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Department of the Treasury.

Financial Crimes Enforcement Network (FinCEN)

The Financial Crimes Enforcement Network (FinCEN) is a bureau of the U.S. Department of the Treasury and is the U.S. financial intelligence unit (FIU). In 2011, FinCEN hosted representatives from a variety of foreign government agencies, focusing on topics such as money laundering trends and patterns, the Bank Secrecy Act, the USA PATRIOT ACT, communications systems and databases, and case processing. A number of these visitors were participants in the U.S. Department of State's International Visitor Leadership Program.

FinCEN assists new or developing FIUs it is co-sponsoring for membership in the Egmont Group of FIUs. The Egmont Group is comprised of FIUs that cooperatively agree to share financial intelligence and has become a key standard-setting body for FIUs. FinCEN is currently co-sponsoring FIUs from nine jurisdictions for Egmont Group membership: China, Dominican Republic, Ghana, Jordan, Kuwait, Oman, Pakistan, Tanzania and Yemen. As a member of the Egmont Group, FinCEN also works multilaterally through its representative on the Egmont Training Working Group to design, implement, and instruct at Egmont-sponsored training programs for Egmont Group members as well as Egmont candidate FIUs.

FinCEN regularly engages with foreign FIUs to exchange information on operational practices and issues of mutual concern. The participants in these exchanges share ideas, innovations, and insights that lead to improvements in such areas as analysis, information flow, and information security at their home FIUs, in addition to deeper and more sustained operational collaboration. In 2011, FinCEN conducted analyst exchanges with the FIUs of Afghanistan, Brazil, Nigeria, Panama, Paraguay, the Philippines, Russia, and Tanzania.

Internal Revenue Service (IRS), Criminal Investigative Division (CID)

In 2011, Internal Revenue Service, Criminal Investigation (IRS-CI) continued its involvement in international training and technical assistance efforts designed to assist international law enforcement officers in detecting tax, money laundering, and terrorist financing crimes. With funding provided by the U.S. Department of State and other sources, IRS-CI delivered training through agency and multi-agency technical assistance programs to international law enforcement agencies. IRS-CI partnered with several U.S. Government and multilateral organizations, including agencies and offices of the U.S. Departments of State, Justice, Treasury and Homeland Security; the Joint Interagency Task Force West; host country governments; and the IMF to deliver a variety of training.

Financial Investigative Techniques Training

Training primarily consisted of Basic, Intermediate and Advanced Financial Investigative Techniques (FIT) courses which, depending on the venue, focused on indirect methods of proof, an overview of global and regional investigative issues, tax laws, bank records, interviewing, offshore banking, and/or corporate fraud. In 2011, IRS-CI conducted FIT courses for law enforcement, customs, intelligence, and revenue officers; prosecutors; for the following countries: Albania, Algeria, Australia, Cambodia, Colombia, Denmark, Finland, Hungary, Iceland, Kosovo, New Zealand, Norway, Philippines, Senegal, South Korea, Sweden, and Thailand.

Other Training Initiatives

Funded by the Korean National Tax Service, IRS-CI provided a one week Special Investigative Technique course to 49 participants in South Korea. Topics included investigative tools, undercover operations and forensic accounting.

In Indonesia, 30 participants received training in public corruption and complex financial investigation techniques. This course used various practical exercises to instruct participants in Indonesian case law dealing with money laundering, public corruption and asset recovery. IRSCI also presented a one week Fraud and Public Corruption course in Thailand for 48 participants from Thailand's financial and anti-corruption units.

IRS-CI presented an organized crime seminar to approximately 40-50 Georgian investigators and prosecutors.

Multiple training seminars were presented to investigators, prosecutors and judges in Kosovo. These seminars were part of the ongoing United States Attorney's Office for the Eastern District of North Carolina--Kosovo initiative and their focus was to encourage aggressive investigations, case development, and the use of plea bargaining to develop evidence to resolve cases.

IRS-CI presented three workshops on financial investigations, with an emphasis on money laundering, to a total of 101 Canadian law enforcement officials. IRS-CI also participated in

delivering training to combat terrorism financing and money laundering in Islamabad, Pakistan; Cairo, Egypt; and Johannesburg, South Africa.

