Relevant points for Standard Operating Procedures (SOP) for Analysis and dissemination

Legal aspect

Article13/1/ of the proclamation No 780/2013 states that the center has the mandate to collect, receive, store, survey, analyze and disseminate information concerning suspected money laundering and financing of terrorism.

Source of information

-Reporting entities

Banks have been reporting CTRs on weekly bases and STR within three days after detected to the Information System and Financial Security Directorate (ISFSD). The ISFSD is responsible to check whether reporting entities fulfill the requirement while receiving reports from banks. Once the ISFSD confirms its standard, it transfers to the Financial Transactions Examination and Analysis Directorate (FTEAD) through the Deputy General Director or directly.

Input from Reporting Entities: 1. STR 2. CTR 3. Electronic Transfer Report (ETR) 4. Wire Transfer Report (WTR)

- Self-generated cases: Informants & Media

Information also generated from informants through the DG and DDG

-Law enforcement agencies[CGCC1]

-Foreign FIUs

Main activities of FTEAD

The directorate is responsible to analyze and disseminate cases to relevant low enforcement agencies. To conduct these activities, the FTEA directorassigns STRs to experts for examination and analysis in line with the direction that has been given by the deputy director general of the center.Experts are required toapply principles of handling of sensitive information and Ensuring preserving confidentiality of information and using intelligence[CGCC2]. The directorate also responsible developingstrategic intelligence reports to show methodologies and trends of the crimes.

23.Confidentiality

The officers, employees and seconded personnel of the Center, and any other persons who obtain through legitimate and legal means information in the possession of the Center may not disclose the information, except as provided under this Proclamation.

Step one: Search from data base and other sources for additional financial transactions;

Experts usually start examination weather there is any connectionwith the data already available STR and CTR reports that are previously collected. Moreover analysts’ are also required searching from open sources/websites or others/ for additional information such as company and business formation, associations and others.

Step two: Information request from GO and NGO

Analysts are responsible to develop action plan to collect additional information from banks or governmental agencies that have mandate to give license and legal documents.These areministry of trade, investment office, Ethiopian Revenue and Customs Authority and others.

Step three: Look for patterns of the crime

Analysts have to assess the intelligence to organize and identify main targets involved in criminal activity, the source and flowmoney,association between conductors and individuals who are laundering funds. Most importantly, analystsare expected to come up with identifying predicate offence of the crime and crime patters of the case. They also classify evidences including information gaps and possible law enforcement agency who can handle the case.

Step four: Prepare final report

Analystsare required to prepare a summary report which is submitted to the Director of FTEAD based on the report format. The director examines the effort experts invested on it. Accordingly, the director forwards comment on uncovered area if there is at all. Then final report is sent to the general director and the deputy general director for approval. Finally the director disseminates to the proper law enforcement agency including relevant documents and covering letter.

In the other side,there is a possibility to hold cases when the final analysis resulted in wider information gab or when the case is lesssensitive.

Step five: Receive feedback

Although the directorate hasn’t prepared a feedback format yet, it had been receiving request from the federal police investigation team that demands additional evidences for cases that had already been disseminated by FIC.

On-site Supervision (compliance)

  1. Letter notifying inspection planned in person
  2. Auditor unit – on-site audit
  3. Desk assessment
  4. Check list
  5. Benchmark
  6. Size of bank
  7. Asset
  8. Employee
  9. No of STR/CTR reported
  10. Letter of improvement areas
  11. Sanction measures committee

25.Investigative Techniques

1/For the purpose of obtaining evidence of money laundering or financing of terrorism or tracing proceeds of crime, the judicial organs may authorize crime investigation authorities, for a specific period:

Note

These steps can’t be applied to terrorist financing reports since the nature of the crime is sensitive[CGCC3].

Flowchart

Initial Clarifications re: Analysis Flowchart steps

Pre-Analysis:

Input

Receiving (see 1st day notes- intake)

Analysis Flowchart SOPs

**Before analysis can begin, an officer receives the STR to confirm whether mandatory information is there. This is acknowledge of receipt.

