Cybercrime and moneylaundering - Linkedin 1 6 15
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- 1. Cybercrime & Money Laundering: Confiscation of Criminal
Assets: Legal and Practical Challenges Muthupandi Ganesan
Barrister-at-Law April 2015
- 2. Odd one out?!
- 3. Current trend in cyber crime? Cyber crime Crime-as-a-
Service Malware Denial of Service Anonymisation Dark Net /
Launders
- 4. Electronic currency Types & variations Electronic
Currency Centralised Web Money Perfect Money Decentraised Bitcoin
Voucher Pay safe card
- 5. Features of electronic currency Lack of legal status Easily
convert ible Instant / Multiple Jurisdicti ons Anony mous
- 6. Electronic Money Laundering
- 7. TOR Network 2011 Oct 2013 Bitcoins only 4000 Vendors 150,000
Buyers
- 8. Silk Road 173,991 Bitcoins seized 1,229,465 Transactions
Commissions: 614,305 Bitcoins ($79.8 million) Sales: 9,519,664
Bitcoins ($1.2 billion)
- 9. Cyber crime legislation 1989 Council of Europe - Expert
Report on Computer-Related Crime 2001 Council of Europe Convention
on Cybercrime 2011 Directive 2011/92/EU on combating the sexual
abuse and sexual exploitation of children and child pornography
2013 Directive 2013/40/EU on attacks against information
systems.
- 10. International Instruments UN Convention against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances 1988 Council
of Europe Convention on Laundering, Search, seizure and
confiscation of proceeds of crime (1991) OECD convention on
combating bribery of foreign public officials in International
business transactions (1997) UN Convention against Transnational
Organised Crime (2000) (Article 12 14) African Union Convention on
Preventing and Combating Corruption and the Inter- American
Convention Against Corruption (2003) UN Convention against
Corruption (2005) (Art 31)
- 11. The EU Internal Security Strategy in Action (2010)
Confiscation is a strategic priority in the EU's fight against
organised crime. Five steps towards a more secure Europe OBJECTIVE
1: Disrupt international crime networks Action 3: Confiscate
criminal assets To combat the financial incentive of criminal
networks Member States must do all they can to seize, freeze,
manage and confiscate criminal assets, and ensure that they do not
return to criminal hands.
- 12. To this end the Commission will propose legislation in 2011
to strengthen the EU legal framework on confiscation, in particular
to allow more third-party confiscation and extended confiscation
and to facilitate mutual recognition of non-conviction-based
confiscation orders between Member States. Member States must by
2014 establish Asset Recovery Offices equipped with the necessary
resources, powers and training, and the ability to exchange
information. The Commission will develop common indicators by 2013,
against which Member States should evaluate the performance of
these offices. Moreover, Member States should also by 2014 make the
necessary institutional arrangements, for example by creating asset
management offices, to ensure that frozen assets do not loose their
value before they are eventually confiscated. In parallel, the
Commission will in 2013 provide best practice guidance on how to
prevent criminal groups from reacquiring confiscated assets. The EU
Internal Security Strategy in Action (2010)
- 13. Development of EU Actions & Decisions JOINT ACTION
98/699/JHA 3/12/98 Money laundering, the identification, tracing,
freezing, seizing and confiscation of instrumentalities and the
proceeds of crime. FD 2001/500/JHA 26/1/2001 Money laundering, the
identification, tracing, freezing, seizing and confiscation of
instrumentalities and the proceeds of crime. FD 2003/577/JHA
22/7/2003 The execution in the European Union of orders freezing
property or evidence FD 2005/214/JHA 24/2/2005 Application of the
principle of mutual recognition to financial penalties 2006/783/JHA
6/10/2006 Application of the principle of mutual recognition to
confiscation orders FD 2007/845/JHA 6/12/2007 Cooperation between
Asset Recovery Offices of the Member States in the field of tracing
and identification of proceeds from, or other property related to,
crime. FD 2005/212/JHA 24/2/2005 Confiscation of Crime-Related
Proceeds, Instrumentalities and Property Directive/2014/42/EU: on
the freezing and confiscation of instrumentalities and proceeds of
crime in the European Union
- 14. Cyber crime legislation: Problems Basic / Universal
Standards Protection v Rights Law Enforcement & Jurisdiction
International Co-operation
- 15. Complexity International Treaties / Obligations Practical
Problems Capacity & Training Attribution & detection Legal
Problems Lack of mutual legislation & treatment Lack of
co-operation
- 16. Intelligence Freezing Multi Agency Secure Systems MAA -
Intelligence MLA Evidence Intelligence Formal FIU to FIU ML &
CFT Information Europol Hold Secretariat CARIN EGMONT AROs MAA or
MLA International co-operation Methods
- 17. How Do I get It ? Who Do I contact ? Assets / Income
/Expenditure Overseas MLA, CARIN, EGMONT, ARO ? What Information Do
They Need ? Intl Co Operation Unit Interpol?
