$ LAUNDERING

1
LAUNDERING HOW ITS DONEWHY WE CANT FIND
THE www.The-Infiltrator.com
2
MONEY LAUNDERING

• Participate in a financial transaction for the
  purpose of
• furthering a Specified Unlawful Act (SUA) or
• conceal / disguise the SUA origin of the funds

3
THE MONEY LAUNDERINGPROCESS

• Placement
• Layering
• Integration

4
TYPICAL LAUNDERING FRONTS

• Cash generating businesses (domestic
  multi-national)
• -Casa de Cambio (Money Transmitters)
• - Precious metals business
• - Precious stones jewelry businesses
• - Check cashing businesses
• - Casinos
• Other techniques
• - Smurfing

5
TYPICAL LAUNDERING FRONTS (cont.)

• - Illegal transport out of U.S.
• Private plane
• Commercial carrier
• Containers
• Within shipped goods
• Off-shore lending sources
• Import / Export businesses
• Global distributors of durable and bulk goods
• BLACK MARKET PESO EXCHANGE (BMPE)

6
BLACK MARKET MONEY EXCHANGES(INFORMAL VALUE
TRANSFER SYSTEMS)

• Exist in most currencies and regions (global)
• Many use due to cultural traditions or because
  these services are faster, cheaper, less
  bureaucratic and more convenient
• Facilitate an underground banking system
  producing an unconventional paper trail
• Colombian based traffickers use the
  BLACK MARKET PESO EXCHANGE (BMPE)

7
BMPE CLIENTS

• Drug Traffickers
• Terrorists
• Illegal Arms Dealers
• Corrupt Political Figures
• Customs Duty Evaders
• Tax Evaders
• Embargoed Goods Dealers
• Inflationary Concerns
• Targets of Terrorism
• Family Transfers

8
BMPE ECONOMICS 101

• SUPPLY OF DOLLARS
• Conduct illegal acts in
• the U.S. live abroad

• - DEMAND FOR DOLLARS
• Foreign based tax/duty evaders buying legal goods
  with U.S. dollars

9
(No Transcript)
10
RED FLAGS RE BMPE CHECKS

• Checks contain
• Multiple style of entries
• Handwritings vary
• Inks vary
• Contain type writing
• Contain odd symbols
• Rabbit/Smurf/Turtle
• Tape over amount
• Customer payments
• From multiple third party accounts
• From multiple sources
• Money Orders/Travelers Checks/Cashiers Checks
• From unrelated jurisdictions
• From haven countries

11
ACQUIRING PESOS WITHOUT THE BMPE

• REINTEGROS
• Government export incentive
• Immediate exchange
• Favorable rate
• Value added reward
• Key elements
• Export front
• Finance company
• Document of Exportation
• Local banker (corrupted)

12
THE CORPORATIONS VICARIOUS LIABILITY

• CORPORATION ACTS THROUGH ITS EMPLOYEES
• ACTS AND OMISSIONS ARE IMPUTED WHEN
• - Made within the scope of
  employment
• - Made, at least in part, with
  purpose to benefit the
• corporation
• - Whether the corporation actually
  benefited is
• unimportant
• - Corporation is responsible for
  collective knowledge
• of employees

13
WRITTEN POLICIES PROCEDURES STATEMENT

• Define Problem
• Identifies Applicable Law
• Affirms Sr. Management Commitment
• Outlines Compliance Program
• Due Diligence recordkeeping (enhanced 2002)
• Training Track Record
• Designates Compliance Officer/Committee
• Outlines A Disciplinary Policy

14
INSTITUTIONAL MONEY LAUNDERING PLANS

• Private Client Divisions
• Gold for Dollars
• Locally booking off-shore in bulk
• Rep. Offices private houses as courier
  receiving sites
• Rep. Offices private houses as account review
  sites
• Institutional Plans
• Sinister Window
• Sale of dollar bonds to foreign institutions
• Use of buffer professionals (Attorneys or CPAs)

15
www.ChaseAndAssociates.com(727) 785-1273