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FINANCIAL INVESTIGATION

Presented by

ARTEMIO L. BACULI, JR.


Bank Officer IV, Compliance and Investigation Group,
AMLC

for the

Course on Combating Money Laundering


and Terrorist Financing
16-17 August 2012
Philippine Drug Enforcement Agency Regional
Office Davao City

WHAT UNLAWFUL
ACTIVITIES ARE
DEFINED IN THE AMLA?

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UNLAWFUL ACTIVITIES IN THE AMLA:


Kidnapping for ransom
Comprehensive Dangerous Drugs Act
of 2002 (Sec. 4,5,6,8,9,10,12,13,14,15,16)
Anti-Graft and Corrupt Practices Act
Plunder
Robbery and Extortion
Jueteng and Masiao

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Piracy on high seas


Qualified theft
Swindling under Art. 315 of RPC
Smuggling
Electronic Commerce Act of 2000

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Hijacking; Destructive Arson and


murder, including those perpetrated by
terrorists against non-combatant
persons and other targets
Securities Regulation Code of 2000
Felonies or offenses of a similar nature
that are punishable under the penal
laws of other countries

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Investigative Triggers
Covered Transactions Sec. 3 (b)
Suspicious Transactions Sec. 3 (b-1)
Referrals by Supervising Authorities
Referrals by Law-Enforcement Agencies
Referrals by foreign jurisdictions, agencies or
FIUs
Newspaper or media reports of unlawful/ML
activities
Citizens sworn complaints relating to
unlawful/ML activities

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Investigative Triggers
Sworn complaints from alleged victims of

malicious reporting; and


Such other reports, referrals or complaints
similar, analogous or identical to any of the
foregoing as may be determined by the
Council

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ML/TF Investigation
Power of AMLC is to investigate
ML cases.
Investigation of Unlawful
Activities/ Underlying Predicate
Crimes are done by the Law
Enforcement Agencies.

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CTR vs. STR


CTR is a transaction involving

amount in excess of P500K within 1


banking day
STR is a transaction, regardless of

amount involved (Sec. 3 [b-1],


AMLA, as amended)

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STR (Sec. 3 [b-1])


1.
2.
3.
4.

5.
6.
7.

Client not properly identified


No underlying legal or trade obligation, purpose or
economic justification for the transaction
Amount involved is not commensurate with the business
or financial capacity
Transaction is structured in a manner that invites
suspicion that it is trying to avoid the reporting
requirement
Circumstances relating to the transaction which is
observed to deviate from the clients past transactions
Transaction is in any way related to an unlawful activity
under the AMLA
Transaction that is similar or analogous to any of the
foregoing
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Suspicious Indicators in
Terrorism Financing

Wire transfers between accounts, without


visible economic or business purpose;

Sources and/or beneficiaries of wire


transfers are citizens of countries which
are identified or connected with
terrorist activities;

Repetitive deposits or withdrawals that


cannot be explained or do not make
sense;
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Terrorism Financing
Suspicious indicators (cont)

Value of the transaction is over and


above what the client is capable of
earning;
Client is conducting a transaction that
is out of the ordinary for his known
business interest;
Deposits being made by individuals
who have no known connection or
relation with the account holder;
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Terrorism Financing
Suspicious indicators (cont):

An individual receiving remittances, but


has no family members working in the
country from which the remittance is
made;
Client was reported and/or mentioned in
the news to be involved in terrorist
activities;
Client is under investigation by law
enforcement agencies for possible
involvement in terrorist activities;
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Terrorism Financing
Suspicious indicators (cont):

Transactions of individuals, companies or


NGOs that are affiliated or related to people
suspected of being connected to a terrorist
group;
The NGO does not appear to have expenses
normally related to relief or humanitarian
efforts;
A mismatch between the pattern and size of
financial transactions on the one hand and the
stated purpose and activity of the NGO on the
other;

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Terrorism Financing
Suspicious indicators (cont):

Incongruities between apparent sources


and amount of funds raised or moved
by the NGO; and
Any other transaction that is similar,
identical or analogous to any of the
foregoing.

