Acquisition of property and assets, 20
America. See USA
Anti-money laundering (AML), 10
applications of, 16
crime rates, 14
implementation of, 14
procedures of, 23
proposed and developed policies on, 10–11
systems applications in developing countries, 13
systems expenses, 34
Anti-terrorism financing
international standards of, 11
regulations, Canadian, 15
Artificial invoices, 32
Assets, acquisition of, 20
Attack of September 2001, 7–8
Banamex, 67–70
Banking system, 6
reliability of, 11
Banking transactions, 19–20
Basel Committee, 10–11
Basel Committee on Banking Supervision (BCBS), 53–54
Benford’s Law, 24
Bin Laden, Osama, 28
Canada
anti-terrorism financing regulations of, 15
current legal system, 15
legal system on preventing terrorist financing, 15
Tamil Tigers in, 28
Cash movement controls, 51–52
Casinos, 18
China
cyber-scamming, 71
import and export activities, 71
informal money transfers, 71
Citibank, 67–70
Combat with Terrorism Financing (CTF), 27–29
Compliance cost, 4–5
Corporate and Criminal Fraud Accountability Act, 34
Corporate money-laundering, 67–70
Corruption
earnings of, 10
in financial systems, 9
and fraud, 13
global, 9
and money laundering, 33–34
Credit card payments, 20
Criminal Code of Canada, 15
Criminal organizations, 27
Customer Identification principle, 73
Customer transactions, openness and transparency in, 73
Cyber-scamming, 71
Digital currency accounts, 21–22
Digital smurfing, 21
Digital system in money laundering, 16
Drug smuggling, 28
Drug trafficking, 9
Economic development projects, 9
Electronic money transferring, 15
Employees in financial institutions, 12
European Union (EU), 15
Action Plan to Fight Against Terrorist Funding, 48–52
Money-Laundering Combat Directives, 45–48
Export transactions, undervalued, 26
Extortion, 28
False identification of customers, 20
Financial Action Task Force (FATF), 8, 9, 10–11, 15, 39, 41–43, 75
invitations and recommendations, 13
Financial Fraud Detection method, 24, 25
Financial institutions, 75
customers in developing countries, 11
importance of technology in, 10
protection from money laundering, 74
Financial systems
corruption in, 9
services and access to, 6–7
transparency in, 14
Financial Transactions and Reports Analysis Centre of Canada, 16
Financing terrorist activities, 7–16
Fraud, corruption and, 13
Funds, transfer of, 7
Gambling alternatives, 18
Global corruption, 9
Global economy, 14–15
Global money trafficking, 9
Gross Domestic Product (GDP), 1, 32
growth rates, 32
Guerilla warfare, 28
IBA Anti-Money Laundering Forum’s website, 8
Illegal money transactions, 6
Illegal sources of income, 6
Imitating transactions, 32
Import transactions, overvalued, 25–26
Income, illegal sources of, 6
Informal money transfers, 71
Interbank wire transfers, 32
International business transactions, 9
International corporations, mutual legal guidance for, 9
International drug control policies, 9
International Monetary Fund (IMF), 55–56
International networks for money transfers, 7
Internet banking, 20
Islamic groups, 7
Islamic law, adoption of, 7
Know Your Customer (KYC)
in banking sector, 12
definition of, 12
policies, 39
procedures, 11
Law of Prevention of Laundering of the Proceeds of Crime, 74
Lebanese Canadian Bank, money laundering in, 63–65
Legal position, 4
employees in financial institutions, 4
Low-quality investments, 31
Merida Convention, 53
Mobile money services, 11
bank offerings to attract, 6
Money laundering
acquisition of property and assets, 20
actions, importance of diagnosing, 8
activities in money laundering stages, 19
applications in Turkey, 74–75
banking transactions, 19–20
casinos and gambling alternatives, 18
in China, 71–72
corporate, 67–70
corruption and, 33–34
countries and regions dealing with, 10
cycle, 6
data mining-based- solution for, 12
detecting action of, 13
detection methods, 23–29
European Union (EU). See European Union (EU)
evolution of, 1–3
Financial Action Task Force (FATF), 41–43
in financial sector, 13–14
instrument for, 11
integration stage, 5
International Monetary Fund (IMF), 55–56
layering stage, 5
in Lebanese Canadian Bank, 63–65
on macro economy, 31–34
national and international laws and regulations of, 8
offshore centers and shell corporations, 18
overvalued import transactions, 25–26
placement stage, 5
policies in ECC, 12
prevention of, 10, 12–14, 73–75
resulting from corruption, 37–38
settings, 19
significance of technology in, 16
stages, 5–7
structuring (smurfing), 17–18
technology, 21–22
terrorism financing and, 10, 11
trade-based, 15
in Turkey. See Turkey
undervalued export transactions, 26
United Nations (UN) Conventions Regarding Financial Institutions, 52–55
Vienna Convention on, 9
World Bank, 56
Money-laundering activities (MLAs), 8
Money tracking, international regulations for, 9
Money trafficking, global, 9
Money transfers
electronic, 15
international networks for, 7
Monitoring, 34
Multiple Detections Approach (MDA), 25
Normal Behavior Patterns (NBP), 23–24
Offshore centers, 18
Organization for Economic Cooperation and Development (OECD), 10
Overvalued import transactions, 25–26
Palermo Convention, 53
Parallel credit transactions, 32
Patriot Act, implementation of, 8
Private banking systems, 33
Proceeds of Crime Act, 15
Property, acquisition of, 20
Risk, 34
assessment methods, 11
September 2001, attack of, 7–8
Shell corporations, 18
Southeast Asia, Islamic law within, 7
Structuring (smurfing), 17–18
Suspicious transaction
case of, 37–39
types, 35–37
Suspicious Transaction Reports (STRs), 15
Tamil Tigers of Sri Lanka, 28
Tax evasion, 31
in financial institutions, 12
financing activities. See Terrorist-financing activities
funding methods, 10
funds and money-laundering activities, 8
international standards against, 11
Terrorist-financing activities, 6
causes, 11
in financial sector, 13–14
national and international laws and regulations of, 8
Tracking, flow of money, 9
Trade-based money laundering, 15
Trade Correlation Test, 24
Trading, 32
Transaction Assessment, 23–24
Transactions, illegal money, 6
Transfer of funds, 7
international connections and facilities, 7
Transparency in financial systems, 14
criminals, 59
financial and non-financial institutions, 58–59
money laundering applications, 74–75
money laundering in, 61–63
mutual evaluation process, 43–45
reasons for criminals’ use of, 57
sources and volumes of money-laundering denunciations, 58
suspicious transactions statistics of financial sector, 58
Undervalued export transactions, 26
United Nations (UN) Convention, 10–11
regarding financial institutions, 52–55
USA
corporate money-laundering events in, 67–70
transferring funds from, 11
importance of, 9
Vienna Convention Commission, 9
World Bank, 56