国际反洗钱

August2017ByJohnA.CassaraTotalFailureis‘OnlyaDecimalPointAway’CounteringInternationalMoneyLaunderingTheFACTCoalitionCounteringInternationalMoneyLaunderingCounteringInternationalMoneyLaunderingTotalFailureis“OnlyaDecimalPointAway”August2017ByJohnA.CassaraAcknowledgementsTheFACTCoalitionwouldliketothanktheFordFoundationandtheWallaceGlobalFoundationfortheirsupportforthisreport.TheFACTCoalitionwouldalsoliketothankClarkGascoigne(DeputyDirector),JacobWills(CommunicationsandOperationsAssociate)andYaroslavPustarnakov(AdvocacyIntern)fortheircontributionstothereport.FACTalsoappreciatesthecontributionsofLizConfaloneandHeatherLowe(GlobalFinancialIntegrity);MarkHays,StefanieOstfeld,andErynSchornick(GlobalWitness);EliseBean;JoMarieGriesgraber(NewRulesforGlobalFinance);SusanHarley(PublicCitizen);andNathanProctor(FairShare).CoverImageSources:BillionPhotos/Shutterstock.CoverImageCopyright:AllRightsReserved.CoverDesign:ClarkGascoigneCopyright©2017TheFACTCoalition.SomeRightsReserved.ThisworkbyJohnA.CassaraandtheFACTCoalitionislicensedunderaCreativeCommonsAttribution4.0License.Toviewthetermsofthislicense,visitwww.creativecommons.org/licences/by/4.0.Thecoverimageiscopyrighted,withallrightsreserved.TherecommendationsarethoseoftheauthorandtheFACTCoalition.TheviewsexpressedinthisreportarethoseoftheauthorandtheCoalition,anddonotnecessarilyreflecttheviewsofourfunders,ourmembers,orthosewhoprovidedreview.Foundedin2011,theFinancialAccountabilityandCorporateTransparency(FACT)Coalitionisanon-partisanallianceofmorethan100state,national,andinternationalorganizationsworkingtowardafairtaxsystemthataddressesthechallengesofaglobaleconomyandpromotespoliciestocombattheharmfulimpactsofcorruptfinancialpractices.MoreinformationaboutthecoalitioncanbefoundatthebackofthisreportorontheFACTCoalitionwebsiteatwww.thefactcoalition.org.TheFACTCoalitionCounteringInternationalMoneyLaunderingPage3TheFACTCoalitionCounteringInternationalMoneyLaunderingTableofContentsEXECUTIVESUMMARY.....................................................................................................................................5“TOTALFAILUREISJUSTADECIMALPOINTAWAY”.............................................................................................................5WHATCANBEDONE?...................................................................................................................................................5I.INTRODUCTION.............................................................................................................................................7II.BACKGROUND..............................................................................................................................................9DEFINITION..................................................................................................................................................................9MAGNITUDE.................................................................................................................................................................9III.SITUATIONINTHEUNITEDSTATES.............................................................................................................15V.BOTTOMLINERESULTS..............................................................................................................................17VII.POLICYRECOMMENDATIONS...................................................................................................................19CONGRESS.................................................................................................................................................................19CongressShouldMoveLegislationtoEndtheAbuseofAnonymousShellCompaniesbyRequiringBeneficialOwnershipTransparency....................................................................................................................................19MakeAllFeloniesPredicateOffencesforMoneyLaundering............................................................................19EstablishaGlobalNetworkofTradeTransparencyUnits(TTUs).......................................................................19PromoteUsageoftheLegalEntityIdentifier(LEI)..............................................................................................20ExpandDueDiligenceObligationstoTransactionalLawyersandFormationAgents........................................20INTER-AGENCYRECOMMENDATIONS..............................................................................................................................21DevelopanUpdatedAnti-MoneyLaunderingStrategy......................................................................................21AdaptCrimeFightingStrategiestoCoverMobilePayments..............................................................................21RequireBeneficialOwnershipInformationfromGovernmentContractors........................................................21LegalEntityIdentifierinProcurement................................................................................................................21TREASURYDEPARTMENTANDTHEFINANCIALCRIMESENFORCEMENTNETWORK(FINCEN)....................................................21AFATFRecommendationonTrade-BasedMoneyLaundering(TBML)..............................................................21StrengthenDueDiligenceRequirementsforFinancialInstitutions....................................................................22InitiateaNewMoneyServicesBusiness(MSBs)RegistrationEffort..................................................................22CloseGatekeeperLoopholes...............................................................................................................................23DEPARTMENTOFJUSTICE.............................................................................................................................................24HoldIndividualsAccountableforCorporateWrongdoing..................................................................................24ChangetheIncentivesforLawEnforcement......................................................................................................24EnhanceAML/CFTTraining.................................................................................................................................24VII.CONCLUSION...........................................................................................................................................25ABOUTTHEAUTHOR......................................................................................................................................27ABOUTTHEFACTCOALITION..........................................................................................................................29REFERENCES...................................................................................................................................................31Page4TheFACTCoalitionCounteringInternationalMoneyLaunderingPage5TheFACTCoalitionCounteringInternationalMoneyLaunderingExecutiveSummaryWorldwideanti-moneylaunderingeffortsarecurrentlyjustadecimalpointawayfromtotalfailure.FailurewouldhaveadramaticimpactonU.S.lawenforcementandfinancialsystems.Why?Becauseoutsideofcrimesofpassion,criminals,kleptocrats,andunscrupulouscompaniesaretypicallymotivatedbygreed.Intoday’sinterconnectedworld,themanifestationsofunfetteredavariceimpactusall.Weseeitinourcommunities:theopioid,methamphetamine,andcocaineepidemicsaredevastating.Financialfraud,fraudingovernmentcontracting,identitytheft,andworseendangerindividualsandourcommunitiesandwastetaxpayerdollars.Terrorfinanceandsanctionsbustingthreatennationalsecurity.Lawenforcement,policymakers,andthemediacangetsodistractedwiththeimmediacyofthecriminalbehavioritiseasytoforgetthattheaimofcriminalactivityisn’tthecrimeitself—buttheproceedsofthecrime.Advocates,scholarsandresearchershaveallquestionedtheefficacyofthe“WaronDrugs.”1Butwhydon’tweacknowledgethatourinabilitytostopthelaunderingandseizetheproceedsfuelsthegreedbehindthedrugtrade?Howmuchmoneyisbeinglaundered?Estimatesaredifficultwithoutbetterdata,buttheInternationalMonetaryFund(IMF)andUnitedNationsOfficeonDrugsandCrime(UNODC)estimatethescaleofglobalmoneylaunderingfallssomewherearoundtwotofivepercentofglobalgrossdomesticproduct—approximately$1.5trillionto$3.7trillionin2015.TheIRSobserves:“moneylaunderingistaxevasioninprogress.”Iftaxevasionhereandabroadisincludedinthecount,themagnitudeofinternationalmoneylaunderingisstaggering.“TotalFailureIsJustaDecimalPointAway”Howwellarewedoinginfightingtheproblem?Thedatawedohavepresentsableakpicture.Hereareafewsoberingnumbers:•AccordingtotheUNODC,lessthanonepercentofglobalillicitfinancialflowsareseizedandforfeited.•RaymondBaker,alongtimefinancialcrimeexpert,notesthatthenumbersshowenforcementfails99.9percentofthetime.“Inotherwords,totalfailureisjustadecimalpointaway.”•DatedinformationsuggestsmoneylaunderersfacealessthanfivepercentriskofconvictionintheUnitedStates.Thesituationinmostareasoftheworldisevenworse.WhatCanBeDone?Thisreportadvancesanumberof“steps-forward”onhowtomoreeffectivelycombatmoneylaundering.Congress•Congressshouldmovelegislationtoendtheabuseofanonymousshellcompaniesbyrequiringbeneficialownershiptransparency.•Congressshouldmakeallfeloniespredicateoffencesformoneylaundering.•CongressshouldprovidespecificlineitemfundingtotheU.S.TradeTransparencyUnits(TTUs)soastoenhancetheiranalyticcapabilitiesandaugmentthepersonnelnecessarytofostertradetransparencyintheUnitedStatesandtoexpandtheinternationalTTUnetwork.•CongressshouldpasslegislationwhichrequiresU.S.companiesthatengageinfinancialtransactionstoobtainaLegalEntityIdentifier(LEI).Page6TheFACTCoalitionCounteringInternationalMoneyLaundering•Congressshouldpasslegislationrequiringtransactionallawyers,andanyoneelsewhoformslegalentities,tocarryoutanti-moneylaunderingduediligence.Inter-Agency•TheU.S.shoulddevelopanupdatedanti-moneylaunderingstrategytoaddressnewandcontinuingthreatstothefinancialsystem.•TheU.S.shouldconveneaninter-agencytaskforcetoadaptcrime-fightingstrategiestocovertheuseofmobilepaymentsystems.•Theadministrationshouldrequirebiddersforfederalcontractsandgrantstopubliclydisclosetheirbeneficialownershipinformation.•TheadministrationshouldadopttheLegalEntityIdentifier(LEI),orasimilar,non-proprietaryandopensystem,thatmakesthehierarchyofentityownershiptransparent,asthestandardidentifierinthefederalprocurementprocess.TreasuryDepartmentandtheFinancialCrimesEnforcementNetwork(FinCEN)•TheDepartmentoftheTreasury,whichleadstheU.S.FinancialActionTaskForce(FATF)delegation,shouldintroducearesolutioncallingformemberstopromotetradetransparencyinordertocombattrade-basedmoneylaunderingandvaluetransfer.•Treasuryshouldinstigateanewrule-makingprocesstostrengthenduediligencerequirementsforfinancialinstitutions.•FinCENshouldbetaskedwithaggressiveoutreachtocommunitiesthatrelyoninformalMoneyServiceBusinesses(MSBs).FinCENshouldpre-emptstateMSBlicensingrequirementsandestablishuniformlicensingrequirementsthatwouldbeapplicabletoanycompanydesignatedasanMSB/moneytransmitterintheUnitedStates.•FinCENshouldfinalizetheproposedruletoimposeanti-moneylaundering(AML)andsuspiciousactivityreportingrequirementsonregisteredinvestmentadvisers.•FinCENshouldre-examineeachofthetemporaryAMLexemptionstodeterminewhethertheseexemptionsarestillwarranted.DepartmentofJustice•TheDepartmentofJusticeshouldensurethatthetopdecision-makersatfinancialinstitutions,accountingfirms,andlawfirmsareheldpersonallyaccountablefortheactionsoftheirorganizations.•Justiceshouldchangetheincentivesforlawenforcementtoencouragethemtopursuecomplexfinancialcrimescases.