19/09/2014 11:38 AMbindex.indd 719 19/09/2014 11:38 AM 19/09/2014 11:38 AM

24-hour reports, Mexico 561

Abbey National plc 156–157account-opening records, Canada 377–378ACP see Prudential Control AuthorityAFSA see Albanian Financial Supervisory

Authorityagents see intermediariesAlbania 286–297

case studies 296–297due diligence 290–293FATF assessment 287investigation requirements 295legislation 286–287MLROs, role of 290ongoing monitoring 293–294overview 286penalties 289–290, 295–296primary authorities 287–289record-keeping 294–295reporting requirements 295risk-based approach 290scope of regulation 290specific offences 289staff training 294

Albanian Financial Supervisory Authority (AFSA) 288–289

“all crimes” deterrence approach 10, 11Al-Qaida Sanctions List 79–80alternate name accounts 116AMAF see Association Monégasque des

Activités FinancièresAMLB see Anti Money Laundering BureauAMLCA see Anti-Money-Laundering

Control AuthorityAML/CFT regimes

Australia 310–311, 319Canada 380–382FATF Recommendations 23

AMLSCU see Anti-Money Laundering and Suspicious Cases Unit

annual reports, MLROs 164–168

anonymous accountsAlbania 293Barbados 344China 400Denmark 410EC Directive 70Finland 423France 432Hong Kong 467India 478Kenya 525Liechtenstein 536Monaco 569Morocco 582Nigeria 589Poland 599Russia 611Singapore 621Third EC Directive 70

anti-corruption statement, Wolfsberg Standards 119–125

Anti-Money Laundering Authority, Barbados 336

Anti Money Laundering Bureau (AMLB), China 397

Anti-Money-Laundering Control Authority (AMLCA), Switzerland 653

anti-money laundering and countering the financing of terrorism see AML/CFT regimes

Anti Money Laundering Information Centre, Vietnam 701

anti money laundering principles for cor-respondent banking 113–114

enhanced due diligence 114oversight 113responsibility 113risk based due diligence 113Wolfsberg Standards 113–114

Anti-Money Laundering and Suspicious Cases Unit (AMLSCU), UAE 663

Anti-terrorism Crime and Security Act 2001, UK 90–91

Argentina 298–307

INDEX

COPYRIG

HTED M

ATERIAL

720 Index

bindex.indd 720 19/09/2014 11:38 AM 19/09/2014 11:38 AM

case studies 306–307currency purchase 306due diligence 303–305FATF assessment 298–299investigation requirements 305–306legislation 298MLROs, role of 302–303overview 298penalties 300–301, 306primary authorities 299–300record-keeping 305reporting requirements 305–306risk-based approach 302scope of regulation 301specific offences 300staff training 305terrorist financing 301

asset finance, JMLSG 103–104asset freezing

FATF Recommendations 52financial sanctions 141–142,

145–146mutual legal assistance 52terrorist financing 26–28

asset seizure 128–129associates, PEPs 212Association Monégasque des Activités

Financières (AMAF), Monaco 564audit 56, 233, 243, 402AUSTRAC see Australian Transaction

Reports and Analysis CentreAustralia 308–321

AML/CFT regimes 310–311, 319case studies 320–321due diligence 312–316, 319FATF assessment 308legislation 308MLROs, role of 312ongoing monitoring 317overview 308penalties 310, 318–319primary authorities 309record-keeping 317–318reporting requirements 318review of regimes 319specific offences 309–310staff training 317suspicious transaction reporting 318

Australian Transaction Reports and Analysis Centre (AUSTRAC) 309, 320–321

authoritiespowers/responsibilities 45–48see also individual countries

automated monitoring systems 258–259

avoidance activities 228

BaFin see Bundesanstalt für Finanzdienstleistungsaufsicht

Bahamas 322–334defences 324due diligence 326–331FATF assessment 322legislation 322MLROs, role of 325–326ongoing monitoring 331overview 322penalties 334primary authorities 323–324record-keeping 333risk-based approach 324–325specific offences 324staff training 331–332suspicious transaction reporting

334Bahamas Financial Services Board (BFSB)

323Banco Central de la República Argentina

299–300Banco de México 553Bank of Albania 287–288Bank Holding Company Act 1956, USA

131Bank Negara Malaysia 540banks/banking 114–119, 247–248, 266

see also correspondent banking; individual banks; shell banking

Bank Secrecy Act 1970, USA 131–132, 133–138

Barbados 335–347case studies 347due diligence 339–344FATF assessment 335–336

Index 721

bindex.indd 721 19/09/2014 11:38 AM 19/09/2014 11:38 AM

internal policies 347internal reporting 346legislation 335MLROs, role of 338–339ongoing monitoring 344overview 335penalties 337–338, 347primary authorities 336–337record-keeping 345risk-based approach 338scope of regulation 338specific offences 337staff training 344–345suspicious transaction reporting

346Basel Committee on Banking Supervision

(BCBS) 55–58bearer bonds 204beneficial ownership

Australia 314Barbados 342Canada 373FATF Recommendations 44Finland 421Fourth EC Directive 76France 431–432Germany 440Hong Kong 465identifying customers 201India 477legal confidentiality 67–68Liechtenstein 535Malaysia 545Monaco 568Morocco 581Nigeria 588PEP associates 212Russia 610Singapore 619South Korea 643Switzerland 655–656UAE 670UK KYC requirements 177Vietnam 704–705Wolfsberg Standards 115

beneficiary due diligence 400, 410BFSB see Bahamas Financial Services Boardbonds, bearer 204

Brazil 348–354case studies 354due diligence 352–353FATF assessment 349legislation 348–349MLROs, role of 351–352ongoing monitoring 353overview 348penalties 350, 354primary authorities 349record-keeping 353scope of regulation 350–351specific offences 349suspicious transaction reporting

353bribery 119, 120, 121, 214–216British Virgin Islands (BVIs) 355–366

case studies 366defences 357due diligence 359–364FATF assessment 355legislation 355MLROs, role of 358–359overview 355penalties 357, 365–366primary authorities 355–356record-keeping 364–365reporting requirements 365risk-based approach 357–358specific offences 356–357staff training 364suspicious transaction reporting

365Bundesanstalt für

Finanzdienstleistungsaufsicht (BaFin), Germany 437

business profile, Singapore 620buying online 219BVIs see British Virgin Islands

CAD see Commercial Affairs DepartmentCAMLMAC see China Anti Money

Laundering Monitoring and Analysis Centre

Canada 367–383account-opening records 377–378AML/CFT rules, changes 380–382

722 Index

bindex.indd 722 19/09/2014 11:38 AM 19/09/2014 11:38 AM

case studies 382–383cash transactions, large 376–377compliance regime 370due diligence 371–374FATF assessment 367legislation 367MLROs, role of 371ongoing monitoring 375overview 367penalties 369, 379–380primary authorities 368record-keeping 376–378reporting requirements 378risk-based approach 370–371scope of regulation 369specific offences 368–369staff training 376suspicious transaction reporting 378–379

case studies see individual countriescash-based business 6–7cash couriers 48–49Cash Enforcement Branch (CEB),

