United Nations

Counter-Terrorism Committee Executive Directorate (CTED)Counter-Terrorism Committee Executive Directorate (CTED)

Thematic Discussion Thematic Discussion of the Counter-Terrorism Committeeof the Counter-Terrorism Committee

on Cash Courierson Cash Couriers

New York, 20 December 2010

2

Why cash and BNI?Why cash and BNI?

Terrorism requires fundingTerrorism requires funding

Raising funds for terrorist actsRaising funds for terrorist acts Moving funds for terrorist actsMoving funds for terrorist acts

Why cash and BNI?Why cash and BNI?– Avoid controlsAvoid controls– Easy to carry -> especially BNIEasy to carry -> especially BNI

3

International Legal frameworkInternational Legal framework

Resolution 1373 (2001) requires States to:Resolution 1373 (2001) requires States to: Para 1 a “… prevent and suppress the financing of terrorist Para 1 a “… prevent and suppress the financing of terrorist

acts..”acts..” Para 2 g “…prevent the movement of terrorist or terrorist Para 2 g “…prevent the movement of terrorist or terrorist

groups by effective border controls…”groups by effective border controls…”

Resolution 1526 (2004) urges States toResolution 1526 (2004) urges States to:: “…“…establish internal reporting requirements and establish internal reporting requirements and

procedures on the trans-border movement of currency procedures on the trans-border movement of currency based on applicable thresholds…”based on applicable thresholds…”

Resolution 1617 (2005) urged all Member States toResolution 1617 (2005) urged all Member States to:: “…“…implement the Financial Action Task Force forty implement the Financial Action Task Force forty

Recommendations on money laundering and nine Special Recommendations on money laundering and nine Special Recommendations on terrorism financing…”Recommendations on terrorism financing…”

4

International Legal framework, cont’dInternational Legal framework, cont’dUnited Nations 1999 International Convention for the Suppression United Nations 1999 International Convention for the Suppression

of the Financing of terrorism requires States Parties to the of the Financing of terrorism requires States Parties to the Convention to:Convention to:

“… “… consider introducing feasible measures to detect or monitor the consider introducing feasible measures to detect or monitor the physical cross-border transportation of cash and BNI, subject to strict physical cross-border transportation of cash and BNI, subject to strict safeguards to ensure proper use of information and without impeding safeguards to ensure proper use of information and without impeding the freedom of capital movements…”the freedom of capital movements…”

Global Counter-Terrorism StrategyGlobal Counter-Terrorism Strategy Pillar II, Paragraph 13 “…improve border and customs controls in Pillar II, Paragraph 13 “…improve border and customs controls in

order to prevent and detect…”order to prevent and detect…”

FATFFATF Special Recommendation IX, interpretative note and best practices Special Recommendation IX, interpretative note and best practices

paperpaper

WCOWCO Recommendation on the Need to Develop and Strengthen the Role Recommendation on the Need to Develop and Strengthen the Role

of Customs Administrations in Tackling Money Laundering and in of Customs Administrations in Tackling Money Laundering and in Recovering the Proceeds of Crime (2005)Recovering the Proceeds of Crime (2005)

Enforcement Guidelines on Countering Money Laundering and Enforcement Guidelines on Countering Money Laundering and terrorist Financing (2008)terrorist Financing (2008)

5

Legal, institutional andLegal, institutional and border control measures border control measures

Declaration / disclosure system at the borders Declaration / disclosure system at the borders Authorities: ask for further information from the carrier; stop Authorities: ask for further information from the carrier; stop

or restrain; impose sanctions or confiscateor restrain; impose sanctions or confiscate Administration, detection and prevention: signage; forms; Administration, detection and prevention: signage; forms;

data collection; analysis/targeting units; inspection capacity; data collection; analysis/targeting units; inspection capacity; trained staff; API; cooperation/coordination; info exchangetrained staff; API; cooperation/coordination; info exchange

