2011 hk fyodor-anthony_ppt

33rdrd Annual Enhanced AML/CTF Tools & Techniques-SingaporeAnnual Enhanced AML/CTF Tools & Techniques-Singapore

Agenda33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong

Preparing for the Global Growth of Electronic Payments and their Impact on

Financial InstitutionsAnthony Lai &

Yarochkin Fyodor

17 October 2011

ACAMS Asia-Pacific Live Seminar Series

Electronic Payments in Online Crime

ACAMS Full Day Seminar - Enhanced AML/CTF Tools & Techniques

• Electronic payment systems: case studies

• “red flag” criminal activities

• Discussion: – Regulatory requirements regarding electronic payment transactions

– New tools and best practices to enhance AML/CTF control in addressing

these payments

– Strengthening your AML program to monitor these payment vehicles

Agenda33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong

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33rdrd Annual Enhanced AML/CTF Tools & Techniques- Hong KongAnnual Enhanced AML/CTF Tools & Techniques- Hong Kong


• What will you learn here:

– Exposure to real cases and examples of “red flag” activities

– Channels and patterns

We are cybecrime experts, so....

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You probably know about “HAWALA”

Hawala (also known as hundi) is an informal value transfer system based on the performance and honour of a huge network of money brokers

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Many of electronic payment systems are following the HAWALA principleAnd built on the top of similar infrastructure

Now backed by digital inftastructure

No traces in banking network

Money disappear in one place, pop up in another

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• Lets look at some examples

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There is more than one way to transfer money

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33rdrd Annual Enhanced AML/CTF Tools & Techniques-Hong KongAnnual Enhanced AML/CTF Tools & Techniques-Hong Kong


• Of course you know paypal and other “white” payment electronic

systems. They are simple, and uninteresting

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• Controlled by regulatory acts. (http://www.ffiec.gov/PDF/EFS.pdf)

• Similar to conventional payment systems (not much space for

anonymized fraud :-))

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http://www.ffiec.gov/PDF/EFS.pdf

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• WMZ - web money - one wmz = one USD

• Drop - money mule• CC - creditcards• Abuse resistant - Safe to host

any kind of fraudulent service • Partnerka - partnership program

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Getting to know “Underground” money systems

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• There are many:

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• Web Money (WMZ)• Yandex Money• LR (liberty reserve• Epassporte (dead!)

Where is webmoney office in Thailand?

Pataya!! Where gangsters are ;-)

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• Credit card “dumps” websites, work only with “trusted” systems.

Why?

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AlertPay, SMS, LiqPay

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• They feature “awesome” geographical locations

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• As with real currency, exchange points exist. Percent charged:

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• WMZ - widely used on black markets

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• Credit cards: easily available and covertable into non-traceable

currency

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• Such data is also on sale (note LR -> Liberty Reserve payment

system)

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• “cleaning” dirty cash - services available

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Accepting dirty cash. 40% feeIe 100 of dirty units, u get 60 clean back.Payment in alfabank, or yandex money

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• Done through money mules:

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• FBI arrests last year

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• Another way of “cleansing” cash through sale of charged skype

accounts. Exchange rate is 1 to 2.5

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• Similar method in china. Conversion through online goods.

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• Passport scans sale: big market for the same reason

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4-5USD/scan avg.eu, .ru, .us, asianOne-hand salesAlso offered - scan “redraw”Special prices for bulk

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• So “cleansing” packages could be arranged

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• Explanation:

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Под средства любой загрязненности! For money of any state of dirtinessВ комплект входит: Pack includes1.Банковский акк(online доступ) Online bank account access2.АТМ картa(Дневной лимит на снятие средств 1000$/6000$ В МЕСЯЦ-Возможно увеличение лимита +30$-) ATM card (1000/6000USD per month withdrawal limit)3.Карта кодов (для online доступа) online access passwords4.Копия паспорта дропа Passport copy of “poor john”5.Sim-ka SIM card

Also can be pre-ordered on custom passport scan (25USD)

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• Other monetizations: SMS

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• SMS in. Money out

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• This year, going international, utilizing localized payment

systems:

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• Spanish version

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• Very “international” operations.

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Registration Service Provided By: Bizcn.comWebsite: http://www.cnobin.comWhois Server: whois.bizcn.com

Domain name: bundespol.net

Registrant Contact: Whois Privacy Protection Service Whois Agent [email protected] +86.05922577888 fax: +86.05922577111 No. 61 Wanghai Road, Xiamen Software Park xiamen fujian 361008 cn

person: Ionut Triparemarks: SC GoldenIdeas SRLaddress: Str. Drumul Sarii, nr.

57Caddress: Sector 6, Bucuresti

phone: +0744885334abuse-mailbox:

[email protected]: IT1737-RIPE

source: RIPE # Filteredmnt-by: GOLDENIDEAS-MNT

person: Ionut Triparemarks: SC GoldenIdeas SRLaddress: Str. Drumul Sarii, nr.

57Caddress: Sector 6, Bucuresti

phone: +0744885334abuse-mailbox:

[email protected]: IT1737-RIPE

source: RIPE # Filteredmnt-by: GOLDENIDEAS-MNT

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– Regulatory requirements regarding electronic payment transactions

– New tools and best practices to enhance AML/CTF control in addressing these payments

– Strengthening your AML program

Discussion

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33rdrd Annual Enhanced AML/CTF Tools & Techniques-SingaporeAnnual Enhanced AML/CTF Tools & Techniques-Singapore


Questions?

2011 hk fyodor-anthony_ppt

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