Singapore 616cash transactions 109, 376–377, 527casinos 70–71Cayman Islands 384–395

case studies 395defences 386–387due diligence 389–392FATF assessment 384–385legislation 384MLROs, role of 388ongoing monitoring 392–393overview 384penalties 387, 394primary authorities 385risk-based approach 387scope of regulation 387specific offences 385–386staff training 393suspicious transaction reporting 393–394

Cayman Islands Monetary Authority 385CDD see customer due diligenceCEB see Cash Enforcement BranchCentral Bank, UAE 664Central Bank of the Bahamas 323Central Bank of Barbados 336–337Central Bank of Kenya 517

Central Bank of Nigeria 584–585Central Bank of Russia 605–606central banks 268–269, 323, 336–337,

517, 584–585, 605–606, 664Chapter VII of UN Charter 79charities 204–205China 396–404

AML regime 399auditing requirements 402case studies 404due diligence 400–401FATF assessment 396legislation 396MLROs, role of 399–400ongoing monitoring 401overview 396penalties 399, 402–404primary authorities 396–398record-keeping 401scope of regulation 399specific offences 398staff training 401suspicious transaction reporting 401–402

China Anti Money Laundering Monitoring and Analysis Centre (CAMLMAC) 397–398

CIP see Customer Identification Programme

civil rights 128clients

in a hurry 174–175visits 268Wolfsberg Standards 116see also customer...; personal clients

Comisión Nacional Bancaria y de Valores (CNBV) 553

Commercial Affairs Department (CAD), Singapore 616

competition objective, FCA 85compliance

Bank Secrecy Act 1970, US 134Canada 370failure to comply 139–140, 252financial sanctions 146risk management training 237

Compliance Commission, Bahamas 323Compliance Officers 134concentration accounts 117

Index 723

bindex.indd 723 19/09/2014 11:38 AM 19/09/2014 11:38 AM

concerning transaction reports, Mexico 561

confidentiality 41–42, 67–68confiscation 25–26, 52consent for financial transactions 244–252

external referrals 248–250internal reporting 246–248moratorium period 245nominated officer investigation 250–251notice period 245notification of consent 245–246reporting 246–248, 251–252submitting request for 246timeframes 245United Kingdom 244–252when no obligation to report 251–252

Consumer Financial Education Body, UK 85–86

consumers 84–86see also clients; customer...

Cooperating Units, Poland 594cooperation 23–24, 50–54coordination policies 23–24corporate customers

Albania 292Argentina 303–304Australia 312–314Bahamas 328–329Barbados 341–342Brazil 352BVIs 361–362Canada 372Cayman Islands 390–391Denmark 409–410Finland 421France 431–432Germany 439–440Guernsey 448–449Hong Kong 464–465identification 199–205India 476–477Isle of Man 489Japan 500Jersey 508–509Kenya 522–523legal confidentiality 67Liechtenstein 534–535Malaysia 544–545

Mexico 557–558Monaco 567–568Morocco 580–581Nigeria 588Poland 597retail customers 189Russia 610Singapore 619South Africa 630–631South Korea 643Switzerland 655–656UAE 668–670Ukraine 682USA 692–693Vietnam 704

corporate finance, JMLSG 104correspondent banking 265–269

Albania 293Australia 316Bahamas 330–331Canada 374Cayman Islands 392CDD 36, 68–69China 401client visits 268Denmark 411enhanced CDD 108, 266, 268–269FATF Recommendations 36–37Finland 423Guernsey 450–451Hong Kong 467international 68–69Isle of Man 490Jersey 510JMLSG 107–109, 265Kenya 525Liechtenstein 536Malaysia 546Monaco 570Morocco 582Poland 599respondent attributes 266–267risk 107–108, 124, 265–267South Korea 645Switzerland 657UAE 670–671Ukraine 683USA 695

724 Index

bindex.indd 724 19/09/2014 11:38 AM 19/09/2014 11:38 AM

corruption 213–214, 216, 460, 713–718Council for Financial Activities Control,

Brazil 349country profiles 285–712

see also individual countriescountry risk 123credit cards 97–98Criminal Justice Division of the Attorney

General’s Department, Australia 309criminal penalties, Monaco 573CTR see currency transaction reportscurrency activity reports, USA 697currency crimes, Patriot Act 132–133currency purchase, Argentina 306currency transaction reports (CTRs) 561,

649, 697customer due diligence (CDD)

Albania 292–293Argentina 303–305Australia 312–315Bahamas 328–330Barbados 341–343Brazil 352BVIs 361–363Canada 372–374Cayman Islands 390–391correspondent banking 36, 68–69Denmark 409–410DNFBPs 42–43documentary evidence 178–179EC Directive 65–72FATF Recommendations 31–33, 34, 36,

38–40, 42–43Finland 421–423France 431–432Germany 439–440Guernsey 447–450, 453Hong Kong 463–466, 469India 476–478Isle of Man 489, 493Japan 500Jersey 506, 508–510Kenya 522–524KYC requirements 176–179Malaysia 542–545Mexico 557–559MLRO annual report 166Monaco 567–569

Morocco 580–582Nigeria 588Poland 596, 597–598quality/quantity in UK 178reliance on third parties 38–40Russia 608, 610–611Singapore 618, 619–620South Africa 630–631South Korea 642–644Switzerland 655–657Third EC Directive 65–72UAE 668–670UK KYC requirements 176–179Ukraine 680–681, 682–683USA 692–694Vietnam 704–705see also enhanced CDD; simplified CDD;

third party CDDcustomer identification

Australia 311corporate customers 199–205non-face-to-face customers 218record-keeping 272–273unusual transactions 239well-documented customers 239see also identification; retail customer

identificationCustomer Identification Programme (CIP),

USA 691–693customer relationship management

254customers

classification in Vietnam 707customer risk 123–124exclusion of 192ongoing monitoring 255suspicious activities 231–232under investigation 263–264see also corporate customers; customer...;

Know Your Customer; non-face-to-face customers; personal clients; politically exposed persons; retail customer identification

cycle of money laundering 15–19

defences see individual countriesdefinition of money laundering 5–13

Index 725

bindex.indd 725 19/09/2014 11:38 AM 19/09/2014 11:38 AM

Denmark 405–415case studies 414–415due diligence 408–412FATF assessment 405high-risk countries 411high-risk entities 412legislation 405MLROs, role of 408ongoing monitoring 412overview 405penalties 407–408, 414primary authorities 406record-keeping 412–413scope of regulation 408specific offences 406staff training 412suspicious transaction reporting 413terrorist financing 406–407

designated non-financial businesses and professions (DNFBPs) 23, 35–36, 42–44, 46

deterrence“all crimes” approach 10, 11financial sanctions 146–147regulations, UK 87–88, 93–110risk management 149–157

deterrence software 277–283current types 281–282definition 277effectiveness 279inference approach 278perceived benefits of 281scenario approach 277–278selection 282–283smaller firms 283transaction monitoring 279–280, 281types of action monitored 280

DFSA see Dubai Financial Services Authority

diplomatic passports 173–174Directives, EC 59–77DNFBPs see designated non-financial

businesses and professionsdocumentation

KYC and passports 172–174MLRO annual report 165non-face-to-face customers 218

retail customer identification 190–192

UK KYC 178–179dormant accounts 257–258downstream correspondent clearing 107–

108, 267Drug Enforcement Agency, USA 689drug trafficking 5, 8Dubai Financial Services Authority (DFSA)

