Regional Conference “New Trends and Techniques of Money Laundering and Terrorism Financing” 22-23 November 2010 Bucharest, Romania

Regional ConferenceRegional Conference

““New Trends and Techniques ofNew Trends and Techniques of

Money Laundering and Terrorism Financing”Money Laundering and Terrorism Financing”

22-23 November 2010 Bucharest, Romania22-23 November 2010 Bucharest, Romania

FIUFIU.NET – Regional Conference .NET – Regional Conference “New Trends and Techniques of Money Laundering and Terrorism Financing”“New Trends and Techniques of Money Laundering and Terrorism Financing” 22/23-11-2010 Bucharest, Romania 22/23-11-2010 Bucharest, Romania

‘‘FIUFIU.NET, More Ambition, More Use’.NET, More Ambition, More Use’

Jules ANTHONIAJules ANTHONIA

Training coordinatorTraining coordinator

FIUFIU.NET.NET

[email protected]@fiufiu.net.net

FIUFIU.NET .NET More ambition! More use!More ambition! More use!


Question:Question:

How can How can FIUFIU.NET contribute in.NET contribute inmeeting the challenges in combating meeting the challenges in combating money laundering and terrorism money laundering and terrorism financing?financing?



Outline of Presentation:Outline of Presentation:

• Early Ambition & ChallengeEarly Ambition & Challenge

• How How FIUFIU.NET can contribute….NET can contribute…

• Advantages of more sophisticationAdvantages of more sophistication

• QuestionsQuestions



Brussels, 16.4.2004; COM(2004) 262 finalBrussels, 16.4.2004; COM(2004) 262 final COMMUNICATION COMMUNICATIONFROM THE COMMISSION TO THE COUNCIL AND THEFROM THE COMMISSION TO THE COUNCIL AND THEEUROPEAN PARLIAMENT ON THE PREVENTION OF ANDEUROPEAN PARLIAMENT ON THE PREVENTION OF ANDFIGHT AGAINST ORGANISED CRIME IN THE FINANCIALFIGHT AGAINST ORGANISED CRIME IN THE FINANCIALSECTOR:SECTOR:

• … … At present, co-operation and exchange of information between Member At present, co-operation and exchange of information between Member State FIUs is often slow and limited, and is generally not computerised.State FIUs is often slow and limited, and is generally not computerised.

• … … Given the frequently international nature of money laundering, efforts to Given the frequently international nature of money laundering, efforts to combat this phenomenon could be greatly enhanced and improved results combat this phenomenon could be greatly enhanced and improved results obtained, if available financial intelligence were to be exploited to the obtained, if available financial intelligence were to be exploited to the maximum.maximum.

• … … The first results of this project, called The first results of this project, called FIUFIU.NET, though modest, are .NET, though modest, are encouraging. encouraging.



RequirementsRequirements• DecentralisedDecentralised• Structured informationStructured information• Complete autonomy of FIUComplete autonomy of FIU

Challenge!Challenge!PrinciplesPrinciples• SecureSecure• SpeedSpeed• SimpleSimple• FlexibleFlexible


“Imagination is more important than knowledge. For while knowledge defines all we currently know and understand, imagination points to all we might yet discover and create.”

Albert Einstein


Project 2007-2009:Project 2007-2009:

Towards Improved Ways Of Exchanging InformationTowards Improved Ways Of Exchanging Information– Connect all 27 Member State FIUs (willing and able)Connect all 27 Member State FIUs (willing and able)

– Make the current version as user-friendly as possibleMake the current version as user-friendly as possible

– Prepare the grounds for a future Prepare the grounds for a future FIUFIU.NET with an higher ambitious level, to .NET with an higher ambitious level, to be realised in the futurebe realised in the future

Project 2009-2011: Project 2009-2011:

More Ambition! More Use!More Ambition! More Use!– Agreement on future direction of Agreement on future direction of FIUFIU.NET.NET

– Intensify cooperation via Intensify cooperation via FIUFIU.NET.NET

– Extend Extend FIUFIU.NET.NET

– Further professionalise Further professionalise FIUFIU.NET IT environment.NET IT environment



What is the GOAL of What is the GOAL of FIUFIU.NET???.NET???


A sophisticated and speedy A sophisticated and speedy information exchange system, easy to information exchange system, easy to operate with the possibilities to share operate with the possibilities to share high volume of information, to match, high volume of information, to match, to communicate, to jointly investigate to communicate, to jointly investigate and more...and more...


What is the MISSION of What is the MISSION of FIUFIU.NET???.NET???

FIUs cooperate and work together as one, with FIUs cooperate and work together as one, with FIUFIU.NET as a .NET as a fast, reliable, secure and standardised information & knowledge fast, reliable, secure and standardised information & knowledge gateway between FIUs. gateway between FIUs.

FIUFIU.NET provides secure access to other relevant (external) .NET provides secure access to other relevant (external) information sources necessary for analysis and law enforcement, information sources necessary for analysis and law enforcement, and is the platform for international analysis. and is the platform for international analysis.

FIUFIU.NET functions as a (virtual) European FIU, breaking down .NET functions as a (virtual) European FIU, breaking down information barriers without breaking (national & international) information barriers without breaking (national & international) data protection rules and regulations.data protection rules and regulations.



Question Remains:Question Remains:

How can How can FIUFIU.NET contribute in.NET contribute inmeeting the challenges in combating meeting the challenges in combating money laundering and terrorism money laundering and terrorism financing?financing?