Operational border controls, including intelligence and Operational border controls, including intelligence and information analysis, red flag indicators, inspection (X-ray, information analysis, red flag indicators, inspection (X-ray, canine, scanning/probing equipment), (timely) information canine, scanning/probing equipment), (timely) information exchange with FIU and other agencies, national and exchange with FIU and other agencies, national and international cooperationinternational cooperation

Customs services are the border implementing authoritiesCustoms services are the border implementing authorities

6

7

Challenges in implementationChallenges in implementation

Inconsistent implementation of the legal regime;Inconsistent implementation of the legal regime; Inadequate knowledge of applicable laws and authoritiesInadequate knowledge of applicable laws and authorities No or insufficient dedicated functions or units to record No or insufficient dedicated functions or units to record

and analyse information related to cash couriersand analyse information related to cash couriers Insufficient risk indicators, targeting criteria and Insufficient risk indicators, targeting criteria and

information analysis at the front lineinformation analysis at the front line Insufficient information sharing and cooperation among Insufficient information sharing and cooperation among

customs, law enforcement, immigration and FIU on customs, law enforcement, immigration and FIU on national, regional and international levelsnational, regional and international levels

Lack of adequate human and financial resourcesLack of adequate human and financial resources Lack of detection equipment or inadequate useLack of detection equipment or inadequate use No outbound controlsNo outbound controls No determination of origin or destination of cash to No determination of origin or destination of cash to

support follow up verification / investigationsupport follow up verification / investigation

8

CTED activities on Cash CouriersCTED activities on Cash Couriers

CTED is working with partners to develop appropriate CTED is working with partners to develop appropriate approaches to promote FATF’s Cash Courier Best approaches to promote FATF’s Cash Courier Best Practices and WCO’s GuidelinesPractices and WCO’s Guidelines: :

Contributing to the development of training curriculaContributing to the development of training curricula Emphasizing the relevance of the cross-border movement of Emphasizing the relevance of the cross-border movement of

cash and BNI to TF and required controls in dialogue with cash and BNI to TF and required controls in dialogue with StatesStates

Organizing regional workshops and facilitating other TA based Organizing regional workshops and facilitating other TA based on analysis of State needson analysis of State needs

Translation of FATF’s Best Practices paper on Cash Couriers Translation of FATF’s Best Practices paper on Cash Couriers into UN official languages into UN official languages

Upload of related information to the CTC web page to raise Upload of related information to the CTC web page to raise awarenessawareness

9

ActionsActions

The Committee will endeavour to: The Committee will endeavour to: Increase its efforts to raise awareness of Member States Increase its efforts to raise awareness of Member States

of the challenges and required measures to control the of the challenges and required measures to control the illicit cross-border movement of cash and other BNI illicit cross-border movement of cash and other BNI through increased dialogue, regional meetings and other through increased dialogue, regional meetings and other mechanismsmechanisms

Promote FATF’s Best Practices paper on detecting and Promote FATF’s Best Practices paper on detecting and preventing the illicit cross-border transportation of cash preventing the illicit cross-border transportation of cash and bearer negotiable instruments, and the WCO’s and bearer negotiable instruments, and the WCO’s Enforcement Guidelines on Countering Money Enforcement Guidelines on Countering Money Laundering and Terrorist FinancingLaundering and Terrorist Financing

Promote the adoption of national legislative provisions to Promote the adoption of national legislative provisions to give effect to border controls on the movement of cash give effect to border controls on the movement of cash across bordersacross borders

10

Actions, cont’dActions, cont’d

Encourage States to strengthen efforts to enhance Encourage States to strengthen efforts to enhance border security measures at points of entry/exit by border security measures at points of entry/exit by implementing effective controls, including training and implementing effective controls, including training and procuring the necessary inspection equipmentprocuring the necessary inspection equipment

Encourage States to enhance inter-agency cooperation, Encourage States to enhance inter-agency cooperation, coordination and information exchange at the national, coordination and information exchange at the national, regional and international levelsregional and international levels

11

Questions?Questions?

Thank youThank you