banco internacional y el lavado de dinero

8/12/2019 Banco Internacional y El Lavado de Dinero

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INTERNATIONAL BANKING&

MONEY LAUNDERING

Lima, PeruAugust 2000

Presented by Senior Special Agent Jeff OConnor

United States Customs Service

Federal Law Enforcement Training Center


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U.S. Customs Mission Statement

We are the guardian of our Nation'sborders--America's frontline.

We serve and protect the American

public with integrity, innovation and

pride.

We enforce the laws of the UnitedStates, safeguard the revenue and

foster lawful international trade and

travel.


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Customs

Workforce

Customs Inspectors

Canine Enforcement

Officers

Import Specialists

Attorneys

CommunicationsSpecialists

Chemists

Special Agents

Pilots Intelligence Analysts

Marine Enforcement

Officers


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Money Laundering

Narcotics Smuggling

Strategic Investigations

Child Pornography

Import/Export Fraud

US Customs Investigative

Priorities


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Primary Investigative Agency

18 USC 1956 & 1957

Specified Unlawful Activities (SUA)

Entry of goods by means of false statements

Smuggling of goods into the U.S. Theft from foreign shipment

Illegal import/export of obscene matter

Import/export of child pornography Foreign transportation of stolen property

Import/export of certain motor vehicles/parts

Aviation smuggling


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Specified Unlawful Activities contd

Export Administration Act of 1979

International Emergency Economic Powers Act

Trading with the Enemy Act Arms Export Control Act

International transportation of monetary

instruments or funds which are proceeds of some

form of unlawful activity and where the defendantknew that the transportation was designed in

whole or in part to avoid a transaction reporting

requirement


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Agenda

The Federal Reserve System

U.S. Bank Regulatory System

Banking OperationsPayment Systems

Wire Transfers

Trade Based Money Laundering (BlackMarket Peso Exchange)

Bulk Cash Smuggling


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Federal Reserve

Central Bank of United States

Economic Policy

Payment SystemsBank Supervision

Foreign Bank Operations

Bank Application Approval

Bank Secrecy Act Oversight

Enforcement, Training, Expert Testimony


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Bank Regulatory System

State Member Bank

State Non-member Bank

National BankSavings & Loans Assoc.

Credit Unions

Holding Companies

Foreign Bank


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in the U.S. Bank {National or State Charter}

Branch: Receive deposits and make loans.

Agency: Same as branch, except cannot acceptdeposits from U.S. citizens.

Representative Office: Engages in representational

and administrative functions; no authority to make

business decisions. Edge Act: Entities of banks that permit

international banking for customers.


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in the U.S.Foreign banks from 61 countries operate in

the U.S.

There are over 800 foreign bank offices inthe U.S.

Together they account for more than $1

trillion in assets.One third of U.S. lending is done by foreign

banks.


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Bank Payment System

Same Bank

Correspondent Bank

Clearing HouseFederal Reserve System


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Same Bank

First and Only Bank of US

Everyone in US is customerAll transactions cleared in-house

Cash Does Not Move

Check is presented


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Correspondent Bank

Only two banks in US-West & East Coast

All checks presented

Each bank clears checks of the other bankChecks exchanged daily

Cash doesnt move

Reconcile daily via accounts


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Clearing House

Example: Ten banks support clearing house

Each bank opens account at CH

Each bank sends checks to CHCH sorts and distributes checks

CH reconciles accounts

Banks settle daily with CH


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Federal Reserve System

Ultimate check payment system

Handles 1/3 of all checks

Nationwide check clearing overnightRegulates check clearing process


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The Ever Popular Check

Annual check volume: 63 Billion

Annual growth rate: 3%

90% exchanged in paper form10% electronic check presentment (ECP)

UCC and Federal Reserve comprise body of

law governing check transactionsFunds availability: Most overnight but 48

hours/local & 5 days/non-local is legal limit


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Check Definitions

Check: Draft drawn upon bank, made

payable on demand, signed by maker,

containing an unconditional promise to paya sum certain to order of payee.

Certified check: Check of a depositor upon

which bank certifies that sufficient funds

are on deposit and have been put aside

Cashierscheck: Banks own check drawn

on itself.


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Funds Transfer Parties

Originator

Intermediary

Beneficiary


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Parties to a Funds Transfer

Originator: the sender of the first payment

order in the funds transfer process.

Originators Bank:the bank used by theoriginator to begin the funds transfer.

Receiving Bank: any bank in the funds

transfer process that receives a paymentorder.


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Parties to a Funds Transfercontd

Beneficiary: the person who is the recipient

of the funds transfer.

Beneficiarys Bank:the bank that makes thepayment from the funds transfer to the

beneficiary according to the payment order.

Intermediary Bank: a receiving bank otherthan the originators or beneficiarys bank.


