Archive for January, 2011

Crocodile Dundee to sue Australian Government over Money Laundering probe

Tuesday, January 25th, 2011

It was widely discussed in 2006 that a famous Australian actor Paul Hogan had been under investigation for money laundering.

The Australian Crime Commission became suspicious that the star of one of the most successful Australian movies ever was using offshore tax havens in order to conceal his wealth. As a result, the actor was subjected to a 5-year tax investigation which was dropped in November 2010.

Recently, it has been announced that the world-famous Crocodile Dundee is planning to sue the Australian government for more than GBP 50 million (up to USD 80 million) for damaging his reputation in this tax probe.

According to Hogan’s lawyer Andrew Robinson, his client is to sue the Australian government for loss of earnings as ‘his earning potential and reputation has been decimated in the international community and it has had that level of effect on his position”.

IMF evaluated Guernsey’s Regulatory Regime in terms of Money Laundering

Tuesday, January 18th, 2011

The International Monetary Fund (IMF) has published 6 reports that were the result of the evaluations held by the Fund in March and May 2010. These were evaluations on Guernsey’s financial supervision and criminal justice frameworks that concerned anti-money laundering and counter-terrorist financing in the jurisdiction.

In accordance with the reports, Guernsey has financial sector regulation and supervision of a high standard across all sectors. These reports take into consideration Guernsey’s well-positioned basis for an effective Anti-Money Laundering/Combating the Financing of Terrorism regime, with preventative measures in line with the Financial Action Task Force (FATF) Recommendations.

As part of the IMF’s global Financial Stability Assessment Program, the evaluations were produced that assessed the jurisdiction as having a high level of compliance with the international standards. The standards were as follows:
–    the 25 Basel Core Principles for Effective Banking Supervision;
–    -the 28 Insurance Core Principles of the International Association of Insurance Supervisors;
–    the FATF 40 Recommendations on money laundering and 9 Special Recommendations on terrorist financing.

The 6 reports have been welcomed by the Guernsey government and the Financial Services Commission.

Guernsey’s Chief Minister Lyndon Trott said: “The regulatory framework and the Bailiwick’s anti-money laundering and combating the financing of terrorism regime that is now in place have been important factors in both sustaining Guernsey’s economy and developing and maintaining Guernsey’s international reputation as an excellent place to do business. This in turn has been an important driver in the continuing development of Guernsey’s international identity.”

It is worth mentioning that the reports also re-assessed the work of the Financial Investigation Unit (GBA/Police), the Law Officers Chambers and all the member organisations of the AML/CFT Advisory Committee, and reported the achievement of high international standards.

FATF publishes Report on New Payment Methods used for Money Laundering

Wednesday, January 5th, 2011

In October 2010, the Financial Action Task Force (FATF) published a report entitled Money Laundering Using New Payment Methods.

This report builds on the 2006 Typologies report on New Payment Methods (NPMs). It should be noted that there has been a significant increase in the number of transactions and the volume of funds moving through new payment methods (NPMs) since 2006. As a result, the number of discovered cases where such payment systems were misused for money laundering (ML) and/or terrorist financing (TF) purposes has gone up.

The report that can be downloaded from the FATF website compares the “potential risks” described in the 2006 report to the “actual risks” based on new case studies and typologies. A number of indicators of suspicious activity are described in the paper to help new payment methods service providers and other financial institutions to detect money laundering/terrorist financing activities. The FATF document describes the challenges faced by national legislators and regulators in these terms.

The Money Laundering Using New Payment Methods report was the result of analysis of questionnaire responses and publications about NPMs. Also, relevant private sector representatives such as NPM service providers (including the Internet payment sector, the mobile payment sector and prepaid card technology providers) made a significant input.