Training and Technical Assistance
During 2005, a number of U.S. law enforcement and regulatory agencies provided training and technical assistance on money laundering countermeasures and financial investigations to their counterparts around the globe. These courses have been designed to give financial investigators, bank regulators, and prosecutors the necessary tools to recognize, investigate, and prosecute money laundering, financial crimes, terrorist financing, and related criminal activity. Courses have been provided in the United States as well as in the jurisdictions where the programs are targeted.
Department of State
The Department of State's Bureau of International Narcotics and Law Enforcement Affairs (INL) and the Department's Office of the Coordinator for Counter-Terrorism (SCT) co-chair the interagency Terrorist Finance Working Group, and together are implementing a multi-million dollar training and technical assistance program designed to develop or enhance the capacity of a selected group of more than two dozen countries whose financial sectors have been used or are vulnerable to being used to finance terrorism. As is the case with the more than 100 other countries to which INL-funded training was delivered in 2005, the capacity to thwart the funding of terrorism is dependent on the development of a robust anti-money laundering regime. Supported by and in coordination with the State Department, the Department of Justice, Department of Homeland Security, Treasury Department, the Federal Deposit Insurance Corporation, and various non-governmental organizations offered law enforcement, regulatory and criminal justice programs worldwide. This integrated approach includes assistance with the drafting of legislation and regulations that comport with international standards, the training of law enforcement, the judiciary and bank regulators, as well as the development of financial intelligence units capable of collecting, analyzing and disseminating financial information to foreign analogs.
Nearly every federal law enforcement agency assisted in this effort by providing basic and advanced training courses in all aspects of financial criminal investigation. Likewise, bank regulatory agencies participated in providing advanced anti-money laundering/counterterrorist financing training to supervisory entities. In addition, INL made funds available for the intermittent or full-time posting of legal and financial advisors at selected overseas locations. These advisors work directly with host governments to assist in the creation, implementation, and enforcement of anti-money laundering and financial crime legislation. INL also provided several federal agencies funding to conduct multi-agency financial crime training assessments and develop specialized training in specific jurisdictions to combat money laundering.
The success of the now concluded Caribbean Anti-Money Laundering Programme (CALP) convinced INL that a similar type of program for small Pacific island jurisdictions had the potential of developing viable anti-money laundering/counterterrorist regimes. Accordingly, INL contributed $1.5 million to the Pacific Islands Forum to develop the Pacific Island Anti-Money Laundering Program (PALP). The objectives of the PALP are to reduce the laundering of the proceeds of all serious crime and the financing of terrorist financing by facilitating the prevention, investigation, and prosecution of money laundering. The PALP's staff of resident mentors will provide regional and bilateral mentoring and training and technical assistance to the Pacific Islands Forum fourteen non-FATF member states for the purpose of developing viable regimes that comport with international standards.
In 2005, INL reserved $1,000,000 for the United Nations Global Programme against Money Laundering (GPML). In addition to sponsoring money laundering conferences and providing short-term training courses, the GPML instituted a unique longer-term technical assistance initiative through its mentoring program. The mentoring program provides advisors on a yearlong basis to specific countries or regions. GPML mentors provided assistance to the Secretariat of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and to the Horn of Africa countries targeted by the President's East Africa Counterterrorism Initiative. Another GPML resident mentor provided assistance to the Philippine FIU.
INL continues to provide significant financial support for many of the anti-money laundering bodies around the globe. During 2005, INL supported the Financial Action Task Force on Money Laundering (FATF), the international standard setting organization. INL continued to be the sole U.S. Government financial supporter of the FATF-style regional bodies (FSRBs) including the Asia/Pacific Group on Money Laundering (APG), the Council of Europe's MONEYVAL, the Caribbean Financial Action Task Force (CFATF), the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and the South American Financial Action Task Force, Grupo de Accion Financiera de Sudamerica Contra el Lavado de Activos (GAFISUD). INL also financially supported the Pacific Islands Forum and the Organization of American States (OAS) Inter-American Drug Abuse Control Commission (CICAD) Office of Money Laundering and the OAS Counter-Terrorism Committee.
