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How Not To Be A Money Launderer : now available in paperback

23 November 2011
London and Hong Kong.

How Not To Be A Money Launderer : Cover How Not To Be A Money Launderer, a straightforward guide to detecting and deterring fraud and money laundering in organisations has been reissued in paperback.

The first edition, published in 1996 sold out its entire print run in a matter of months with sales all over the world. The second edition (1988) sold out its print run in weeks. In 2010, an e-reprint was made available for Kindle and Kindle readers on other platforms.

The author, Nigel Morris-Cotterill has since worked on many projects and writes detailed analysis for e.g. Complinet / Thompson Reuters Accelus.

But that is a sideline: Morris-Cotterill is better known as Head, The Anti Money Laundering Network (www.antimoneylaundering.net) where he overseas a wide range of business units in addition to delivering high-level consultancy to a spectrum of sectors.

How Not To Be A Money Launderer was years ahead of the then thinking in relation to money laundering. It pioneered the idea that the primary focus of counter-money laundering strategies should be on risk management rather than compliance, that ticking compliance boxes was not enough.

The book talks about auditing and monitoring risk and compliance systems and about hawala, trade based laundering and stored value cards. These, and many more examples have become flavour of the month (or longer).

To read the book where these issues were first brought together and explained, click here

Table of contents:

1. What is Money Laundering? 1
What is Money? 2
Comparing financial crime and other crime 4
Counterfeit Currency 7
Billy follows Willy 12

2. Who Launders Money? 18

3. What sort of money is laundered? 22
USA Mob Rule 22
The influence of drugs 24
Incas of tiredness, chew one leaf 27
Predicate Crime 29
Prostitution 30
Fraud 34
Financial Crime 35
Tax evasion 36
Customs and Excise Frauds 37
Benefit Fraud 41
Prescription and Healthcare Fraud 41
Housing Fraud 42
Counterfeit goods 42

4. Fraud 46
Directory fraud 54
Employee Fraud 55
The stationery scam 55
The other stationery scam 57
The Nigerian Scam 58
Advance Fee Fraud 60
If it looks too good….II 65
Standby letters of credit 67
Mortgage fraud 70
Other lawyer fraud 73
Fraud in Fiduciary Relationships 74
Russians buying cars 75
Representative Offices of oversea banks. 77
Card Fraud 79
Cheque Fraud 83
Commercial Fraud 84
Internet Fraud 88
Other Computer Crime 91
A very serious note. 91

5. The Commonalities of Fraud and Money Laundering 93
Introduction to the problems of recovery. 94

6. Financial Sector Regulation in the UK 101
Action plan for basic internal controls. 112
on tracing proceeds of crime…. 114

7. Confidentiality and Secrecy in the Banking and Professional Sectors. 115

8. The Law 139
Offences in England and Wales. 141
The obligation to report a person suspected of money laundering 143
s52 DTA94 144
Tipping off 149
s53 DTA94 149
Drugs Trafficking 151
S1 DTA94 151
Concealing or transferring proceeds of drug trafficking 154
s49DTA94 154
Assisting another to retain the benefit of drug trafficking 155
s50DTA94 155
Constructive Trusts 164
Use of proceeds of Drug Trafficking 167
s51DTA94 167
Penalties 170
s54 DTA94 170
Investigations into drug trafficking 171
s55,56, 57, 58 and 59DTA94 171
Terrorism 171
The Prevention of Terrorism (Temporary Provisions)Act 1989 171
The Criminal Justice Act, 1993, s51 171
Offences not related to drugs or terrorism 172
Criminal Justice Act 1993 172
Jurisdiction (includes international effect) 173
ss1-4 CJA93 173
Confiscation Orders 174
s71 CJA88 (s27 CJA93) 174
Proceeds of Crime Act 1994 174
Money laundering and other offences 174
s93A CJA88 (s29 CJA93) 174
Acquiring etc. proceeds of criminal conduct 176
s93BCJA88 (s30CJA93) 176
Concealing etc. proceeds of criminal conduct 176
s93C CJA88 (s31CJA93) 176
9. Money Laundering Regulations 1993 (UK) 178
Reg. 2 Interpretation 178
Reg. 3 Business Relationships 179
Reg. 4 Relevant Financial Business 179
Reg. 5 Systems and Training 180
Reg. 6 Offences by bodies corporate, etc. 182
Reg. 7 Identification in business relationships and transactions 182
Reg. 8 Postal Business 184
Reg. 9 Identifying third party transactions 186
Reg. 10 Exemptions from identification procedures 186
Reg. 11 Identifying the applicant for business 188
Reg. 12 Record Retention 190
Reg. 13 Additional record keeping measures. 192
Reg. 14 Internal Reporting Procedures. 192
Regs. 15 & 16: Supervisory powers. 193
Reg. 17 - Transitional provisions: 194
Record Keeping: a practical note 194

