Audrius apola

Head of security department

Physical security

Information security

Fraud prevention

Prevention of money laundering and terrorist financing

What is money laundering and terrorist financing?

How it affects financial institutions?

Behind every great fortune there is a crime

Honore de Balzac

What is money laundering?

Money laundering is any action taken to conceal, arrange, use or possess the proceeds of any criminal conduct
Serious Organised Crime Agency, UK

Money laundering is the name given to the process by which illegally obtained funds are given the appearance of having been legitimately obtained
Australian Transaction Reports and Analysis Centre

Money laundering is the method by which criminals disguise the illegal origins of their wealth and protect their asset bases, so as to avoid suspicion of law enforcement and to prevent leaving a trail of incriminating evidence
United Nations Office on Drugs and Crime

I am like any other man. All I do is supply a demand Al Capone

Theft

Tax evasion

Fraud

Human trafficking
Robbery
Prostitution

Arms smuggling

Drug trafficking

Corrupt practices

Funds laundered in the world could range between two and five per cent of the worlds gross domestic product.
Using 1996 statistics, these percentages would Approximate between US $ 590 billion and U.S. $ 1.5 trillion
International Monetary Fund

Why?
Hide wealth Avoid prosecution Evade taxes Increase profits Become legitimate

laundering process

# placement

smurfing

smurfing explained

smurfing explained

electronic transfer

gambling

gambling

# layering

electronic funds transfer

# integration

credit and debit cards

terrorist financing

Why?
Recruit and sustain Acquire influence Build support base Carry out terrorism

Follow the money - Deep Throat

hawala

money laundering vs. terrorist financing

standard setters

The Basel Committee on Banking Supervision

The Egmont Group

Whats in it for the bank?

what risks?

operational risk

legal risk

financial and concentration risk

It takes 20 years to build a reputation and five minutes to ruin it

Warren Buffet

risk assessment

know your customer

politically exposed persons

correspondent banking requirements

screening and monitoring

ERASE Risk Analysis

Transactions Profiles

Risk Views Alerts

ERASE Profiling

$ $ $ $ $ $

! ! ! ! !

ERASE Risk Views

Alert Generation

Data reduction & increased accuracy

User View

reporting and freezing

Staff training

arresting power?

financial institution =

a few examples

Questions?

Thanks to:
Australian Transaction Reports and Analysis Centre (AUSTRAC) Flickr Delfi Lietuvos Rytas Neteconomy stock.xchng