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Investigation of Money
Laundering
ML investigation Section 7(10) of the AMLA provides

that the AMLC may enlist the assistance of any branch,


department, bureau, office, agency or instrumentality of
the government, including government-owned and
-controlled corporations, in undertaking any and all antimoney laundering operations, which may include the use
of its personnel, facilities and resources for the more
resolute prevention, detection and investigation of
money laundering offenses and prosecution of offenders

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HOW MONEY LAUNDERING


IS BEING CARRIED OUT?
(take note of the
transactions)

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SOME MONEY LAUNDERING


TYPOLOGIES:
Deposit in banks
Sending money thru money remittance
Payment of credit card bills
Purchase of securities / travellers check
Payment of insurance premiums
Commingling of funds with business
Purchase of property (real and personal)
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Bulk cash smuggling


Structuring/Smurfing
Use of nominees/other names
Mis-use of non-profit organizations
Use of casinos and casino chips
Wire transfers
Trade-based money laundering
Use of business fronts

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Back-to-back loans
Facilitation by lawyers, brokers,
accountants
Use of alternative remittance systems
Credit-debit memos in banks
Use of money changing shops

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WHAT ARE THE TOOLS


AVAILABLE
TO US?

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LEGAL TOOLS UNDER


AMLA:
Freeze Order
Civil Forfeiture
PAPO/APO
Bank Inquiry Order
Criminal Complaint for money laundering

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LEGAL TOOLS UNDER


OTHER LAWS:
Search Warrants
Confiscation/Seizure of Illicit Goods
Arrest In Flagrante Delicto of bad guys
Criminal complaint for the Crime

committed (unlawful activity)


If there is probable cause an
Information is filed, arraignment and
preliminary attachment/garnishment
Conviction criminal forfeiture of
assets
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WHAT ARE THE ADDED


BENEFITS OF THE LEGAL
TOOLS PROVIDED BY
THE AMLA?

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Freeze Orders
Ex parte and confidential
No filing fee at Court of Appeals
Effective nationwide
Easy to enforce
Difficult to lift
Applicable to banks, Register of Deeds,

Land Transportation Office, Insurance


companies, Securities Brokers,
Corporations, and Individuals

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Civil Forfeiture
Initially ex parte, confidential and in special

Regional Trial Courts


No need for pendency of criminal case or
conviction
Preponderance of evidence only
Quasi-in-rem (publication in the event that
respondent is at large)
No filing fee, easy to enforce and can be
filed in Manila

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CRIMINAL COMPLAINT FOR


MONEY LAUNDERING
Transaction + Derived from Unlawful

Activity + Knowledge = Conviction


One count per transaction
Filed at Department of Justice
If convicted, no probation
Initiated by AMLC
Special prosecutors

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HOW DOES THE AMLC


INVESTIGATE
IN ORDER TO IMPLEMENT
THE LEGAL TOOLS?

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AMLC INVESTIGATIVE
PROCESS
Identification of Unlawful Activity
Identify and track financial transactions
Perform financial analysis of target

* DTI,SEC,BIR,LRA,LTO etc.
Freezing and Forfeiture of Assets and
Filing of money laundering case

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FINANCIAL RECORDS TO LOOK FOR


(Include in the Inventory)

Deposit slips
Withdrawal slips
Credit / debit memos
Cancelled checks
Investment records
Income tax records
Travel records
Legal Contracts
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Telephone bills / business cards


Computers / electronic printouts
Account ledgers
Incorporation / partnership papers
Financial statements
Fees / disbursement journals
Income statement
Plane tickets

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ATM receipts
Certificates of stock
Trust accounts
Minutes of meetings
CPA reports
Debt sheets
Cash/Currency clips
Travelers checks

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Address books / diaries


Hotel receipts
Vehicle registration records
Insurance policy/receipts
Real property documents
Loan records
Safety deposit box keys
lawyers / accountants records

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Interview..
Ask informants who, where, how money

is used and given


Check the ownership of house where
they live or conduct business
The ownership of vehicles being used
How bills are paid
The bank or remittance company they
often go to
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Names and address of family members

and possible dummies


Aliases that they use and copies of
Identification cards
Citizenship of their accomplices
Possible business dummies/fronts of
their accomplices (possible trade-based
money laundering)

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How do their accomplices pay for bills

(hotel, credit card, cellphone, electricity,


plane ticket, etc.)
Possible businesses of accomplices
(e.g. recruitment company, remittance
agency, import-export company, mining
company, DVDs, imported goods, travel
agency, money changer, etc.)

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HOW TO REQUEST
ASSISTANCE/REFER
CASE TO AMLC?

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AML Desks
email to vaquino@bsp.gov.ph
Call 7087071/fax 7087909
Referral Letter (please state case

circumstances/details)
Prevent fishing expedition
Drop by 5th Flr, EDPC Bldg., BSP
Complex, Roxas Blvd., Malate, Manila

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ACTUAL CASE

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Jimmy Ong et. al. case


Link Analysis 1
Link Analysis 2

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Sally Ang Nina et.al. Case


Link Analysis
Comparative Analysis

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Changxin Wang et.al. Case


Link Analysis

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Thank You!

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