664due diligence 9–10

Albania 290–293Argentina 303–305Australia 312–316, 319Bahamas 326–331Barbados 339–344Brazil 352–353buying online 219BVIs 359–364Canada 371–374Cayman Islands 389–392China 400–401Denmark 408–412Finland 419–423France 430–432Germany 438–441Guernsey 447–451, 453Hong Kong 463–468, 469impersonation fraud 93India 475–478Isle of Man 488–490, 493Japan 499–500Jersey 506–510Kenya 521–525KYC 153Liechtenstein 533–536Malaysia 542–547Mexico 556–559Monaco 566–570Morocco 580–582Nigeria 587–589Poland 596–599Russia 608–611Singapore 618–621South Africa 629–631South Korea 641–645Switzerland 654–657trade finance 106–107

726 Index

bindex.indd 726 19/09/2014 11:38 AM 19/09/2014 11:38 AM

UAE 666–672Ukraine 680–683USA 691–695Vietnam 704–705Wolfsberg Standards 116see also customer due diligence

EC see European Commission...Economic and Financial Crimes

Commission (EFCC), Nigeria 585

electronic banking 116electronic identification software 281–282electronic money 99–101electronic verification 192–193employees see staff...enhanced CDD

Albania 292–293Argentina 304Australia 315–316, 319Bahamas 329Barbados 343BVIs 362–363Canada 373correspondent banking 108, 266, 268–269customer identification 203–204EC Directive 68, 176Finland 422France 432Guernsey 449–450Hong Kong 466India 477–478Jersey 509–510Kenya 523Liechtenstein 535Malaysia 545Mexico 558–559Monaco 568–569Morocco 581–582Poland 598Russia 610–611South Africa 631South Korea 643–644Switzerland 656–657Third EC Directive 68, 176

USA 693–694Vietnam 705see also customer due diligence

enhanced ongoing monitoring 255–257, 258

Enron 200European Commission (EC) Directives

59–77First/Second Directives 61Third Directive 60–76,

175–176Fourth Directive 59–60, 76–77

exchange-based trading 110exclusion of customer 165, 192execution-only stockbrokers (ExOs)

103export credits 121–122extradition 52–53

face-to-face verification 191–192failure to comply 139–140, 252family members of customers 196, 211FATF see Financial Action Task ForceFATF assessments

Albania 287Argentina 298–299Australia 308Bahamas 322Barbados 335–336Brazil 349BVIs 355Canada 367Cayman Islands 384–385China 396Denmark 405Finland 416France 428Germany 436Guernsey 444Hong Kong 459India 473–474Isle of Man 484Japan 497Jersey 504Kenya 516–517Liechtenstein 530

due diligence (Continued)

Index 727

bindex.indd 727 19/09/2014 11:38 AM 19/09/2014 11:38 AM

Malaysia 539–540Mexico 552–553Monaco 563Morocco 575Nigeria 584Poland 593–594Russia 604Singapore 615South Africa 626South Korea 638Switzerland 651–652UAE 663Ukraine 677USA 687Vietnam 700–701

FATF Recommendations 21–54beneficial ownership 44cash couriers 48–49CDD 31–33, 34, 36, 38–40, 42–43confiscation 25–26controls 38–41cooperation 23–24, 50–54coordination policies 23–24correspondent banking 36–37country profiles 285criminalising money laundering

24–25DNFBPs 23, 35–36, 42–44, 46extradition 52–53financial groups 38–41financial institutions 30–31, 45general requirements 49–50internal controls 40international cooperation 50–54law enforcement 47–48legal arrangements 44legal persons 44MVTS 37, 38operational aspects 47–48PEPs 34–36powers of authorities 45–48preventive measures 30–31proliferation financing 26–28provisional measures 25–26reliance on third parties 38–40risk assessment 22–23, 29sanctions 50suspicious transactions 41–42

technologies, new 37–38terrorist financing 26–30transparency 44wire transfers 38

FCA see Financial Conduct AuthorityFederal Department of the Interior,

Germany 436Federal Financial Institutions

Examinations Council, USA 689

Federal Financial Market Supervisory Authority (FINMA), Switzerland 652–653

Federal Financial Monitoring Service, Russia 605

Federal Financial Supervisory Authority, Germany 437

FIB see Financial Investigation BranchFinancial Action Task Force (FATF) 6,

21–58BCBS paper 55–58high-risk countries 40–41, 54–55non-face-to-face customer guidance

219–223risk management 55–58trade finance 105–106training staff 186see also FATF assessments; FATF

RecommendationsFinancial Conduct Authority (FCA), UK

83–85, 87–88, 182–184Financial Crime, A Guide for Firms 2013

(FCA) 182–184Financial Crimes Enforcement Network

(FinCEN), USA 688Financial Crime Unit, Isle of Man

485financial groups 38–41Financial Industry Regulatory Authority

(FINRA), USA 688financial institutions 30–31, 45, 120

see also individual institutionsFinancial Intelligence Centre, South Africa

626Financial Intelligence Units (FIUs)

Argentina 299Bahamas 323

728 Index

bindex.indd 728 19/09/2014 11:38 AM 19/09/2014 11:38 AM

China 397EC Directive 72–73FATF Recommendations 47Germany 437India 474Liechtenstein 530–531Morocco 576Nigeria 585South Korea 638–639Third EC Directive 72–73

Financial Investigation Agency, BVIs 356

Financial Investigation Branch (FIB), Singapore 616

Financial Market Authority, Liechtenstein 530

financial sanctions 139–148compliance with 146definition 139deterrence 146–147failure to comply 139–140monitoring difficulties 147–148sanctions lists 140–145UK asset freezing 145–146see also sanctions

Financial Services Act 2012, UK 83Financial Services Authority (FSA), Habib

Bank AG 159–160Financial Services Commission (FSC)

BVIs 355–356South Korea 638

Financial Supervision Commission, Isle of Man 484–485

Financial Supervisory Authority, Finland 417

Financial Transactions and Reports Analysis Centre (FINTRAC), Canada 368, 378–379

Finanstilsynet, Denmark 406FinCEN see Financial Crimes Enforcement

NetworkFinland 416–427

case studies 427due diligence 419–423FATF assessment 416legislation 416MLROs, role of 419ongoing monitoring 424

overview 416penalties 418, 427primary authorities 416–417record-keeping 425reporting thresholds 427risk-based approach 419scope of regulation 418specific offences 417staff training 424suspicious transaction reporting 425–427

FINMA see Federal Financial Market Supervisory Authority

FINRA see Financial Industry Regulatory Authority

FINTRAC see Financial Transactions and Reports Analysis Centre

fit and proper person rules 86

FIUs see Financial Intelligence Unitsforeign branches of financial groups

40foreign customers, South Africa

630foreign transfers, Nigeria 589forfeiture rules, Patriot Act 130–131forgery 191Fourth EC Money Laundering Directive

59–60, 76–77France 428–435

case studies 434–435due diligence 430–432FATF assessment 428legislation 428MLROs, role of 430ongoing monitoring 432–433overview 428penalties 429, 433–434primary authorities 428–429record-keeping 433reporting requirements 433risk-based approach 429–430specific offences 429staff training 433

