Commission on Narcotic Drugs
Topic: A
Countering Money-Laundering and Promoting Judicial Cooperation to Enhance International Cooperation
Submitted by: France
Topic A: Countering Money-Laundering & Promoting Judicial Cooperation to Enhance International Cooperation
The issue of money laundering is a very large problem there has been between 590 billion and 1.5 trillion US dollars laundered, using 1996 statistics, so imagine the problem today. The definition of laundering is as follows: Laundering: Verb; to put money you have gotten by doing something illegal, in a bank account to hide it from where it really came from. That’s exactly it. One of France’s problems is money laundering through vineyard sales. Chinese buyers have been accused of this problem. The reason they accusing the Chinese of this issue is because they believe that the Chinese are reselling France’s vineyard products to other Chinese. The time span between buying and selling has been shortening. Li Dongrong says that the money laundering has risen to “a strategic level”. Chinese authorities are very busy reviewing massive outflows from the country.
Solutions have been made to try and solve this problem. One of those solutions are the SAS, an electronic banking control. France is offering training in SAS. This organization can scan over 2 billion transactions. Once suspicious behavior is identified, a seamless workflow increases the effectiveness and efficiency of investigations. The increased efficiency can be up to 95%. The SAS also helps to better understand one’s overall exposure. Someone would also be able to scan 100% of your transactions.
The United Nations Convention Against Corruption (UNCAC) and Prevention of Money Laundering scope is wide and criminalizes activities from corruption to fraud. According to Article 23 of the UNCAC the offence of money laundering of proceeds would be committed, provided the intentionality and knowledge requirements are met. They are going to have an impact on the issue because their scope has many outlooks and procedures.
So in conclusion, France may give too much free range, and should be stricter on whom they sell products to. The SAS program will most definitely help the cause. The online website will help scan all bank deposits and withdraws. The UNCAC will definitely do something for it. On other terms France should use these organizations to stop the vineyard laundering. France should use the SAS program because that will scan all of the sales made to other countries. In order to provide global financial security we urge these steps be put in place.
Works Cited
C""THE UN ANTI-CORRUPTION CONVENTION AND MONEY LAUNDERING."THE UN ANTI-CORRUPTION CONVENTION AND MONEY LAUNDERING(n.d.): n. pag. Web. 11 Dec. 2014.
EMCDDA." June 25, 2014. Accessed November 23, 2014.
FATF. "FATF." July 1, 1999. Accessed November 20, 2014.
Master, Cellar. "French Gov Agency Warns of Money Laundering in Vineyard Sales to Foreigners." Ask Magnus. August 7, 2013. Accessed December 15, 2014.
SAS Institute Inc. "SAS." Accessed December 3, 2014.
Germany
Position Paper
Money laundering is the "concealment of the origins of illegally obtained money" (oxforddictionaries.com). In simpler words, as defined by Cornell University Law Institute, it is a "financial transaction scheme that aims to conceal the identity, source, and destination of illegally obtained money". Money laundering usually occurs in shell companies which are companies set up for no business purpose other than processing these transactions. These shell businesses commonly have no major operations or large assets. The crime is easiest to commit with cash obtained from illicit sources such as drug sales, human trafficking and cash bribes, or other forms of illegal income. The person who is trying to launder money, or the launderer, hooks up with a shell company and gives the money to them. The shell company must then create fake invoices, receipts and other false proof to show where this mass of money came from, providing it legitimacy. (law.cornell.edu)
Germany was told by financial associations and by leaders within its own country that it needed to do something about money laundering, as its laws were easy to bypass. The Financial Action Task Force (FATF) actually gave Germany a deadline to change their laws on the topic. In early 2014, the financial minister of Germany had some things to say about the laws on money laundering in Germany. "If Germany doesn't take any steps into this direction until June 2014, it will be included into the enhanced follow up procedure or be part of the listing procedure that's applied to high-risk countries." Wolfgang Schäuble wrote in a letter. (wsj.com)
Germany has made efforts to prevent money laundering. It's current laws on it include that all retailers are obligated to have record keeping that is very organized and informational. German businesses must also identify transactions greater than €15000. If the transaction is not with a known client, and they must identify each party in the transaction. If a third party is involved, the party must be transparent and identified. (antifraudnetwork.com)
Germany has many ways it could further prevent and stop money laundering from occurring. Previously, the problem was that some of Germany's states hadn't appointed legal authority to enforce existing laws. Requiring all states to appoint and maintain these authorities would be the first step to increase compliance with European Union money laundering laws. (europa.eu) The legislature could also pass stricter laws. The laws need to include that small businesses taking in a very high amount of cash should be obligated to maintain detailed records of their money sources. Often, money laundering is done with small amounts of cash transacted at a high frequency. In addition to the €15000 law, there needs to be a law governing both frequency and cash value of transactions. The transaction identification limit should be lowered from €15000 to around €5000. If Germany enforces and follows through with all of their laws, their system should completely prevent money laundering. (antifraudnetwork.com)
Works Cited
"Internal Market: Commission acts to enforce anti-money laundering rules in Germany"
europa.eu. European Commision. 2011. Web. 15 Dec 2014.
