1.5. Further development of the international aml/cft standards.

Late 1990s to present time

The United Nations Security Council Resolution 1267 (1999) and subsequent resolutions directed at countering the financing of terrorism

United Nations Convention Against Transnational Organized Crime (Palermo Convention, 2000)

The International Convention for the Suppression of the Financing of terrorism – Terrorist Financing Convention (signed in New York, 1999)

United Nations Convention Against Corruption (Merida Convention, 2003)

The FATF 9 Special Recommendations (2001 and 2003) – the international standard for CFT

Warsaw Convention – Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (2005) – an upgrade of the Strasbourg Convention

The FATF Recommendations (2012) is a revised and integrated version of The FATF 40+9 Recommendations

Lecture 2. An overview of money laundering and AML regime goals

Key words

• abetting

• abuse

• bribery

• conspiracy to commit

• conversion

• counseling

• criminal activity

• disbursement

• embezzlement

• facilitating

• ill-gotten

• illicit

• illicit trafficking (in something)

• intermediary

• legitimized

• offshore financial center (OFC)

• predicate offence

• proceeds

• remuneration

• shell company

• to conceal

• to disguise

• transfer

Key Questions

• Why would somebody desire to sponsor a criminal activity?

• List the different types of yield from the commissioning of a crime.

• What kind of intangible utility can someone derive from a crime?

• How can currency be reinvested into criminal activity?

• Why is it necessary to conceal an illicit origin of proceeds?

• What kind of techniques do criminals use when trying to disguise the origin of proceeds from crime?

• Why is it important to mask multiple financial transactions in the course of money laundering?

• What is a predicate offence? Why is it called designated?

• Which methods are being used to describe predicate offences?

• Name international conventions that cover specific predicate offences.

• List major designated categories of offences covered by the General glossary.

• List the articles of the Merida Convention which cover specific predicate offences.

• What does a criminal do when he launders money in the narrow sense?

• Describe the differences between money laundering definitions in part (a) of Art. 6 of the Palermo Convention.

• Which three actions with proceeds of crime will be qualified as money laundering in the broad sense?

• What is the difference between conversion and transfer of property?

• Compare different characteristics of criminal proceeds: nature, source, location, disposition and ownership rights.

• Is it fair to convict a person on money laundering charges for possession of proceeds of crime?

• Why is it necessary, for competent authorities, to keep in mind that a perpetrator had to know at the time of receipt, that property was proceeds of crime?

• List eight activities that constitute money laundering in the broad sense.

• Describe the hierarchy of an organized criminal group and list the main activities of its actors.

• Why are AML measures so important? Is it easier to convict criminals of commissioning predicate offences?