As in previous years, INL training programs continue to focus on an interagency approach and on bringing together, where possible, foreign law enforcement, judicial and Central Bank authorities. This allows for an extensive dialogue and exchange of information. This approach has been used successfully in Asia, Central and South America, Russia, the Newly Independent States (NIS) of the former Soviet Union, and Central Europe. INL also provides funding for many of the regional training and technical assistance programs offered by the various law enforcement agencies, including assistance to the International Law Enforcement Academies.
International Law Enforcement Academies (ILEAs)
The mission of the regional ILEAs has been to support emerging democracies, help protect U.S. interests through international cooperation, and promote social, political, and economic stability by combating crime. To achieve these goals, the ILEA program has provided high-quality training and technical assistance, supported institution building and enforcement capability, and fostered relationships of American law enforcement agencies with their counterparts in each region. ILEAs have also encouraged strong partnerships among regional countries, to address common problems associated with criminal activity.
The ILEA concept and philosophy is a united effort by all the participants-government agencies and ministries, trainers, managers, and students alike-to achieve the common foreign policy goal of international law enforcement. The goal is to train professionals that will craft the future for the rule of law, human dignity, personal safety, and global security.
The ILEAs are a progressive concept in the area of international assistance programs. The regional ILEAs offer three different types of programs. The Core program, a series of specialized training courses and regional seminars tailored to region-specific needs and emerging global threats, typically includes 50 participants, normally from three or more countries. The Specialized courses, comprised of about 30 participants, are normally one or two weeks long and often run simultaneously with the Core program. Lastly, topics of the Regional Seminars include transnational crimes, financial crimes, and counterterrorism.
The ILEAs help develop an extensive network of alumni that exchange information with their U.S. counterparts and assist in transnational investigations. These graduates are also expected to become the leaders and decision-makers in their respective societies. The Department of State works with the Departments of Justice (DOJ), Homeland Security (DHS) and Treasury, and with foreign governments to implement the ILEA programs. To date, the combined ILEAs have trained over 17,000 officials from over 70 countries in Africa, Asia, Europe, and Latin America. The ILEA budget averages approximately $16-18 million annually.
Africa. ILEA Gaborone (Botswana) opened in 2001. The main feature of the ILEA is a six-week intensive personal and professional development program, called the Law Enforcement Executive Development Program (LEEDP), for law enforcement mid-level managers. The LEEDP brings together approximately 45 participants from several nations for training on topics such as combating transnational criminal activity, supporting democracy by stressing the rule of law in international and domestic police operations, and by raising the professionalism of officers involved in the fight against crime. ILEA Gaborone also offers specialized courses for police and other criminal justice officials to enhance their capacity to work with U.S. and regional officials to combat international criminal activities. These courses concentrate on specific methods and techniques in a variety of subjects, such as counterterrorism, anticorruption, financial crimes, border security, drug enforcement, firearms and many others.
Instruction is provided to participants from Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Djibouti, Ethiopia, Kenya, Uganda in East Africa, and Nigeria in West Africa. Planned country program expansion into sub-Saharan Africa was facilitated through a Training Needs Assessment/Program Expansion conference held in September 2005. As a result of this conference the sphere of influence for ILEA Gaborone was expanded to include countries Cameroon, Comoros, Congo, the Democratic Republic of Congo, Gabon and Madagascar.
United States and Botswana trainers provide instruction. ILEA Gaborone has offered specialized courses on money laundering/terrorist financing-related topics such as Criminal Investigation (presented by FBI) and International Banking & Money Laundering Program (presented by DHS/FLETC Federal Law Enforcement Training Center). ILEA Gaborone trains approximately 500 students annually.
Asia. ILEA Bangkok (Thailand) opened in March 1999. The ILEA focuses on enhancing the effectiveness of regional cooperation against the principal transnational crime threats in Southeast Asia-illicit drug-trafficking, financial crimes, and alien smuggling. The ILEA provides a Core course (the Supervisory Criminal Investigator Course or SCIC) of management and technical instruction for supervisory criminal investigators and other criminal justice managers. In addition, this ILEA presents one Senior Executive program and about 18 specialized courses-lasting one to two weeks-in a variety of criminal justice topics. The principal objectives of the ILEA are the development of effective law enforcement cooperation within the member countries of the Association of Southeast Asian Nations (ASEAN) plus China, and the strengthening of each country's criminal justice institutions to increase their abilities to cooperate in the suppression of transnational crime.