The metaphor of the puzzling puzzleThe metaphor of the puzzling puzzle



You know that all the pieces of the puzzle are You know that all the pieces of the puzzle are present (there are no missing pieces)present (there are no missing pieces)

You know that all the pieces belong to the puzzle You know that all the pieces belong to the puzzle that has to be put together (there are no extra that has to be put together (there are no extra pieces that belong to another puzzle)pieces that belong to another puzzle)

You already know what picture must be recreated You already know what picture must be recreated when putting the pieces togetherwhen putting the pieces together



FIU information:FIU information:

It is not clear if received information belongs to a It is not clear if received information belongs to a puzzlepuzzle

Only some pieces of the puzzle are knownOnly some pieces of the puzzle are known

The picture that has to be recreated is unknownThe picture that has to be recreated is unknown



Money laundering is all about Money laundering is all about HIDINGHIDING the the proceeds of crime.proceeds of crime.It is the identification of It is the identification of THATTHAT hidden information hidden information which is essential and currently unknownwhich is essential and currently unknown

How to bring all the (privacy sensitive) pieces How to bring all the (privacy sensitive) pieces together to find the unknown?together to find the unknown?



ma3tch

FIU.NET

Autonomous Anonymous Analysis

Privacy Sensitive Collaboration



FIU.NETma3tch principle: decentralised standardised information processing

data (custom)

resource(business rules)

FIU

ResourcesCategoryNameDescriptionResponse TimeEffort ReasonContentLimitsAccess ControlData RetentionPrior ConsentEtc.



FIU.NET

data (custom) index (standardised)

importexport


FIU

ma3tch principle: decentralised standardised information processing



FIU.NETma3tch principle: decentralised standardised information processing

data (custom) index (standardised) anonymous

shared

autonomy: the information owner (FIU) has control at all levels

statistics

keys

profiles

importexport

ma3tchfilters


FIU



FIU.NETma3tch = information

statistics

keys

profiles

minimal effortmaximal effect

one for all, all for one



FIU.NETma3tch = information

statistics

keys

profiles

statistics

statistics

statistics

keys

keys

keys

profiles

profilesprofilesminimal effort

maximal effectone for all, all for one

Les ‘unknown’ requests, improve timeliness, enhance privacy.



FIU.NETma3tch = knowledge

EU or national money flowsTheme based statistics (i.e. CBT) Trends (i.e. financial products)statistics

keys

profiles

Other FIUs (i.e. financial, police)Shared sources (i.e. Worldcheck, events, etc)Relations (i.e. financial, social, etc)

Prediction (i.e. suspicion, crime)Associations (i.e. name nationality)Description (i.e. MT & >€2000 & <40km)

‘effectiveness = right information, right receiver, right format, right time’ (Egmont group goal)



Money laundering is all about Money laundering is all about HIDINGHIDING the proceeds the proceeds of crime, it is the identification of of crime, it is the identification of THATTHAT hidden hidden information which is essential and currently unknowninformation which is essential and currently unknown

How to bring all the (privacy sensitive) pieces How to bring all the (privacy sensitive) pieces together?together?

In practice…In practice…


Effective, Speed, Timeliness, Proactive (suspicious only)

Flexible: Global EU Overview, Internal vs External, Increases, Shifts, Trends, Threats*





Answer to QuestionAnswer to Question: How can : How can FIUFIU.NET contribute in .NET contribute in meeting the challenges in combating money laundering and meeting the challenges in combating money laundering and terrorism financing?terrorism financing?

With the introduction of the MaWith the introduction of the Ma33tch feature it will become tch feature it will become possible to:possible to:

• Automatically detect duplicate subjects in other EU countriesAutomatically detect duplicate subjects in other EU countries• Automatically detect cash couriers disclosed to EU FIUsAutomatically detect cash couriers disclosed to EU FIUs• EU or national money flowsEU or national money flows• Theme based statistics (i.e. CBT) Theme based statistics (i.e. CBT) • Trends (i.e. financial products)Trends (i.e. financial products)• Other FIUs (i.e. financial, police)Other FIUs (i.e. financial, police)• Shared sources (i.e. Worldcheck, events, etc.)Shared sources (i.e. Worldcheck, events, etc.)• Relations (i.e. financial, social, etc.)Relations (i.e. financial, social, etc.)• Prediction (i.e. suspicion, crime)Prediction (i.e. suspicion, crime)• Associations (i.e. nameAssociations (i.e. name nationality) nationality)• Description (i.e. MT & >€2000 & <40km)Description (i.e. MT & >€2000 & <40km)



Advantages for FIUsAdvantages for FIUs::

With the advanced features of With the advanced features of FIU.FIU.NET (i.e. MaNET (i.e. Ma33tch feature)tch feature)

• More efficiency in exchanging informationMore efficiency in exchanging information

• automated detection of common subjects, no unnecessary requestsautomated detection of common subjects, no unnecessary requests

• automated statistics and management informationautomated statistics and management information

• Cost efficiencyCost efficiency

• les manual work, more time for other workles manual work, more time for other work

• access to central databases for much less costsaccess to central databases for much less costs

• Maintaining principles: Maintaining principles: secure,secure, speed, simple & flexiblespeed, simple & flexible

• Nothing is mandatory! Nothing is mandatory! Each FIU decides for it self which functionalities of Each FIU decides for it self which functionalities of FIU.NET it wants to use.FIU.NET it wants to use.


Jules ANTHONIATrainer Coordinator FIU.NET

Ministry of Security & Justice Lange Houtstraat 5

PO BOX 20301, 2500 EH The Hague,The Netherlands

+31 70 3703006+31 6 48100201

[email protected]


“The whole is more than the sum of its parts.”

Aristotle (ancient Greek Philosopher)

FIU.NET – Regional Conference “New Trends and Techniques of Money Laundering and Terrorism Financing” 22/23-11-2010 Bucharest, Romania

Thank you for your attention!

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Regional Conference “New Trends and Techniques of Money Laundering and Terrorism Financing” 22-23 November 2010 Bucharest, Romania