Assessing the impact of the lottery scam on the banking remittance sectors
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ASSESSING THE IMPACT OF THE LOTTERY SCAM ON THE BANKING & REMITTANCE SECTORS PowerPoint PPT Presentation


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ASSESSING THE IMPACT OF THE LOTTERY SCAM ON THE BANKING & REMITTANCE SECTORS. Presented By: Justin Felice Chief Technical Director FINANCIAL INVESTIGATIONS DIVISION. Jamaica ’ s Legal Framework- ( AML & CFT). Terrorism Prevention Act (2005) Proceeds of Crime Act & Regulations (2007)

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ASSESSING THE IMPACT OF THE LOTTERY SCAM ON THE BANKING & REMITTANCE SECTORS

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ASSESSING THE IMPACT OF THE LOTTERY SCAM ON THE BANKING & REMITTANCE SECTORS

Presented By: Justin Felice

Chief Technical Director

FINANCIAL INVESTIGATIONS DIVISION


Jamaica’s Legal Framework-( AML & CFT)

  • Terrorism Prevention Act (2005)

  • Proceeds of Crime Act & Regulations (2007)

  • Financial Investigations Division Act (2010)

  • Terrorism Prevention Regulations (2010)

Financial Investigations Div.


REGULATED SECTOR

  • Financial Institutions (gatekeepers)

    (POCA, TPA- sec 2)

  • Designated Non-financial institutions -pending

    (e.g. Accountants, Attorneys-at-law etc)

  • Any other person declared by the Minister of National Security/Foreign Affairs

    (e.g. Exim Bank)

Financial Investigations Div.


STR Received by FID

Financial Investigations Div.


TTR Received by FID

Financial Investigations Div.


Designated Non-Financial Institutions. (pending)

  • Lawyers, notaries, other independent legal professionals, accountants

  • Casinos (including internet casinos)

  • Real estate agents

  • Dealers in precious stones and metal

  • Trust company service providers

Financial Investigations Div.


LOTTERY SCAM INDICATORS

REMITTANCE TRANSACTIONS

  • Average amounts sent relatively small, between US$250 - $1,000

  • Multiple senders to single recipient

  • Multiple recipients from same sender.

  • Multiple transactions during the same day or within short period.

Financial Investigations Div.


LOTTERY SCAM INDICATORS

Profile of the sender

  • Sender normally elderly

  • Multiple transactions from same sender

  • Senders residing in areas where there are not large concentrations of Jamaicans

  • Senders surnames tend not to be of English origin, hence unlikely to be related to the typical Jamaican

Financial Investigations Div.


LOTTERY SCAM INDICATORS

PROFILE OF RECIPIENT

  • Although island-wide most scammers reside in the western parishes

  • Recipient usually between age 18 to 30 years

  • The use of multiple IDs and addresses

  • Usually unemployed or low-income jobs.

Financial Investigations Div.


LOTTERY SCAM INDICATORS

TRANSACTIONS –OTHER FINANCIAL INSTITUTIONS

  • Large wire transfers from same sender(s)

  • Frequent large cash deposits

  • New accounts being opened or dormant accounts being re-activated.

  • Joint accounts with older relative (usually mother)

Financial Investigations Div.


LOTTERY SCAM INDICATORS

TRANSACTIONS –OTHER FINANCIAL INSTITUTIONS

  • When funds are deposited, withdrawals are mainly via ATM and POS

  • Source of funds information not credible/ does not match profile of accountholder

  • Occupation/income not in keeping with level of deposits

  • Cash intensive businesses registered as decoy

Financial Investigations Div.


LOTTERY SCAM INDICATORS

Recent trends

  • Collection of funds (in the USA) by associates who then send funds to Jamaica- identification of victim becomes more difficult.

  • Couriers/third parties used to collect funds-no direct trail to beneficiaries

  • Funds sent to other Countries

Financial Investigations Div.


CHALLENGES

LAW ENFORCEMENT

  • Inadequate sender information and arduous process in obtaining this information.

  • Obtaining of witness statement

  • Need for physical presence of overseas witness/victim for court purposes.

  • Court system (hearing dates & continuous postponements)

  • Insufficient resources (personnel, software)

Financial Investigations Div.


PROPOSED SOLUTIONS

FINANCIAL INSTITUTIONS

  • Effective implementation of policies and procedures for identification & monitoring of suspicious transactions

  • Continuous staff training, KYC.

  • Greater collaboration between local and overseas remittance partners

Financial Investigations Div.


PROPOSED SOLUTIONS

  • Need for greater collaboration in sharing intelligence.

  • Better use of analysis, understanding the threat to Jamaica.

  • Creation of a Problem Profile…National Intelligence Model.

  • Task Force to include ALL agencies with hands on support from US Law Enforcement Agencies.

Financial Investigations Div.


PROPOSED SOLUTIONS

  • Media Campaign

  • Education re Benefits of Asset Recovery

  • Reducing Crime

  • Asset Recovery should be Self Generating

  • Safer and Stronger Communities

  • Crime Doesn’t Pay

  • Asset Recovery Incentive Scheme

  • Crime Fighting Priorities

Financial Investigations Div.


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