NAEA Seminars – 2014

Content

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$207 Million Cash SeizureNCA Overview

SAR Regime

Best Practice

Case Studies

Trends

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At least 1 in 4 organised crime groups retain a corrupt individual in the legitimate financial sector

Illicit profits are often laundered through cash-rich overt businesses, which very often operate on the high street and typically include nail bars, food and licensed premises, companies offering security services, taxi firms and car washes.

Complicit, negligent or unwitting professionals in the financial, accountancy and legal professions in the UK facilitate money laundering on behalf of organized criminals. UK organised crime groups also use specialist money launderers, some overseas, who manage laundering for multiple criminal enterprises.

Government Serious Crime Review – Oct 2013

National Crime Agency (NCA)

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Keith Bristow

Intelligence Hub

Alan HislopHead of UKFIU

Roy AffleckUKFIU Operations

Keith WhiteFinancial Relationships

Donna Carruth Policy, Coordination& Communications

International

International Corruption Intelligence Cell

Consent

Terrorist Finance

Dialogue

Systems and Futures

Data Exploitation

Policy

SAR Management

Communications

HMRC

UKFIU Structure

Money Laundering & UK Legislation

Trends

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UK Legislation

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Primary Legislation

Proceeds of Crime Act 2002 (POCA)

Terrorism Act 2000 (TACT)

Secondary Legislation

Money laundering Regulations 2007

POCA Interpretation

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S.340(9)

Any benefit derived from criminal conduct. Property includes money, all forms of property, real or personal, heritable or moveable, things in action and other intangible or incorporeal property

POCA – Criminal Property

S.340(2)

Any conduct which constitutes an offence in any part of the UK or would constitute an offence in any part of the UK if it occurred there

POCA – Criminal Conduct

POCA – Money Laundering Offences

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s.327 Concealing, disguising, converting, or transferring criminal property

s.328 Being concerned in an arrangement in relation to criminal property

s.329 Acquisition, use or possession of criminal property

PENALTY – 14 years imprisonment

Where a suspicious transaction is pre-advised, Consent must be sought from the NCA to proceed

POCA – Other Offences

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s.330 Failure to disclose – applies to the regulated sector. A person commits this offence if he knows or suspects or

has reasonable grounds for knowing suspecting that another is engaged in money laundering and fails to report it

PENALTY: 5 years imprisonment

s.333 Tipping off

“Knows or suspects” that a disclosure (report) has been made &

(b)Makes a disclosure which is likely to prejudice any investigation which might be conducted following the disclosure

PENALTY: 2 years imprisonment

SAR Best Practice

SAR Best Practice

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Put in all KYC / CDD information

Address & date of birth vital if known

Make sure your reason for suspicion is clear

Reason for suspicion should be in first line of text

Glossary code should be used

Always put postcode in even if previously reported on

If you need Consent be specific (and tick the box)

Submit via SAR Online / Fax

Be available during the notice period

Consider business / reputational risk

Consent – Essential Elements

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The information or other matter which gives the grounds for knowledge, suspicion or belief

A description of the property that is known, suspected or believed to be criminal or terrorist property

A description of the prohibited act for which consent is sought

The identity of the person or persons known or suspected to be involved in money laundering or committing or attempting to commit an offence under s15 to 18 of TACT

The whereabouts of the property that is known or suspected to be criminal or terrorist property

POCA Interpretation

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www.nationalcrimeagency.gov.uk

SAR Usage

SAR Submissions by Year

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Case Studies

Operations Prestige / Gumia

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Cavan & JamieHanna

(14 years)£1,135,910

Darren RankinCash Courier

(5 Years)£32,010

Martin WinterDrug Courier(21 Months)

Raj KoliMoney Launderer

(5 Years)£414,770

George Webb(24 weeks / 200 CS)

£649,650

John BastableCash Courier

(5 Years)

Stephen Mee(5 Years)

Nimesh ShahDirector & MLRO

MSB(15 Months)

£154,760

12 Stonechat Mews£2,683,395

Steven Creasey &Anthony Pitts

£201,488

Koli’s Ferrari

ML Modus Operandi

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Cash Smuggling?

Property?

Professionals Involved?

Foreign Bank Accounts?

Front Company?

Other Accounts?

Rental Properties?

Luxury Car Hire Company

Building plots, warehouse

Bank accounts in names of Limited Companies£400k in solicitor’s client account

Bling Lifestyle? Jewellery, cars

14 properties across South East London

£5,131,211 recovered

Op Showcase - Smurfing

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Mark Owens3 Years

Fazal Hussain7 Years

Muhammed Habib3 Years

Nasrullah Khan10 Years

Threat Areas – Property Sector

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Targeting by OCGs – value knowledge / access

Identity fraud / false documentation to evade

KYC / CDD procedures

Complicit / bogus professionals

High cash turnover businesses / unusually

profitable

Increased OCG use of offshore accounts & Company

Service Providers

Overseas links / international cash flow

Protect Yourselves – Be Suspicious

Contact Details

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• SAR Online & Glossary of Terms –

www.nationalcrimeagency.gov.uk

• UKFIU Support desks – 0207 238 8282

• UKFIU Dialogue Team via ukfiusars@nca.x.gsi.gov.uk

• SAR Confidentiality Breach Line – 0800 234 6657

• NCA General Enquiries Number – 0370 496 7622

• Fraud Reporting www.actionfraud.org.uk/report_fraud

Any Questions?

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