Instruction is provided to participants from Brunei, Cambodia, China, Hong Kong, Indonesia, Laos, Macau, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Subject matter experts from the United States, Thailand, Japan, Netherlands, Philippines, and Hong Kong provide instruction. ILEA Bangkok has offered specialized courses on money laundering/terrorist financing-related topics such as Computer Crime Investigations (presented by FBI and DHS/Bureau of Customs and Border Protection (BCBP)) and Complex Financial Investigations (presented by IRS, DHS/BCBP, FBI and DEA). Total annual student participation is approximately 600.
Europe. ILEA Budapest (Hungary) opened in 1995. Its mission has been to support the region's emerging democracies by combating an increase in criminal activity that emerged against the backdrop of economic and political restructuring following the collapse of the Soviet Union. ILEA Budapest offers three different types of programs: an eight-week Core course, Regional Seminars and Specialized courses in a variety of criminal justice topics. Instruction is provided to participants from Albania, Armenia, Azerbaijan, Bulgaria, Croatia, Czech Republic, Estonia, Georgia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
Trainers from 17 federal agencies and local jurisdictions from the U.S. and Hungary, Canada, Germany, United Kingdom, Netherlands, Ireland, Italy, Russia, Interpol as well as the Council of Europe provide instruction. ILEA Budapest has offered specialized courses on money laundering/terrorist financing-related topics such as Investigating/Prosecuting Organized Crime and Transnational Money Laundering (both presented by DOJ/OPDAT). ILEA Budapest trains approximately 950 students annually.
Global. ILEA Roswell (New Mexico) opened in September 2001. This ILEA offers a curriculum comprised of courses similar to those provided at a typical Criminal Justice Program university/college. These three-week courses have been designed and are taught by academicians for foreign law enforcement officials. This Academy is unique in its format and composition with a strictly academic focus and worldwide student body. The participants are mid- to senior-level law enforcement and criminal justice officials from Eastern Europe, Russia, the Newly Independent States (NIS), Association of Southeast Asian Nations (ASEAN) member countries, the People's Republic of China (including the Special Autonomous Regions of Hong Kong and Macau), member countries of the Southern African Development Community (SADC), other East and West African countries, and the Caribbean, Central, and South American countries. The students are drawn from pools of ILEA graduates from the Academies in Bangkok, Budapest, Gaborone, and San Salvador. ILEA Roswell trains approximately 450 students annually.
Latin America. At the Organization of American States General Assembly meeting in June 2005, Secretary Rice announced that the new ILEA for Latin America would be located in El Salvador. A Bilateral Agreement between El Salvador and the USG establishing the new ILEA was signed in September 2005 and was ratified by the Salvadoran National Assembly in November, 2005. The training program for the new ILEA in San Salvador will be similar to the ILEAs in Bangkok, Budapest, and Gaborone, and will offer a six-week Law Enforcement Management Development Program (LEMDP) for law enforcement and criminal justice officials as well as specialized courses for police, prosecutors, and judicial officials. In 2006, ILEA San Salvador will deliver one LEMDP session and about 10 Specialized courses that will concentrate on attacking international terrorism, illegal trafficking in drugs, alien smuggling, terrorist financing, financial crimes, culture of lawfulness, and accountability in government. Components of the six-week LEMDP training session will focus on terrorist financing (presented by the FBI), international money laundering (presented by DHS/ICE/Immigration and Customs Enforcement), and financial evidence/money laundering application (presented by DHS/FLETC and IRS). The Specialized course schedule will include courses on financial crimes investigations (presented by DHS/ICE) and money laundering training (presented by IRS). During the initial phase of operation, participants from the following countries are expected to attend: Argentina, Bahamas, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Nicaragua, Panama, Paraguay, Peru, Uruguay, and Venezuela.
Board of Governors of the Federal Reserve System (FRB)
An important component in the United States' efforts to combat and deter money laundering and terrorism financing is to verify that supervised organizations comply with the Bank Secrecy Act and have programs in place to comply with Office of Foreign Assets Control (OFAC) sanctions. The FRB, working with the other bank regulatory agencies, ensures compliance with these statutes for the institutions under its supervision. This task was advanced in 2005 with the issuance of the Bank Secrecy Act Anti-Money Laundering Examination Manual.
