An Islamist fighter has pleaded guilty in the Hague for destroying parts of the fabled West African trading city of Timbuktu, in the International Criminal Court’s first case based on the destruction of cultural artifacts. Ahmad al-Faqi al-Mahdi has admitted today (Aug 22) to razing all but two of the city’s 16 mausoleums as well…
|Date of publication
10 June 2013
|Published each year in June, the annual report of the OECD Working Group on Bribery provides a brief overview of the OECD Anti-Bribery Convention and how it works. It also outlines how the Working Group on Bribery contributes to the global fight against corruption.2013 (pdf) – including enforcement data
TABLE OF CONTENTS
The shadow banking system can broadly be described as “credit intermediation involving entities and activities (fully or partially) outside the regular banking system” or non-bank credit intermediation in short. Earlier this year, the FSB published policy recommendations to strengthen oversight and regulation of shadow banking. The objective is to address bank-like risks to financial stability emerging outside the regular banking system while not inhibiting sustainable non-bank financing models that do not pose such risks.
The FSB set out a monitoring framework for the shadow banking system in its report to the G20 in October 2011. Based on this framework, the FSB published the results of its third annual monitoring exercise in November 2013 using end-2012 data. The report includes data from 25 jurisdictions and the euro area as a whole, bringing the coverage of the monitoring exercise to about 80% of global GDP and 90% of global financial system assets.
The exercise was conducted by the FSB Analytical Group on Vulnerabilities (AGV), the technical working group of the FSB Standing Committee on Assessment of Vulnerabilities (SCAV), using quantitative and qualitative information, and followed a similar methodology to that used for the 2012 report . Its primary focus is on a “macro-mapping” based on national Flow of Funds and Sector Balance Sheet data (hereafter Flow of Funds), that looks at all non-bank financial intermediation to ensure that data gathering and surveillance cover the areas where shadow banking-related risks to the financial system might potentially arise.
Money launderers constantly evolving
The schemes used by cartel financiers are constantly evolving as authorities find new money-laundering methods and take steps to shut them down.
When Congress passed the Patriot Act in 2001, it put in place reporting requirements for cash deposits that forced money launderers, including those for Mexican cartels, to change their tactics, said Jim Dowling, managing director of the Dowling Advisory Group and former Anti-Money Laundering Advisor to the White House Drug Policy Office.
Billions of dollars that was being deposited in U.S. banks started going to Mexico before slipping into the U.S. economy, Dowling said.
“The U.S. Patriot Act made it difficult for these guys to put cash into bank accounts,” Dowling said. “So the U.S. government wasn’t looking at what was going out of the country, and the Mexican government certainly wasn’t looking at what was coming in.”
Such operations use three stages, Dowling said: placement, layering and integration.
In the placement stage, defendants in the San Antonio cases are accused of smuggling cash from drug sales in such cities as Atlanta, Houston and Las Vegas into Mexico, where it was deposited in bank accounts.
In the layering stage, prosecutors allege, the money was transferred from Mexico to bank accounts in the U.S. controlled by the accused money launderers.
And in the final stage, integration, the money was used to purchase land and open restaurants. Once the launderers have businesses, they can wash money through them, Dowling said.
“Now you don’t have to ship the money down to Mexico,” he said. “You have to pay a tax on it, but that’s a small fee for laundering money that’s clean. Now you’re at the full integration.”
Dowling, who’s worked undercover investigating money-laundering cases, said the money side of the operation is incredibly high-stakes. A mule losing a load of drugs is rarely punished. Losing a load of cash could cost a smuggler his life.
Neither the U.S. nor Mexico is doing a sufficient job of attacking the cartels’ finances, said a former U.S. law enforcement official who asked to remain anonymous for safety reasons.
“The truth is, neither government can get into those networks, so progress is slow,” he said. “Interdicting bulk cash is not attacking money laundering and getting a cash load is happenstance. Money laundering is a black hole, in large part. There are good cases, but they are far and few, compared to the amount of drug-related proceeds that are being generated.”
*Mysanantonio.com (reprinted from antimoneylaundering.us)
Inside the World of the ‘Ndrangheta
By Andreas Ulrich