Representatives of Arab nations meeting in the Tunisian capital Tunis said Friday they have adopted a 'strategy against money laundering and the financing of (Islamic) terrorism.'

The plan calls for means to halt the transfer of funds over the internet and to control gifts and donations to charitable organizations 'to prevent them from being used by terrorist groups,' the secretary general of the Council of Arab Interior Ministers said in a statement issued after their three-day meeting in Tunis.

The statement also said that Arab security authorities called for 'more profound studies of the terrorist personality (in Arab countries)' in order to develop what it called 'methods of treatment.'

Representatives of the international police agency Interpol also took part at the Tunis meeting.

Source: M & G

By Shingo Kawamoto and Takahiko Hyuga

Citigroup Inc. was ordered by Japan’s financial regulator to suspend marketing of banking services to individuals for a month, after failing to put in place adequate internal controls to prevent money laundering.

The Financial Services Agency told Citibank Japan Ltd. to halt retail banking sales from July 15 to Aug. 14, except in cases where the company is approached by customers, the regulator said in a statement in Tokyo today. It also ordered the bank to improve governance and control systems.

The regulator found Citigroup had “fundamental problems” with its compliance, including systems to detect and monitor suspicious transactions. The New York-based bank failed to implement an improvement plan it submitted after it was forced to close its private banking business in Japan in 2004 for a similar failure, the watchdog said.

Citibank Japan didn’t update a database used to screen suspicious transactions since 2004, and management officials “lack an understanding of the rules applied in Japan, such as laws and regulations, and an awareness of improvement,” the regulator said in its statement.

Citigroup will comply with the regulator’s order and will submit an improvement plan by July 31, the company said in a statement. The order won’t have any impact on business with institutional clients, the bank said.

“We apologize deeply and take the situation seriously,” the company said in the statement.

To contact the reporter on this story: Shingo Kawamoto in Tokyo at skawamoto2@bloomberg.net

Last Updated: June 26, 2009 05:39 EDT

Source: Bloomberg

The number of suspected money-laundering deals being reported by UAE-based banks and financial firms is expected to increase by about 10 per cent this year compared to 2008, as awareness of laundering methods is raised, senior regulators said yesterday.

As many as 6,198 "suspicious transaction reports", or STRs, pertaining to money laundering have been filed in the UAE until May this year and the number may increase to 15,000 for the full year, Saeed Abdullah Al Hamiz, Senior Executive Director in the UAE Central Bank's Banking Supervision and Examination Department, said at an anti-money laundering (AML) briefing at the Dubai Financial Services Authority (DFSA).

In 2008, 13,101 STRs were filed, bringing the total to 80,592 from 2002 to date. Of the total STRs filed to date, 285 have been referred to the UAE Public Prosecutor's Office, of which 20 have reached court, Hamiz said. "To take it to court, you need to investigate, seek documentary evidence and build a foolproof case," he said.

Hamiz refused to give the monetary size of the cases that have reached the prosecution stage, but DFSA Chief Executive Paul M Koster agreed that each suspected money-laundering transaction would involve "a minimum of seven digits or eight".

The increase in the number of suspect transactions "is not – repeat not – a bad sign", Koster said. "It indicates that awareness is being raised about these issues. I must stress that awareness [of AML issues] has to be constant."

Hamiz said: "More institutions are aware of this issue and there is a level of training that has been imparted by the regulators."

Source: Business 24/7

A Covina criminal defense lawyer who specializes in gang cases is set to be arraigned this morning on federal charges of money laundering for the Mexican Mafia.

Isaac E. Guillen, 48, is among about 40 alleged members and associates of a Los Angeles street gang charged with various offenses in a federal racketeering indictment unsealed June 16.

Guillen is charged with laundering illegal proceeds on behalf of the Mexican Mafia prison gang, which controls Latino street gangs statewide.

Federal prosecutors claim Guillen regularly transferred thousands of dollars in cash belonging to the MacArthur Park-based Columbia Lil Cycos gang to an imprisoned Mexican Mafia member who is being held at a high-security "Supermax" federal penitentiary in Colorado.

Prosecutors contend Guillen and the jailed gang member are business partners who run a real estate holding corporation, liquor distributorship and limousine service.

The indictment also alleges Guillen transferred about $27,500 into the imprisoned gang member's bank account from 2003 to 2008.

At an initial federal court appearance Friday, U.S. Magistrate Judge Andrew J. Wistrich agreed with prosecutors that Guillen presents "a risk of flight and danger to the community" and ordered him held without bail.

Guillen's defense attorney, William S. Harris, declined comment.

Guillen earned his law degree from UCLA and also studied at UC Berkeley, his firm's Web site states.

According to the 114-page indictment, gang members would "tax" drug dealers and street vendors around MacArthur Park.

Refusal to pay resulted in retribution, including murder and other acts of violence.

Innocent bystanders killed by the Lil Cycos included a 3-week-old baby in a stroller and a 22-year-old man with no gang affiliation.