“Franceafrique” cases 434fraud 172–173, 193–196freezing assets see asset freezingFSA see Financial Services Authority

Index 729

bindex.indd 729 19/09/2014 11:38 AM 19/09/2014 11:38 AM

FSC see Financial Services Commissionfund sources 197fund transfers 228–230Futures Commission, Securities and, Hong

Kong 459

gambling sector 70–71, 77General Directorate for the Prevention of

Money Laundering (GDPML), Albania 288

General Inspectorate of Financial Information (GIFI), Poland 594

general insurers, UK 103Germany 436–442

case studies 442due diligence 438–441FATF assessment 436legislation 436MLROs, role of 438ongoing monitoring 441overview 436penalties 437, 442primary authorities 436–437record-keeping 441–442risk-based approach 438scope of regulation 438specific offences 437staff training 441suspicious transaction reporting 442

GFSC see Guernsey Financial Services Commission

GIFI see General Inspectorate of Financial Information

global corruption 216good practice, FCA guide 183government-issued documents 190–191groups, financial 38–41Guernsey 443–457

case studies 456–457due diligence 447–451, 453external suspicion reports 453FATF assessment 444internal requirements 454–455internal suspicion reports 453legislation 443–444MLROs, role of 446–447ongoing monitoring 451

overview 443penalties 445, 456primary authorities 444record-keeping 453–454reporting 453, 455–456risk-based approach 445scope of regulation 445specific offences 444–445staff training 451–453, 454suspicious transaction reporting 455–456

Guernsey Financial Services Commission (GFSC) 444

Habib Bank AG, Zurich 159–160high-risk countries 40–41, 54–55, 411Hong Kong 458–472

case studies 471–472defences 461due diligence 463–468, 469FATF assessment 459legislation 458–459MLROs, role of 462–463ongoing monitoring 468overview 458penalties 470–471primary authorities 459–460record-keeping 469risk-based approach 461–462scope of regulation 461specific offences 460staff training 468–469suspicious transaction reporting 469–470terrorist financing 460–461

Hong Kong Monetary Authority 459Hong Kong Police Force 460HSBC 151–152

identificationelectronic software 281–282identity fraud 193–196internet payments 222–223Patriot Act 131unusual transactions 235Wolfsberg Standards 114see also customer identification

identity fraud see impersonation fraud

bindex.indd 730 19/09/2014 11:38 AM 19/09/2014 11:38 AM

730 Index

immediate family rules 211impersonation fraud 193–196, 415Independent Commission Against

Corruption, Hong Kong 460India 473–483

case studies 483due diligence 475–478FATF assessment 473–474internal requirements 481legislation 473MLROs, role of 475ongoing monitoring 479overview 473penalties 475, 483primary authorities 474record-keeping 479–481reporting requirements 481risk-based approach 475scope of regulation 475specific offences 474suspicious transaction reporting 482–483

industry risk 124information

country authorities 563–564, 594, 701

insufficient information 230–231suspicious information 230–231see also Know Your Customer

Inspector of Financial and Corporate Service Providers, Bahamas 324

insurance objective, PRA 85insurers, UK 103integrating funds 18–19integrity objective, FCA 84intermediaries 115–116, 123Internal Revenue Service Criminal

Investigation, USA 688international cooperation 50–54

extradition 52–53FATF Recommendations 50–54international instruments 50mutual legal assistance 50–52

international correspondent banking 68–69international measures, Patriot Act

129–130internet payment methods 219,

220–223

investigating suspicions 241–252conducting investigations 242–244consent for transactions 244–252failure to comply 252how far to go 242–243internal reporting 246–248process 241–242staff members 242see also suspicion; suspicious...

investigation requirementsAlbania 295Argentina 305–306Jersey 504Kenya 517, 526–527Liechtenstein 530–531Malaysia 540, 549–550Mexico 560–561Monaco 563–564Poland 600Singapore 622South Korea 638–639Switzerland 652–653UAE 663–664

Isle of Man 484–495case studies 495defences 486due diligence 488–490, 493FATF assessment 484internal suspicion reports 494legislation 484MLROs, role of 487–488ongoing monitoring 490–491overview 484penalties 495primary authorities 484–485record-keeping 492–494risk-based approach 486–487scope of regulation 486specific offences 485–486staff training 491–492, 494suspicious transaction reporting 494–495

JAFIC see Japan Financial Intelligence Center

Japan 496–502case studies 501–502certain transactions 500–501due diligence 499–500

Index 731

bindex.indd 731 19/09/2014 11:38 AM 19/09/2014 11:38 AM

FATF assessment 497legislation 496–497overview 496penalties 498–499, 501primary authorities 497record-keeping 501risk-based approach 499scope of regulation 499specific offences 498staff training 501suspicious transaction reporting

501Japan Financial Intelligence Center

(JAFIC) 497Jersey 503–515

case studies 515due diligence 506–510FATF assessment 504investigation requirements 504legislation 503, 503–504MLROs, role of 505–506ongoing monitoring 510–511overview 503penalties 514–515primary authorities 504record-keeping 512–513reporting requirements 513–514risk-based approach 505scope of regulation 505specific offences 504–505staff training 511–512suspicious transaction reporting 513–514

Jersey Financial Services Commission 504JFCU see Joint Financial Crimes UnitJMLSG see Joint Money Laundering

Steering GroupJoint Financial Crimes Unit (JFCU), Jersey

504Joint Money Laundering Steering Group

(JMLSG), UK 93–110asset finance 103–104corporate finance 104correspondent banking 107–109, 265credit cards 97–98electronic money 99–101events causing suspicion 238ExOs 103general insurers 103

guidance 95–97membership 93–94risk-based approach 94–95trade finance 105–107UK deterrence 93–110wealth management 101–102wholesale marketing 109–110

Kenya 516–528case studies 527–528defences 518due diligence 521–525FATF assessment 516–517internal controls 519–520investigation requirements 517, 526–527legislation 516MLROs, role of 520ongoing monitoring 525overview 516penalties 518–519, 527primary authorities 517reporting requirements 518, 526–527risk assessment 521risk-based approach 519specific offences 517–518staff training 526

Kenyan Ministry of Finance 517knowledge, definition 249–250Know Your Customer (KYC) 152–155,

169–179Abbey National plc 157client in a hurry 174–175conflicting information 171definition 169–170deterrence software 282EC Directive 175–176financial information 174fraudulent information 172–173general issues 171–175key data provision 172passports 172–174reasons for use 153–154, 170–171reliance on third parties 175reluctance to provide information 171risk management 152–155Third EC Directive 175–176UK requirements 176–179what KYC involves 154, 171

732 Index

bindex.indd 732 19/09/2014 11:38 AM 19/09/2014 11:38 AM

what to look for 154–155Korea Financial Intelligence Unit (KoFIU)

638–639see also South Korea

KYC see Know Your Customer

law enforcement 47–48legal arrangements, FATF

Recommendations 44legal assistance, mutual 50–52legal confidentiality 67–68legal obligations, staff training

