Search results

This paper aims to inform the readers about the existing financial intelligence tools that are being used by financial intelligence units. It tries to demonstrate, with the help of a literature review, what the limitations of these tools are and how these limitations hinder the potential of the financial intelligence tools for early detection of terrorist financing activities.

The literature review method was adopted to discuss the financial intelligence tools, their limitations and the implications of the limitations for early detection of terrorist financing activities.

It was found that although the financial intelligence tools were introduced with a view to detect terrorist financing activities early, there are some inherent limitations of the tools relating to technical design features and operational procedures that hinder early detection of terrorist financing activities.

The existing financial intelligence tools need to be repaired by removing the inherent limitations of the tools.

The financial intelligence units should take into cognizance the importance of early detection of terrorist financing activities for preventing terrorist attacks and need to redesign the existing tools in such a way that make these tools effective for early detection of terrorist financing activities.

Peace will be established in society by preventing terrorist attacks through early detection of terrorist financing activities.

The originality of the paper lies in identifying the limitations of the existing financial intelligence tools for the early detection of terrorist financing activities.

The purpose of this paper is to share research data from the Financial Intelligence sector on trade-based money laundering (TBML), as a way to better inform banking risk assessment and the submission of suspicious activity reports (SARs).

The research data formed part of a bigger project on TBML banking risk assessment for improving the detection of TBML activity. This paper analysed the data from an online survey carried out among the financial intelligence staff from financial intelligence units (FIUs) and some external financial intelligence agencies. The aim was to determine which areas of banking SARs needed to be improved or enhanced to support FIU investigations.

The research found that FIUs do use the data supplied to them, in particular the SARs. The research also found that more data would be appreciated from banks especially in relation to beneficial ownership information and politically exposed persons data. The findings highlighted that contact between banks and FIUs was limited and restricted to a couple of key individuals, whereas the increased requirement for intelligence and more data would suggest that this relationship needs to be expanded and strengthened.

The main limitation was the restricted scope of the survey (only focussed on TBML) and was broad in depth, and perhaps a local FIU survey would be useful to look at specific country recommendations. Similar research also needs to be conducted on other forms of ML activity. The research identified the need for more information on beneficial ownership information; however, other work needs to be done on how exactly banks can access this data.

The main outcome from the research was the need for SARs to contain more detailed information on beneficial ownership and politically exposed persons data. This needs to be incorporated into a specific risk assessment tool for TBML that considers not only the client but also relevant business partners and silent partners/shell companies used by the client. This research is part of a bigger research project that has developed a risk matrix tool for TBML and can be linked into this work.

The paper used original data collected by the researcher from 49 FIU and financial intelligence staff across the globe. The timely presentation of the results and the nature of the sample means that this is relevant and useful data to be presented to the banking sector.

This paper aims to examine the history of data leaks and investigative journalism, the techniques and technology that enable them and their influence in Australia and abroad. It explores the ethical and professional considerations of investigative journalists, how they approach privacy and information-sharing and how this differs from intelligence practice in government and industry. The paper assesses the strengths and limitations of Collaborative Investigative Reporting based on Information Leaks (CIRIL) as a kind of public-facing intelligence practice.

This study draws on academic literature, source material from investigations by the International Consortium of Investigative Journalists and the Organised Crime and Corruption Reporting Project, and a survey of financial crime compliance professionals conducted in 2022.

The paper identifies three key causal factors that have enabled the rise of CIRIL even as traditional journalism has declined: the digital storage of information; increasing public interest in offshore finance and tax evasion; and “virtual newsrooms” enabled by internet communications. It concludes that the primary strength of CIRIL is its creation of complex global narratives to inform the public about corruption and tax evasion, while its key weakness is that the scale and breadth of the data released makes it difficult to focus on likely criminal activity. Results of a survey of industry and government professionals indicate that CIRIL is generally more effective as public information than as an investigative resource, owing to the volume, age and quality of information released. However, the trends enabling CIRIL are likely to continue, and this means that governments and financial institutions need to become more effective at using leaked information.

Over the past decade, large-scale, data-driven investigative journalism projects such as the Pandora Papers and the Russian Laundromat have had a significant public impact by exposing money laundering, financial crime and corruption. These projects share certain hallmarks: the use of human intelligence, often sourced from anonymous leaks; inventive fusion of this intelligence with data from open sources; and collaboration among a global collective of investigative journalists to build a narrative. These projects prioritise informing the public. They are also an important information source for government and private sector organisations working to investigate and disrupt financial crime.

In 2014, Paul Gill et al. introduced a study of 119 lone-actor terrorism cases, and found that lone-actor extremists could be more accurately identified by their behavioural characteristics and activities, rather than their extremist ideologies. The study was said to have significant impact on intelligence analysis in the field of counterterrorism. The purpose of this paper is to apply Gill et al.’s findings to financial intelligence investigations, to assist investigators with the detection and prevention of lone-actor terrorist financing.

This article provides an overview of the key findings provided by Gill et al. It then discusses the indicators of lone-actor terrorism in the context of financial intelligence investigations, and sets out methods to improve financial intelligence investigations to better identify and stop lone-actor terrorism in the future.

By applying traditional financial intelligence techniques, which focus on assessing an individual’s activity and behaviour, with open-source intelligence gathering, financial intelligence investigators will be better equipped to identify lone-actor terrorism and its financing moving forward.

