The challenge of global enforcement – fight against money laundering Group 1 Presentation
Money Laundering The phrase "money laundering" covers all procedures to change the identity of illegally obtained money so that it appears to have originated from a legitimate source.
Money Laundering criminals need to conceal the true ownership and origin of the money; they need to control the money; and they need to change the form of the money.
Money Laundering- 3 stages Placement - the physical disposal of cash proceeds derived from illegal activity.
Money Laundering- 3 stages 2. Layering - separating illicit proceeds from their source by creating complex layers of financial transactions designed to disguise the audit trail and provide anonymity.
Money Laundering- 3 stages 3. Integration - If the layering process has succeeded, integration schemes place the laundered proceeds back into the economy in such a way that they re-enter the financial system appearing to be normal business funds.
The legislation on money laundering in Hong Kong • money laundering=criminal offence • 14 years' imprisonment • a maximum fine of HK$5 million
Case 1 money laundering of warez group
Case 1: Warez group • Background: Jacky Chan • Sales and produce warez (Placement) • Money laundering : investment for assets and horse club (Layering ) • Sales the assets (Integration) • A legal money
Money Laundering by Secured and Unsecured Lending • repay problem loans unexpectedly • refuses to state a purpose of a loan
‧Money Laundering by Cash Transactions ‧Money Laundering though Bank Accounts
International co-operation • FATF • Communicate , share experience • International Conference • Case---Mr Lai
What is FATF? • TheFATF is an inter-governmental body whose purpose is the development and promotion ofnational and international policies to combat money laundering and terrorist financing.
What’s FATF do? • (1) Setting standards for national anti-money laundering and counter terrorist financing programmes; • (2) evaluating the degree to which countries have implemented measures that meet those standards; and • (3) identifying and studying money laundering and terrorist financing methods and trends
Any’s members? • The FATF membership is currently made up of thirty-one countries and territories and two regional organizations. • E.g. Japan, Italy, Hong Kong, Argentina, France, Germany, Mexico, USA, UK
The FATF also works in close co-operation with a number of international and regional bodies involved in combating money laundering and terrorist financing. • E.g. Asia / Pacific Group on Money Laundering (APG)
Public Promotion HKMA and The Hong Kong Police Force had made an TV advertisement. Have you seen it before? • Video