of Money Laundering (ML) and Terrorist Financing (TF) lead the evolution of anti-money laundering and counter terrorist financing convention and regulations. These conventions give birth of several international organizations to combat the impact of ML and TF. Terrorist Financing $Funds are always of illicit origins Funds can steam from both legal and illicit sources. Not all ML is TF But most of TF is ML
  • 5. Copyright © Md. Moulude Hossain. All Rights Reserved. Money Laundering - Definition Money-laundering is the process that disguises illegal profits without compromising the criminals who wish to benefit from the proceeds. United Nations Office on Drugs and Crime “ Money laundering involves taking proceeds obtained via criminal activity and disguising their origin to make them appear to have been derived from a legitimate source. This allows criminals to realize the benefits of their crimes. Money laundering is a type of financial crime; other financial crimes include fraud and terrorism financing. All financial crimes exact substantial costs to individuals and institutions and can have potentially devastating consequences for society. 01 03 02 The conversion or transfer of property, knowing it derived from a criminal offense, for the purpose of concealing or disguising illicit origin or of the assisting any person who involve in commission of the crime to evade the legal consequences of his actions. Conversion The acquisition, possession or use of property, knowing at the time of its receipt that it was derived from a criminal offense or from participation in a crime. Acquisition The concealment of disguising of the true nature, source, location, disposition, movement, rights with respect to, or ownership of the property knowing that it is derived from a criminal offense. Concealment Broadly, the definition of Money Laundering includes but not limited to the following three components:
  • 6. Copyright © Md. Moulude Hossain. All Rights Reserved. 01 STRUCTURING Often known as smurfing, whereby cash is broken into smaller deposits of money, used to defeat suspicion of money laundering. 02 BULK CASH SMUGGLING Pysically smuggling cash to another jurisdiction and depositing it in a financial institution, such as an offshore bank 03 CASH-INTENSIVE BUSINESSES Business typically expected to receive a large proportion of its revenue as cash uses its accounts to deposit criminally derived cash 04 TRADE-BASED LAUNDERING Under- or over-valuing invoices to disguise the movement of money. Money Laundering - Methods 05 SHELL COMPANIES & TRUSTS Trusts and shell companies disguise the true owners of money. Trusts and corporate vehicles, depending on the jurisdiction, need not disclose their true owner. 06 ROUND-TRIPPING Money deposited in a controlled foreign corporation offshore, preferably in a tax haven where minimal records are kept, and then shipped back as a foreign direct investment. 07 BANK CAPTURE Money launderers or criminals buy a controlling interest in a bank, preferably in a jurisdiction with weak money laundering controls, and then move money through the bank without scrutiny. 08 CASINOS An individual walks into a casino and buys chips with illicit cash. The individual will then play for a relatively short time. 09 OTHER GAMBLING Money is spent on gambling, preferably on high odds games. One way to minimize risk with this method is to bet on every possible outcome of some event that has many possible outcomes, 10 BLACK SALARIES A company may have unregistered employees without written contracts and pay them cash salaries. Dirty money might be used to pay them. 11 TAX AMNESTIES Those that legalize unreported assets and cash in tax havens. 12 TRANSACTION LAUNDERING Merchant unknowingly processes illicit credit card transactions for another business[19]. It is a growing problem[20][21] and recognized as distinct from traditional money laundering
  • 7. Copyright © Md. Moulude Hossain. All Rights Reserved. Money Laundering – Sources, Process, Access Goal: To deposit criminal proceeds into the financial system Common Methods: • Currency Smuggling • Bank Complicity • Currency Exchanges • Securities Brokers • Blending of Funds • Asset Purchase Placement Goal: Conceal the criminal origin of proceeds Common Methods: • Wire Transfer • Cash converted into Monetary Instruments • Withdrawal of Cash • Cash deposit in multiple bank accounts • Split and merge of various bank accounts Layering Goal: Create an apparent legal origin for criminal processes Common Methods: • Property Dealing • Front Companies and False Loans • Foreign Bank Complicity • False Import/Export Invoices • Disguise ownership of assets Integration Sources of Funds Tax Crimes, fraud, embezzlement, drugs, theft, bribery, corruption Sources of Proceeds For potential benefits to commit financial crime purpose.