This article will be of value to investigators specializing in terrorism and financial crime, as it will assist them in the identification of a proliferating security threat, the lone-actor terrorist. While the article relies on the findings provided by Gill et al., it takes a new approach by applying those findings specifically to the financial intelligence sector, to improve investigations related to terrorism.

The purpose of this paper is to analyze the functions of financial intelligent investigations by the Indonesian financial intelligent unit in conjunction with the participating reporting parties, to consider the obstacles and challenges to reduce money laundering cases in Indonesia, realizing that the role of the financial intelligent investigations not only conducted by Indonesian Financial Intelligent Unit itself but the active participation from reporting parties such as banking institution. The function of financial intelligent unit in supervising and monitoring cash financial transactions is importance in fight against economic crimes, particularly in the anti-money laundering regime.

This paper explores the Indonesian laws on prevention and eradication on money laundering crime and analyzing the importance role of financial intelligent investigations and disruption of money laundering crime.

The financial intelligent investigations will become an important strategy to combating the economic crime such as money laundering and corruption. The new perspective is needed to developing the good synergy in the financial intelligent unit and reporting parties to maximizing the eradication of money laundering cases.

The paper can be a source to explore about the money laundering eradication based on Indonesia legal perspective.

This paper gives contributions by encouraging the financial intelligent unit in conjunction with all the financial institutions to disrupt any money laundering activities, which is associated to other predicate crimes and attempting to conceal the illegal funds derived from illegal activities that commonly happened in Indonesia.

This paper consists of two parts, the second of which will be published in the next issue of this Journal (Volume 3, Number 3). The second part of this paper will deal with the legal framework of the European Union.

This study aims to determine the performance of the Pakistani financial intelligence unit in combating money laundering/terrorist financing in local and global contexts.

The study used a qualitative research design. The objective is achieved by critically examining the Anti-money Laundering Act and its relevant clauses concerning the financial monitoring unit and other related legislation. Further, empirical data was collected through semi-structured interviews with chief compliance officers from regulated entities, regulators and premier law enforcer.

The performance of the financial monitoring unit has severe issues concerning the dissemination of financial intelligence due to its time taking behaviour, non-sharing of feedback with reporting agencies, dearth of international cooperation, lack of trained and relevant personnel and financial constraints.

To the best of the authors’ knowledge, this is a maiden study concerning financial monitoring unit in Pakistan.

This paper aims to examine three important interrelated issues that arise in the context of financial investigations: the access of law enforcement agencies to centralised bank account registries that have been set up in several jurisdictions; the exchange of financial information between financial intelligence units (FIUs) that function in different jurisdictions; and the exchange of financial information between FIUs and law enforcement bodies. Through the adoption of Directive 2019/1153, the European Union (EU) has attempted to achieve a paradigm shift in these three areas, but many challenges remain, from the interconnection of registries to the implementation of adequate data protection safeguards.

This paper draws on primary sources of law, legal scholarship, reports and open source data to analyse the changes that Directive 2019/1153 has brought about in conducting financial investigations in the area of anti-money laundering (AML) and the counter-financing of terrorism (CFT).

The new Directive 2019/1153 constitutes an international model for broadening the access of law enforcement agencies to financial information and facilitating information exchanges between FIUs and law enforcement agencies. Nevertheless, many challenges have still to be addressed, such as the interconnection of centralised registries and the implementation of adequate safeguards.

This is a comprehensive study examining the new EU framework for access to financial information and information exchanges between FIUs and law enforcement agencies, which can be used as a model for international cooperation in the areas of AML/CFT.

The objectives of this study are to analyse the present Malaysian law regarding money laundering, to identify advantages and disadvantages of the current anti-money laundering law, to analyse its impact on the public sector and the private sector and to make recommendations on any improvements that should be made.

This study will use a qualitative method where the literature review method applies to collect primary and secondary data regarding anti-money laundering laws. Data has been collected from the various provisions of laws and text reading, such as books, articles, journals, law cases and thesis regarding anti-money laundering laws and those analysed with the content analysis method and the critical analysis method.

This study found that Malaysia has one law regarding anti-money laundering and they have control over individual and corporate entities in Malaysia.

This study found that Malaysia has one law regarding anti-money laundering and they have control over individual and corporate entities in Malaysia.

The paper aims to examine the role played by international shell companies in Latvian-type correspondent banking, who creates the shell companies according to what criteria and the resulting money laundering operations for financial flows from Russia and the former Soviet Union.

This paper draws on journalist and non-governmental organisations investigations, financial intelligence unit reports, interviews with participants, whistleblower reports and public domain databases to research financial activities shrouded in secrecy with connections to corruption and organised crime.

Latvian-type correspondent banking generates for its clients from the former Soviet Union anonymous shell companies en masse across diverse onshore and offshore jurisdictions. The shell companies are vehicles for moving white, grey and black funds from Russia, Ukraine and other former Soviet countries through international correspondent banking relations to offshore savings accounts and business suppliers. The creation and administration of the shell companies is handled by para-bank “business introducer” structures that dilute customer documentation.

This paper does not address the specifics of Latvia’s domestic anti-money laundering (AML) legislation and enforcement thereof.

Attempts to eradicate shell companies in individual jurisdictions, for instance, by introducing registers of beneficial ownership of companies, may merely displace the phenomenon to other jurisdictions, and thus treat the symptom not the disease.

This is the first scholarly study of mass use of international shell companies by Latvian-type banking in connection with financial flows from Russia, Ukraine and the former Soviet Union.