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Wire Transfer Methods

FEDWIRE

CHIPS (Clearing House Interbank

Payments System)SWIFT (Society for Worldwide Interbank

Financial Telecommunication)


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FEDWIRE

Operated by the Federal Reserve System

Established in 1918

Connects the 12 Federal Reserve Banks,their 25 branches and other agencies, such

as the Treasury Department

9,400 financial institutions directlyparticipate in FEDWIRE

US DOLLARS ONLY


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FEDWIRE contd

60% of the banks on-line.

99% of transactions from on-line banks.

FEDWIRE transfers are viewed assubstitute for cash. Immediate use.

FEDWIRE transfers cannot be made outside

of the U.S. (exception: U.S. bank branchesoverseas).

Average cost per transaction is 50 cents.


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FEDWIRE contd

346,000 transactions daily

$1.2 Trillion average daily volume

1/2 of volume from Federal Reserve Bankof New York

Messages are

encrypted


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CHIPS

Clearing House Interbank Payments

System

Owned and operated by the New YorkClearing House Association.

Consists of eleven New York Banks, i.e.

Citibank, Chase, BONY, Morgan Guaranty,Bankers Trust, etc.

Preferred system for transferring USD

offshore.


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CHIPS contd

94 participants from 27 countries

70% are foreign banks

Settlement at end of each day through theFederal Reserve System

97% of all USD denominated international

transfers occur through CHIPS.233,000 average daily transfers

$1.4 Trillion average daily volume


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CHIPS contd

Cost = 13 to 40 cents per transaction

80% of CHIPS transfers are initiated by a

SWIFT message.

Message contents: Customer information,

sending and receiving banks ABA or BIC

date, amount and transaction reference #s

CHIPS is cooperative with Law

Enforcement, but access is difficult.

Messages are encrypted


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SWIFT

Society for Worldwide Interbank Financial

Telecommunication

Belgium based communication system International financial transaction

processing and transmission system

6,000 users of SWIFT include securitiesbrokers, stock exchanges, clearing systems,

money markets, foreign exchanges, etc.


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SWIFT contd

3.5 million transfer messages per day

708 million transfer messages sent in 1997

75% of messages are bank paymentinstructions

SWIFT does notprovide a mechanism for

clearing & settling transactions.


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SWIFT contd

Mandatory message contents: Reference #,

date, amount, currency, originators &

beneficiaries name & address

Law Enforcement access is severely

restricted

Messages are encrypted


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Alternate Electronic Funds Transfer

Systems

Money Gram and Western Union

Closed Systems

Operating outside of banksRecords only obtained from these systems

Money Gram - More than 22,000 agents

operating domestically and abroadOperational in 100 countries

5.87 million transactions conducted in 1997


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Conducting Investigations

with Funds Transfers

The logical focal point of an investigation

should be at the beginning of the fundstransfer process.

Use the account statement of a customer to

identify the existence of a funds transfer,either incoming or outgoing.


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Conducting Investigations with

Funds Transfers contd

Once a funds transfer has been identified,

request the payment instruction that will

give the details of each funds transfer.

Tracing funds via funds transfer is time

consuming and may involve numerous

banks.


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Sources of Information

Bank Regulator

Supervision & Application records

Personal financial records and background Bank personnel records

Loan files

Limited bank account information History of BSA at bank

CBRS from IRS, FinCen


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Recordkeeping Requirements

for Funds TransfersDesigned to assist law enforcement

Covers all funds transfers of $3000 or more

Effective date: May 28, 1996

Banks are required to acquire and maintain

detailed records of funds transfers, to

include the identity of originator and

beneficiary.


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Recordkeeping Requirements

for Funds Transfers contdBanks must know customers & verify

identity of non-customers.

Banks are required to obtain:

name and address of originator

amount of the payment order

execution date of the payment order

any payment instructions

identity of beneficiarys bank


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Currency Transaction Report

(CTR)

Currency greater than $10,000

11,552,000 CTRs were filed in 1994.CBQS search by account #, name, zip code,

social security number, EIN


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Currency and Monetary

Instruments Report (CMIR)

Required to file for import or export of

more than $10,000 in US Dollars or foreignequivalent

Negotiable Monetary instruments

Knowledge

Criminal and civil penalties


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Suspicious Activity Reports (SAR)

Implemented on April 1, 1996

FinCEN is the Administrator of SARs

Reporting Requirements: Suspected money laundering activity over $5000

All suspected bank insider violations

All losses to the bank of $5000 and over where there is

a known suspect

All losses to the bank of $25,000 and over regardless of

a potential suspect


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Suspicious Activity Reports (SAR)

As of May 2000: 390,440 SARs have been filed

by financial institutions

9,000 SARs generated per month in US

Majority of Violations for BSA/Money

Laundering


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New Money Laundering

Trends & Issues

Black Market Pesos Exchange

Cash SmugglingForeign Bank Drafts

Payable Through Accounts

Private Banking


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Question?

THE END


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Bank Regulatory System

State Member Bank FRS/State

State Non-member Bank FDIC/State

National Bank OCCSavings & Loans Assoc. OTS

Credit Unions NCUA

Holding Companies FRS

Foreign Bank FRS/State

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