Egmont AML/CFT Awareness Video

The Egmont Group of Financial Intelligence Units has released a short animated video to advance awareness and understanding of money laundering and terrorist activity financing. The Egmont AML/CFT Awareness Video is available in English, French and Spanish versions. For more information, read the Egmont News Release online.

Prepaid cards can be fenced for up to 80% of their value

Drug traffickers, terrorists and other criminals have found a simple and ingenious way to launder their dirty money. Prepaid cards, especially gift cards, can be fenced for up to 80% of their value, according to Canada's FINTRAC. Popular sites such as eBay, Craigslist and various card-exchange sites have made “e-fencing” an incredibly easy way to launder dirty money for about a 20% cost, much less than what traditional, human fences would charge. FINTRAC cites one ring of thieves who were caught in Florida in 2007 after buying US$24,000 worth of gift cards from one Wal-Mart and US$18,000 from another Wal-Mart. FINTRAC also reports that British experts allege that prepaid cards have been used to move terrorist funds around the world and finance terrorist attacks. (Read the article "Card Tricks" in the January-February 2011 edition of CAmagazine, also available online.)

AML/ATF Regime On-line Survey

To assist in the 10 Year Evaluation of Canada’s Anti- Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime, FINTRAC is requesting input from key stakeholders on the AML/ATF Regime through the use of an on-line survey.

Address (English): short.capra.net/amlatf-en
Username: participant
Password: jRQ?67B

FINTRAC Director discusses anti-money laundering / anti-terrorist financing measures in federal budget

At presentations to the OSFI (Office of the Superintendent of Financial Institutions) conference and the Canadian Institute Anti-Money Laundering Conference in April 2010, Jeanne M. Flemming, the Director of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) discussed three anti-money laundering / anti-terrorist financing measures which were announced by the Minister of Finance in the recent federal budget.

The three measures are:
• an increase in FINTRAC’s operating budget,
• amendment to regulations under the Criminal Code to make tax evasion a predicate offence for money laundering, and
• amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act giving new authority to the Minister of Finance to issue directives to advise the financial sector of foreign jurisdictions and entities that pose a money laundering or terrorist financing risk, and to require appropriate countermeasures.

The full text of the speeches is available here and here.

Money Laundering and Terrorist Financing Typologies and Trends in Canadian Casinos

The Financial Transactions and Reports Analysis Centre of Canada has published the following report on its Web site: Money Laundering and Terrorist Financing Typologies and Trends in Canadian Casinos.

Amendments to U.S. Bank Secrecy Act to assist anti-money laundering efforts

On February 5, 2010, the Financial Crimes Enforcement Network (FinCEN) issued a final rule to amend the relevant Bank Secrecy Act information sharing rules to allow certain foreign law enforcement agencies, and State and local law enforcement agencies, to submit requests for information to financial institutions. The rule also clarifies that FinCEN itself, on its own behalf and on behalf of other appropriate components of the Department of the Treasury (“Treasury”), may submit such requests.

Modification of the information sharing rules is a part of Treasury’s continuing effort to increase the efficiency and effectiveness of its anti-money laundering and counter-terrorist financing policies.

Senate Subcommittee Report Exposes Money Laundering by PEPs

A report released on February 4, 2010 by Senator Carl Levin at a hearing of the Senate’s Permanent Subcommittee on Investigations exposes how corrupt foreign officials and their relatives have used gaps in U.S. law and the assistance of U.S. professionals to funnel millions of dollars in illicit money into the United States.
The report details how politically exposed persons have used the services of U.S. lawyers, lobbyists, real estate and escrow agents, and other professionals who currently have no obligation under U.S. regulations to establish anti-money laundering (“AML”) programs, know their customers, or evaluate the source of funds transferred into the United States.
The report presents four case histories, each with multiple stories exposing the tactics being used by PEPs to use the US financial system to protect and enhance their illicit funds.