This is my presentation about what is money laundering crime and what is the role of financial institutions in the fight against it. I used it during my speech for a bunch of Business School Students (ISM).

1. Audrius Šapola Head of security department

2. Physical security

3. Information security

4. Fraud prevention

5. Prevention of money laundering and terrorist financing

6. How it affects financial institutions? What is money laundering and terrorist financing?

7. “ Behind every great fortune there is a crime” Honore de Balzac

8. What i s money laundering?

10. “ Money laundering is any action taken to conceal, arrange, use or possess the proceeds of any criminal conduct ” Serious Organised Crime Agency, UK

11. “ Money laundering is the name given to the process by which illegally obtained funds are given the appearance of having been legitimately obtained ” Australian Transaction Reports and Analysis Centre

12. “ Money laundering is the method by which criminals disguise the illegal origins of their wealth and protect their asset bases, so as to avoid suspicion of law enforcement and to prevent leaving a trail of incriminating evidence ” United Nations Office on Drugs and Crime

13. “ I am like any other man. All I do is supply a demand” Al Capone

15. Human trafficking Arms smuggling Tax evasion Drug trafficking Corrupt practices Theft Fraud Robbery Prostitution

16. “ Funds laundered in the world could range between two and five per cent of the world’s gross domestic product . Using 1996 statistics, these percentages would Approximate between US $ 590 billion and U.S. $ 1.5 trillion ” International Monetary Fund

17. ® Hide wealth ® Avoid prosecution ® Evade taxes ® Increase profits ® Become legitimate Why?

18. laundering process

19. # placement

20. smurfing

21. smurfing explained

22. smurfing explained

23. electronic transfer

24. gambling

25. gambling

26. # layering

27. electronic funds transfer

30. # integration

31. credit and debit cards

32. terrorist financing

34. ® Recruit and sustain ® Acquire influence ® Build support base ® Carry out terrorism Why?

35. “ Follow the money” - Deep Throat

36. hawala

37. money laundering vs. terrorist financing

38. standard setters

41. The Basel Committee on Banking Supervision

42. The Egmont Group

43. What’s in it for the bank?

44. what risks?

45. 5

46. operational risk

47. legal risk

49. financial and concentration risk

50. “ It takes 20 years to build a reputation and five minutes to ruin it” Warren Buffet

51. risk assessment

52. k now y our c ustomer

57. p olitically e xposed p ersons

59. correspondent banking requirements

60. screening and monitoring

61. ERASE Risk Analysis ERASE Profiling Alert Generation User View Data reduction & increased accuracy Transactions Profiles $ $ $ $ $ $ $ $ Risk Views ERASE Risk Views Alerts ! ! ! ! !

62. reporting and freezing

63. Staff training

65. arresting power?

66. financial institution =

67. ?

68. a few examples…

73. Questions ?