Sixty Mexican federal judges, prosecutors, financial intelligence analysts, and investigators attended a one week money laundering course. Another program titled "Using Financial Evidence in Criminal Prosecutions--Illicit Financing and Money Laundering" provided participants information on money laundering, financial investigations, asset forfeiture, and special investigative techniques, with an international scope. Other training included a one week casino gaming conference that assisted the Mexican government in developing best practices for regulating gaming activity and preventing money laundering. A three-day counter-terrorism and money laundering course was also presented to federal prosecutors, investigators, forensic criminalists and representatives from the Mexican financial intelligence unit.

International Law Enforcement Academy Training

IRS-CI provided instructor support to the State Department International Law Enforcement Academies (ILEA).

ILEA Bangkok: IRS-CI participated in one Supervisory Criminal Investigator Course which included participants from various law enforcement agencies. IRS-CI also conducted two FIT sessions for 93 participants from various law enforcement agencies from the following countries: Brunei, Cambodia, China, Hong Kong, Indonesia, Laos, Macau, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Additionally, a one week Fraud and Public Corruption course was presented to 42 participants from ten countries. The training focused on recognizing methods of bribery and corruption and included two extensive practical exercises.

ILEA Budapest: IRS-CI participated in delivering five sessions of the ILEA core program. Participating countries included Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Hungary, Kazakhstan, Kosovo, Macedonia, Montenegro, Moldova, Romania, Serbia, Turkey, and Ukraine. IRS-CI also conducted a one week FIT course for 30 law enforcement officials from Croatia, Montenegro, and Serbia.

ILEA Gaborone: IRS-CI provided instructor support for four Law Enforcement Executive Development (LEED) programs for participants from Botswana, Cameroon, Republic of the Congo, Gabon, Ghana, Kenya, Lesotho, Malawi, Namibia, Nigeria, Rwanda, Senegal, Seychelles, Sierra Leone, Swaziland, and Tanzania. IRS-CI supplied the class coordinator for LEED 39. The coordinator organized and supervised the participants' daily duties and activities.

ILEA San Salvador: IRS-CI assisted in the delivery of four courses for the Law Enforcement Management Development Programs (LEMDP) that stress the importance of conducting a financial investigation to further develop a large scale criminal investigation. Participants were from Antigua, Argentina, Barbados, Belize, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Panama, Paraguay, Peru, St Lucia, and Trinidad and Tobago. For LEMDP 20, IRS-CI provided the class coordinator. IRS-CI also led two one week FIT/Money Laundering courses. The 65 participants were members of their respective national police agencies and prosecutors' offices. The FIT course provided an overview of global and regional investigative issues using a highly interactive simulated investigation.

Non-routine Training Events

The International Training Team (ITT) hosted two foreign delegations. Representatives from the Ugandan Revenue Authority and the Indian Central Board of Taxation toured the Federal Law Enforcement Training Center (FLETC). The delegations received an overview of Special Agent Basic Training and law enforcement techniques, plus briefings from other divisions at the FLETC.

The ITT completed two course development projects. Representatives from Norway and Denmark met at the FLETC to design and develop the Nordic Financial and Organized Crimes course. In Cambodia, the ITT met with banking, financial, law enforcement and judicial officials to assist in the development of Cambodian-specific course material.

ITT also participated in various overseas activities. At the Organization for Economic Cooperation and Development's Tax and Crime Conference, ITT provided a guest speaker on money laundering and bribery awareness. In Budapest, Hungary, IRS-CI met with Hungarian tax and customs officials to discuss future training initiatives.

Office of the Comptroller of the Currency (OCC)

The U.S. Department of the Treasury's (Treasury's) Office of the Comptroller of the Currency (OCC) charters, regulates and supervises all national banks and federal savings associations in the U.S. Its goal is to ensure these institutions operate in a safe and sound manner and comply with all consumer protection and anti-money laundering laws and implementing regulations. In 2011, the agency sponsored several initiatives to provide anti-money laundering/counterfinancing of terrorism (AML/CFT) training to foreign banking supervisors. These initiatives include its annual AML/CFT School, which is designed specifically for foreign banking supervisors to increase their knowledge of money laundering and terrorist financing typologies and improve their ability to examine for and enforce compliance with national laws. The 2011 school was attended by foreign supervisors from Australia, Brazil, Canada, India, Indonesia, Italy, Korea, Malaysia, Netherlands, Philippines, Turkey, Taiwan and Zambia. In addition to organizing and conducting the School, OCC officials also met individually, both in the U.S. and overseas, with representatives from foreign law enforcement authorities, financial intelligence units and AML/CFT supervisory agencies to discuss the U.S. AML/CFT regime, the agency's risk-based approach to AML/CFT supervision, examination techniques and procedures, and enforcement actions.

