Tackling Tax Crime and Other Financial Crimesmddb.apec.org/Documents/2015/FMP/WKSP1/15_fmp_wksp1_020.pdf · Workshop on Fiscal Management Through Transparency and Reforms Bagac, Philippines

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2015/FMP/WKSP1/020 Session: 6

Tackling Tax Crime and Other Financial Crimes

Submitted by: OECD

Workshop on Fiscal Management Through Transparency and Reforms

Bagac, Philippines9-10 June 2015

TACKLING TAX CRIME AND OTHER

FINANCIAL CRIMES Richard Parry,

Head, Global Relations

Centre for Tax Policy and Administration

Purpose of discussion

• Update on OECD partnership work in the tax and financial crime area

• Proposal for APEC engagement in and endorsement of a proposal for setting up the 2nd International Academy for Tackling Tax and Other Crimes.

Context

• Oslo dialogue was launched in 2011, to encourage a whole of government approach to tackling financial crimes and illicit flows

• Tax Fraud, corruption and money laundering are a threat to developed and developing countries - estimated to cost 3.6% of global GDP.

• Dialogue about inter agency co-operation, making the system work better

Partners and elements

• Brings together officials from

– tax and customs;

– police/law enforcement;

– anti-money laundering and anti-corruption;

– financial regulation;

– development assistance.

• Identify and remove barriers to prevention, detection and investigation

• Identify and recover proceeds

Key work areas

• Reports on Effective Inter-Agency Co-operation

– Models for structuring agencies looking at detecting, investigating, prosecuting financial offences

– Legal gateways for provision of information

– Best practices and models for future co-operation

– Key roles of customs

– Details of 50+ country systems

Bribery Awareness Handbook

• Used by tax examiners and advisors

• Sets out indicators of possible bribery and corruption

• Mechanisms for dealing with this

– Denial of deductions

– Taxation of criminal proceeds (domestic law)

– Reference to law enforcement authorities and public prosecutors

Suspicious Transaction Reports

• Use of STRs from FIUs

• Often include information of direct relevance to tax offences – particularly when serious tax crime is a predicate offence

• Increased tax assessments

– Canada, Ireland and Korea

The Oslo Dialogue and Capacity

OECD International Academy for Tax Crime Investigation

Pilot Foundation Programme

Course

April 2013

2nd Foundation Programme

Course

April 2014

International Academy for Tax

Crime Investigation June 2014

Pilot Intermediate Programme

Course December 2014

• Launched in Oslo in March 2001

• “Whole of Government” approach to fighting tax

and other financial crimes

• Key outcome was the need for capacity building

for developing countries

From Concept to Reality

The Importance of Financial Investigations

Principles of EvidenceSources of Information (banks and others)

Tracing the Movement of Money

Methods of ProofPlanning, Conducting and Recording Interviews

Investigative TechniquesMoney Laundering Awareness

Bribery and Corruption Awareness

Obtaining Information From Overseas

Recovering the Proceeds of Crime

Foundation Programme

Foundation Class of 2014

Australia, Azerbaijan, Burkina Faso, Burundi, Colombia, Costa Rica, Denmark, El

Salvador, Estonia, Ghana, India, Indonesia, Jamaica, Kenya, Latvia, Malaysia,

Nepal, Serbia, Singapore, South Africa, Uganda

Impact of the Programme


Preliminary Results of the Programme

Significant benefits including:

• Legislative changes

• Enhanced inter-agency and international

co-operation

• Greater capacity to fight illicit flows

• Sharing their new skills and knowledge

within their agencies

Lasting Results and Impact

Development of On-Line Community

• Enable alumni to share with each other and the

Secretariat

• Simple and direct access to OECD reports and

resources

• Provide feedback on the need for new speciality

courses, emerging threats and schemes

• Encourage a sense of community and identity among

investigators

Asia Pacific OECD Academy


Why an Asia Pacific Academy?

• Capacity building on a regional basis will train a

larger number of financial investigators over a

shorter period of time

• Development of regional expertise to allow

administrations to take ownership of training

within their own country

• Customised programme to meet the specific

needs and risks of the region

Proposed Pilot Programme


• OECD Academy Foundation and Intermediate

Programmes

– Detection & investigation of financial crimes including

tax evasion, bribery and corruption, and money

laundering.

– Recovery of the proceeds of financial crimes

– Terrorist financing and the role of tax investigations

• Customised programme to meet the specific

regional needs and risks

Expertise and capacity


• Capacity building by an International faculty of

senior crime investigators, financial crime

specialists, prosecutors, and other experts (Austria,

Canada, Denmark, Germany, Italy, the Netherlands, Norway, the United Kingdom, the

United States)

• The international faculty will work with regional

experts to deliver a dynamic and challenging

programme

• Development of local expertise to increasingly

take ownership of the capacity building

Asia Pacific OECD Academy


Proposed Pilot Programme

• An 18 month pilot programme, commencing in

2016

Foundation Programme Foundation Programme Intermediate Programme

2016 2016 2017

Pilot event


• Pilot Programme event could be hosted in

Malaysia

• Malaysia has offered facilities, accommodation,

and meals for participants

• Funding will be required to:

– Provide financial assistance to regional participants in

need (travel costs)

– Manage and deliver the programme by the OECD

Evaluation


Evaluation of the programme after the 1st

Foundation course in 2016 to:

• Analyse participant evaluations, review instructor

recommendations, and examine overall results

• Ensure adequate funding for next 18 to 36 months

• Confirm continued desire to establish 2nd OECD

Academy in Asia Pacific

Possible next steps?

• Support for Academy from APEC?

• Regional discussions re location, structure and funding with interested countries

• Regional pilot event in 2016

• Opening of formal Academy