182–184legal persons 44legislation

Albania 286–287Argentina 298Australia 308Bahamas 322Barbados 335Brazil 348–349BVIs 355Canada 367Cayman Islands 384China 396Denmark 405Finland 416France 428Germany 436Guernsey 443–444Hong Kong 458–459India 473Isle of Man 484Japan 496–497Jersey 503–504Kenya 516Liechtenstein 529–530Malaysia 539Mexico 552Monaco 563Morocco 575Nigeria 584Poland 593Russia 604Singapore 615South Africa 625South Korea 638

Switzerland 651UAE 663Ukraine 677USA 687Vietnam 700see also legal...

licence payments 12–13Liechtenstein 529–538

case studies 538due diligence 533–536FATF assessment 530investigation requirements

530–531legislation 529–530MLROs, role of 533ongoing monitoring 536–537overview 529penalties 531–532, 538primary authorities 530–531record-keeping 537–538risk-based approach 532scope of regulation 532specific offences 531staff training 537suspicious transaction reporting

538local service providers 12low-risk entities, UAE 671–672L’Unité de Traitement du Renseignement

Financier (UTRF), Morocco 576

Malaysia 539–551case studies 551due diligence 542–547FATF assessment 539–540investigation requirements 540, 549–550legislation 539MLROs, role of 541–542ongoing monitoring 547–548overview 539penalties 541, 550–551primary authorities 540record-keeping 549reporting requirements 549–550reporting thresholds 550risk-based approach 541specific offences 540–541

Index 733

bindex.indd 733 19/09/2014 11:38 AM 19/09/2014 11:38 AM

staff training 548–549manual monitoring systems 258–259Members of Parliament (MPs), UK

211Metropolitan Police fraud guidance

194–196Mexico 552–562

case studies 562due diligence 556–559FATF assessment 552–553investigation requirements 560–561legislation 552MLROs, role of 555–556ongoing monitoring 559overview 552penalties 554, 561–562primary authorities 553record-keeping 560reporting requirements 560–561risk-based approach 555specific offences 554staff training 559–560

Minister Responsible for Financial Institutions, Poland 594

Ministry of Economy of Ukraine 678Ministry of Finance

Brazil 349Ukraine 678

Ministry of the Interior, Finland 417Ministry for Public Security, Vietnam 701misrepresentation 518MLROs see Money Laundering Reporting

Officersmobile and internet payment services

(MIPS) 125–126AML Framework 126risk factors 125–126 Wolfsberg Standards 125–126

Monaco 563–574case studies 573–574due diligence 566–570FATF assessment 563investigation requirements 563–564legislation 563MLROs, role of 566ongoing monitoring 570–571overview 563

penalties 565, 572–573primary authorities 563–564record-keeping 571–572reporting requirements 572risk-based approach 565scope of regulation 565specific offences 564–565staff training 571suspicious transaction reporting 572

Monetary Authority of Singapore 617Money Laundering Clearing House,

Finland 416–417money-laundering control statements

236–237money-laundering cycle 15–19

integration phase 18–19layering phase 17–18placement phase 15–17

money-laundering deterrence see deterrence...

money-laundering public statements 236–237

Money Laundering Regulations 2007, UK 91–92

Money Laundering Reporting Officers (MLROs) 159–168

Albania 290annual reports 164–168appointments 160–161Argentina 302–303Australia 312Bahamas 325–326Barbados 338–339Brazil 351–352BVIs 358–359Canada 371Cayman Islands 388China 399–400consent for transactions 248definition 159–160Denmark 408deterrence software 279external reporting 167–168Finland 419France 430Germany 438Guernsey 446–447

734 Index

bindex.indd 734 19/09/2014 11:38 AM 19/09/2014 11:38 AM

Hong Kong 462–463India 475internal reporting 163–164, 167Isle of Man 487–488Jersey 505–506Kenya 520key elements of role 161–162Liechtenstein 533Malaysia 541–542matrix management 162–163Mexico 555–556Monaco 566Morocco 579–580Nigeria 587Poland 596recommendations for action 168record-keeping 167, 274risk management 150, 156–157Russia 608safe harbour 162Singapore 618South Africa 628South Korea 640–641staff training 164, 185tipping off 225, 263, 264UAE 665–666Ukraine 680USA 691Vietnam 703–704

Money Laundering Reporting Office Switzerland (MROS) 652

Money Laundering using New Payment Methods (FATF report) 219–220

money or value transfer services (MVTS) 37, 38

monitoringdeterrence software 279–280, 281financial sanctions 147–148MLRO annual report 165, 166–167thresholds in Ukraine 684–685transactions 196–197, 279–280,

281see also ongoing monitoring

Morocco 575–583case studies 583due diligence 580–582FATF assessment 575internal requirements 582legislation 575

MLROs, role of 579–580ongoing monitoring 582overview 575penalties 578, 583primary authorities 576record-keeping 582risk-based approach 579scope of regulation 578–579specific offences 576–578suspicious transaction reporting 582–583

MPs see Members of ParliamentMROS see Money Laundering Reporting

Office Switzerlandmulti-stakeholder approach, Wolfsberg

Standards 124–125mutual legal assistance 50–52MVTS see money or value transfer services

narcotic-related issues 5, 8National Bank of Ukraine 678National Co-ordination Committee to

Counter Money Laundering (NCC), Malaysia 540

National Crime Agency (NCA), UK 244, 245, 251

National Financial Intelligence Unit (NFIU), Nigeria 585

National Public Safety Commission (NPSC), Japan 497

NCA see National Crime AgencyNCC see National Co-ordination

Committee to Counter Money Laundering

new products 165new technologies 37–38NFIU see National Financial Intelligence

UnitNigeria 584–592

case studies 592due diligence 587–589FATF assessment 584legislation 584MLROs, role of 587ongoing monitoring 589overview 584penalties 586–587, 592primary authorities 584–585

Index 735

bindex.indd 735 19/09/2014 11:38 AM 19/09/2014 11:38 AM

record-keeping 590–591reporting 590–592scope of regulation 587specific offences 585–586staff training 589–590suspicious transaction reporting 590–592

nominated officers 250–251see also Money Laundering Reporting

Officersnon-account holders, Singapore 620non-face-to-face customers 217–223

additional measures 218Argentina 305Bahamas 329–330Barbados 343BVIs 363Canada 373–374Cayman Islands 391definition 217–218Denmark 410EC Directive 68FATF guidance 219–223Finland 422–423Germany 440Hong Kong 466India 478internet payments 219, 220–223Kenya 523–524Malaysia 545Monaco 569Nigeria 588online buying 219, 220–223Poland 598risk-based approach 218–219Singapore 620South Korea 644Third EC Directive 68

non-profit organisations (NPOs) 28–30NPSC see National Public Safety

Commissionnumbered accounts 525

occasional customers 431–432, 598see also customers

offences, primary 8–9see also individual countries

Office of Terrorism and Financial Intelligence (TFI), USA 688

offshore banks 266ongoing monitoring 253–260

Albania 293–294Australia 317automated systems 258–259Bahamas 331Barbados 344Brazil 353Canada 375Cayman Islands 392–393China 401conduct of 254–255customer relationship management 254Denmark 412dormant accounts 257–258enhanced 255–257, 258Finland 424France 432–433Germany 441Guernsey 451Hong Kong 468importance of 253–254India 479Isle of Man 490–491Jersey 510–511Kenya 525Liechtenstein 536–537Malaysia 547–548manual systems 258–259Mexico 559Monaco 570–571Morocco 582Nigeria 589Poland 599Russia 612Singapore 621South Africa 631–632South Korea 646staff training 259–260Switzerland 657–658UAE 672–673USA 695Vietnam 705–707

online buying 219, 220–223operational aspects 47–48, 155–157organised crime 8OTC see over-the-counteroversight responsibility 117over-the-counter (OTC) trading 110

