Global Economic Crime Survey 2007

Despite heightened efforts at regulation, fraud remains a major threat to companies around the world. From simple theft to more complex schemes involving management and corruption, the threat continues regardless of a company’s size, location or industry. For over eight years of data on trends, perceptions and incidents of fraud, read the Global Economic Crime Survey 2007 by PricewaterhouseCoopers LLP.

AML Perspectives – United Kingdom

The Financial Action Task Force (FATF) completed an assessment of the implementation of anti-money laundering and counter-terrorist financing standards in the United Kingdom (UK) in July 2007 (see Mutual Evaluation of the UK). Additional guidance is available from the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the public accounting firm PricewaterhouseCoopers LLP.

AML Perspectives – United States

The Financial Action Task Force (FATF) completed an assessment of the implementation of anti-money laundering and counter-terrorist financing standards in the United States (US) in June 2006 (see Mutual Evaluation of the US). Additional information and guidance is available from the Securities and Exchange Commission (SEC), the public accounting firm PricewaterhouseCoopers LLP and the March 2007 article Suspicious Activity Reporting: Regulatory Change and the Role of Accountants.

AML Perspectives – Australia

The Financial Action Task Force (FATF) completed an assessment of the implementation of anti-money laundering and counter-terrorist financing standards in Australia in October 2005 (see Mutual Evaluation of Australia). Additional information and guidance is available from the Institute of Chartered Accountants in Australia (ICAA), as well as the public accounting firm PricewaterhouseCoopers LLP.

Sanitized Money Laundering Cases

To show how complex and tangled money laundering schemes can be, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has prepared a link chart of a money laundering case, with details changed or deleted for security and privacy reasons. The Egmont Group has also prepared a Library of Sanitized Cases, including a compilation of 100 sanitized cases on successes and learning moments in the fight against money laundering. (See How FINTRAC Builds a Case and Egmont Group – 100 Cases.)

About financial intelligence units

The Egmont Group is the coordinating body for the international group of financial intelligence units (FIUs). It was formed in 1995 to promote and enhance international cooperation in anti-money laundering and counter-terrorist financing. The Group, with a membership that has grown to more than one hundred FIUs, has recently taken an important step in establishing a new permanent Secretariat located in Toronto, Canada. (View the Egmont Group Financial Intelligence Units of the World.)

FATF - Money Laundering FAQ

How does fighting money laundering help fight crime? In law enforcement investigations into organized criminal activity, it is often the connections made through financial transaction records that allow hidden assets to be located and that establish the identity of the criminals and the criminal organization responsible. When criminal funds are derived from robbery, extortion, embezzlement or fraud, a money laundering investigation is frequently the only way to locate the stolen funds and restore them to the victims. Most importantly, however, targeting the money laundering aspect of criminal activity and depriving the criminal of his ill-gotten gains means hitting him where he is vulnerable. Without a usable profit, the criminal activity will not continue. (Read Money Laundering FAQ)

FINTRAC Annual Report 2007

The Honourable Jim Flaherty, Minister of Finance, tabled in Parliament the 2007 Annual Report of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The report highlights that the number of case disclosures FINTRAC issued this year rose by 15 per cent to 193. FINTRAC disclosures contain financial intelligence the Centre suspects would be relevant to investigations of money laundering, terrorist activity financing or other threats to the security of Canada.

FATF mutual evaluation process

The mutual evaluation process represents a central pillar of the work of the Financial Action Task Force (FATF). The evaluations are based on the Forty Recommendations 2003 and the Nine Special Recommendations 2001 and use the Anti-Money Laundering/Combating Terrorist Financing (AML/CFT) Methodology 2004. The scope of these evaluations is to assess whether the necessary laws, regulations or other measures required under the new standards are in force, that there has been a full and proper implementation of all necessary measures and that the system in place is effective. (Review the Mutual Evaluation Process and Reports.)

AML Guidance on the Risk-Based Approach

The Guidance on the Risk-Based Approach to combating Money Laundering and Terrorist Financing was developed by the FATF in close consultation with representatives of the international banking and securities sectors. The Guidance supports the development of a common understanding of what the risk-based approach involves, outlines the high-level principles involved in applying the risk-based approach, and indicates good public and private sector practice in the design and implementation of an effective risk-based approach. (Download the Guidance.)

What's new at the FATF?

During 2006-2007, the Financial Action Task Force (FATF) explored a number of money laundering and terrorist financing methods and techniques, producing six studies on key areas: trade-based money laundering; new payment methods; misuse of corporate vehicles; money laundering associated with VAT carousel fraud; laundering the proceeds of illegal narcotics trafficking; and money laundering and terrorist financing through the real estate sector. The challenge going forward will be to build upon the work under the Canadian Presidency, to deliver on existing FATF commitments and to complete the mid-term review of the FATF mandate. (View the FATF Annual Report for 2006-2007 and the current issue of FATF e-news.)

Reporting Entity Obligations in Canada

Changes to Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its associated Regulations will affect reporting entity obligations, including reporting, record keeping, client identification and implementing a compliance regime. The changes have been finalized and the related Regulations have been published. Most of the changes will come into effect on June 23, 2008. Get more information about how changes will affect each reporting entity sector.

Setting global AML standards

The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing. Created in 1989, the FATF works to generate the necessary political will to bring about legislative and regulatory reforms in these areas. The FATF has published 40 + 9 Recommendations in order to meet this objective.

Canada’s Anti-Money Laundering & Anti-Terrorist Financing Requirements

To assist in understanding the obligations imposed by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), the Canadian Institute of Chartered Accountants (CICA) published Canada’s Anti-Money Laundering & Anti-Terrorist Financing Requirements – A Guide for Chartered Accountants. The PCMLTFA makes it mandatory for financial intermediaries to report on certain financial transactions to an independent anti-money laundering agency called the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). This mandatory reporting scheme assists in the detection and deterrence of money laundering and facilitates the investigation of money laundering and terrorist financing activities.

Serving the Public Interest

The Canadian Institute of Chartered Accountants (CICA) serves the public interest. It is a mandate that has defined the CA profession for over 100 years. In this regard, the CICA has been a strong supporter of the Canadian government’s anti-money laundering and anti-terrorist financing regime (AML) since it began in the mid 1990s. A significant amount of guidance on AML matters is provided on the CICA website to assist CAs in meeting their obligations under Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Purpose of this BLOG

The purpose of this BLOG is to provide a focal point for disseminating information on research and guidance materials that facilitate anti-money laundering (AML) and anti-terrorist financing (ATF) in the global economy.