Internationally, the FRB conducted training and provided technical assistance to banking supervisors and law enforcement officials in anti-money laundering and counterterrorism financing tactics in partnership with regional supervisory groups or multilateral institutions. In 2005, the FRB provided training and/or technical assistance to Argentina, Jordan, Latvia, Indonesia, Korea, and Uzbekistan. Furthermore, these activities were presented on a regional basis to several Asia Pacific and Latin American countries. Due to the importance that the FRB places on international standards, the FRB anti-money laundering experts participated regularly in the U.S. delegation of the Financial Action Task Force and the Basel Committee's cross-border banking groups. The experts also meet with industry groups to support industry best practices in this area such as the Wolfsberg Group. In addition, the FRB presented at the U.S.-OSCE Conference on Combating Terrorist Financing.
The FRB also presented training courses to domestic law enforcement agencies including the Internal Revenue Service, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Department of Homeland Security's Bureau for Immigration and Customs Enforcement, the Drug Enforcement Administration, as well as at the Federal Law Enforcement Training Center.
Bureau of Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS)
During 2005, the Bureau of Immigration and Customs Enforcement (ICE), Financial Investigations Division and the Office of International Affairs delivered extensive money laundering, financial investigations and antiterrorist financing training to domestic and foreign law enforcement organizations, and to the regulatory, banking and trade communities. ICE money laundering and financial investigations training is based on the broad experience achieved while conducting international money laundering and traditional financial investigations techniques as part of the U.S. Customs Service (USCS) legacy.
With the assistance of State Department funding, ICE provided technical assistance, training and instruction on interdicting and investigating bulk cash smuggling seizures in support of the Financial Action Task Force (FATF) Special Recommendation IX on Cash Couriers. During 2005, ICE provided this technical assistance and training to 450 foreign law enforcement officers in seven countries. ICE conducted and/or participated in 52 domestic and international money laundering and financial investigations seminars and conferences which focused on the traditional patterns and trends identified with trade based money laundering schemes, bulk cash smuggling, Black Market Peso Exchange (BMPE) investigations, alternative money remittance systems, and human trafficking. ICE also delivered training to the domestic and international private financial and trade sectors through the Cornerstone Program. The Cornerstone Program was developed and designed to provide the necessary skills to identify and develop a methodology to detect suspect transactions indicative of money laundering and criminal activity within the financial and trade community.
The ICE International Affairs and the Financial Investigations Division planned, coordinated and participated in providing international training and technical assistance through programs sponsored by the State Department Bureau of International Narcotics and Law Enforcement Affairs (INL), and the International Law Enforcement Academy (ILEA) programs in El Salvador, Thailand, Gaborone, and Hungary. ICE personnel also participated and provided instruction to foreign police, judicial, banking and public sector officials through seminars and conferences sponsored by the FATF and the Asia/Pacific Group on Money Laundering (APG). Through these programs, ICE gave international training and technical assistance on conducting money laundering investigations, bulk cash smuggling, and trade based money laundering investigations to officials from over 100 countries worldwide.
In Lima, Peru, ICE conducted additional financial investigations training of law enforcement officers from 15 Central and South American countries in support of the Organization of American States' Inter-American Drug Abuse Control Commission (OAS/CICAD). The ICE Financial and Trade Investigations Division has supported these programs for more than two years.
ICE's Trade Transparency Unit (TTU) identifies anomalies related to cross-border trade that are indicative of international trade-based money laundering. The TTU generates, initiates and supports investigations and prosecutions related to trade-based money laundering, the illegal movement of criminal proceeds across international borders, alternative money remittance systems, terrorist financing, and other financial crimes. By sharing trade data with foreign governments, ICE and participating governments will be able to see both sides, import and export data for, of commodities entering or leaving their countries. This makes trade transparent and will assist in the identification and investigation of international money launderers and money laundering organizations.