736 Index

bindex.indd 736 19/09/2014 11:38 AM 19/09/2014 11:38 AM

ownership see beneficial ownership

Palermo Convention 2001 24–25passports 172–174Patriot Act see US Patriot Act 2001payment methods, internet 220–223payment profile of customer 218PCU see Proceeds of Crime Unitpenalties

failure to comply 252Patriot Act 132Third EC Directive 75tipping off 263see also individual countries

People’s Bank of China 396–397PEPs see politically exposed personsPEP-screening software 282, 283personal clients

Albania 291Argentina 303Australia 312Bahamas 327–328Barbados 340–341Brazil 352BVIs 361Canada 372Cayman Islands 389–390China 400Denmark 408–409Finland 420–421France 431Germany 439Guernsey 448Hong Kong 464India 476Isle of Man 488–489Japan 499–500Jersey 507–508Kenya 521–522legal confidentiality 67Liechtenstein 533–534Malaysia 543Mexico 556–557Monaco 567Morocco 580Nigeria 588Poland 597

Russia 609–610Singapore 619South Africa 629–630South Korea 642Switzerland 654UAE 667–668Ukraine 681–682USA 692Vietnam 704see also clients; customer...

phishing 193–196, 415POCA see Proceeds of Crime Act 2002Poland 593–603

case studies 603defences 595due diligence 596–599FATF assessment 593–594investigation requirements 600legislation 593MLROs, role of 596ongoing monitoring 599overview 593penalties 595, 602–603primary authorities 594record-keeping 600reporting requirements 600–601risk-based approach 596scope of regulation 595specific offences 594–595staff training 600suspicious transaction reporting 600–601terrorist financing 595waived registration regulations 601–602

policiesBarbados 347BCBS paper 57–58coordination 23–24MLRO annual report 165retention 275unusual transactions 235–236

politically exposed persons (PEPs) 207–216

Albania 293, 296–297Argentina 305associates 212Bahamas 330Barbados 344Brazil 352–353

non-face-to-face customers (Continued)

Index 737

bindex.indd 737 19/09/2014 11:38 AM 19/09/2014 11:38 AM

BVIs 363–364Canada 374Cayman Islands 391–392correspondent banking 109, 268customer risk 123definition 207–209Denmark 410EC Directives 70, 77enhanced ongoing monitoring 255FATF Recommendations 34–36Finland 423Fourth EC Directive 77Germany 440–441global corruption 216Hong Kong 466immediate family rules 211India 478Isle of Man 489–490Jersey 510Kenya 524–525levels of function 209–210Liechtenstein 536Malaysia 546Monaco 569Nigeria 589Poland 598–599prominent public functions 210–211risk-based approach 212–214screening software 282, 283Singapore 620–621South Korea 644–645Third EC Directive 70UAE 670Ukraine 683USA 694Vietnam 705

power of attorney 116powers of authorities, FATF

Recommendations 45–48PRA see Prudential Regulation Authoritypreventive measures, FATF

Recommendations 30–31private banking 114–119, 121

alternate name accounts 116client acceptance 117concentration accounts 117due diligence 116electronic banking 116identity of clients 114

intermediaries 115–116oversight responsibility 117power of attorney 116unusual/suspicious activities 118–119updating client files 118walk-in clients 116Wolfsberg Standards 114–119, 121

private companies 202–203Proceeds of Crime Act 2002 (POCA), UK

88–90Proceeds of Crime Unit (PCU), Singapore

616process of money laundering 7–8, 15–19product risk 256products, new 165professional penalties, Monaco 573profiles

countries 285–712customers 218, 255Singapore business 620

project finance 121–122proliferation financing 26–28prominent public functions, PEPs 210–211protection of consumers objective, FCA

84–85Prudential Control Authority (ACP),

France 429Prudential Regulation Authority (PRA),

UK 83, 85, 87–88Public Prosecutor for Serious Economic

Crime, Denmark 406public statements 236–237

RCMP see Royal Canadian Mounted Police

reasonable grounds, definition 250record-keeping 271–275

Albania 294–295Argentina 305Australia 317–318Bahamas 333Bank Secrecy Act 136–137Barbados 345Brazil 353BVIs 364–365Canada 376–378China 401

738 Index

bindex.indd 738 19/09/2014 11:38 AM 19/09/2014 11:38 AM

customer identification 272–273Denmark 412–413EC Directive 73–74external reports 273–274failure to keep 275FATF Recommendations 31, 33–34Finland 425form of records 274–275France 433Germany 441–442Guernsey 453–454Hong Kong 469India 479–481internal reports 273–274Isle of Man 492–494Japan 501Jersey 512–513Liechtenstein 537–538Malaysia 549Mexico 560MLROs 167, 274Monaco 571–572Morocco 582Nigeria 590–591Patriot Act 131Poland 600purpose of 271records held outside home country 274retention policies 275Russia 612Singapore 622South Korea 647–648suspicious conduct 228Switzerland 658Third EC Directive 73–74transactions 273types of records 272UAE 674Ukraine 684USA 696–697Vietnam 708wealth management 102what to keep 271–274

referrals, external 248–250register of suspicions received 163–164regulations, UK 83–110

Anti-terrorism Crime and Security Act 90–91

background 83

deterrence 87–88, 93–110FCA 83–85, 87–88Financial Services Act 2012 83fit and proper person rules 86framework of 83–92JMLSG 93–110KYC requirements 153Money Laundering Regulations 2007

91–92POCA 88–90PRA 83, 85, 87–88public understanding of finance 85–86staff training 182–184Terrorism Act 90–91

Regulatory Commissions, China 398regulatory framework, USA 127–138

Bank Secrecy Act 131–132, 133–138key regulations 127–128Patriot Act 127, 128–133

regulatory obligations, staff training 182–184

regulatory risk 150–151relevant transaction reports, Mexico 561reliance on third parties 38–40, 76, 175

see also third party CDDreporting procedures, MLROs 163–168reporting requirements 11–12

Albania 295Argentina 305–306Australia 318Bahamas 334Bank Secrecy Act 1970, US 135–136Barbados 346Brazil 353BVIs 365Canada 378–379Cayman Islands 393–394China 401–402consent for transactions 246–248,

250–252Denmark 413EC Directive 72–73FATF Recommendations 41Finland 425–427France 433Germany 442Guernsey 453, 455–456Hong Kong 469–470India 481–483

Index 739

bindex.indd 739 19/09/2014 11:38 AM 19/09/2014 11:38 AM

Isle of Man 494–495Japan 501Jersey 513–514Kenya 518, 526–527Liechtenstein 538Malaysia 549–550Mexico 560–561Monaco 572Morocco 582–583Nigeria 590–592Patriot Act 131Poland 600–601Singapore 622–623South Africa 632–633South Korea 648–649suspicious conduct 228Switzerland 658–660Third EC Directive 72–73UAE 674–675Ukraine 685USA 135–136, 697Vietnam 706, 708–711see also Money Laundering Reporting