Source: Daily Breeze

Technical Assistant Committee of Anti-Money Laundering and Terrorism Financing Committee will organize a workshop in the domain of combating money laundering and the financing of terrorism during 21-22 June.

The participants from relevant government authorities, commercial banks, Islamic banks, money exchange companies, non-financial institutions and professions involved will be participating during the workshop.

In a statement to Saba, Chairman of Anti-Money Laundering Committee Ahmed Ghaleb said the workshop will discuss identification of money laundering and terrorism financing in accordance with international criteria, and risks and role of banks in anti-money laundering.

Ghaleb said that they will review, during the workshop, exerted efforts of local, regional and international, information-gathering unit and the role of supervisory control agencies.

He pointed out that the workshop comes within implementation approved by the supervising committee including work plans for improving anti-money laundering and terrorist financing.

Source: SABA.NET

The country's financial institutions need more investment and improvement in their anti-money laundering systems even as 79 per cent of them show a positive attitude towards the regulations, a KPMG survey has said.

The survey, conducted by global consultancy KPMG among various financial institutions in the country, showed a positive attitude towards anti-money laundering (AML) regulations with 79 per cent of respondents believing the level of burden placed upon them was acceptable.

"Though financial institutions in India have covered a large ground in AML compliance, still significant investment and improvement in AML systems is required," the survey said.

However, only 45 per cent of respondents felt that the existing requirements were sufficiently geared to address money laundering risks, while 34 per cent opined they could be better focused, it added.

"India's escalating global exposure is also rendering its financial institutions vulnerable to money laundering. The ratification of Prevention of Money Laundering Act in 2005 has made anti-money laundering an essential compliance for financial institutions."

"The onus is on these institutions to play a pivotal role in addressing the issue by assisting regulators and law enforcement managers to fight this crime," KPMG India Executive Director Arpinder Singh said.

With India aspiring to become a member of Financial Action Task Force (FATF), it is essential that India also commits to the implementation of wide ranging requirements of the task force. This should include an independent review of policies and processes, Singh added.

The participants in the survey include public sector banks, private sector banks, foreign banks, insurance companies and brokerage houses.

With increased regulatory focus on money laundering, it has become a board room issue with senior management playing an active part in AML compliance, the survey added.

The survey revealed that almost 67 per cent of respondents said their senior management took active role and in another 33 per cent of cases took some interest in AML compliance.

About 66 per cent of the respondents said that although their policies and procedures are developed as per local regulations, these are benchmarked against global regulations.

Furthermore, majority of respondents (88 per cent) said that they have adopted a risk based approach to Know Your Client (KYC) and another 8 per cent stated they were actively considering it, it added.

Source: Business Standard

A UAE Delegation has participated in the plenary meeting of the Global Initiative to Combat Nuclear Terrorism in the Hague, Netherlands, held on June 16-17.

The delegation stressed on the efforts the UAE has made to combat nuclear terrorism focusing on the successful efforts of fighting terrorism financing. Ambassador Hamad Al-Ka'abi, UAE permanent representative to the IAEA, stated that the UAE's decision to join the global initiative stems from a common vision to support global efforts to counter terrorism of all types.

"UAE Government has put tremendous efforts and effective resources to achieve its objectives by not only working to counter potential terrorist actions but going further to eliminate the sources of such actions. This is reflected in the Government's policies, regulations and implementation processes. Today, we have an active legislative framework, empowered local authorities, and trusted global partners , which, all together, ensure the process is efficient and successful in denying terrorists any safe haven," Al-Ka'abi said.

The UAE has adopted numerous laws, regulations, measures and procedures including joining and ratifying UN related conventions, implementing UN security council resolutions, updating local laws, and continuous engagement with its international partnership. The UAE has signed and ratified 17 international conventions to combat terrorism, and implemented 24 UN security council and General Assembly resolutions, which led to freezing suspected accounts of terrorist organizations and individuals. The UAE is a party to multiple international and regional initiatives endorsed and implemented legislations related to Anti-money laundering, terror financing, and took stringent measures to prevent the use of banking system for criminal purposes. The UAE today has an active legislation framework and a strong regulatory and supervisory system to ensure banks and other financial institutions have internal controls, processes and procedures to identify and track all suspected transactions and persons involved.

Further supporting global efforts, UAE has established permanent committees such as the national anti-money laundering committee and the national counter terrorism committee composed of multi-institutional representation to deal with all legal and other issues related to money laundering, terrorism and terrorism financing.

In implementing local regulations and international resolutions, Government agencies have been working very closely with their counterparts internationally to achieve their common mission. In June 2002, the anti-money laundering and suspicious cases unit at the central bank became the first unit in the region to be accepted as a member of the Egmont Group. In line with Egmont principles, the unit has signed 20 MOUs with partner nations for facilitating exchange of financial information on money laundering and financing of terrorism.

