U I F 1 Regional Conference “New Trends and Techniques of Money Laundering and Terrorism...

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Regional Conference

“New Trends and Techniques of Money Laundering and Terrorism Financing”

November 22-23, 2010 Bucharest

Romania

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Legal framework

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Predicate Offences (Article 368 – A, Penal Code)

• Incitement to prostitution • Sexual exploitation of

children or minors• Extortion• Trafficking in narcotic drugs

and psychotropic substances

• Arms trafficking• Trafficking in human organs

and tissues• Trafficking in protected

species• Tax fraud• Trafficking of influences

• Corruption• Embezzlement• Illicit economic

participation in business• Harmful administration• Fraud in obtaining credit or

grant• Other economic and

financial offences• Offences punishable by a

minimum penalty of more than 6 months’ imprisonment or a maximum penalty of more than 5 year’s imprisonment

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Supervision/Control Entities(Act No. 25/2008, of 5th June)

• Portuguese Central Bank

• Portuguese Insurance Institute

• Securities Market Commission

• Authority for Alimentary and Economic Security

• Institute for the Construction and Real Estate

• General Inspectorate for Gambling

• Registries and Notaries General Directorate

• Statutory Auditors Association

• Chartered Accountants Chamber

• Bar Association

• Solicitors Chamber

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Financial reporting entities(Act No. 25/2008, of 5th June)

• Credit institutions;

• Investment companies and other

financial companies;

• Entities managing or dealing

venture capital funds;

• Collective investment bodies

trading their investment fund

units;

• Insurance companies and

insurance brokers (life insurance);

• Companies managing pension

funds;

• Credit securitisation companies;

• Venture capital financing

companies and investors;

• Investment consulting companies;

• Companies dealing in goods or

services linked to investment in

tangible assets.

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Non-financial reporting entities(Act No. 25/2008, of 5th June)

• Those acting under a concession

granted in order to operate

games in casinos;

• Those paying out prizes of bets

or lotteries;

• Those acting as real estate

agents or buying and re-selling

real estate, as well as building

entities acting as direct sellers of

real estate;

• Dealers in goods paid with cash,

equal to or exceeding EUR

15000, regardless of whether the

transaction is carried out through

a single transaction or through

several transactions apparently

linked to each other;

• Statutory auditors, chartered

accountants, external auditors

and tax consultants;

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Non-financial reporting entities(Act No. 25/2008, of 5th June)

• Notaries, registrars, lawyers,

solicitadores and other

independent professionals,

incorporated as companies or

acting individually, who, be it on

behalf of a client or in any other

circumstances, intervene in or

assist operations as specified in

law 25/2008, of 5th June;

• Other providers of services to

companies, to other legal

persons or legal arrangements,

where not included in the above

entities.

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Reporting Entities - Duties(Act No. 25/2008, of 5th June)

• Identification;

• Due diligence;

• Refusal;

• Document keeping;

• Examination;

• Reporting;

• Refrainment;

• Cooperation;

• Secrecy;

• Controlling;

• Training.

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The FIU

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FIU - Competences (Decree-Law No. 42/2009, of 12th February – Article 5)

Collect, centralize, process and disseminate nationwide the information relating to money laundering, financing terrorism and tax-related offences,

Ensuring domestically the cooperation and articulation with the judiciary, the supervisory authorities and economic and financial players,

Internationally, the cooperation with financial information units or similar structures

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Organization Chart

Direction

Coordination Council

LiaisonStanding Group

LiaisonOfficers

ResearchSection

Squads

IntelligenceSection

Collation and AnalysisSquad

CooperationSquad

InstitutionalCooperation

Section

TechnicalAssessor ship

GeneralSupport

DocumentTreatment and

Archive

Secretariat

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Workflow

STRRecords

Coordination

FIUDatabase

Other Databases

CooperationSquad

ResearchSection

Dissemination

Update

FinalReport

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The risk based approach

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The risk of ML/FT on the financial transactions

• The reporting entities have the duty of diligence in the relationships with their costumers

• They should have into account the risk profile of their costumers and the risk of the transaction

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Criteria for the classification of the risk

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Criteria for the classification of the risk

• Activity / profession

• Economic situation

• Legal persons

• Rationality of the business

• Beneficial owner

• Offshores jurisdictions

• Countries listed• Family

• Associated persons

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Statistics

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  2006 2007 2008 2009

Total 164 178 172 168

Requests to the Liaison Standing Group Crimes investigated

C orruption14%

D rugs Trafficking

33%Tax F raud

11%

Money L aundering

24%

Other18%

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Reports received

855 1036 870 928

15600

12000

22700

14255

2006 2007 2008 2009

Financial Non-Financial

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Reports receivedFinancial entities and supervisors

396

634

1st semester 2009 1 st semester 2010

There is an increase of 60% in the reports from the financial sector

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Exchange of information – FIU’s

91 104 94 104

297

260

183

91

2006 2007 2008 2009

Request received Request sent

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Proposals for freezing

  2006 2007 2008 2009 2010 (1st Sem.)

Nº of cases 15 14 13 16 5

Amounts

(aprox.)

€ 22.000.000 € 15.500.000 € 8.200.000€

14.261.392 € 1.479.962,00

USD 250.000

USD 24.600.000 USD 20.000 USD 6.548.194,00

  £ 330.000    

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Type of suspicious transaction reported

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Predicate offence detected

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Type of Reported Transaction - 2009

37%

28%

15%

11%

6%

2% 1%

Cashtransactions

Transfersto/from abroad

Interrnaltransfers

Exchange ofbanknotes

Early repaymentof credit

Currencyexchange

Others

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Predicate Offences detected - 2009

104

40

29

4

1

1

1

8

Tax Fraud

Swindling

Drugs Traffi cking

Documents forgery

Human Trafficking

Counterfeit currency

Corruption

Others

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Confirmed suspicions - 2009

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Money laundering Money laundering Enquiries, accusations and convictions Enquiries, accusations and convictions (2006-2008)(2006-2008)

2006 2007 2008 2009

Enquires 84 95 46 154

Accused/charged persons 12 25 16 17

Convictions 11 4 14 14

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Financial Intelligence Unit

Sílvia Pedrosa | Fernando Jordão

Financial Intelligence Unit

Rua Luciano Cordeiro, 77

1150-213 Lisboa

E-mail: uif@pj.pt

Tel: (+351) 21 154 47 04

Fax: (+351) 21 314 24 24