Officers; suspicious activity reports/reporting

Republic of Korea see South Koreareputational risk 151–155

HSBC 151–152KYC 152–155managing 152–155modelling 152–155

Resolution 1267, UN 79–80Resolution 1373, UN 81responsibilities

authorities 45–48staff 184–185

retail banking 122retail customer identification 189–197

basic evidence 190customer definition 189–190customer exclusion 192definition 189–190documentation verification 190–192electronic verification 192–193family members 196impersonation fraud 193–196sources of funds 197transaction monitoring 196–197see also customer identification

retention policies 275risk assessment

correspondent banking 266–267FATF 22–23, 29, 56–57Kenya 521MLRO annual report 165NPOs 29USA 690–691

risk-based approachAlbania 290Argentina 302Bahamas 324–325Barbados 338BVIs 357–358Canada 370–371Cayman Islands 387EC Directives 75, 77Finland 419Fourth EC Directive 77France 429–430Germany 438Guernsey 445Hong Kong 461–462India 475Isle of Man 486–487Japan 499Jersey 505JMLSG 94–95Kenya 519Liechtenstein 532Malaysia 541Mexico 555Monaco 565Morocco 579non-face-to-face customers 218–219PEPs 212–214Poland 596Russia 608South Africa 628South Korea 640Third EC Directive 75UAE 665Ukraine 679–680Vietnam 703, 707Wolfsberg Standards 120–124

risk managementcommon problems 149compliance training 237deterrence 149–157

740 Index

bindex.indd 740 19/09/2014 11:38 AM 19/09/2014 11:38 AM

FATF 55–58operational risk 155–157regulatory risk 150–151reputational risk 151–155

riskscorporate customer identification

200correspondent banking 265–266see also high-risk countries; individual

risks; risk...Rosfinmonitoring, Russia 604, 605Royal Barbados Police Force 337Royal Canadian Mounted Police (RCMP)

368Russia 604–614

case studies 614due diligence 608–611FATF assessment 604internal requirements 612–613legislation 604MLROs, role of 608ongoing monitoring 612overview 604penalties 606–607, 614primary authorities 605record-keeping 612risk-based approach 608scope of regulation 608specific offences 606staff training 612suspicious transaction reporting 613–614

safety, Patriot Act 128sanctions

Al-Qaida Sanctions List 79–80deterrence software 282, 283failure to comply 252FATF Recommendations 50PEP-screening software 282, 283terrorist financing 26–27, 28see also financial sanctions

scepticism, employee need for 239SCFM see State Commission for Financial

Services Markets Regulation of Ukraine

SCUML see Special Control Unit against Money Laundering

secrecy laws, FATF Recommendations 30–31

Secretaría de Hacienda y Crédito Público (SHCP) 553

Securities Commission, Bahamas 323Securities and Futures Commission, Hong

Kong 459senior management 164, 165, 184–185Service d’Information et de Contrôle sur

les Circuits Financiers (SICCFIN), Monaco 563–564

service providers, local 12services risk 121–122shareholders 200SHCP see Secretaría de Hacienda y

Crédito Públicoshell banking

Canada 374Cayman Islands 392Denmark 411Guernsey 451Hong Kong 468Isle of Man 490Kenya 525Malaysia 547Poland 599South Korea 645UAE 671USA 695

SICCFIN see Service d’Information et de Contrôle sur les Circuits Financiers

SIEDO see Subprocuraduría de Investigación Especializada en Delincuencia Organizada

simplified CDDAustralia 314–315Bahamas 329Barbados 342BVIs 362EC Directive 71Finland 422France 432Germany 440Guernsey 449Hong Kong 465India 477

reporting requirements (PEPs) (Continued)

Index 741

bindex.indd 741 19/09/2014 11:38 AM 19/09/2014 11:38 AM

Liechtenstein 535Malaysia 544–545Mexico 558Poland 598Singapore 619–620South Korea 643Switzerland 656Third EC Directive 71Ukraine 683see also customer due diligence

Singapore 615–624case studies 624defences 617due diligence 618–621FATF assessment 615internal requirements 623investigation requirements 622legislation 615MLROs, role of 618ongoing monitoring 621overview 615penalties 618, 623–624primary authorities 616–617record-keeping 622reporting requirements 622specific offences 617staff training 621–622suspicious transaction reporting

623small firms 283software 232, 277–283Sound management of risks related to

money laundering and financing of terrorism (BCBS paper 2014) 55–58

South Africa 625–637case studies 635–637defences 627due diligence 629–631FATF assessment 626internal requirements 634legislation 625MLROs, role of 628ongoing monitoring 631–632overview 625penalties 628, 634–635primary authorities 626reporting thresholds 632–633risk-based approach 628scope of regulation 628

specific offences 626–627staff training 632

South African Reserve Bank 626South Korea 638–650

case studies 649–650due diligence 641–645FATF assessment 638investigation requirements 638–639legislation 638MLROs, role of 640–641ongoing monitoring 646overview 638penalties 639–640, 649primary authorities 638–639record-keeping 647–648reporting requirements 648–649risk-based approach 640scope of regulation 640specific offences 639staff training 647suspicious transaction reporting 648–649

Special Control Unit against Money Laundering (SCUML), Nigeria 585

staff membersresponsibilities 184–185suspicions of 242tipping off 262–263

staff training 181–187Albania 294Argentina 305assessment 186–187Australia 317awareness 181–187Bahamas 331–332Barbados 344–345BVIs 364Canada 376Cayman Islands 393China 401compliance risk management 237core obligations 181–182Denmark 412EC Directive 74Finland 424France 433Germany 441Guernsey 451–453, 454Hong Kong 468–469importance of 181

742 Index

bindex.indd 742 19/09/2014 11:38 AM 19/09/2014 11:38 AM

internal procedures 185–186Isle of Man 491–492, 494Japan 501Jersey 511–512Kenya 526legal obligations 182–184Liechtenstein 537Malaysia 548–549methods 186–187Mexico 559–560MLROs 164, 185Monaco 571Nigeria 589–590ongoing monitoring 259–260Poland 600regulatory obligations 182–184responsibilities 184–185Russia 612Singapore 621–622South Africa 632South Korea 647Switzerland 658Third EC Directive 74UAE 673Ukraine 683USA 695–696Vietnam 706, 707–708

State Bank of Vietnam 701State Commission for Financial Services

Markets Regulation of Ukraine (SCFM) 678

statement on anti-corruption, Wolfsberg Standards 119–125

States of Jersey Police and Customs Joint Financial Crimes Unit 504

statistics, FATF Recommendations 49STRO see Suspicious Transaction

Reporting OfficeSubprocuraduría de Investigación

Especializada en Delincuencia Organizada (SIEDO), Mexico 553

subsidiaries of financial groups 40supervision 45–46, 74–75

see also monitoringsupranational organisations 268–269surveillance procedures, Patriot Act

129suspicion

definition 249–250

of staff members 242see also investigating suspicions

suspicious activities 118–119suspicious activity reports/reporting 11–12

Bank Secrecy Act 137–138investigating suspicions 241, 244, 245suspicious conduct 226tipping off 262, 263USA 697Wolfsberg Standards 119see also reporting...

