Transcript What are the main predicate offences for money laundering

Jed Abad
Anti-Money Laundering Assistance Team
Australian Attorney General’s Department
Contents
 What are the major underlying crimes that
produce money to be laundered in the
region?
Predicate Offences for Money Laundering
Drug
Trafficking
Tax
Evasion
Corporate
Crime
People
Smuggling
Money
Laundering
Corruption
Sexual
Servitude
Illegal
Logging /
Fishing
Fraud &
Organised
Theft
•Seminal Work: Dr Yunus Husein & Dr.Bambang Setiono – Fighting forest crime
and promoting prudent banking for sustainable forest management – the anti
money laundering approach
APG Report (Sharman & Chaiken 2007)
“For developing countries, corruption offences are probably the main predicate
offence for money laundering”
“The potential of the AML/CFT System to counter corruption is gravely under
exploited...great missed opportunity”
“Significant gains can be had with existing resources”
 2008 Brisbane FIU Workshop – Indonesia, Pacific, Melanesia
 Pacific region entering a stage where basic financial
intelligence systems are now in place
 Need to decide what kind of finance related crime are
the highest priority for AML targeting
 One measure of the priority is the amount of money
generated from each major crime type and prevalence
in the region
2008 Annual FIU Workshop
 During the 2008 annual FIU Workshop, participants
from around the Pacific completed a basic risk
assessment based on their experience
 The risk assessment scored the threat, vulnerability
and impact of predicate crimes
on
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Top sources of tainted money - Pacific
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FATF Predicate Offence
Illegal Logging
 APG – In Asia/Pacific region – illegal logging and money
laundering linked to: corruption & bribery, organised
crime, smuggling offences, bank and other fraud
 Associated corruption affects: customs, tax, ;aw
enforcement, military, community health and social
welfare
 Need to integrate AML and asset forfeiture tools into
efforts to fight illegal logging and associated corruption
APG Typologies Report 2008
BANKS
LAWYERS
ACCOUNTANTS
& DEALERS
Information sharing
• Specifically Monitor Accounts of
Politicians, Senior Officials &
High Risk industries & make STRs
• Share intelligence & typologies
• Regional FIU cooperation
CUSTOMS
• FIU, Customs, LEA, & Forestry & Fishing
Agency cooperation
FORESTRY & FISHING
OFFICIALS
Foreign &
Domestic
LEA’s