The Tri-border area (TBA) of South America is bounded by Ciudad de Este, Paraguay, Foz do Iguacu, Brazil and Puerto Iguazu, Argentina. The TBA is reported as being South America's busiest contraband and smuggling center, generating which generates billions of dollars annually in money laundering, arms and drug trafficking, IPR counterfeiting and piracy. The United States has worked actively and cooperatively with governments in the region to disrupt this fundraising activity and together with Argentina, Brazil and Paraguay, the U.S. Government launched the "3+1" Counterterrorism Dialogue. The "3+1" dialogue is focused on terrorism prevention, counterterrorism policy discussion, increased cross-border cooperation, and mutual counterterrorism capacity building. The participating countries have met several times and are committed to strengthening cooperation among their financial intelligence units, border security officials, counterterrorism case prosecutors, and police investigators. In concert with U.S. policy, ICE, supported by and in conjunction with the Department of State INL Bureau funding, initiated the establishment of TTU's in the Tri-border area countries of. Paraguay, Brazil and Argentina. The Governments of Paraguay and Brazil have exchanged trade data with ICE and are in the process of establishing their TTUs. In October 2005, the Government of Argentina formally acknowledged its intended participation in the TTU. The Government of Paraguay is in the process of establishing their TTU.
Drug Enforcement Administration (DEA), Department of Justice
With the assistance of State Department funding, the International Training Section of the DEA conducts its International Asset Forfeiture and Money Laundering courses in concert with the Department of Justice (DOJ). In 2005, hundreds of participants from Hong Kong, Macau, Jordan, Japan, India, Israel, and Italy received this training. A wide range of DEA international courses contain training elements related to countering money laundering and other financial crimes. The DEA training division also delivers training at the International Law Enforcement Academies in Bangkok, Budapest, Gaborone, and San Salvador.
The basic course curriculum, which was conducted in Jordan, Japan, India, Macau, and Israel, addresses money laundering and its relation to Central Bank operations, asset identification, seizure and forfeiture techniques, financial investigations, document exploitation, and international banking. The curriculum also includes overviews of U.S. asset forfeiture law, country forfeiture and customs law, and prosecutorial perspectives. The advanced course, conducted in Hong Kong and Italy, included tracing the origin of financial assets, internet/cyber banking, terrorist financing, reverse sting operations, electronic evidence and data exploitation, role of intelligence in money laundering investigations, and case studies with practical exercises.
In addition, DEA presented a three-week International Narcotics Enforcement Management Seminar for officials from Colombia, Mexico, Panama, Bolivia, Ecuador, Chile, the Dominican Republic, Uruguay, Argentina, Brazil, Paraguay, Honduras, El Salvador, Costa Rica, Nicaragua, Belize, and the Netherlands Antilles. The DEA Chief of Financial Operations presented a block of training related to money laundering methods and techniques as well as best practices for investigating these crimes, at a conference sponsored by the UK's Assets Recovery Agency (ARA) to officials from the ARA, The Serious Organized Crime Agency (SOCA), Metropolitan Police, National Crime Squad, Her Majesty's Customs and Revenue (HMCR), and 43 constabularies.
DEA also participated in an exchange of information forum with officials from the People's Republic of China concerning recent trends in drug money laundering, especially related to trade-based money laundering and the Colombian Black Market Peso Exchange (BMPE) as it relates to commodities manufactured in China.
Federal Bureau of Investigation (FBI), Department of Justice
During 2005, with the assistance of State Department funding, Special Agents and other subject matter experts of the FBI continued their extensive international training in terrorist financing, money laundering, financial fraud, racketeering enterprise investigations, and complex financial crimes. The unit of the FBI responsible for international training is the International Training and Assistance Unit (ITAU) in the Training and Development Division, which is located at the FBI Academy in Quantico, Virginia. ITAU coordinates with the Terrorist Financing and Operations Section of the FBI's Counterterrorism Division, as well as other divisions within FBI Headquarters and in the field, to provide instructors for these international initiatives. FBI instructors, who are most often operational special agents or supervisory special agents from headquarters or the field, rely on their experience to relate to the international law enforcement students as peers and partners in the training courses.
The FBI regularly conducts training through International Law Enforcement Academies (ILEA) in Bangkok, Thailand; Budapest, Hungary; and Gaborone, Botswana. In 2005, the FBI delivered training in white collar crime investigations to 248 students from 12 countries at ILEA Budapest. The FBI was proud to participate in the opening session of the ILEA in San Salvador, El Salvador by providing terrorist financing and money laundering training to 36 students from El Salvador, Colombia, and the Dominican Republic. The FBI also delivered terrorist financing and money laundering training to 39 students from 19 Latin American countries through the Latin American Law Enforcement Executive Development Seminar conducted at the FBI Academy.