In addition to combating terrorism financing, today the UAE government is taking further tangible steps to support the non-proliferation efforts of the international community. These steps, which include the development of an innovative model for adopting peaceful nuclear energy, should help to reduce global proliferation concerns by demonstrating that nuclear energy can be adopted in a manner that is highly transparent, safe, secure, and peaceful by design. The model�s non-proliferation commitments are enshrined by the UAE commitments to forgo enrichment and reprocessing, and the development of security and regulatory infrastructure in accordance with best international standards. These commitments were highlighted in the Government's policy paper, published in April, 2008, and titled, The UAE Policy on the Evaluation and Potential Implementation of Nuclear Energy.

"One nuclear terrorism act could lead to dramatic consequences globally, the UAE is looking forward to continue working with partner nations in developing mechanisms to combat nuclear terrorism and other type of terrorism , in particular in a world where terrorists are continuously advancing their capabilities and intelligence and are not bounded by any border." Al-Ka'abi concluded.

The Global Initiative to Combat Nuclear Terrorism has 75 member nations and aim to enhance cooperation among those nations, increasing their capacity to combat the threat of nuclear terrorism around the world including accounting, control, and protection of nuclear material, detecting illicit trafficking, and strengthen legal frameworks of nations and cooperation in activities to combat nuclear terrorism.

Source: WAM

India might be able to secure full membership of the Financial Action Task Force (FATF), an inter-governmental body formed to tackle money laundering and terrorist financing, only by next year.

This is because the country, a participating observer since February 2007, has to undergo a successful mutual evaluation with the international body in order to obtain a full member status, which will take place by the year-end.

FATF review is done after every four years and India had an FATF review in 2005.

India is a member of APG (the Asia Pacific Group on Money Laundering), which is an associate member of FATF.

According to a finance ministry official, India and APG will do a mutual evaluation by this year-end. “We are sure to get the FATF membership when the next evaluation is done in December,” he said.

Getting the membership of FATF will enable India to get international cooperation easily in money laundering cases. Also Indian banks would not have to face regulatory hurdles while trying to set up overseas branches.

According to industry officials, the Indian government has shown political commitment to implement the FATF 40+9 recommendations and become a member of the global body.

Enacting the amended Prevention of Money Laundering Act (PMLA), which was passed by parliament recently to make the anti-money laundering regime more effective, was the final step for India to move towards getting the coveted membership of FATF next year.

Certain compliances for becoming an FATF member were among the amendments in PMLA. The compliances included suspected cases of terror financing that would be part of the suspicious transaction reporting system, setting up of a Financial Intelligence Unit (FIU) and making Know Your Customer (KYC) norms legally binding. There is a certain level of preparedness required to become an FATF member, which involves having an anti-money laundering legislation and implementation of the same, said Neeta Potnis, Partner with Deloitte Haskins and Sells who heads the Deloitte Financial Advisory Services’ anti-fraud and forensic practice in India.

Getting an FATF membership would help India get easy access to international co-operation in money laundering cases and would change perception of India abroad, said Arpinder Singh, executive director, forensic services, KPMG.

Money laundering is a global menace and as India becomes prominent global business destination, FATF membership gains all the more importance, said Singh and added that it would also open the doors for Indian banks to expand globally. FATF, which was created in 1989 to generate the necessary political will to bring about legislative and regulatory reforms, has 34 members, including the US, the UK, Japan, Germany and China.

Source: Business Standard

Macau's Financial Intelligence Office (GIF) was officially admitted as a member of the Egmont Group (EG) at the group's plenary meeting in Qatar, Doha.

According to a statement, this move reflects “the commitment and responsibility of Macau in the fight against money laundering and financing of terrorism (AML/CFT).

The EG was established in Brussels, Belgium in June 1995, as an informal international gathering for financial intelligence units (FIUs) worldwide to foster better communication amongst each other. The Secretariat is located in Toronto, Canada and up to 2008, there were a total of 108 FIUs from different jurisdictions that had joined up.

The objective of the EG is to provide a forum for FIUs around the world to improve co-operation in the fight against money laundering and terrorism financing, and to foster the implementation of domestic programs in this field. This support mainly includes expanding and systematizing international co-operation in the reciprocal exchange of information, as well as offering training to improve FIU personnel's expertise and capabilities, and promote the establishment of FIUs with other jurisdictions.

As a member of the EG, GIF is not only fostering co-operation with other jurisdictions, but also getting updated cross-border typologies information to further strengthen the efforts to fight money laundering and terrorism financing.

Source: Macau Daily Times

Macedonia's Administration for Money Laundering Prevention and Terrorism Financing (USPPFT) signed memo of cooperation with the financial intelligence units (FIUs) of Turkey and United Arab Emirates at sidelines of the Egmont Group annual session, being held past week in Doha, Qatar.

A delegation of Macedonia's Administration for Money Laundering Prevention and Terrorism Financing, led by Director Vane Cvetanov, also held talks with the FIUs of Britain, Portugal and Nigeria, focused on signing cooperation memos in the near future.

Thus far USPPFT has signed cooperation agreements with 26 countries.

Source: Mina