10. Creating systems 195
Risk Avoidance 196
Risk Management 199
Awareness Campaign 200
Training 202
Updates 203
Systems design 204
Corporate Culture Change 204
Systems implementation 206
Systems monitoring 208
Corrective action. 209

11. Compliance with the UK Regulations 210
How do you go about setting up a compliance system? 211
Train relevant staff to identify money laundering and in the steps to take if they make an identification 212
Create and implement a system for identifying every applicant for business to whom The Regulations apply 213
Create a system for retaining the records of identification 214
Create and maintain a system for the making of reports to a nominated person within the organisation 215
Appoint a nominated person to receive reports and to consider those reports and decide upon appropriate action to take with regard thereto. 215
Monitoring 216

12. Money Laundering Techniques 217
Airline Tickets 217
Gift Vouchers 218
Shop returns 218
Cheque Cashing 218
Lottery/gaming tickets 219
Goods 219
Cigarettes and spirits 219
Anonymous Bank Accounts 220
Owning a bank 221
Parallel Banking 224
Internet Banking 227
e-money. 229

13. Recognising the money launderer. 233
The “Jeanetic” Theory of Financial Crime. 233
Wilful Blindness 241
The case of Bank Leu 241
Wilful Blindness, part one 242
International effect of laws 250
Global planning for risk management 252
Wilful Blindness, part two 253
The rôle of the expert witness 254
The Characteristics of the money launderer 255

14 Laundering and the Euro. 258

15. AT RISK GROUPS 270
Accountants 270
Antiques, Art and Stamp dealers 274
Auditors 274
Bankers / finance houses/ Building Societies. 276
Bureaux de change 279
Car dealers 280
Doctors / other medical staff 282
Private Health Care 283
Drugs Counselling. 285
Estate Agents 285
Insolvency practitioners / Receivers 286
Insurance Brokers 291
Journalists 293
Pawnbrokers 298
Priests 298
Printers / bookshops 299
Publicans 300
Regulatory Body Employees. 301
School teachers / Matrons 301
Solicitors 302
Stockbrokers / money dealers 308
Trading Standards Officers 309

16 Other Jurisdictions 310
Belize 310
The Money Laundering Prevention Act, 1996. 310
Penalties 311
Seizure and Confiscation of Assets: 312
The Republic of Ireland 313
The Law. in the Republic of Ireland 315
Niue 326
Slovenia 328
United States of America. 330
Jurisdiction over the Currency. 330
Currency and Foreign Transaction Reporting Act of 1970 334
The Bank Secrecy Act 1982. 334
Definitions: 335
Exceptions to Currency Transaction Reporting 336
International movement of currency or monetary instruments 337
Identifying the Customer 338
Drug Abuse Act 1988 338
Record Keeping. 338
Loans 338
Customer Identification 338
The Anti-Money Laundering Act 1993 340
Money Laundering and Financial Crimes Strategy Act of 1998 340
New York State, Banking Department 342
PROPOSED AMENDMENTS TO PART 8 OF THE GENERAL REGULATIONS OF THE BANKING BOARD: 342
The Money Laundering Control Act 1986 342
United Nations. 344
Common Law model. 344
Definitions 344
Financial institutions and cash dealers to verify customers identity 345

17.  Money-laundering offences 346

18.Related Offences 348
The Civil Law Model 350
Article 2 350
Article 6 351
Article 9 353
Article 18 355

Appendix A: Suspicious E-mail Messages. 358
1. Investment Touting. China Continental. 359
Result of InterNic search: China Continental 364
Result of InterNic search: StockDepot 364
2. Invitation to take part in unspecified business. 366
3. Use of third party domain name to give message credibility. 371
4. A bundle of messages. 376

Case Studies 457