Terrorist Financing Video Transcript

Announcer

In today's sophisticated world of blindingly fast technology, high-speed travel, and the globalization of economies, guess what industry is operating at the most technologically advanced level in history?

Crime.

Crime is driven by money and greed. The movement of money from criminal activity, its placement, layering, and integration, finances criminal activity of all kinds, allowing it to grow and flourish. In fact, criminals involved in the laundering of money have developed a variety of ways to make "dirty money" appear to be legitimate.

In the case of terrorist financing, the money is moved before the crime takes place, but the transactions are equally clandestine.

Both activities create critical linking points for those involved in the fight against these forces.

It's called the money trail: and the careful analysis of the money trail can lead to the prosecution of terrorists and criminals.

The financial intelligence unit is a national agency committed to following this money trail and our mission is to fight money laundering and terrorist activity financing.

Harnessing high-powered technology and analytical tools, and working in partnership with the many businesses that submit financial transaction reports, the FIU provides reliable financial intelligence – connecting the money to the crime.

Announcer

Here's how we operate.

We receive reports of financial transactions and other information...

Then we analyze this information, looking for and finding links and patterns, trends and tendencies...

And when we have reasonable grounds to suspect money laundering or terrorist financing, we disclose the identifying information to law enforcement and security agencies in our own country and around the world, giving them the intelligence they need to investigate and prosecute.

First let's look at the many businesses that provide information to the financial intelligence unit:

  • From banks, credit unions, and trust and loan companies.
  • From securities dealers, accountants, real estate agents and brokers, insurance agents and brokers, casinos and other sources;
  • Foreign exchange dealers and money services businesses;
  • From law enforcement and intelligence agencies both domestically and internationally;
  • And from a number of other sources, including the general public.

This information can include suspicious transactions, large cash transactions, and movements of currency across international borders. It's a database of transactions that allows us to see connections within criminal networks and uncover activity that might otherwise go unnoticed.

Announcer

Now let's look at how we analyze the financial information we receive.

Our database is large and complex, as we work with millions of transactions and use them as the basis of our analysis.

In a highly secure environment, the FIU uses specially designed analytical tools to find patterns, which are then checked and cross-checked exhaustively.

Announcer

Now let's examine the financial intelligence that is produced as a final product.

Most of the reports we receive are the result of ordinary day-to-day business transactions. To protect privacy rights, these reports are carefully safeguarded. In fact, the vast majority of the transactional data in the possession of the FIU is never shared with anyone.

Once our analysis shows that we have reasonable grounds to suspect that the information is relevant to an investigation or prosecution, the FIU transmits our analysis to the appropriate law enforcement or security agency, enabling them to move ahead with an investigation.

Announcer

Your commitment to the process of combating money laundering and terrorist financing entails these key activities:

  • Filing reports;
  • Knowing Your Client;
  • Record Keeping;
  • And establishing a compliance regime.

Your compliance regime should contain these five key elements:

  • Appointment of a compliance officer;
  • Establishment of compliance policies and procedures;
  • A systematic, regular review of your compliance policies and procedures;
  • An ongoing compliance training, in order to keep staff and colleagues up to date; and
  • A risk assessment of potential threats and vulnerabilities to money laundering and terrorist financing.

In 1989, the Financial Action Task Force (FATF) was created. Its purpose is to develop and promote national and international policies to combat money laundering and terrorist financing. The FATF has made 40 recommendations and 9 special recommendations.

These recommendations set the standard for anti-money laundering and counter-terrorism financing efforts around the world.

The financial intelligence unit can provide you with some tools to help bring your compliance regime on line.

Here's how you can find out more: www.fatf-gafi.org