Unclassified

Anti-Money Laundering Summit 2014

Detective Superintendent Stephen Dametto

Radisson Blue Plaza Hotel, Sydney

12 September 2014

Unclassified

Outline

•Money Laundering & Terrorism Financing

•Financial Intelligence

•Information Disclosure

•Trends/Emerging Issues & Challenges

Unclassified

COMMON MONEY LAUNDERING TYPOLOGIES

Currency Smuggling

Structuring / Smurfing

Cuckoo Smurfing

Telegraphic Transfers and Bank Drafts

Credit Cards and Debit Cards

Unclassified

Telegraphic Transfers and bulk cash deposits Case Study : Op LUWEN

Unclassified

Telegraphic Transfers and bulk cash deposits Case Study 4: Op LUWEN (Cont)

Unclassified

Debit Cards and Offshore structures – Typical WICKENBY

Unclassified

Definition

Terrorism Financing

Financial support, in any form, of terrorism or of those who encourage, plan, or engage in terrorism.

Terrorist AttacksTerrorist Organisations

$

Unclassified

Money LaunderingMoney Laundering

(Place, Layer, Integrate)

$

$

Place

Layer

Integrate

$X

Money Laundering

Suspects + Crime + Dirty Money $ + Expense $

Clean Money $

Unclassified

Model of Terrorism Financing

Terrorism Financing

Suspects + (Crime) + Expenses $

Terrorism

Terrorism Financing

(Raise, Move, Use)

$Raise

Move

UseStore

$

Unclassified

Low Cost / High Cost ?

Nairobi, 2013< US$5K

Burgas, 2012< $US500

Syria, 201312 T explosives

Boston, 2013< US$500

LTTE in 2004> $1,000,000

Unclassified

Terrorism Financing: Raise

RISK

STORE

$$$$$$

KYC&

CDD

RAISE

STATE/POPULAR

ILLEGAL

LEGAL

AML / CTF

MOVE

$$$

MOVE

$$$

BANK

Unclassified

12

Legislation Focus Example

Terrorism & AML Offences Criminal Code Act

(Disruption) Offences Crimes (Foreign Incursions & Recruitment) Act

Powers Crimes Act

AML/CTF AML/CTF Act

Sanctions Charter of United Nations Act

Autonomous Sanctions Autonomous Sanctions Act

Asset Forfeiture Proceeds of Crime Act

Legislation

TIC, Collaroy NSW - 12 May 2014

Unclassified

Bank

CentralClearing-house

SendingAgent

Remitter

1

4 5

2 3

6

Pay OutAgent

Receiver

Terrorism Financing: Move

Hawala: Remittance

Unclassified

CentralClearing-house

Pay OutAgent

Trader

Trader

Trader

87

6

9

10

Terrorism Financing: Move

Hawala: Settlement

Unclassified

Terrorism Financing: Move

ELITE GOLD STORE

ROBBERY

RP 400M

RAUF

Keep RP 10M for operational expenses#

PAMUNGKAS

Bank AccountGHONI

Sale of 2 Motorcycles#

WAN MIN

(Link to AL QAEDA)

US $30K

THB 200K

MUKHLAS

US$15,500

AMZI*

US$5K

SEP2002

FADI OR RIZAL*

IDRIS

Transportation &

Accommodation

AMROZI

Obtained Chemicals

& Vehicle

RP 30M

RP 20M

18SEP2002RP 15M

13SEP2002

RP 15M

13SEP2002RP 20M

18SEP2002

US$10,000

AMZI*

#Organised by SAMUDRA

* Currency Smuggling

FUNDINGTHE BALI

BOMBINGS

Unclassified

•Pattern of Life

•Financial Capability

•Investigational leads

•Correlation/Corroboration

•Evidence

•Red flags

Financial Intelligence

Unclassified

Operation Financial Intelligence

Newport Travel to Australia funded by LeT

Pendennis-Eden

Purchase of chemical equipment and electrical hardware; EFTPOS to purchase chemicals.

Overt Charity transfers to Pakistan uncovered airline liquid bomb plot

Theseus Credit cards and financial data reconstructed timeline of London attack planning

Seagram Trace suspects spending and travel in the UK allowing CCTV images for retrieval

Optimize Identification of travel; IED components

Cottrell Purchase of paedophilia material

Cabalic Mortgage fraud

Financial Intelligence

Unclassified

Information Disclosure

Legislation - Powers

Crimes Act 1914

- s3ZQN Notice to Produce;

- s3E Search Warrant

AML / CTF Act 2006

- s49 Request for information

POC Act 2002

- s213 Notice to Produce

Privacy Act 1988

- Australian Privacy Principle 6

TIC, Collaroy NSW - 18 May 2014

Unclassified

Trends / Emerging Issues•Cash

•Misuse of charities / NFPs

•Changing Technology / payment methods

•Changing organisational form

• Low level, diffuse, home-grown & self-funded

•Changing Landscape

Unclassified

Terrorism Financing Investigations Unit (TFIU)

Detective Superintendent Stephen Dametto

Tel: 02 92864000

Email: stephen.dametto@afp.gov.au

Preventing terrorism through partnerships

Unclassified