In other programs, the FBI trained international officials in Thailand, Kuwait, Malaysia, Nigeria, Qatar, Philippines, Bangladesh, United Arab Emirates, Suriname, Sri Lanka, and Slovenia. This included FBI participation in seminars and advanced seminars on terrorist financing, organized crimes, securities fraud, and other financial crimes that the Office of Overseas Prosecutorial Development delivered to 422 students in Nicaragua, Sri Lanka, Austria, and Slovenia. This also includes the one-week terrorist financing and money laundering training initiatives that the FBI regularly conducts with the assistance of the Internal Revenue Service, Criminal Investigative Division. This training reached 225 international students in Thailand, Malaysia, Kuwait, Nigeria, Qatar, Philippines, and Bangladesh. Additionally in 2005, the FBI has begun to develop and conduct advanced versions of this initiative.
Federal Deposit Insurance Corporation (FDIC)
In 2005, the FDIC continued to work in partnership with several agencies to combat money laundering and the global flow of terrorist funds. Additionally, the agency planned and conducted missions to assess vulnerabilities to terrorist financing activity worldwide, and developed and implemented plans to assist foreign governments in their efforts in this regard. To better achieve this end, the FDIC had 38 individuals available to participate in foreign missions. Periodically, FDIC staff meets with supervisory and law enforcement representatives from various countries to discuss anti-money laundering (AML) issues, including examination policies and procedures, the USA PATRIOT Act and its requirements, the FDIC's asset forfeiture programs, suspicious activity reporting requirements, and interagency information sharing mechanisms. In 2005, the FDIC gave such presentations to representatives from the Netherlands, Russia, Egypt, Swaziland, Zambia, and China.
In February and December 2005, with the assistance of State Department funding, the FDIC hosted approximately 50 individuals from Egypt, Jordan, Macedonia, Tanzania, Afghanistan, Bangladesh, Indonesia, and Morocco. The two sessions focused on AML and counterfinancing of terrorism, including the examination process, customer due diligence, and foreign correspondent banking. In March 2005, the FDIC participated in an interagency Financial Systems Assessment Team (FSAT) assisting representatives from Tanzania in evaluating and determining future technical assistance. The group reviewed the country's proposed AML law and provided information in the areas of customer identification programs, financial intelligence units and the monitoring of non-bank financial institutions.
The Financial Services Volunteer Corp requested individuals with extensive knowledge of AML legislation from the FDIC to give technical assistance to Macedonia in 2005. FDIC staff reviewed and advised Macedonian regulators and financial institution representatives on the development and implementation of AML requirements, current laws and regulations, organizational structure, and training needs. During 2005, the FDIC assisted the Department of Justice's Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) in regional conferences in Sri Lanka and the United Arab Emirates. The FDIC discussed the regulatory requirements of a formal banking system. Countries participating included Bahrain, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates.
Financial Crimes Enforcement Network (FinCEN), Department of Treasury
FinCEN, the U.S. Financial Intelligence Unit (FIU), a bureau of the U.S. Department of the Treasury, coordinates and provides training and technical assistance to foreign nations seeking to improve their capabilities to combat money laundering, terrorist financing, and other financial crimes. FinCEN's particular focus in bilateral efforts is the creation and strengthening of FIUs—a valuable component of a country's anti-money laundering (AML) regimes. FinCEN's international training program has two components: (1) instruction and presentations to a broad range of government officials, financial regulators, law enforcement officers, and others on the subjects of money laundering, terrorist financing, financial crime, and FinCEN's mission and operation; and (2) training regarding FIU operations and analysis training via personnel exchanges. Much of FinCEN's work involves strengthening existing FIUs and the channels of communication used to share information to support anti-money laundering investigations. Participation in personnel exchanges (from the foreign FIU to FinCEN and vice versa), delegation visits to foreign FIUs, and regional and operational workshops are just a few examples of FinCEN activities designed to assist and support FIUs.
For those FIUs that are fully operational, FinCEN's goal is to assist the unit in increasing effectiveness, improving information sharing capabilities, and better understanding the phenomena of money laundering and terrorist financing. As a member of the Egmont Group of FIUs, FinCEN works closely with other member FIUs to provide training and technical assistance to countries and jurisdictions interested in establishing their own FIUs and then integrating them into the Egmont Group and having those units become candidates for membership in the Egmont Group.
