NB spearheads international research into money laundering
Global losses from large-scale transnational fraud are estimated at tens of billions of US dollars annually. Such frauds and the money laundering schemes that clean the proceeds pose a pervasive global criminal threat that substantially impacts on economies and markets by undermining consumer trust and confidence.
While there has been a significant amount of research into the fraud itself, there has been a lack of dedicated research into the related money laundering schemes and the best practices for intervention and enforcement. In order to address this situation, the Joint Financial Intelligence Unit (JFIU) of the Narcotics Bureau (NB) is currently leading an international study into money laundering associated with fraud through the Asia Pacific Group on Money Laundering (APG). The project was launched in Singapore in July this year.
Between October 26 and 28, two JFIU officers, Chief Inspector (CIP) Stewart McGlynn and Senior Inspector (SIP) Philip Tsang, attended the annual APG Typologies Workshop in Dhaka, Bangladesh, to present a progress update and chair a workshop for project member jurisdictions to share experiences. A total of 120 participants from 40 member jurisdictions attended the workshop, alongside some observers.
CIP McGlynn, who is the project team leader, said: "This is a practical piece of research looking into what are the regional money laundering vulnerabilities for this activity and why. There is a wide spectrum of experience in the Region, from large financial intelligence units (FIUs) that have produced detailed risk assessments to small FIUs that possess limited experience.
"A significant focus of the research is international co-operation among FIUs and how we are able to benefit from our shared experience in terms of best practice. By beefing up knowledge and awareness across the Region, it is hoped the ability to intervene, restrain funds and take enforcement action would also be enhanced."
Delivering a presentation at the workshop, SIP Tsang spoke of the work undertaken by Commercial Crime Bureau (CCB) to deal with lottery fraud and the success of the enforcement action against money laundering in Hong Kong.
Other topics discussed at the workshop included money laundering associated with human trafficking, corruption and the risk posed by non-profit-making organisations.
The project will last for 12 months and it is anticipated that the final report will be delivered at the next APG Annual meeting in India in 2011. The project is being undertaken by a core group of officers from JFIU, Financial Investigations NB and CCB, all of whom have experience in this specialised field.
JFIU NB Superintendent Ma Ping-yiu is overseeing management of the study project. On the benefits of the project, he said: "Undertaking typologies research with APG will not only raise the profile of Hong Kong but also benefit the Force by developing officers' ability to undertake a strategic research, which is becoming increasingly important as the dynamics of financial crime evolve. Knowing and understanding threats is fundamental to ensuring the Force can respond accordingly."
CIP
McGlynn
(right)
and SIP Tsang (left) with officers from Malaysia,
Bangladesh and Russia
