the anti-moneylaundering legal framework
TRANSCRIPT
Fabio Giovannini Mila Mardia Husna Melissa Cammarata
THE INTERNATIONAL AND EU LEGAL FRAMEWORK ON
ANTIMONEY LAUNDERING AND COUNTER TERRORIST FINANCING
2015/2016
MONEY LAUNDERINGThe process of taking the
proceeds of criminal activity and making them
appear legal
WHERE DOES ‘DIRTY
MONEY’ COME FROM?
Extortion
Insider trading
Drug trafficking
Illegal gambling
1. PLACEMENT
2. LAYERING
3. INTEGRATION
THE 3 PHASES OF MONEY-LAUNDERING
1. PLACEMENT
Relieving the criminal of holding and guarding large amounts of bulky cash
Placing the money into the legitimate financial system
2. LAYERING
Converting cash into monetary instruments
Material assets bought with cash then sold
3. INTEGRATION
Now the money is fully integrated into the financial
system and can be used for any
purpose
INTERNATIONAL STANDARDS O N C O M B AT I N G M O N E Y L A U N D E R I N G
A N D T H E F I N A N C I N G O F T E R R O R I S M A N D P R O L I F E R AT I O N
FINANCIAL ACTION TASK FORCE
Implement relevant international conventions. Criminalize money laundering and terrorist financing
and enable authorities to confiscate proceeds from criminal and terrorists activities.
Establish a financial intelligence unit (FIU) to receive and analyze suspicious transaction reports.
Ensure effective law enforcement and prosecution of money laundering and terrorist financing crimes.
Implement customer due diligence. Ensure that comprehensive and effective mechanisms
are in place for international cooperation.
FATF 40 + 9 Recommendations
Largely based on international standards by the FATF.
EU Standards
Money Laundering Directive
Third Directive (2005)
Fourth Directive (2015)
Italy Standards
•Legislative Decree No. 231/2007•Legislative Decree No. 109/2007EU Third
Directive
Ministry of Economy
and Finance
Finance Intelligenc
e UnitBank of
Italy
Compliant with FATF Recommendations.
Asia/Pacific Standards
Asia/Pacific Standards
In 2008 Falciani began collaborating with numerous European nations by providing allegedly illegal stolen information relating to more than 130,000 suspected tax evaders with Swiss bank accounts - specifically those with accounts in HSBC's Swiss subsidiary HSBC Private Bank.
Hervé Falciani:HSBC Whistleblower
Repressive
measures
Preventive
measures
THE FIGHT AGAINST ML
PENALIZATION
EMPOWERMENT
IMPLEMENTATION
AT A NATIONAL LEVEL …
Art.648 bis
• Money laundering activity
Art. 648 ter
• Use of property of illicit origin
Art. 648 ter.1
• Self-laundering
CRIMINAL
CODE
REPRESSIVE MEASURES
REPORT on CRIMINAL ACTIVITYChapter criminal infiltrationon the legal economy+
suspicious transaction reports
PUNISHMENT: IMPRISONMENTAND FINE
February2015
RESTRICTIVE MEASURES (‘’sanctions’’)
AT AN EUROPEAN LEVEL …
SANCTIONS
BROADER sense
Diplomatic
sanctions
NARROWER sense
Arms embargo
es
restrictions on
admission of listed persons
freezing of assets belongi
ng to listed persons/entitie
s
Economic activity
restrictions
SPECIFIC RESTRICTIONS
ON SOME COUNTRIES
PREVENTIVE MEASURES
Some means of payment like cash are subject to restrictions.
Cooperation between Financial Intelligence
Units (FIUs)
Customer due diligence (CDD)
Italian law for traceability
Financial informationrequired by national
legislation or regulation
AML regulation(2007)
UNIVERSITY OF PAVIA CONTRIBUTIONTO ANTI-MONEY LAUNDERING SYSTEM
Data base system from a social network analysis
MELISSA FABIO
MILA