Fabio Giovannini Mila Mardia Husna Melissa Cammarata

THE INTERNATIONAL AND EU LEGAL FRAMEWORK ON

ANTIMONEY LAUNDERING AND COUNTER TERRORIST FINANCING

2015/2016

MONEY LAUNDERINGThe process of taking the

proceeds of criminal activity and making them

appear legal

WHERE DOES ‘DIRTY

MONEY’ COME FROM?

Extortion

Insider trading

Drug trafficking

Illegal gambling

1. PLACEMENT

2. LAYERING

3. INTEGRATION

THE 3 PHASES OF MONEY-LAUNDERING

1. PLACEMENT

Relieving the criminal of holding and guarding large amounts of bulky cash

Placing the money into the legitimate financial system

2. LAYERING

Converting cash into monetary instruments

Material assets bought with cash then sold

3. INTEGRATION

Now the money is fully integrated into the financial

system and can be used for any

purpose

INTERNATIONAL STANDARDS O N C O M B AT I N G M O N E Y L A U N D E R I N G

A N D T H E F I N A N C I N G O F T E R R O R I S M A N D P R O L I F E R AT I O N

FINANCIAL ACTION TASK FORCE

Implement relevant international conventions. Criminalize money laundering and terrorist financing

and enable authorities to confiscate proceeds from criminal and terrorists activities.

Establish a financial intelligence unit (FIU) to receive and analyze suspicious transaction reports.

Ensure effective law enforcement and prosecution of money laundering and terrorist financing crimes.

Implement customer due diligence. Ensure that comprehensive and effective mechanisms

are in place for international cooperation.

FATF 40 + 9 Recommendations

Largely based on international standards by the FATF.

EU Standards

Money Laundering Directive

Third Directive (2005)

Fourth Directive (2015)

Italy Standards

•Legislative Decree No. 231/2007•Legislative Decree No. 109/2007EU Third

Directive

Ministry of Economy

and Finance

Finance Intelligenc

e UnitBank of

Italy

Compliant with FATF Recommendations.

Asia/Pacific Standards

Asia/Pacific Standards

In 2008 Falciani began collaborating with numerous European nations by providing allegedly illegal stolen information relating to more than 130,000 suspected tax evaders with Swiss bank accounts - specifically those with accounts in HSBC's Swiss subsidiary HSBC Private Bank.

Hervé Falciani:HSBC Whistleblower

Repressive

measures

Preventive

measures

THE FIGHT AGAINST ML

PENALIZATION

EMPOWERMENT

IMPLEMENTATION

AT A NATIONAL LEVEL …

Art.648 bis

• Money laundering activity

Art. 648 ter

• Use of property of illicit origin

Art. 648 ter.1

• Self-laundering

CRIMINAL

CODE

REPRESSIVE MEASURES

REPORT on CRIMINAL ACTIVITYChapter criminal infiltrationon the legal economy+

suspicious transaction reports

PUNISHMENT: IMPRISONMENTAND FINE

February2015

RESTRICTIVE MEASURES (‘’sanctions’’)

AT AN EUROPEAN LEVEL …

SANCTIONS

BROADER sense

Diplomatic

sanctions

NARROWER sense

Arms embargo

es

restrictions on

admission of listed persons

freezing of assets belongi

ng to listed persons/entitie

s

Economic activity

restrictions

SPECIFIC RESTRICTIONS

ON SOME COUNTRIES

PREVENTIVE MEASURES

Some means of payment like cash are subject to restrictions.

Cooperation between Financial Intelligence

Units (FIUs)

Customer due diligence (CDD)

Italian law for traceability

Financial informationrequired by national

legislation or regulation

AML regulation(2007)

UNIVERSITY OF PAVIA CONTRIBUTIONTO ANTI-MONEY LAUNDERING SYSTEM

Data base system from a social network analysis

MELISSA FABIO

MILA