suspicious conduct 225–233avoidance activities 228conducts list 226–227customer activity 231–232fund transfers 228–230insufficient information 230–231internal audit 233record-keeping avoidance 228reporting avoidance 228suspicious information 230–231transactions 225, 226–227wire transfers 228–230

suspicious transaction, definition 225, 226–227

Suspicious Transaction Reporting Office (STRO), Singapore 616

suspicious transaction reports/reportingAustralia 318Bahamas 334Barbados 346Brazil 353BVIs 365Canada 378–379Cayman Islands 393–394China 401–402Denmark 413FATF Recommendations 41Finland 425–427Germany 442Guernsey 453, 455–456Hong Kong 469–470India 482–483Isle of Man 494–495Japan 501Jersey 513–514Kenya 526–527Liechtenstein 538Mexico 560–561MLRO annual report 167

Index 743

bindex.indd 743 19/09/2014 11:38 AM 19/09/2014 11:38 AM

Monaco 572Morocco 582–583Nigeria 590–591, 590–592Poland 600–601Russia 613–614Singapore 623South Korea 648–649Switzerland 658–660UAE 674–675USA 697Vietnam 708–711see also reporting...

Swiss Federal Banking Commission 653Switzerland 651–662

case studies 660–662due diligence 654–657FATF assessment 651–652investigation requirements 652–653legislation 651ongoing monitoring 657–658overview 651penalties 653, 660primary authorities 652–653record-keeping 658reporting requirements 658–660scope of regulation 653specific offences 653staff training 658suspicious transaction reporting 658–660

Taliban 79–80tax evasion 5, 10–11, 13, 30technologies, new 37–38Terrorism Act 2000, UK 90–91terrorism laws, Patriot Act 133terrorist financing 8, 26–30

Argentina 301asset freezing 26–28criminalising financing 26Denmark 406–407FATF 26–30, 55–58Hong Kong 460–461NPOs 28–30Poland 595proliferation 28sanctions 26–27, 28UN resolutions 79–81unusual transactions 240USA 688

see also US Patriot Act 2001 TFI see Office of Terrorism and Financial

IntelligenceThird EC Money Laundering Directive

60–76aims 61application 64–65background 60–61CDD 65–72definitions 63–64feedback 74internal procedures 74key provisions 62KYC requirements 175–176overview 62–76penalties 75record-keeping 73–74reliance on third parties 76reporting obligations 72–73risk-based approach 75scope 62–63staff training 74supervision 74–75tipping off 73UK implementation 61–62

third party CDDAlbania 292–293Barbados 342Canada 373Finland 421Hong Kong 465Morocco 581Ukraine 682–683see also customer due diligence; reliance

on third partiesthird party payments 109thresholds of reporting

Finland 427Malaysia 550South Africa 632–633

tipping off 225, 261–264customers under investigation 263–264definition 261–262EC Directive 73FATF Recommendations 41–42Isle of Man 485–486Jersey 505Kenya 518, 527Nigeria 586penalties 263

744 Index

bindex.indd 744 19/09/2014 11:38 AM 19/09/2014 11:38 AM

problems in practice 262–263Third EC Directive 73

TRACFIN see Traitement du Renseignement et Action Contre les Circuits Financiers Clandestins

trade finance 105–107trafficking see drug traffickingtraining see staff trainingTraitement du Renseignement et Action

Contre les Circuits Financiers Clandestins (TRACFIN), France 428

transactionscash 109, 376–377, 527concerning/worrisome 561enhanced ongoing monitoring 255Fourth EC Directive 76–77monitoring 196–197, 279–280, 281record-keeping 273suspicious conduct 225, 226–227see also consent for financial transactions;

suspicious transaction...; unusual transactions

transparency 44Transparency International 213, 214–216,

713–718trusts 204–205

UAE see United Arab EmiratesUK see United KingdomUkraine 677–686

case studies 686due diligence 680–683FATF assessment 677legislation 677MLROs, role of 680monitoring thresholds 684–685overview 677penalties 679, 685–686primary authorities 678record-keeping 684reporting requirements 685risk-based approach 679–680scope of regulation 679specific offences 678–679staff training 683

United Arab Emirates (UAE) 663–676case studies 676

due diligence 666–672FATF assessment 663investigation requirements 663–664legislation 663MLROs, role of 665–666ongoing monitoring 672–673overview 663penalties 665, 675–676primary authorities 663–664record-keeping 674reporting requirements 674–675risk-based approach 665specific offences 664–665staff training 673suspicious transaction reporting 674–675

United Kingdom (UK)asset freezing 28, 145–146Charities Commission 204consent for transactions 244–252EC Directive 61–62JMLSG 93–110KYC requirements 176–179MP expenses 211PEP definition 208prominent public functions 210Third EC Directive 61–62see also regulations, UK

United Nations (UN) resolutions 79–81United States of America (USA) 687–699

case studies 698–699Department of Treasury 687due diligence 691–695FATF assessment 687internal requirements 698legislation 687MLROs, role of 691ongoing monitoring 695overview 687penalties 132, 689–690, 698primary authorities 687–689record-keeping 696–697reporting requirements 697risk assessment 690–691specific offences 689staff training 695–696see also regulatory framework, USA

unlisted companies 202–203unusual activities 118–119

Index 745

bindex.indd 745 19/09/2014 11:38 AM 19/09/2014 11:38 AM

unusual transactions 235–240compliance risk management training 237control statements 236–237customer identification 239enhanced ongoing monitoring 256events causing suspicion 238identification of 235policy development 235–236public statements 236–237terrorist financing 240

USA see United States of AmericaUS Patriot Act 2001 (Patriot Act) 127,

128–133asset seizure 128–129Bank Holding Company Act 131Bank Secrecy Act amendments 131–132civil rights 128currency crimes 132–133forfeiture rules 130–131identification requirements 131international measures 129–130key issues 128–133penalties 132record-keeping 131reporting requirements 131safety 128surveillance procedures 129terrorism laws 133see also United States of America

UTRF see L’Unité de Traitement du Renseignement Financier

value transfer services, money and 37, 38verification processes 190–193, 218,

222–223Vienna Convention 1988 24, 25Vietnam 700–712

case studies 712customer classification 707due diligence 704–705FATF assessment 700–701legislation 700

MLROs, role of 703–704ongoing monitoring 705–707overview 700penalties 702–703, 712primary authorities 701record-keeping 708reporting requirements 706, 708–711risk-based approach 703, 707scope of regulation 703specific offences 701–702staff training 706, 707–708suspicious transaction reporting 708–711

waived registration regulations, Poland 601–602

walk-in clients 116wealth management 101–102wholesale marketing 109–110wire transfers 38, 228–230Wolfsberg anti-corruption statement

119–125constructive dialogue 125country risk 123customer risk 123–124financial institution measures 120financial system misuse 120industry risk 124multi-stakeholder approach 124–125risk-based approach 120–124services risk 121–122

Wolfsberg principles 111–125publications 111–112Wolfsberg Group 111–112Wolfsberg Standards 112–125

Wolfsberg Standards 112–125anti-corruption statement 119–125anti money laundering principles for corre-

spondent banking 113–114mobile and internet payment services

(MIPS) 125–126private banking principles 114–119, 121

worrisome transaction reports, Mexico 561