Transnational Criminal Organizations, Cybercrime, and Money Laundering: A Handbook for Law Enforcement Officers, Auditors, and Financial Investigators

EEn......Page 1
Transnational Criminal Organizations, Cybercrime and Money Laundering......Page 2
Back Cover......Page 3
Copyright Info......Page 5
Introduction......Page 6
Acknowledgments......Page 9
The Author......Page 10
TOC......Page 11
Part I: The Bad Guys......Page 23
I. Introduction......Page 24
1. The Mafia......Page 26
2. The Camorra......Page 28
B. The Russian Mafiya......Page 29
C. Japanese Yakuza......Page 32
D. The Chinese Triads......Page 34
2. Recent Operations Against the Chinese Triads......Page 35
E. Colombian Drug Cartels......Page 36
1. The Medellín Cartel......Page 37
2. The Cali Cartel......Page 38
3. Cartel de la Costa......Page 41
F. Mexican Criminal Organizations: The Mexican Federation......Page 42
2. Juarez Cartel......Page 43
4. Tijuana Cartel......Page 44
5. Amezqua Organization......Page 45
A. Nigerian Criminal Organizations......Page 46
B. Khun Sa......Page 47
C. Manuel Noriega......Page 48
A. Introduction......Page 49
1. Peru’s Shining Path Terrorist Group......Page 50
A. International Strategic Alliances Generally......Page 51
B. The Colombian Cartels: A Strategic Alliance Case Study......Page 52
Specially Designated Narcotics Traffickers (SDNTs)......Page 54
Part II: Money-Laundering Techniques......Page 62
I. Money Laundering: What Is It?......Page 63
II. Money Laundering: Why Fight It?......Page 65
III. The Mechanics of Money Laundering......Page 66
1. Stage 1: Placement......Page 67
3. Stage 3: Integration......Page 69
A. Smuggling......Page 70
B. Structuring......Page 72
1. Front Companies in General......Page 73
2. Businesses Commonly Used as Front Companies......Page 74
D. The Use of Shell or Nominee Corporations......Page 75
E. Bank Drafts......Page 76
G. Dollar Discounting......Page 77
J. Inflated Prices......Page 78
K. The Colombian Black-Market Peso Exchange......Page 79
V. United States v. Saccoccia: The Ultimate Example of La Vuelta......Page 81
A. Introduction to Cyberbanking......Page 84
B. Cyberbanking and the Encryption of Data......Page 85
C. Smart Cards, or Stored-Value Cards......Page 87
A. What is Cybercrime?......Page 88
B. Justin Peterson: A Cybercriminal’s Case History......Page 89
C. Cybercrime Statutes and Laws......Page 90
III. Cybersecurity in the Future......Page 91
IV. Cyberlaundering: An Example......Page 94
I. What is the “Banking Industry?”......Page 96
A. Introduction......Page 97
B. Attributes of Offshore-Banking Havens......Page 98
III. Underground or Parallel Banking Systems......Page 99
1. How Wire Transfers Work......Page 100
2. The Major Wire Transfer Systems......Page 102
B. The Use of Conduit Accounts......Page 104
1. Introduction......Page 105
2. Basic Steps for Any Bank Compliance Program......Page 106
3. “Know Your Customer” Policies......Page 107
4. Safe Harbor Provisions......Page 108
6. Exempt Businesses/Qualified Business Customers......Page 109
A. American Express Bank International......Page 110
B. Banque Leu......Page 111
C. Bank of Credit and Commerce International (BCCI)......Page 112
2. BCCI’s Move to The Cayman Islands......Page 113
3. BCCI’s Move to the United States......Page 114
5. 1988: Congressional Subcommittees Begin to Look at BCCI......Page 116
8. 1991: The House of Cards Comes Tumbling Down......Page 117
9. Epitaph......Page 118
I. Introduction......Page 120
A. Proposed Regulations Relating to MSBs......Page 121
B. Money Order Transmitters......Page 122
A. Regulation of Casinos......Page 123
B. Laundering Money Through Casinos......Page 124
D. On-Line Casinos......Page 125
IV. Card Clubs......Page 126
VI. Insurance Companies......Page 127
VII. Securities Dealers and Brokers......Page 128
Part III: The Good Guys......Page 130
A. Drug Enforcement Administration (DEA)......Page 131
C. Organized Crime Drug Enforcement Task Force (OCDETF)......Page 132
B. Certification of Drug-Producing/Transit Countries......Page 133
IV. Department of the Treasury......Page 136
B. United States Customs Service (USCS)......Page 137
3. Seizures and Forfeitures by Customs......Page 138
C. Internal Revenue Service (IRS)......Page 139
D. Office of Thrift Supervision (OTS)......Page 141
E. Financial Crimes Enforcement Network (FinCEN)......Page 142
3. Project Gateway......Page 143
H. Federal Law Enforcement Training Council (FLETC)......Page 144
VII. Office of National Drug Control Policy (ONDCP)......Page 145
VIII.Central Intelligence Agency......Page 146
Part IV: Anti-Money-Laundering Tools......Page 147
I. Milestones in American Anti-Money-Laundering Efforts......Page 148
A. Bank Secrecy Act of 1970 (BSA) 31 U.S.C. ss. 5311-5324......Page 150
B. Racketeer Influenced and Corrupt Organizations (RICO) Statute 18 U.S.C. s. 1961-1968......Page 152