"Money Laundering". oxforddictionaries.com. N.d. N.p. 8 Dec. 2014
"Money Laundering: An Overview". law.cornell.edu. N.d. Legal Information Institute. 8 Dec. 2014
"OECD Criticizes Germany on Money Laundering".wsj.com. 2014. Wall Street Journal. 8 Dec. 2014.
"One Year On: The New German Anti-Money Laundering Law". antifraudnetwork.com. 2012. The Anti-Fraud Network. 8 Dec. 2014.
Submitted by: Republic of Guatemala
Money-Laundering is a serious crime that has become more common all over the world over many years. It is the process of which "dirty money" is laundered through a bank or another source to make it look as though it is legitimate. A single scheme usually involves laundering the money through multiple countries to make it impossible to track its origin. Just recently, officials started to investigate banks for any evidence. According to the Wall Street Journal,"Amen Bank, which was 40%-owned by Banco Espírito Santo and operated as part of the Espírito Santo group, became a rare gateway for moving money in and out of Lybia, Banco Espírito Santo said at the time." In 2009, about 1.6 trillion dollars were made by criminal proceedings having to die with money. Long term consequences of money-laundering include drastic changes in money demand, rupturing a bank's soundness and contamination of legal financial transactions. Money-laundering is the number one organized criminal activity to occur without being caught, and that should change. (FATF)
Guatemala is currently in a shift of legislation in intention of countering money-laundering. The authorities there recently arrested 21 people that appeared to be participating in a scheme. The USA was the lead in the national money-laundering rate, however, since the recent outbreak of financial crime, Guatemala is currently taking first place. On April 1st, official rules will take place in Guatemala against money-laundering. Guatemala is also posing requirements in Banks for deposit making, hoping that these implements prevent this crime from continuing at this rate. Jonathan Mankos states," Congress (in Guatemala) is analyzing a proposed bill that would provide better tools to Tax Administration Superintendency to access and verify, without restriction, the real income of bank account holders." (Boyle Litigation)
Therefore, The United Nations should make an effort to install higher security systems and methods in banks and businesses to prevent money from being laundered through them. Guatemala and other Central American countries should collaborate to sustain their nation's laws or rules in the financing field. The United Nations should also refer to their statements on drug trafficking and act on the relation ship between that and money-laundering. With the help of other nations and The UN, we can secure our financials all around the world and stop the crime that is putting it in danger.
Bibliography
"Money-Laundering",faft-ga,2014.
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Patrick,Margot,Kowsmann,Patricia,Enrich,David,"Espírito Santo Faces Money Laundering Investigations",Dows Jones and Company,2014
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Submitted by: Islamic Republic of Iran
Hello, my name is Patrick Dooner and I am the representative of the Iran money laundering protection
topic. I know we don't have the best background when it comes to money laundering on May 2012 Iran
was accused of money laundering with turkey China Dubai Because of this problem some of you might
think that Iran shouldn't speak on this issue. But I guess the best way sum up the problem of money
laundering is with a quote by turkey's economy minister, " If those cast aspersions on the gold trade
are searching for immorality they should take a look in the mirror." The focus of this committee should
be on solving the problem of money laundering and not accusing other countries with this problem lets
start with action . But were working to fix that by working a little with the F.A.T.F to try to restore
peace. unfortunately its like shoveling snow in a blizzard once one crime is stopped there is ten more
we don't even know about. so are you willing to help us fight money laundering?
We obviously don't want this reputation as being the go to place for money laundering. We worked
on bulking up are capabilities to shut down the money laundering networks. This is difficult because
some of the private banks hide money laundering and make it look like drug dealers are successful
business men. That's why we could really use a more advanced money laundering detection system! So
we could see suspicions and stop this crime why wouldn't anyone want to help stop a crime. And for
those of you who continue to overlook money laundering as a minor problem we will never get anything
done because it's not going anywhere unless you make it! Let me ask you this if you had the power to
stop a crime why wouldn't you?
I think the best way to reduce this crime would to look into more advanced money laundering
detection system so we can try to stop it before it starts. And I know that we are defiantly not the only
country with this problem some of the other Islamic countries have this problem too and even other
countries like Kenya Turkey Israel and the Philippines. But we're a little low on the dough so this
operation might require funding. I think this is affecting Iran because it's not good to have money
launderers on the streets because whatever there selling is probably dangerous! And it changes peoples
perspective on Iran as a country. To make this work we would need funding and a better police force to
enforce these laws. And some support from other countries that have encountered this problem and
solved it they would be useful for advice in how to solve it. As a theocracy, we want this to stop money
laundering and we are against it. Thank you.
