AMLCA Quiz 20

The Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2001 (MLFTA) is modeled on the UK legislation and is divided into the following four parts:-

(a) Part I: Money laundering and definitions of the offenses.
(b) Part II: Anti-money laundering provisions and establishing the AMLA and identifying its powers, identifying the FI’s responsibilities with respect to customer identifications and other duties.
(c) Part III: Freezing and forfeiture of assets.
(d) Part IV: Miscellaneous (covering investigations and liability of officers and bodies corporate).

Punishment of fine BDS$1,500,000 or 15 years imprisonment will be given to a person on conviction on indictment who is providing assistance to engage in money laundering under section 20 (2) of Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2001 (MLFTA) in Barbados.

The Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2001 (MLFTA) is modeled on the UK legislation and is divided into the following four parts:-

(a) Part I: Money laundering and definitions of the offenses.
(b) Part II: Anti-money laundering provisions and establishing the AMLA and identifying its powers, identifying the FI’s responsibilities with respect to customer identifications and other duties.
(c) Part III: Freezing and forfeiture of assets.
(d) Part IV: Miscellaneous (covering investigations and liability of officers and bodies corporate).

Punishment of fine BDS$150,000 or 3 years imprisonment will be given to a person on summary conviction who is providing assistance to engage in money laundering under section 20 (2) of Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2001 (MLFTA) in Barbados.

The Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2001 (MLFTA) is modeled on the UK legislation and is divided into the following four parts:-

(a) Part I: Money laundering and definitions of the offenses.
(b) Part II: Anti-money laundering provisions and establishing the AMLA and identifying its powers, identifying the FI’s responsibilities with respect to customer identifications and other duties.
(c) Part III: Freezing and forfeiture of assets.
(d) Part IV: Miscellaneous (covering investigations and liability of officers and bodies corporate).

The Society of Trust and Estate Practitioners (STEP) is the foremost professional body for the trust and estate profession worldwide. The members of STEP come from accountancy, legal, trust and corporate administration, banking, financial planning, insurance and related professions and are involved at a senior level in the creation, planning, management of and accounting for trust and estates, administration, executorship and related taxes. The STEP was founded in the year 1991 with the aim of bringing together all the senior practitioners in various fields. The members share information knowledge and experience through meetings, seminars, lectures and exchange of technical papers and reports and benefit from the network of contacts that membership provides.

Money Laundering is as old as money itself, however in the past nobody looked at it as a crime. During the Prohibition period in the USA (1920-1933) huge amounts of money must have been laundered and at that time Al Capone was the most notorious gangster in the USA at that time. It is very interesting to note here that, where police forces with guns endlessly chased Al Capone gangs without success, it was the people behind desks without guns who were finally successful in getting these gangsters indicted and charged and sent away him for 11 years.

Switzerland strengthened its bank secrecy laws in the early years of the 1930s with the aim of helping people hide away money in fear of the Nazi regime. Switzerland was alone in having bank secrecy rules, but it already had for a long time a well-established name for being discreet. Tax evasion was not being a crime in Switzerland at that time. Money could be safely put away without any questions being asked. Only two directors of the bank in question had to know the identity of the client. For all others it was a numbered account or an account with a certain agreed code.

Punishment of fine BDS$10,000 or 2 years imprisonment will be given to a person of summary conviction who is a failure to report that a person receives more than BDS$10,000 (or foreign equivalent) from outside of Barbados without exchange control permission under section 8A (6) of Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2001 (MLFTA).

The offshore world was created in the late 19th century. New Jersey was the first to offer companies those established in that state and doing business in another state to pay the lower New Jersey tax rate.

For a long time Eurodollars already existed. With the implementation of the Marshal Plan after WW-II US dollars started to flow into Europe. After the rebuilding of the USA’s industry the USA became the biggest export market for Europe, even more dollars flowed into Europe and so enormous amounts of US dollars were held in custody by non-US banks in Europe. At that time the Soviet Union also held US dollars, however US banks were secured by Certificates of Deposit.

With the induction of Foreign Investment in Real Estate Property Act (FIRPTA) in the early 80s the United States Government makes the investment of undeclared and illegally obtained money more difficult.

The International Fiscal Association on the occasion of its annual meeting in Venice in the year of 1983, dedicated one of its seminars to the difference between tax avoidance and tax evasion. As expected no general conclusion was reached.

Punishment of fine BDS$2,000,000 or 25 years imprisonment will be given to a person on conviction on indictment who is involved in the money laundering offenses under section 20 (1) of Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2001 (MLFTA) in Barbados.

The Bernie Cornfield’s IOS had its headquarters in Geneva before the Swiss authorities withdrew his license and forced him to go completely offshore and at that time having more than 15000 salesmen working over the world in more than 100 countries that made the general public aware of the existence of the financial offshore world and the possible misuse.

The collapses of Banco Abrosiano and the Bank of Credit and Commerce International (BCCI) in Italy in the year of 1982 worldwide represents the misuse of the financial (offshore) system and eventually closed by joint action of the British and Luxembourg regulators and in the USA by the Manhattan District Attorney Robert Morgenthau in 1991. These actions made it clear that even fully licensed banks supervised by well-respected national institutions were also used for other ends than the normal day-to-day banking transactions.

The collapses of Banco Abrosiano and the Bank of Credit and Commerce International (BCCI) in Italy in the year of 1982 worldwide represents the misuse of the financial (offshore) system and eventually closed by joint action of the British and Luxembourg regulators and in the USA by the Manhattan District Attorney Robert Morgenthau in 1991. These actions made it clear that even fully licensed banks supervised by well-respected national institutions were also used for other ends than the normal day-to-day banking transactions.

