money laundering

Audrius ŠapolaSecurity department of SEB Bank

Physical security

Informationsecurity

Fraud prevention

Prevention of money laundering and terrorist financing

How it affects financial institutions?

What is moneylaundering and terrorist

financing?

““““Behind every great Behind every great Behind every great Behind every great

fortune there is a crime”fortune there is a crime”fortune there is a crime”fortune there is a crime”

Honore de BalzacHonore de BalzacHonore de BalzacHonore de Balzac

Whatis

moneylaundering?

“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 wealthand protect their asset bases, so as to avoidsuspicion of law enforcement and to preventleaving a trail of incriminating evidence”

United Nations Office on Drugs and Crime

“I am like any other man. All I do is supply a deman d”

Al Capone

Human trafficking

Arms smuggling

Tax evasion

Drug trafficking

Corrupt practices

Theft Fraud

RobberyProstitution

“Funds laundered in the world could rangebetween two and five per cent of the world’sgross domestic product.

Using 1996 statistics, these percentages wouldApproximate between US $ 590 billion andU.S. $ 1.5 trillion”

International Monetary Fund

®Hide wealth ®Avoid prosecution ®Evade taxes ®Increase profits ®Become legitimate

Why?

laundering process

# placement

smurfing

smurfing explained

smurfing explained

electronic transfer

gambling

gambling

# layering

electronic funds transfer

# integration

credit and debit cards

terroristfinancing

®Recruit and sustain ®Acquire influence ®Build support base ®Carry out terrorism

Why?

“Follow the money” - Deep Throat

hawala

money laundering vs. terrorist financing

standard setters

The Basel Committee on

Banking Supervision

The Egmont Group

What’s in it

for the bank?

what risks?

operationalrisk

legal risk

financial and concentration risk

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

Warren Buffet

risk assessment

knowyour customer

politicallyexposedpersons

correspondent banking

requirements

screening and

monitoring

ERASE Risk AnalysisERASE Risk AnalysisERASE Risk AnalysisERASE Risk Analysis

ERASE Profiling

Alert Generation

User View

Data reduction & increased accuracy

TransactionsProfiles

$

$

$

$

$

$

$

$

Risk Views

ERASE Risk Views

Alerts

!!

!!

!!

!!

!!

reportingand

freezing

Staff training

arrestingpower?

financial institution =

a few examples…

Questions?

Thanks to:Australian Transaction Reports and

Analysis Centre (AUSTRAC)FlickrDelfi

Lietuvos RytasNeteconomystock.xchng