The OCC continued its industry outreach efforts to the international banking community during 2011 by participating with other federal banking agencies in regulator panels at the 10th Annual International Anti-Money Laundering Conference (ACAMS) which was attended by more than 1,000 AML professionals from 50 countries and the Institute of International Bankers Annual Anti-Money Laundering Seminar which hosted attendees from 30 countries. The agency also participated in a similar panel at the Florida International Bankers Association (FIBA)'s Annual AML Compliance Conference. FIBA draws its membership from 18 countries worldwide.

The OCC also participated in Treasury's 2011 Private Sector Dialog which brings together Latin American and U.S. bankers to discuss issues related to AML compliance and an AML/CFT conference organized by the Asociacion de Bancos de Mexico (ABM). This discussion focused on the U.S AML regime and approach to conducting supervisory examinations.

Office of Technical Assistance (OTA)

OTA is part of the Treasury Department and is comprised of five subject-matter teams focused on technical assistance to governments to promote financial sector reforms. The mission of the Economic Crimes Team (ECT) is to provide technical assistance in support of the development of anti-money laundering/counter-terrorist financing (AML/CFT) regimes. In that context, the ECT also addresses other financial and predicate crimes, including corruption and organized crime. The ECT mission entails a comprehensive approach to technical assistance, and its engagements are predicated on express requests by foreign government counterparts. ECT management conducts an on-site assessment of the jurisdiction, to consider not only noncompliance with international standards and the corresponding need for technical assistance, but also willingness by the counterpart to engage in a partnership with the ECT to address those deficiencies.

An engagement by the ECT is tailored to the specific conditions of the jurisdiction in which it is engaged. An ECT engagement may involve placement of a Resident Advisor or utilize Intermittent Advisors, under the coordination of a Team Leader. The nature of ECT technical assistance is broad and can include efforts to improve (i) the legal framework; (ii) technical competence of stakeholders; and (iii) awareness-raising aimed at the full range of AML/CFT stakeholders to include the public, legislative bodies and implementers. The range of training provided by the ECT is equally broad and includes financial investigative techniques; forensic accounting; financial analytic techniques; cross-border currency movement and trade-based money laundering; supervisory techniques; electronic evidence collection; the use of interagency task forces; and measures to address corruption as well as organized crime.

The ECT is divided along three regions--Europe and Asia, Africa and the Middle East, and Latin America and the Caribbean--each managed by a Regional Advisor. In 2011, the ECT delivered technical assistance programs in 25 jurisdictions. In the Western Hemisphere, the ECT operated Resident Advisor programs in Costa Rica, Guatemala, Haiti, Honduras, Mexico and Paraguay; an Intermittent Advisor program in Uruguay; and initiated programs in Guyana as well as Trinidad and Tobago. Highlights for 2011 include a successful, ongoing regional initiative in Central America aimed at international cooperation, particularly pertaining to asset forfeiture.

In Africa and the Middle East in 2011, the ECT operated Resident Advisor Programs in Botswana, Ghana, Iraq, Morocco and the Palestinian Authority; Intermittent Advisor programs in Saudi Arabia as well as Sao Tome and Principe; and conducted an assessment in Djibouti. Program highlights include support for the development of financial intelligence units (FIUs), particularly in Botswana, Ghana, Morocco and the Palestinian Authority. In Iraq, the ECT program focused its partnership on the Iraqi Commission on Integrity and the interplay among corruption, money laundering and asset recovery.

Likewise, in Europe and Asia in 2011, the ECT operated Resident Advisor programs in Afghanistan, Kosovo and the Mekong Region (Cambodia, Lao, Viet Nam); initiated an Intermittent Advisor program in Turkmenistan; and continued other Intermittent Advisor programs in Armenia, Azerbaijan and Georgia. Particular attention was focused on FIU and financial investigative skills development.

OTA receives direct appropriations funding from the U.S. Congress. Additional funding sources include the U.S. State Department, Bureau of International Narcotics and Law Enforcement Affairs; the U.S. Agency for International Development; U.S. Embassies; and the Millennium Challenge Corporation, among others.
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Title Annotation:Volume II: Money Laundering and Financial Crimes
Publication:International Narcotics Control Strategy Report
Geographic Code:1USA
Date:Mar 1, 2012
Previous Article:Department of State.
Next Article:Federal Deposit Insurance Corporation (FDIC).

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