AML Seminar to Accountants - JFIU 4 March 2010

JOINT FINANCIAL INTELLIGENCE UNIT

Stewart McGlynn

Chief Inspector of Police

Joint Financial Intelligence Unit

AML Seminar to Accountants - JFIUAML Seminar to Accountants - JFIU4 March 20104 March 2010


Suggested format & content detailed in JFIU website

Email

Fax

Post

Verbal (urgency - follow-up by hardcopy)

STR Filing


Urgency

Confidentiality

Tipping Off

Crime Report Vs STR

Concerns


Acknowledgement of Receipt File Ref. Contact Person Details

Consent / No Consent Letter

Arrest / Prosecutions / Convictions

STR Quarterly Analysis Report

Feedback


Case Example 1

Mr. X, Chairman of Board of Directors for ABC Company

XYZ company

US$9.7M loanUS$10M pledge

Sole Owner of XYZ company is Mr. X


Effective CDD / KYC

Good quality STR, allowing JFIU to perform its function

Protection

Learning Points


Case Example 2 – Good Auditing Practice

Company X

Winding-up

Audit

Fraud and False Accounting


Learning Points

Reported knowledge of Crime Proceeds – Fraud

Crime report could have been made but STR acceptable in this case

Urgency? Unsure? Contact JFIU


Case Example 3 – Good KYC / CDD

Director of Company X

wanted in Japan

Frequent substantial withdrawals

from Bank account of Company X in Hong Kong

KYC / CDD By Accountant

for Company X

Discovery


Learning Points

Common sense, proportionate approach to KYC and CDD

If it looks like a duck……….

No risk of prosecution


Think About This

Poor / Negligible CDD / KYC

Absence of risk based approach

Sub Standard STR

JFIU unable to make assessment

What would you Think?


Country Comparison STR filed by Accountants

Country 2005 2006 2007Employment in Accountancy in

2008

Singapore0/2,076

(0%)

2/3,290

(0.06%)

2/7,621

(0.03%)875

UK

14,567/

195,702

(7.44%)

9,896/

213,202

(4.64%)

8,110/

220,484

(3.68%)

N/A

HK0/13,505

(0%)

0/14,557

(0%)

3/15,457

(0.02%)3715


STR filed by Accountants

2005 2006 2007 2008 2009

No. of STR Received

13,505 14,557 15,457 14,838 16,062

Filed by Accountant

0 0 3 6 11

Percentage (%)

0.00% 0.00% 0.02% 0.04% 0.07%


Some Final Thoughts

JFIU understands the burden that CDD and KYC entails

Law / International Standards

Increase in quality STRs from the sector desirable – intelligence is our business

JFIU is here to help – Contact us


Contact JFIU

Telephone:2866 3366

Fax :2529 4013

Email:[email protected]

Mail:GPO Box 6555 Hong Kong

[email protected]

Telephone:2860 3547

Documents

AML Seminar to Accountants - JFIU 4 March 2010