- 18. Camden Asset recovery Inter- Agency Network (CARIN) Members
Observers Associates
- 19. Informal network Not electronically linked Not for
intelligence Practitioners only No legal basis Camden Asset
recovery Inter-Agency Network (CARIN)
- 20. Functioning of CARIN English The Presidency The Secretariat
AGM Steering Group
- 21. Members Albania, Australia, Austria, Belgium, Bulgaria,
Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland,
Ireland, Isle of Man, Israel, Italy, Jersey, Latvia, Liechtenstein,
Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco,
Montenegro, The Netherlands, Norway, Poland, Portugal, Romania,
Russia, Serbia, Slovakia, Slovenia, South Africa, Spain, Sweden,
Switzerland, United Kingdom, United States of America
- 22. Organisations Europol, Egmont Group, Eurojust,
International Criminal Court (ICC), International Monetary Fund
(IMF), Interpol, OLAF, United Nations Office on Drugs and Crime
(UNODC), World Bank
- 23. Asset Recovery Inter-Agency Network of Southern Africa
Botswana Mauritius Namibia South Africa Tanzania Zambia Zimbabwe
Red de la Recuperacion de Activos de GAFISUD Argentina Bolivia
Brazil Chile Colombia Costa Rica Ecuador Mexico Panama Paraguay
Uruguay Asset Recovery Inter-Agency Network of Asia Pacific
Australia Brunei China Japan Malaysia New Zealand Paupa New Guinea
Sri lanka South Korea Taiwan Thailand Pacific island nations
- 24. Supplied Within 30 Days FIU to FIU Strict Confidentiality
re Use & Dissemination Limited Intelligence Available (STR,
Criminal Convictions, Govt Databases) Only To Be Used For Original
Requesting Purpose MLA Required If To Be Used as Evidence
- 25. Egmont Charter (2013), Egmont Principles for Information
Exchange and Operational Guidance for FIUs The goal of the Egmont
Group is to provide a forum for FIUs around the world to improve
cooperation in the fight against money laundering and the financing
of terrorism and to foster the implementation of domestic programs
in this field. This support includes: Expanding and systematizing
international cooperation in the reciprocal exchange of
information; Increasing the effectiveness of FIUs by offering
training and promoting personnel exchanges to improve the expertise
and capabilities of personnel employed by FIUs; Fostering better
and secure communication among FIUs through the application of
technology, such as the Egmont Secure Web (ESW); Fostering
increased coordination and support among the operational divisions
of member FIUs; Promoting the operational autonomy of FIUs; and
Promoting the establishment of FIUs in conjunction with
jurisdictions with an AML/CFT program in place, or in areas with a
program in the early stages of development.
- 26. Asset Recovery Offices Provides Central Point of Contact
Trace & Identify Proceeds of Crime Manage Assets (Not all do)
Freeze & Seize on Request ARO Council Framework Decision
2007/845/JHA Council Framework Decision 2006/960/JHA (The Swedish
Initiative)
- 27. Time Limits At most eight hours to urgent requests for
information and intelligence regarding offences referred to in
Article 2(2) of Framework Decision 2002/584/JHA for serious cases.
In that case the requested law enforcement authority shall
immediately inform the requesting law enforcement authority of this
postponement and shall provide the requested information or
intelligence as soon as possible, but not later than within three
days. Member States shall ensure that for non-urgent cases,
requests for information and intelligence should be responded to
within one week Request not available on a database and non urgent
/ non serious within two weeks.
- 28. Practical problems with ARO (European Commission Report
2011) Lack of ARO Personnel Lack of access to relevant database /
bank accounts Lack of centralised land registry database Lack of
secure exchange of information Only some of the ARO are national
contact points Only a few of the AROs are involved in the
management of frozen assets. Lack of specialist training for
financial investigators
- 29. EUROPOL to play a greater role with the Europol Criminal
Assets Bureau. EUROPOL Secure Information Exchange Network
Application (SIENA system ) SIENA is already operational, providing
a technical solution for the exchange of law enforcement
information, within a sound legal basis using the highest security
standards; SIENA could represent a costeffective solution, as it
builds upon an existing network; therefore financial support for
the creation of a new network is not required Solutions: EU Asset
Recovery Centre
- 30. Evaluation: Speedy International Co-operation Law
Enforcement Cyber criminals
- 31. Questions? Muthupandi Ganesan Barrister-at-Law Marsans
Solicitors and Advocates 1st Floor, 277 281 Oxford Street, London,
W1C 2DL, England, UK E-mail: mg@marsans.co.uk Tel: (+) 44 207 499
0620 April 2015