  • 8. Copyright © Md. Moulude Hossain. All Rights Reserved. Individual PML who possesses specialised skills or expertise in placing, moving and laundering funds. They specialise in the provision of ML services, which can also be performed while acting in a legitimate, professional occupation. Organizational ML Network based PML Professional ML organization (PMLO), which consists of two or more individuals acting as an autonomous, structured group that specialises in providing services or advice to launder money for criminals or other OCGs. Professional money laundering network (PMLN), which is a collection of associates or contacts working together to facilitate PML schemes and/or subcontract their services for specific tasks. Professional money launderers (PMLs) that specialise in enabling criminals to evade anti-money laundering and counter terrorist financing safeguards and sanctions in order to enjoy the profits from illegal activities. Professional Money Laundering (PML)
  • 9. Copyright © Md. Moulude Hossain. All Rights Reserved. Terrorist Financing- Definition Receive money, service or any other property in favour of terrorist individual or group: Supply money, services or any other property to the terrorist individual or group. Make arrangement of money, services or any other property to the terrorist individual or group. 1 2 3 Terrorist Financing refers to the processing of funds to sponsor or facilitate terrorist activity. A terrorist group builds and maintains an infrastructure to facilitate the development of sources of funding for their own requirements and possibly to launder the funds used in terrorist activity. If any person or entity knowingly, from legal or illegal sources, directly or indirectly with intention to receive money, services or any other property, supply or make arrangement: which has reasonable ground to believe that may be used in full or partially in terrorist activities (as described in section 6 of ATA 2009) or may be used by terrorist individual or entities for same reason. - Anti Terrorism Act 2009, Bangladesh
  • 10. Copyright © Md. Moulude Hossain. All Rights Reserved. Terrorist Financing- Sources, Process, Access Fund raising from legitimate and illicit sources for the purpose of financing terrorism. Raise Move Store Spend Fund moved to terrorists organizations using formal and informal methods Funds streams and stored in different variations for the purpose of use Terrorist operators get access to the fund and sped to execute different terrorist activities PLACEMENT LAYERING INTEGRATION Sources: Donation Self funding Criminal Activities Undisclosed Sources Spending: Terrorist Movement, Buying arms, explosives, bribery etc.
  • 11. Copyright © Md. Moulude Hossain. All Rights Reserved.Copyright © Md. Moulude Hossain. All Rights Reserved. Trillion Annually in Money-Laundering Transactions in 20091 $ 1.6 2.7% Money Laundering Transactions are 2.7% of GDP Worldwide in 20091 0.2% $25.3 BILLION 53% Global AML seizes less than 0.2% of laundered money2 The cost of AML compliance across U.S. financial services firms per year4 The cost of regulatory compliance is rising 53% annually3 1. UNODC report: Estimating illicit financial flows resulting from drug trafficking and other transnational organized crimes, October 2011 2. “Why the World is so Bad at Tracking Dirty Money.” Bloomberg 2015 3. Global Anti-Money-Laundering Survey, KPMG, 2014 4. riskscreen.com/kyc360/news/anti-money-laundering-compliance-costs-u-s-financial-services-firms-25-billion-annually-study/ Why Money Laundering Matters: Key Figures and Facts
  • 12. Copyright © Md. Moulude Hossain. All Rights Reserved. Social Costs of Money LaunderingWhy Money Laundering Matters: Socioeconomic Costs Money laundering is a crime which brings about adverse effects in a long time by destroying the balance in financial markets and volatility funds in banks and financial institutions and by influencing political and economic officials and authorities. ” Copyright © Md. Moulude Hossain. All Rights Reserved. Undermining the Integrity of Financial Markets Economic Distortion and Instability Loss of Control of Economic Policy Increase in social deviations Risks to Privatization Efforts Increase cost for law enforcement and health care Reputation Risk and Loss of Revenue Undermining the Legitimate Private Sector 01 03 04 05 06 07 08 02
  • 13. Copyright © Md. Moulude Hossain. All Rights Reserved. 91% 33% 22% 20% Asia Pacific banks think the industry is still at risk of inadvertently facilitating next money laundering scandal. Respondents think that beyond banking biggest laundering risks Is cryptocurrenancy. Respondents think that beyond banking biggest laundering risks Is shadow banking. Respondents think that beyond banking biggest laundering risks Is property transaction. Recent Asian money laundering scandals continue to shake up the financial world, and the ripple effect is still keenly felt across the region. Silicon Valley analytics firm FICO recently conducted a survey with regional banks and found that more than 90 percent of them fear they or their peers, may risk inadvertently facilitating the next money laundering scandal. Asian Money Laundering Scandals: Banks Fear A Large Breach FICO Asia Pacific Fraud Forum Survey Result Thinks LACK OF RESOURCES is the key reason why banks remain exposed. Thinks LACK OF EXPERTISE is the key reason why banks remain exposed. Thinks POLITICAL CONSTRAINTS IMPOSED BY GOVERNMENT is the key reason why banks remain exposed.
