Intelligence Unit Money Laundering Methods Trends · 2018-01-04 · Money Laundering - Definition T an pr he op act t e erm r i t nten y: “M ded on to ey h L a a ve un t d he e

Joint Financial Intelligence UnitEmerging Money Laundering

Methods & Trends

Joint Financial Intelligence Unit

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JFIU

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先獲得警務處處長書面許可外，本簡報檔案只可用作個人學習及處

理公務上用途。

內容總覽內容總覽

1.1. About JFIU

2.2. Money Laundering –Definition

3.3. Key Legislation4.4. Money Laundering Methods5.5. Challenges and Indicators

STR


JFIU

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About JFIUAbout JFIU


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Structure of JFIUStructure of JFIU

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JFIU

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AMAMLL//CCFTFT LeLeggiissllatatiionon

1989 Drug Trafficking (Recovery of Proceeds) Ordinance (DTROP, Cap 405)

Organized & Serious Crimes Ordinance1994(OSCO, Cap 455)

2002 United Nations (Anti-Terrorism Measures)Ordinance (UNATMO, Cap 575)

2012 Anti-Money Laundering & Counter-Terrorist Financing (Financial Institutions) Ordinance (AMLO, Cap 615)

JFIU

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MoMoneyney LLaauunnddeerringing -- DDeeffiinniittiionon

Tanpr

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op act

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not to appear to be or so represent suchS.1

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ds. 615 AMLO


JFIU

New Stamp

MoMoneyney LLaauunnddeerringing –– OOffffenencece

––

Any person who

–

knowing / Having reasonable grounds to believe thatany property represents any person’s

–

proceeds of drug trafficking / indictable offencedeals with that property

Max penalty: Fine of HKD $5,000,000 and

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JFIU

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Money Laundering Methods


JFIU

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Money Laundering Methods

Layering

Placement

Integration

$$


JFIU

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Mo

P

n

lace

ey

m

La

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undering Methods

Smuggling cash

Business

Remittance

Valuables

Currency

Securities

Banking System

Real Estate


JFIU

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transactionstransfers

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ring

Laundering Methods

deposits multiple multiple


JFIU

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M

In

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t

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ey Laundering Methods

- Use laayteionred funds to purchase ‘clean assets’

- Liquiaa assets- Fixed assets (e.g. real estate)- Business


JFIU

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M

In

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Laundering Methods

Real A/C Business Valuables Currency Securities

Estate


JFIU

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Cash TransactionsSimpleWorldwide


JFIU

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ChChaalllleennggeses inin CComombbaattiingng MMoonneyey LLaaundundeerringing

Cross-border transactions

Non-local signatories Offshore companies

Corporate service providers

JFIU

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CChhaalllleennggeses inin CoCommbbaattiingng MoMonneyey LLaaundundeeriringng

Use of Internet / high technology

Non-face-to-face account opening

New payment methodsE-banking


JFIU

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CChhaalllleennggeses inin CoCommbbaattiingng MoMonneyey LLaaundundeeriringng

Transnational crime syndicates

Use of professional service

Complicated financial products


JFIU

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Red-flag indicator


JFIU

New Stamp

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SSoomeme

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JFIU

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Thank you!

www.jfiu.gov.hk

http://www.jfiu.gov.hk

JFIU

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Joint Financial Intelligence Unit &Suspicious Transaction Reporting

Joint Financial Intelligence Unit


JFIU

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Important NoticeAll rights, including copyright, in this PowerPoint file are owned and reserved by the Hong Kong Police Force. Unless prior permission in writing is given by the Commissioner of Police, you may not use the materials other than for your personal learning and in the course of your official duty.

重要告示

香港警務處持有並保留本簡報檔案包括版權在內的所有權益。除預

先獲得警務處處長書面許可外，本簡報檔案只可用作個人學習及處

理公務上用途。

內容總覽內容總覽

S 1.1. Key Legislation

2.2. Suspicious Transaction

T Report (STR)

R3.3. Role of JFIU4.4. Statistics5.5. SAFE approach6.6. Case example


JFIU

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AMAMLL//CCFTFT LeLeggiissllatatiionon

1989 Drug Trafficking (Recovery of Proceeds) Ordinance (DTROP, Cap 405)

Organized & Serious Crimes Ordinance1994(OSCO, Cap 455)

2002 United Nations (Anti-Terrorism Measures)Ordinance (UNATMO, Cap 575)

2012 Anti-Money Laundering & Counter-Terrorist Financing (Financial Institutions) Ordinance (AMLO, Cap 615)

JFIU

New Stamp


LeLeggalal OObblliiggatatiionon toto FFiilele SSTRsTRs

Any person, who knows / suspectsthat an

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y

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property represents shall

proceedst ofo an

cr iameuth

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rtierrzed

oorfistfic

eprr (operty

a report JFIU,

Max. penalty:

).