During 2005, with the assistance of State Department funding, as well as Treasury, FinCEN conducted training courses, both independently and with other agencies including the Federal Bureau of Investigation and the Treasury Department's Office of Technical Assistance (OTA). Occasionally, FinCEN's training and technical assistance programming is developed jointly with these other agencies in order to address specific needs of the jurisdiction/country receiving assistance. In 2005, FinCEN conducted several training programs abroad to maximize participation by foreign FIUs.
Over the last twelve months, in an effort to enhance the sharing of information among established FIUs, FinCEN conducted personnel exchanges with a number of Egmont Group members, including the FIUs of from Liechtenstein, Mexico, and Russia. These exchanges offered the opportunity for FIU personnel to see how another FIU operates first-hand. The participants in these exchanges shared ideas, innovations, and insights, leading to improvements in such areas as analysis, information flow, and information security at their home FIUs.
Analysis training typically consists of a group of analysts from a country's FIU spending up to a week at FinCEN. Occasionally, FinCEN will conduct these training sessions abroad. FinCEN's analysis training program provides foreign analysts with basic skills in critical thinking and analysis, data collection, report writing, database research, financial analysis (such as bank records and net worth analysis), and case presentation. Training topics such as regulatory issues, international case processing, technology infrastructure and security, and terrorist financing and money laundering trends and typologies provide analysts with broader knowledge and a better understanding of the topic of money laundering. Finally, analysts gain an extensive knowledge of the U.S. AML regime by meeting with representatives from other federal agencies involved in the fight against money laundering and terrorist financing. These include the Justice Department's Asset Forfeiture and Money Laundering Section, the State Department's Bureau of International Narcotics and Law Enforcement Affairs and Office of the Coordinator for Counter-Terrorism, the Internal Revenue Service's Criminal Investigation Division, and the Homeland Security Department's Bureau of Immigration and Customs Enforcement (ICE).
During 2005, FinCEN conducted a week-long training program for over 25 analysts from seven countries in South and Central American and the Caribbean (Argentina, Chile, Costa Rica, the Dominican Republic, Panama, Peru and Venezuela) and, participated along with OTA and the Justice Department's OPDAT in a week-long seminar in Azerbaijan for law enforcement and regulatory personnel. FinCEN coordinated analytical training in Tbilisi for 30 analysts from Georgia's FIU, Prosecutor's Office and National Bank. with the Department of Homeland Security-Immigrations and Customs Enforcement (ICE) and, the Federal Bureau of Investigation (FBI). In Sri Lanka, FinCEN participated in a training seminar on FIU development, organized by the Sri Lankan Central Bank and the U.S. Embassy on FIU development. At the ILEA in Budapest, FinCEN participated in a program, jointly sponsored by ILEA and the Justice Department's Office of Overseas Prosecutorial Development and Asset Forfeiture and Money Laundering Section. Participants included local prosecutors, judges, banking officials, and law enforcement agents.
Thailand's FIU, the Anti-Money Laundering Office, sent three analysts to FinCEN for a week-long series of briefings on information analysis, data mining software and guidance on various regulatory issues. Also, FinCEN hosted officials from China's new FIU, the China Anti-Money Laundering Monitoring and Analysis Center, for a day of training focusing on IT, data storage and analysis techniques, and the use of software in analyzing data. In 2005, FinCEN continued to collaborate with international organizations in order to enhance its role as a key provider of training and better understand the role of providing anti-money laundering/counterterrorist financing training and technical assistance. To that end, over the last year, FinCEN has significantly increased its coordination with organizations such as the Organization of American States, the International Monetary Fund and the World Bank.
In 2005, FinCEN hosted representatives from approximately 60 countries. These visits, typically lasting one to two days, focused on topics such as money laundering trends and patterns, the Bank Secrecy Act, USA PATRIOT Act, communications systems and databases, case processing, and the goals and mission of FinCEN. Representatives from foreign financial and law enforcement sectors generally spend one to two days at FinCEN learning about money laundering, the U.S. AML regime and reporting requirements, the national and international roles of a financial intelligence unit, and various other topics. The countries included: Argentina, Azerbaijan, Australia, Belgium, Bolivia, Bulgaria, Canada, China, Colombia, Croatia, Czech Republic, Denmark, Dominican Republic, El Salvador, Egypt, Finland, France, Germany, Georgia, Guatemala, Honduras, Hong Kong, India, Italy, Israel, Japan, Jordan, Kazakhstan, Kenya, Latvia, Lithuania, Macedonia, Malaysia, Mexico, Netherlands, Nicaragua, Nigeria, Norway, Panama, Pakistan, Paraguay, Peru, Poland, Romania, Serbia and Montenegro, Slovak Republic, South Korea, Spain, Swaziland, Taiwan, Tanzania, Turkmenistan, Ukraine, United Kingdom, Uruguay, Uzbekistan, and Venezuela. Representatives of the "Turkish Republic of Northern Cyprus" also visited FinCEN in 2005.
