Al Capone 2 ISIS
Big Data is Pointing
Money Laundering &
Terrorist Financing
Money Laundering
Process to conceal the
• true origin
• ownership
proceeds of crime
as old as
2000 BC, China
as big as
2-5 % GDP
($000,000,000,000)
Sources
•Corruption (hsbc, swiss banking)
•Evasion (gone in 60 sec)
•Fraud (double shah, samad dadabhoy [ponzi])
•Smuggling (transporter, lord of war)
•Terrorist Activity
10 (Highly Clean) and 0 (Highly Corrupt)
DROP A STONE
IN THE SEA AND
SEE HOW
MONEY
LAUNDERING
OPERATES
Money Laundering in Pakistan
• Real Estate
• Abuse of Corporate Entities
• Trade
• Informal Channels
Pakistan MER 2009
A Risk-Based Approach to Money Laundering and Terrorist Financing
1. Geographic/ Country Risk
2. Business and Entity Risk
3. Product Risk
Activity - Hawala based Schemes
High Risk Relationships
politically
exposed
persons
terrorist
financing
®Recruit and sustain ®Acquire influence ®Build support base ®Carry out terrorism
Why?
Big Data Pointer - 1
• Favors anonymity or involves third party
• Supports high transaction volumes
• Involves cross border transactions
• Involves cash, monetary or bearer
instruments
• Supports high speed movement of funds
Big Data Pointer - 2
• Products not consistent with the nature of
account or business
• Accounts opened/activated by, where
relationship has no economic
justifications
• Private Banking Relationships
• Wire transfers
Company C
Company A
Company B
Company D Mr. W Mr. V
Ms. U Mr. T
Mr. X Mr. Y Ms. Z
Company E
Company F
Mr. S
Ownership/Identification
Bearer Shares ?
Company A requested a new account. Which entities should be
identified???
Syed Abdul Rafey Qadri MBA, CIA, AM(ACAMS), EA(ACFE)
Cell: 0335-3721498
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