Resources:
Central Bank of the Islamic Republic of Iran, various authors, December 16, 2014
,United Nations Office on Drugs and Crime
, World fact book- Iran, CIA, June 22, 2014
,Islamic Republic of Iran, Public Statement - 24 October 2014
, U.S. Money Laundering Fines Seen Rising in 2013 With Iran Focus, Sanat Vallikappen Jun 12, 2013
Submitted by: Jamaica
Jamaica and many other countries are having issues with the international trade of illicit drugs and laundering of the profits. Like other Caribbean nations, Jamaica is at an increased risk of these complications because of its isolated geography. It’s very difficult to catch these criminals(though there are heavy consequences for these serious offences). Monitoring these crimes is very difficult because they typically use everyday institutions, or businesses to disguise their illegal actions. Jamaica like other Caribbean countries is at a higher risk for money laundering due to the lack of detection of these launderers. One reason they are at a higher risk is their lack of resources due to budgetary restraints, because the government chooses to invest money in areas that present immediate problems or will aid social well-being to the population. The limited amount of manpower or police force also adds to the amount of laundering in Caribbean countries because of the division between more serious crimes and money laundering. The Caribbean is also a convenient stop for launderers due to its location between South America and Columbia, making it an ideal spot to transport drugs. There is also a great number of banks (550) in the Caribbean and only 17 are subjected to Anti-Money Laundering Laws which also makes it attractive to launderers. All of these things add up making the Caribbean, or Jamaica a great place for launderers,which is especially concerning l due to the fact they can’t catch these illicit launderers.
Jamaica has taken many actions from the Financial Action Task Force(FATF) to fight against or terminate money-laundering. Money launderers have three central steps that they follow. The placement stage is the removal of bulk cash from illegal activity, and even prior to the placement stage there is a exchange phase. Another new trend of launderers is using prepaid money cards because of the anonymity and not needing direct contact with bank personnel. The layering stage is the separating of the illicit proceeds, creating complex layers of financial transactions to disguise audit trail and provide anonymity. The final step, integration is money returns to the legal monetary system long enough for a short term investment. One way to help eliminate these steps in money-laundering is to get rid of the use of these prepaid cards and/or track their use. Having more banks subjected to Anti-Money Laundering Laws in the Caribbean would make launderers less attracted to these locations, there for giving them less “safe” undetectable options.
The UNODC(United Nations Office on Drugs and Crime) established the (GPML) Global Programme against Money-Laundering in 1997, which Jamaica and other Caribbean countries have a mentor covering for the area. The GPML mandate has been strengthening by broadening its horizon to fight against all serious crimes, instead of just drug-related offences. some of these include financial suppression of terrorism, transnational organized crime , and overall corruption. The main objective of this entire program is enhancing the monitoring of serious "CND Background Guide." 2014. MS. Cleveland. CCWA. Web. 14 Dec. 2014. <
crime, launching measures against money laundering and the financing of terrorism. Specialized software is a possible solution for money laundering. So that is a company suspicious of a business relationship they can monitor transactions. And if there are warning signals of illicit transactions one can hire prevention bodies. If these and other measures were taken by Jamaica and other countries they would have better financing and economies. If one Caribbean country, like Jamaica would participate in these actions it would decrease the amount of launderers and enhance this issue internationally, because these few steps can help enhance the cooperation of many countries.
Works Cited
"CND Background Guide." 2014. MS. Cleveland. CCWA. Web. 14 Dec. 2014. <
"Financial Action Task Force (FATF)." IBA Anti-Money Laundering Forum -. FATF, n.d. Web. 11 Dec. 2014. <
Gray-Farquharso, Naderah. The Observed Effects of Money Laundering for Jamaica. Rep. N.p.: n.p., n.d. Web. 10 Dec. 2014. <
"Jamaica." CIA World FactBook. CIA, n.d. Web. 11 Nov. 2014. <
"Jamaica Takes Steps to Tighten Anti-money Laundering Measures." N.p., 5 Dec. 2013. Web. 8 Dec. 2014. <
Submitted by: Kenya School: Monticello Middle School
Committee: CNDDelegate: Leela Rajeswaran
Topic A: Countering Money Laundering
Money laundering has grown more intense, not just in Kenya but also worldwide. Money laundering is a process of engaging in financial transaction that conceal or disguise the identity, source, location and destination of the money. Kenya has become a financial hub for trade throughout East Africa. In Kenya, money laundering is a big problem because it has caused extortion, insider trading, illegal gambling and more importantly drug trafficking. Our government established a law to defy against money laundering. The Anti-Money Laundering (AML) law seeks to criminalize money laundering and asks financial institutes to report suspect transactions. The law’s enactment is being honored as a positive move by the banking and financial services sector that see it as a key step in the country’s fight against money laundering.