1 聯合財富情報組 joint financial intelligence unit aml/cft seminars for dnfbps joint...

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聯合財富情報組Joint Financial Intelligence Unit

AML/CFT Seminars for DNFBPs

Joint Financial Intelligence Unit(JFIU)

Bonnie Cheung Senior Inspector

Customs and Excise Department

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Outline of Presentation 1. Joint Financial Intelligence Unit

2. Legislation

3. Suspicious Transactions Report

4. Case Sharing

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JFIU Established in 1989

Jointly operated by Police and Customs

Housed within Police Headquarters

Primary function is to receive, analyze and disseminate STR

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AML Legislations.25(1) of OSCO/DTROP*:

Dealing with property known or believed to represent proceeds of an indictable offence

Penalty: 14-year Imprisonment & $ 5 Million Fine

* Organized and Serious Crimes Ordinance, Cap.455 (OSCO)* Drug Trafficking (Recovery of Proceeds) Ordinance, Cap.405 (DTROP)

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CFT Legislation

* United Nations (Anti-Terrorism Measures) Ordinance, Cap.575 (UNATMO)

s.7 of UNATMO*

Provides or collects funds, with intention or knowing that funds will be used to commit terrorist act(s)(whether or not the funds are actually so used) Penalty: 14-year Imprisonment & Fine

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Suspicious Transaction Reportss.25A of DTROP / OSCO

s.12 of UNATMO

Any person who knows or suspects any property represents the proceeds of crime or terrorist property shall make a report to an authorized officer.

Penalty: 3-month Imprisonment & $50,000 fine

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"authorized officer"s.2 of DTROP / OSCO(a) HKP officers;(b) C&E officers; or(c) any other person authorized by the S for J

s.2 of UNATMO(a) HKP officers;(b) C&E officers; (c) ImmD officers; or(d) ICAC officers

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Suspicious Transaction Reports DISCLOSURE is SUSPICION based

NO Threshold Reporting

PROSECUTION is based on REASONABLE KNOWLEDGE

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Immunity from Prosecution for Dealing in the Property

Benefits of Making an STR?

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Benefits of Making an STR? s.25A(2) DTROP/OSCO s.12(2) UNATMO

If a person deals with property & STR relates to that act, that person has a defence to ML/TF, provided:-

(i) STR made before act & act done with the consent of an authorized officer; or

(ii) STR made- after the act- on his own initiative- as soon as reasonably practicable

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Exemption of Liabilitys.25A(3) of DTROP/OSCO s.12(3) of UNATMO

(a) shall NOT be treated as a breach of any restriction upon the disclosure of information imposed by contract or by any enactment, rule of conduct or other provision;

(b) shall NOT render the person who made it liable in damages for any loss arising out of-

(i) the disclosure; (ii)any act done or omitted to be done in relation to the property concerned in consequence of the disclosure.

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Tipping Offs.25A(5) of DTROP/OSCO s.12(5) of UNATMO

A person commits an offence if, knowing or suspecting that a disclosure has been made, he discloses to any other person any matter which is likely to prejudice any investigation which might be conducted following that first-mentioned disclosure

Penalty: 3-year Imprisonment & $500,000 Fine.

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Restriction on Revealing STRs.26(1) of DTROP/OSCO

NO witness in any civil or criminal proceedings shall be obliged-

(a) to reveal that a disclosure was made;

(b) to reveal the identity of any person as the person making the disclosure; or

(c) to answer any question if the answer would lead, or would tend to lead, to the revealing of any fact or matter referred to in paragraph (a) or (b).

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Sharing STR Info. with LEAss.25A(9) of DTROP/OSCO and s.12(6) of UNATMO

STR may be disclosed by any authorized officer to-

(a) DoJ, HKP, C&ED, ImmD, and ICAC; and

(b) the overseas LEAs or FIUs,

for the purpose of combating crime/preventing and suppressing the financing of terrorist acts

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FinancialInstitutions LEAs

JFIU

OverseasFIUs

LEAs Comm.Gov’t Bodies

JFIU OperationJFIU Operation

Feedback

STRIntelligence

Feedback

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Mr. A

Trust Service Provider operating a Trust Company “L”

Clients

Wired large sum to 51 different US and offshore banks

Wired large sum to 51 different US and offshore banks

“Pure Trust Organizations” (PTO)

“Pure Trust Organizations” (PTO)

Placed their life savings into PTO

Placed their life savings into PTO

Defraud•Asset Protection

•Funds beyond the reach of US Govt’ and creditors

Pure Trust Organizations

Pure Trust OrganizationsDefraud

over 500 investors

for ~56 million.Defraud

over 500 investors

for ~56 million.

Case Example (1)

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Significance

• Use of trusts to divert the money flow

• Use of trusts and corporations to conceal identity of clients

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Defraud clients ~ USD $8 million Defraud clients ~ USD $8 million

Case Example (2)

TCSP A in California

Client D

& K

A/C in Bank Y

A/C in Bank Y

Purchase of boat, renovating hotel in California..

Purchase of boat, renovating hotel in California..

A/C in Bank Z

A/C in Bank Z

A/C in Liechtenstein

Held by A

A/C in Liechtenstein

Held by A

Trust A (in USA)

Trust A (in USA)

D & K gave a Power of Attorney to A

D & K gave a Power of Attorney to A

Over USD $2 millions were withdrawn and transferred out

Over USD $2 millions were withdrawn and transferred out

Deposited to Bank Y

Two A/Cs were set Two A/Cs were set up in Liechtensteinup in Liechtenstein

Two A/Cs were set Two A/Cs were set up in Liechtensteinup in Liechtenstein

Div

erte

d to

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Significance

• Use of trusts to conceal identity of clients

• Use of trusts to divert the money flow

• Use of offshore bank account

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Thank you!

1 聯合財富情報組 joint financial intelligence unit aml/cft seminars for dnfbps joint...

Documents

str slide

dtrop slide

practicable slide

property str

year imprisonment fine

act act

excise department slide

case sharing slide

1 聯 合 財 富 情 報 組 joint financial intelligence unit aml/cft seminars for dnfbps joint...

1 聯合財富情報組 joint financial intelligence unit aml/cft seminars for dnfbps joint...