2 million Suspicious Activity Reports (approximately) ÿled by banks annually

FATF Country reports

2.1 trillion is the total annualcriminal proceeds(3.6% Global GDP)

1.6 trillion available for laundering

Less than 1% seized by authorities

Money laundering

global top 10 industry

Arms dealers Financial institutions Cash intensive business

Casinos & internet gambling Gatekeepers, lawyers, accountants, trustees & etc.

High value goods dealers Agents & intermediaries Money services business

Politically exposed persons Precious metals & stones dealers

Private military ÿrms Real estate agents Sanctioned parties

Product & channels risk

MONEYLAUNDERING(ML)

Source: United Nations Ofÿce on Drugs and Crime (UNODC). 2011 issued/2009 ÿgures. Figure excludes tax evasion.

3 STAGES OFMONEY LAUNDERING

USD

690bn

Counterfeit & Piracy

USD

411bn

Drug Trafÿcking

USD

162bn

Smuggling

USD

140bn

Illegal Gambling

USD

150bn

Human Trafÿcking

Sources: United Nations Ofÿce on Drugs and Crime (UNODC), International Labour Organisation (ILO) and Havocscope.

Total of USD2.1 trillion, of which USD870 billion

by organised crime 41%

TOP 5 MONEY LAUNDERING CRIMES

Placement into the ÿnancial system of criminal monies

Integration absorbed into the ÿnancial system appearing legitimate

Layering moving money in the ÿnancial system to disguise its criminal origin

2 31

MAJOR ML CONTROLS

Name screening

Transaction monitoring

Customer Due

Diligence (CDD)

Training & awareness

Governance, culture & resources

Investigations & disclosures

Independent assurance

Risk assessment

INHERENT MLRISK CATEGORIESExamples Customer risk

Private banking Foreign correspondent banking Non face-to-face customers

Suspicious & unusual transactions Wash & pass through Suddenly active

High risk third country Smurÿng Large in & out

Suspicious Activity Report (SAR) True match Production order

LARGEST CRIMINAL MARKETS

Source: Havocscope

20% Others

20% EU

35% North America

5.5% Japan

6.5% Mexico

13% China

UNODC 2.1 trillion ÿgures do not include fraud, tax evasion or corruption

USD53 billion available to be laundered of which

COCAINE TOTAL ANNUAL PROCEEDS

USD

85bn

TOP

5 49% moved internationally

Transaction risk

Geographies risk

High risk countries including sanctioned countries

Behaviour risk

BE DILIGENT. BE CURIOUS. BE VIGILANT.

Figures used from various public sources 2011/14