  1. Initial Assessment and matching
  2. Search FIC Database as part of
  3. Search/Analysis Planning
  4. Information and source evaluation
  5. Begin movement and tracking of STR (be sure to document)
  6. Director assigns STR to analyst
  1. Understanding the case
  2. Completeness of STR and all 6 parts
  3. Address
  4. Suspected entity
  5. Transaction
  6. Link
  7. Opinion of compliance officer
  8. Attachment
  1. Set hypothesis - optional
  2. Initial hypothesis  Collection  Analysis
  3. Optional for analyst to form hypothesis based on his/her background and expertise.
  4. Analyst should not collect information in a biased manner in order to support one hypothesis[CGCC4].
  1. Search Planning
  1. Search FIC Database
  2. Analyst is authorized to search database regarding individual named in STR
  3. Check external databases - open, government organization [CGCC5]database
  4. Ex: Civil Status Division, registrar companies and general, national transport authority, customs database, tax system, cash info from customs, customs imports and exports, adverse information from open sources, commercial database such as World Check
  1. Collection of information
  2. Organization of information
  3. Sources and contact
  4. Required data and information
  5. Timing
  6. Responsibility
  7. Request external information from private, reporting entity
  8. Analyst must get approval from superior for sensitive cases
  9. Format for requesting information from external institutions – to determine
  10. Informal – good relationship with institutions
  11. No ability to control information from reporting institution - danger of losing information
  12. Depends on integrity of intelligence officer
  13. Official – request
  14. Lose confidentiality through documentation department
  15. Who provides approval? DG, or Senior Analyst
  16. Who can authorize from which organization?
  17. Timeframe for analyst to submit request
  18. At what time is response [CGCC6]expected?
  1. Source evaluation to determine validity
  2. If information is not correct, begin collection #2.
  3. Insert FIU Mauritius Intelligence Report matrix - 5 criteria regarding reliability of information
  4. Define indicators on each parameter
  1. Understanding pattern
  2. FATF Typologies
  3. What, how and why ML/TF linked?
  1. Technical Analysis
  2. Linking of sources and operators
  3. Linking of funders and sources
  4. Linking between people and addresses
  1. Preparation of report – format
  2. Base information on documents already collected, though gaps remain due to administrative style of the FIC.
  3. The pattern of the crime is observed during the process
  4. With regards to analysts – they should identify gaps, what information is missing? What has yet to be collected? These are recommendations to be included.
  5. Should also recommend which organization is the appropriate authority to handle the case?
  6. Format – cover letter, case, feedback form
  1. See Mauritius presentation format if would like to edit
  2. Analyst Proposal and recommendation No, Set Aside  analysis again

Dissemination SOPs

Analyst Proposal and recommendation Yes, Dissemination

  1. Dissemination
  2. Approval given by DG to disseminate to relevant authority
  3. Keep statistics of how many cases are disseminated
  1. Feedback and Follow-up
  1. Develop feedback format
  2. Same feedback form for national and international partners
  3. Give feedback form to outside agency
  4. See Thai AMLO example of feedback form
  5. Receive comments and clarity from external organizations
  6. Give comments to analysts to add information
  7. Keep statistics of how many convictions, and which predicate offenses were linked to each conviction.
  8. Cooperate with police.
  1. Joint Committee
  1. FIC has ability to be informed of result of/status of case[CGCC7]
  2. Joint Committee with investigative body (Police) – regularly meet with them if they want additional information regarding case
  3. Cite MoU with Police
  1. Record Keeping
  2. Maintain copies of all files received
  3. Hard copy vs. soft copy
  1. Keep statistics of:
  2. # of disseminations - Sent to law enforcement
  3. Under investigation
  4. Prosecuted – areas of prosecution – case pending in court
  5. Already convicted
  6. Assets seized
  1. Predicate offenses and what percentage they represent in total ML cases

[CGCC1]Suggestion: Specify the rank of the requesting officers and what procedures, if any, the requesting officer must follow for a procedurally correct request. Ex., Will a phone call suffice?

[CGCC2]Suggestion: Is there a reason to differentiate between intelligence and evidence here? Need to ensure that successful production of documentation pursuant to a criminal investigation is admissible in court.

[CGCC3]Suggestion: Validate this statement against the definition of a ‘terrorist act’ per Proclamation No. 652/2009.

[CGCC4]Suggestion:Clarify the purpose of making a hypothesis before collection.

[CGCC5]Suggestion: Clarifying access to government agency databases may be useful here.

[CGCC6]Suggestion: Clarify procedures in the event of non-compliance with an official request.

[CGCC7]Suggestion: Clarify per the MoJ.