1 聯 合 財 富 情 報 組 joint financial intelligence unit aml/cft seminars for dnfbps joint...
TRANSCRIPT
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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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
Outline of Presentation 1. Joint Financial Intelligence Unit
2. Legislation
3. Suspicious Transactions Report
4. Case Sharing
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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
"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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
Suspicious Transaction Reports DISCLOSURE is SUSPICION based
NO Threshold Reporting
PROSECUTION is based on REASONABLE KNOWLEDGE
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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
Immunity from Prosecution for Dealing in the Property
Benefits of Making an STR?
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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
FinancialInstitutions LEAs
JFIU
OverseasFIUs
LEAs Comm.Gov’t Bodies
JFIU OperationJFIU Operation
Feedback
STRIntelligence
Feedback
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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
Significance
• Use of trusts to divert the money flow
• Use of trusts and corporations to conceal identity of clients
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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
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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聯 合 財 富 情 報 組Joint Financial Intelligence Unit
Thank you!