C. Money Laundering Control Act of 1986 (MLCA) 18 U.S.C. ss. 1956 et seq.......Page 153
1. Money Laundering Involving Financial Transactions MLCA s. 1956(a)(1)......Page 154
2. Crossing the Border Without Declaring Monetary Instruments MLCA s. 1956(a)(2)......Page 155
3. Money-Laundering Sting Operations MLCA s. 1956(a)(3)......Page 156
5. Engaging in Transactions with Property Derived from Unlawful Activity MLCA s. 1957......Page 157
E. Annunzio-Wylie Anti-Money-Laundering Act of 1992......Page 159
F. Money-Laundering Suppression Act of 1994 (MLSA)......Page 160
G. International Emergency Economic Powers Act (IEEPA) and PDD 42......Page 161
H. International Crime Control Act of 1996 (ICCA)......Page 162
III. Proposed Money Laundering and Financial Crimes Strategy Bill of 1997......Page 163
A. Introduction and Basic Concepts......Page 164
B. How the Guidelines Work......Page 165
C. Sentencing Guidelines for Money Laundering Offenses......Page 166
3. Part 2S1.3: Bank Secrecy Act Violations (31 U.S.C. ss. 5313–5324)......Page 167
V. States’ Money-Laundering and Reporting Legislation......Page 168
VI. Current State of American Money-Laundering Laws......Page 169
APPENDIX 7.1......Page 170
A. Currency Transaction Report (CTR)......Page 196
B. Currency Transaction Report by Casinos (CTRC)......Page 197
C. Currency and Monetary Instrument Report (CMIR)......Page 198
E. Form 8300......Page 199
F. Suspicious Activity Report (SAR)......Page 200
A. Currency Transaction Report (CTR)......Page 203
B. Currency Transaction Report by Casinos (CTRC)......Page 204
C. Currency and Monetary Instrument Report (CMIR)......Page 205
D. Foreign Bank Account Report (FBAR)......Page 206
E. Form 8300......Page 207
I. Introduction......Page 208
1. Property Related to Drug Crimes......Page 209
C. Proceeds of Crime or Property Used to Facilitate Crime......Page 210
1. Civil Forfeiture Proceedings Generally......Page 211
2. Civil Forfeiture: Administrative Proceedings......Page 213
3. Criminal Forfeiture Proceedings......Page 214
E. Relation Back Doctrine......Page 215
G. Constitutional and Other Protections......Page 216
IV. Disposition of Seized and Forfeited Property......Page 217
V. The Future of Asset Forfeiture......Page 218
A. Geographic Targeting Orders (GTOs)......Page 220
C. High Intensity Drug Trafficking Areas (HIDTA)......Page 221
III. Multi-Agency Drug-Money-Laundering Operations......Page 222
C. Operation C-Chase......Page 223
E. Operation El Dorado......Page 224
G. Operation Green Ice......Page 225
I. Operation Greenback......Page 226
L. Operation Polar Cap......Page 227
N. Operation Zorro II......Page 228
O. Pizza Connection Case......Page 229
B. Step 2: Identify and Track the Financial Transactions......Page 230
1. Net Worth Analysis......Page 232
B. Subpoenas......Page 233
III. The ABA Numerical System Identification Code......Page 234
Part V: The World Stage......Page 238
A. Structure and Organization......Page 239
B. The 1988 Vienna Convention......Page 240
B. The Forty Recommendations......Page 242
A. Introduction......Page 249
Crime of Money Laundering......Page 250
Confiscation......Page 251
Currency Reporting......Page 252
V. Organization of American States (OAS)......Page 253
D. Financial Intelligence Units (FIUs)......Page 255
A. The International Monetary Fund (IMF)......Page 256
D. International Bank Security Association......Page 257
B. Mutual Legal Assistance Treaties (MLATs)......Page 258
A. Background......Page 259
C. Organized Crime Activity in Canada......Page 260
1. Background......Page 261
A. Background......Page 263
1. Background......Page 265
2. Anti-Money-Laundering Efforts......Page 266
C. Certification/Decertification of Mexico......Page 267
A. Introduction......Page 269
A. Introduction......Page 270
B. Colombian Anti-Money-Laundering Efforts......Page 271
I. Introduction......Page 275
II. Drug Trafficking Activity in Russia......Page 276
IV. Russian Anti-Money-Laundering Efforts......Page 277
V. Cooperation Between Russia and the United States......Page 278
I. Introduction......Page 279
1. Afghanistan......Page 280
2. Antigua......Page 281
4. Aruba......Page 282
6. Bahamas......Page 283
7. Belgium......Page 285
9. Bermuda......Page 286
12. Brazil......Page 287
16. Channel Islands and the Isle of Man......Page 288
19. Cyprus......Page 289
20. Czech Republic......Page 290
22. Ecuador......Page 291
23. The European Union or European Community......Page 292
26. Guatemala......Page 294
27. Haiti......Page 295
28. Hong Kong......Page 296
32. Israel......Page 297
34. Japan......Page 298
37. Malaysia......Page 299
39. Netherlands Antilles......Page 300
40. Nigeria......Page 301
42. Paraguay......Page 302
44. Puerto Rico......Page 303
46. Taiwan......Page 304
50. Vietnam......Page 305
References......Page 307