  • 14. Copyright © Md. Moulude Hossain. All Rights Reserved. Evolution of AML and CTF Guidelines – Global Perspective This is a sample text and here you need to add your own text that describes your own concept in your way and that fit best for your topic and make it simple as much as you can that is better 1988 1989 Vienna Convention UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances FATF (Money Laundering) The Financial Action Task Force (on Money Laundering) (FATF), founded on the initiative of the G7 to develop policies to combat money laundering. In 2001 its mandate expanded to include terrorism financing.
  • 15. Copyright © Md. Moulude Hossain. All Rights Reserved. 1994 IAIS (Insurance) IAIS represents insurance regulators and supervisors of some 180 jurisdictions in more than 130 countries, constituting 97% of the world's insurance premiums. 1990 Strasbourg Convention EU Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime. 1995 Egmont Group FIU Development of a financial intelligence units (FIU) network, a group of FIUs at the Egmont Arenberg Palace in Brussels.
  • 16. Copyright © Md. Moulude Hossain. All Rights Reserved. 1997 APG (Money Laundering) An autonomous and collaborative international organization founded in Bangkok, Thailand to provide support for AML and CTF initiatives by member countries. 1999 Terrorist Financing Convention Formerly known as (International Convention for the Suppression of the Financing of Terrorism) is a United Nations treaty designed to criminalize acts of financing acts of terrorism. Effective from 2002. 2001 UN Palermo Convention UN Convention Against Transnational Organized Crime
  • 17. Copyright © Md. Moulude Hossain. All Rights Reserved. 2005 UN Merida Convention UN Convention Against Corruption 2005 EU Warsaw Convention Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism. 2012 FATF Revised Standards The FATF Revised Standards comprise the Recommendations adopted on 16 February 2012 and updated regularly since.
  • 18. Copyright © Md. Moulude Hossain. All Rights Reserved. The first anti-money laundering legislation in Bangladesh was the Money Laundering Prevention Act, 2002 and establishment of 'Anti Money Laundering Department' Evolution of AML and CTF Guidelines – Bangladesh Perspective 2002 2008 Money Laundering Prevention Act (2002) replaced by the Money Laundering Prevention Ordinance 2008 2009 Money Laundering Prevention Ordinance (2008) repealed by the Money Laundering Prevention Act, 2009 2012 Money Laundering Prevention Act, 2012 and Anti Money Laundering Department transformed as the Bangladesh Financial Intelligence Unit (BFIU) 2013 BFIU has also achieved the membership of Egmont Group
  • 19. AML/CTF Policy Guideline: Policies, Procedure and Programs AML/CTF Policies, Procedures and Programs are the starting point fro reporting entities to comply with local laws and regulations as well as institutional risk mitigation process. AML/CTF policy is the highest level of institutional commitment to mitigate AML/CTF risks and comply with the laws and regulations AML/CTF Policies A detail document that specify AML measures to comply with AML/CTF policies, laws, regulations and best practices. Categorizes as Institutional & Operational Procedures. AML/CTF Procedures A working document for relevant staffs with detailed checklist of each component of AML/CTF procedures to undertake reporting entities day to day activities. AML/CTF Programs AML/CTF Policy Guideline AML/CTF Policies AML/CTF Procedures AML/CTF Programs Copyright © Md. Moulude Hossain. All Rights Reserved.
  • 20. Copyright © Md. Moulude Hossain. All Rights Reserved.Copyright © Md. Moulude Hossain. All Rights Reserved. Thedesignationofan individualresponsiblefor day-to-daycompliance Trainingforappropriate personnel Independenttestingof BSA/AMLcompliance Risk-basedprocedures forcustomerdue diligence Asystemofinternal controlstoensure ongoingcompliance AML/CTF Policy Guideline: Pillars of AML/CTF The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued a final rule in 2016 that imposed new requirements for identifying and verifying beneficial owners of legal- entity customers. This new rule, amending the Bank Secrecy Act, became effective in July 2016, and all federally insured credit unions must comply fully by May 11, 2018. This revised rule adds a fifth core element to the original four core elements of an effective BSA and anti-money laundering compliance program. These core elements are often referred to as the “pillars. 1 2 3 4 5
  • 21. Copyright © Md. Moulude Hossain. All Rights Reserved. Anti Money Laundering and Counter Terrorist Financing in a Nutshell C h a p t e r 2 H o w t o C o m b a t M L a n d T F Coming Up N EX T
  • 22. Copyright © Md. Moulude Hossain. All Rights Reserved. a b o u t m e Find Me FinTech | Digital Payment | Tokenization | QR Payment | Entrepreneur | Product Management | EMV | Business Development Md. Moulude Hossain