In the United States on America the scandal of the collapse of Savings and Loans Banks (S&L) that after the deregulation in the year of 1982 left the US taxpayer with an unpaid savings and loan repair bill of over US$200 billion by the end of 1988. This shows that banks could easily be used for other non-reputable ends.

Punishment of BDS$100,000 on directors jointly and severally will be given to a person who is a failure of a licensee to make a suspicious transaction report to the Anti-Money Laundering Authority (AMLA) under section 8 (4) of Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2001 (MLFTA).

IOS used by the Meyer Lanski for laundering his “silver dollars” obtained from the gambling tables before he purchased his own Miami National Bank. Banco Ambrisiano maintained a scheme of offshore companies for money laundering for the Mafia and the P2 Lodge and Bank of Credit and Commerce International (BCCI) was used by big-time arms traders.

Meyer Lanski used the IOS for laundering his “silver dollars” obtained from the gambling tables before he purchased his own Miami National Bank. Banco Ambrisiano maintained a scheme of offshore companies for money laundering for the Mafia and the P2 Lodge and Bank of Credit and Commerce International (BCCI) was used by big-time arms traders.

Meyer Lanski used the IOS for laundering his “silver dollars” obtained from the gambling tables before he purchased his own Miami National Bank. Banco Ambrisiano maintained a scheme of offshore companies for money laundering for the Mafia and the P2 Lodge and Bank of Credit and Commerce International (BCCI) was used by big-time arms traders.

After recognizing the immense thread of money laundering the Group of Seven (G7) at its summit in the year of 1987 decided that international action was needed to combat the increasing misuse of the worldwide financial system by criminals for laundering drugs money. It was decided to establish an intergovernmental body to set worldwide standards to fight money laundering in the shape of the Financial Action Task Force (FATF). The Financial Action Task Force (FATF) was quick in setting global Antimony Laundering Standards by issuing its Forty Recommendation in 1990.

After recognizing the immense thread of money laundering the Group of Seven (G7) at its summit in the year of 1987 decided that international action was needed to combat the increasing misuse of the worldwide financial system by criminals for laundering drugs money. It was decided to establish an intergovernmental body to set worldwide standards to fight money laundering in the shape of the Financial Action Task Force (FATF). The Financial Action Task Force (FATF) was quick in setting global Antimony Laundering Standards by issuing its Forty Recommendations in 1990.

After recognizing the immense thread of money laundering the Group of Seven (G7) at its summit in the year of 1987 decided that international action was needed to combat the increasing misuse of the worldwide financial system by criminals for laundering drugs money. It was decided to establish an intergovernmental body to set worldwide standards to fight money laundering in the shape of the Financial Action Task Force (FATF). The Financial Action Task Force (FATF) was quick in setting global Antimony Laundering Standards by issuing its Forty Recommendations in 1990.

The Non-Cooperative Countries and Territories (NCCT) proved to be a powerful tool to convince countries to change their legislation in such a way that it adheres to FATF’s forty recommendations. The countries that refused to adopt these forty recommendations were put on “Black List” of Non-Cooperative Countries and Territories (NCCT) this turned out to be negative for the particular country. In the year of October, 2006 Myanmar (Burma) was the last country to be removed from that list.

The Non-Cooperative Countries and Territories (NCCT) proved to be a powerful tool to convince countries to change their legislation in such a way that it adheres to FATF’s forty recommendations. The countries that refused to adopt these forty recommendations were put on “Black List” of Non-Cooperative Countries and Territories (NCCT) this turned out to be negative for the particular country. In the year of October, 2006 Myanmar (Burma) was the last country to be removed from that list.

The Non-Cooperative Countries and Territories (NCCT) proved to be a powerful tool to convince countries to change their legislation in such a way that it adheres to FATF’s forty recommendations. The countries that refused to adopt these forty recommendations were put on “Black List” of Non-Cooperative Countries and Territories (NCCT) this turned out to be negative for the particular country. In the year of October, 2006 Myanmar (Burma) was the last country to be removed from that list.

The world was no longer the same after the tragic events of 11 September 2001. A new phenomenon called “terrorism” became the new focus and the Axes of Evil were a fact. Nobody knows where a new deed of terror was going to take place and the attacks in Madrid and London proved that it could be anywhere and anytime. The Financial Action Task Force was very fast in responding to the events of 9/11 and in October 2001 FATF’s mandate was extended to deal with all issues related to terrorist financing (CFT) and at the same month the FATF adopted eight special recommendations on terrorist financing, complementary to the already existing 40 recommendations and a ninth special recommendation was added in October 2004. The forty recommendations were amended twice in 1996 and 2003 to become more effective by reflecting all changes.

The world was no longer the same after the tragic events of 11 September 2001. A new phenomenon called “terrorism” became the new focus and the Axes of Evil were a fact. Nobody knows where a new deed of terror was going to take place and the attacks in Madrid and London proved that it could be anywhere and anytime. The Financial Action Task Force (FATF) was very fast in responding to the events of 9/11 and in October 2001 FATF’s mandate was extended to deal with all issues related to terrorist financing (CFT) and at the same month the FATF adopted eight special recommendations on terrorist financing, complementary to the already existing 40 recommendations and a ninth special recommendation was added in October 2004. The forty recommendations were amended twice in 1996 and 2003 to become more effective by reflecting all changes.