Transcript Global Money Laundering - International Trade Relations

Global Money
Laundering
Masseh Tahiry
April 2013
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Overview
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2%-5% of global GDP
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$800 billion to $2 trillion
U.S. banks involved
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Riggs Bank and 9/11
hijackers
Citi and Charles Taylor
HSBC and cartels ($881 mil)
Undermines economy
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Facilitates illicit activity
Unfair advantage
Good guys lose
• Bank Secrecy Act
(BSA/AML)
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U.S. Efforts
31 U.S.C. 1051 et seq.
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Assist USG to detect and
prevent money laundering
(ML)
Keep record of cash
purchases
File reports of transactions
greater than $10k
Report suspicious activity
that might signify ML, tax
evasion, other criminal acts
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Problems
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Customer Due Diligence
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PEPs, Corrupt Regime Officials,
etc.
Beneficial Ownership
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Front companies
Implementation Gap
No Risk identified for
complicit banks
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Correspondent banks
Burdensome
Prosecuting
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“Too big to Jail”
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Financial Action Task Force (FATF)
http://www.fatfgafi.org/media/fatf/documents/reports/mer/MER%20US%20full.pdf
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Financial Crimes Enforcement Network (FinCEN)
http://fincen.gov/statutes_regs/bsa/
References
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Global Witness
http://www.globalwitness.org/sites/default/files/pdfs/undue_diligen
ce_lowres_0.pdf
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Terrorism, Transnational Crimea and Corruption Center
(TraCCC-GMU)
http://traccc.gmu.edu/links-to-internet-resources-on-humantrafficking/#money
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United Nations Office on Drugs and Crime (UNODC)—
International Money Laundering Information Network
(IMoLIN)
http://www.imolin.org/
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World Economic Forum
http://reports.weforum.org/organized-crime-enablers2012/#chapter-enablers-of-money-laundering