Fine at level 5 (HK$ 50,000) & 3 months’ imprisonment

S.25A(1) of Cap. 405 DTROP & Cap. 455 OSCO

S.12(1) of Cap. 575 UNATMO

JFIU

New Stamp

LeLeggalal OObblliiggatatiionon toto FFiilele SSTRsTRs•(1)

CW

aphe

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son A(1)

knows or suspects that any property-

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officer.

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ended to be used in connection with,an indictable offence, he shall as soon as it is reasonable for him to do so disclosethat knowledge or suspicion, together with any matter on which that knowledge or suspicion is based, to an authorized officer.


JFIU

New Stamp

LeLeggalal OObblliiggatatiionon toto FFiilele SSTRsTRs

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; a ondr other matter

comes to the person's attention.


JFIU

New Stamp

SuSussppiicciioousus TTrraannssaaccttiionon RReeppoorrttinging

Legal obligationApplied to allWhere / when a person Disclosure based on knowledge / suspicionReporting mechanism: No reporting threshold / compulsory reporting of cross-border transactions


JFIU

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concerned in consequence of the disclosure.


(3) S

tatA d

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csievcitil / on (

cr1i)-minal liability

(a) shall not be treated as a breach of any restriction upon the disclosure of information imposed by contract or by any enactment, rule of conduct or other provision;(b) shall not render the person who made it liable in damages for any loss arising out of-

(i) the disclosure; (ii) any act done or omitted to be done in relation to the property


JFIU

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mentioned disclosure.Source of information kept confidential


(5) ANot

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disclosure has been made under subsection (1) or (4), he discloses to any other person any matter which is likely to prejudice any investigation which might be conducted following that first-


JFIU

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pledge or otherwise);

MoMoneyney LLaauunnddeerringing CCapap 405405 // 455455

A person commits an offence if, knowing or having reasonable grounds to believe that any propertyin whole or in part directly or indirectly represents any person's proceeds of drug trafficking / an

“

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le offence, he deals with that property. in relation to property referred to in section 15(1) or 25, includes-

(a) receiving or acquiring the property;(b) concealing or disguising the property (whether by concealing or disguising its nature, source, location, disposition, movement or ownership or any rights with respect to it or otherwise);(c) disposing of or converting the property;(d) bringing into or removing from Hong Kong the property;(e) using the property to borrow money, or as security (whether by way of charge, mortgage or


JFIU

New Stamp


RRoolele ofof JFJFIUIU

Financial Intelligence

Unit

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JFIU

New Stamp

RRoolele ofof JFJFIUIU

Law Reporting Financial Enforcement

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香港警務處版權所有

JFIU

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IInnfoforrmmatatiionon FlFlowow

Reporting Financial LawEntities Intelligence Enforcement

Unit Agencies

STR Analysis FinancialInvestigation

Useful Information Intelligence Evidence

JFIU

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STREAMS

Suspicious Transaction REportAnd ManagementSystem


JFIU

New Stamp

RReeppoorrttinging MMeetthhodod

Download STREAMSe-reporting form here


JFIU

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To Report,

or Not to Report

JFIU

New Stamp


WWhhatat toto RReeppoortrt inin SSTTRRs?s?

Pbene

articiuci

lars

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icious indicators / news

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JFIU

New Stamp


How to File Quality STRs?How to File Quality STRs?

SScreen

AAsk

FFind

EEvaluate

subject entities’ background & transactions

appropriate questions to clarify circumstances

relevant records for review

whether suspicion is substantiated

SAFESAFE Approach

JFIU

New Stamp

– Ultimate Beneficial Owner

“SAFE” - Ask

n

n

Ask appropriate questionsCl–

aFrinif

ayn sciaus

l pBiacci

kogurs cound

ircumstances

– Source of funds– Purpose of the transaction– Counterparties involved


JFIU

New Stamp

“SAFE” - Find

n

n

n

Find the customers’ recordsReview information Analyze if any suspicions from:Individual Customer Corporate ClientOccupation Business ActivityIncome RevenueAge IncorporationPrevious Transaction Transaction Counterparties


JFIU

New Stamp

“SAFE” - Evaluate

n Evaluate information obtained n Identify ‘Suspicious Indicator’

– More than one indicator possible– More indicators appear à greater suspicion

n Possible Suspicious Indicators:– Activity does not match the profile– ‘Politically Exposed Persons’ (PEPs) related– Sudden change of transaction pattern– Complicated structure / background– From alarming jurisdictions


JFIU

New Stamp

“SAFE” - Evaluate

n As–

k A

yoll s

uters

pe

– slf:

Is the tra nin

s a‘Scctio

reen’, ‘Ask’, ‘Find’ were completed?

– Hasus

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stances, can the – Conclusio

àà

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FFiill

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it d?

anan

u

n

SS

e

TRTR

ly suspicious


JFIU

New Stamp


Thank you!

www.jfiu.gov.hk

http://www.jfiu.gov.hk

JFIU

New Stamp

Documents

Intelligence Unit Money Laundering Methods Trends · 2018-01-04 · Money Laundering - Definition T an pr he op act t e erm r i t nten y: “M ded on to ey h L a a ve un t d he e