•Justiceshouldprovidespecificfundsforanti-moneylaundering/counter-terroristfinance(AML/CFT)trainingtothe93U.S.Attorneys’offices.Thefollowingreportdetailsthenearfailureofcurrenteffortstocombatmoneylaunderingandtherationaleforcomprehensivereform.Thesespecificrecommendationsformthebasisofanewapproachtoaddressingmoneylaunderingandthedangerousthreatstooursafetyandsecurityfromthecrimesfundedthroughillicitfinance.Page7TheFACTCoalitionCounteringInternationalMoneyLaunderingI.IntroductionTheworldwidefailuretosuccessfullycombatmoneylaunderinghasdramaticimpact.Outsideofcrimesofpassion,forexample,murdercommittedinajealousrage,criminals,criminalorganizations,kleptocrats,andsomebusinessesandcorporationsaretypicallymotivatedbygreed.Intoday’sincreasinglyinterconnectedworld,themanifestationsofunfetteredavariceimpactallofus—politically,socially,economically,andculturally.Aroundtheworldpeopleseeitintheircommunities.IntheUnitedStatesandelsewhere,theopioid,methamphetamine,andcocaineepidemicsaredevastating.Gangviolence,financialfraud,fraudingovernmentcontracting,corruption,aplethoraofinternetscamsandransomwareattacks,identitytheft,andothercrimesaffectourdailylives.Terrorfinanceandsanctionsbustingthreatennationalsecurity.Lawenforcement,policymakers,andthemediacangetsodistractedwiththeimmediacyofthecriminalbehaviorthatitiseasytoforgettheaimofthesecriminalactivitiesisnotthecrimeitself—buttheproceedsofcrime.Advocates,scholarsandresearchershaveallquestionedtheefficacyofthe“WaronDrugs.”2Butwhydon’tweacknowledgethatourinabilitytostopthelaunderingandseizetheproceedsfuelsthegreedbehindthedrugtrade?Financialcrimesandabusivetaxevasionpracticedbytheelitescontributetothedeteriorationofsocialcompacts.Worldwide,distrustintheprivilegedclasshasseeminglyreachedepidemicproportions3coupledwith(ifnotdrivenby)acorrespondingabsenceofaccountability.4Angerandinequalityarecommonthemesinboththedevelopedanddevelopingworld.Inotherwords,manyoftheillswefacecomebacktomoney.Asdetailedinthisreport,moneylaunderingisthegreatenablerbecauseitturnscriminalproceedsintoseeminglycleanmoneythatcanbefreelyspent.Andyet,oureffortstocombatinternationalmoneylaunderingarealmostacompletefailure.Thisreport,someofwhichisadaptedfromarecentarticleIwroteforTheHill,5willexplaintheshortcomingsofourcurrentapproachtocombatingfinancialcrime,anditwilloutlineanumberofrecommendationsforimprovingthoseefforts.Page8TheFACTCoalitionCounteringInternationalMoneyLaunderingPage9TheFACTCoalitionCounteringInternationalMoneyLaunderingII.BackgroundDefinitionOncecriminalsandcriminalorganizationsaccumulatemoneyfromtheirillicitactivities,theymusttrytohideitordisguiseitsoauthoritiescannotdeterminefromwherethedirtymoneycomes.Aworkingdefinitionofmoneylaunderingis“thehidingordisguisingoftheproceedsofanyformofcriminalactivity.”Thekeywordinthatdefinitionisany.IntheUnitedStates,welimitthedefinitiontostated“predicateoffenses”—orspecifiedunlawfulactivities—thatgeneratetheillicitmoneyuponwhichmoneylaunderingchargescanbebroughtwhencriminalsseektohideordisguisethoseillicitproceeds,suchasnarcoticstrafficking,fraud,smuggling,sellingchildpornography,etc.Theinternationalnormtochargemoneylaunderingisbroaderandincludes“allseriouscrimes.”6MagnitudeHowmuchmoneyisbeinglaundered?Unfortunately,theestimatesarealloverthemap.TheFinancialActionTaskForce(FATF),aninternationalanti-moneylaundering/counter-terroristfinance(AML/CFT)policymakingbody,hasstatedthat,“Duetotheillegalnatureofthetransactions,precisestatisticsarenotavailableanditisthereforeimpossibletoproduceadefinitiveestimateoftheamountofmoneythatisgloballylaunderedeveryyear.”Withthatcaveatinmind,theInternationalMonetaryFund(IMF)hasestimatedthatmoneylaunderingcomprisesapproximately2to5percentoftheworld’sgrossdomesticproduct(GDP)eachyear,orapproximately$1.5trillionto$3.7trillionin2015—nearlythesizeoftheU.S.federalbudget.7Similarly,theUnitedNationsOfficeonDrugsandCrime(UNODC)conductedastudytodeterminethemagnitudeofillicitfunds.AccordingtotheUNODC,in2009,criminalproceedsamountedto3.6percentofglobalGDP(SeeTable1).8Table1:TheInternationalMonetaryFund(IMF)EstimatesofMoney-LaunderingasaPercentofGlobalGDP9Source:UnitedNationsOfficeonDrugsandCrime,October2011Page10TheFACTCoalitionCounteringInternationalMoneyLaunderingThemagnitudeofinternationalmoneylaunderingisprobablymuchhigherdependinguponwhatisincludedinthecount.Forexample,thereisaninternationalmovementtorecognizetaxevasionasapredicateoffensetochargemoneylaundering.11AstudybytheTaxJusticeNetworkestimatedthat,in2010,between$21trillionand$32trillionwashidinginmorethan80internationaltaxhavens.Thestudyalsofoundthatprivilegedelitesin139lowerandmiddle-incomecountrieshad$7.3trillionto$9.3trillioninunrecordedoffshorewealthwhile,atthesametime,mostofthegovernmentsofthecountriesinvolvedwereborrowingthemselvesintobankruptcyandothereconomicdangers(SeeFigure1).12The2016releaseofthe“PanamaPapers”offersadditionalproofofthescopeoftheproblem,showinghowonePanamanianlawfirmcreatedanetworkofover200,000non-transparententitiesallowingcriminals,corruptgovernmentofficials,taxpayers,andotherstohidetheirincomeandwealth.GlobalFinancialIntegrityestimatesthatthedevelopingworldlost$1.1trillioninillicitoutflowsin2013alone,largelythroughabusivetrademisinvoicing.Thispracticeisaformoftrade-basedmoneylaunderingandacommondenominatorinbothcustomsfraudandtaxevasion(SeeFigure2).13Figure1:MoneyHeldOffshoreinTaxHavens10Source:YouthVoice,April2016Page11TheFACTCoalitionCounteringInternationalMoneyLaunderingFigure2:IllicitFinancialFlowsfromDevelopingCountries:2004-201314Source:Spanjers,Joseph,andDevKar.GlobalFinancialIntegrity,December2015Furthercomplicatingreliableestimatesonthemagnitudeofinternationalmoneylaunderingistheenormityof“black”and“grey”marketsaroundtheworld.Underground,informal,“parallel,”cash-basedeconomiescancompriseasubstantialportionofacountry’sGDP.Forexample,intheeconomiesofcountriesasdiverseasIndiaandMexico,theundergroundorblackmarketisestimatedat30percentormoreofGDP.15InEgypt,theestimatesreach40percent.16MosteconomicactivityintheDemocraticRepublicoftheCongotakesplaceintheinformalsector,estimatedtobeuptotentimesthesizeoftheformalsector,withmanytransactions,eventhoseoflegitimatebusinesses,carriedoutincash(ofteninU.S.dollars).17Internationalgreymarketsoftenincludebartertradeandformsofcyberpayments—twocommonmoneylaunderingmethodologiesonoppositeendsofthetechspectrum—thataregenerallyimpervioustofinancialtransparencyreportingrequirements,taxes,andlawenforcementcountermeasures(SeeFigure3).Page12TheFACTCoalitionCounteringInternationalMoneyLaunderingThereareanestimated232millionmigrantworkersaroundtheworld.19Globalization,demographicshifts,regionalconflicts,incomedisparities,andtheinstinctivesearchforabetterlifecontinuetoencourageevermoreworkerstocrossbordersinsearchofjobsandsecurity.20Manycountriesaredependentonremittancesasaneconomiclifeline.TheWorldBankestimatedthatglobalremittancesreached$707billionin2016.21Theseestimatescoverwhatwasofficiallyremitted.Unofficially,nobodyknows.However,theInternationalMonetaryFundbelieves,“Unrecordedflowsthroughinformalchannelsarebelievedtobeatleast50percentlargerthanrecordedflows.”22So,usingtheaboveWorldBankandIMFestimates,unofficialremittancesareenormous.Thefundsarealmostentirelyundergroundandthenetworkspracticallyimpervioustothetaxmanandlawenforcement(SeeFigure4).Figure4:EstimatesoftheUndergroundRemittanceSystemKnownasHawala23Source:TheGuardianFigure3:SizeandDevelopmentoftheShadowEconomy18Source:TheHeritageFoundation,2010Page13TheFACTCoalitionCounteringInternationalMoneyLaunderingUsingjustoneexample,economistsbelievethattheundergroundremittancesystemknownashawalaisa$100billionindustryworldwide.Nogovernmentshouldpreventhardworkingimmigrantsthatwishtosendaportionoftheirincomebacktotheirhomecountriestosupporttheirlovedones.However,becauseoftheopaqueandundergroundnatureofthefinancialsystem,hawalaisalsoamoneylaunderingmechanism.Assuch,itisabusedbycriminalsandterrorists,endangeringnationalandinternationalsecurity.24Thepurchaseo