Internal Revenue Service (IRS), Department of Treasury
In 2005, the IRS Criminal Investigative Division (IRS-CID) continued its involvement in international training and technical assistance efforts designed to assist foreign law enforcement agents detect money laundering and the financing of terrorism. With the assistance of State Department's funding, IRS-CID provided training through agency and multi-agency technical assistance programs to foreign law enforcement agencies. Training included basic and advanced financial investigative techniques, and combating money laundering and transnational terrorism.
IRS-CID provided support to the International Law Enforcement Academies (ILEAs) at Bangkok, Budapest and Gaborone by delivering training in Financial Investigative Techniques/Money Laundering and Antiterrorism Financing. At the Bangkok ILEA IRS-CID participated in two Supervisory Criminal Investigator Courses (SCIC) and served as the coordinator of the annual Complex Financial Investigations (CFI) course, which is provided to senior, mid-level, and first-line law enforcement supervisors, inspectors, investigators, prosecutors and customs officers from Cambodia, Hong Kong, Indonesia, Laos, Macau, Malaysia, People's Republic of China, Philippines, Singapore, Thailand, and Vietnam. At ILEA Budapest IRS-CID participated in five sessions held in Budapest and also provided a class coordinator for one of the sessions to share experience and expertise in financial investigative matters with participants from Albania, Armenia, Azerbaijan, Belarus, Bosnia/Herzegovina, Bulgaria, Czech Republic, Croatia, Estonia, Georgia, Hungary, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Macedonia, Moldova, Poland, Romania, Russia, Serbia/Montenegro, Slovakia, Slovenia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
IRS-CID participated in four Law Enforcement Executive Development (LEED) programs and also funded a special agent to serve as a Deputy Director at the ILEA in Gaborone, Botswana. Training was delivered to Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia, Djibouti, Ethiopia, Kenya, Seychelles, Uganda, Nigeria, Cameroon, Comoros, Congo, DRC, Gabon, and Madagascar. At the INEA in San Salvador, IRS-CID continued to participate in the establishment of ILEA Latin America and participated in several meetings including the Key Leaders and curriculum development conferences. A Supervisory Academy Instructor participated in the Latin America's Law Enforcement Development Program (LEMDP) pilot class and also attended the ceremony for the signing of the bi-lateral agreement for the establishment of the ILEA in San Salvador, including Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Jamaica, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay, and Venezuela.
Also with Department of State (DOS) funding, IRS-CID participated in the DOS Antiterrorism Assistance (ATA) training to countries attending the ILEAs. As part of this initiative, IRS-CID conducted five separate two-day sessions on Combating Transnational Terrorism Financing, (two at ILEA Budapest and Bangkok and one at ILEA Gaborone). The participants that attended the ILEA Budapest sessions were from Estonia, Latvia, Lithuania, Uzbekistan, Kyrgyzstan, Tajikistan, and Kazakhstan, Participants from Cambodia, China, Hong Kong, Indonesia, Laos, Macau, Malaysia, Philippines, Singapore, Thailand, and Vietnam attended ILEA Bangkok and participants from Ethiopia, Botswana, Kenya, and Tanzania attended the session in ILEA Gaborone.
In Trinidad, IRS-CID conducted a two-week Financial Investigative Techniques (FIT) training course. The overall goal of the course was to provide a forum for development of working relationships between the agencies represented and deliver some familiarization training about basic financial investigative techniques, money laundering and asset forfeiture. In Kuala Lumpur, Malaysia, IRS-CID conducted a basic and an advanced Financial Investigative Techniques (FIT) training course. The majority of the participants were investigators from the Inland Revenue Board assigned to the newly created criminal investigation function, with other participants being attorneys and supervisors. The initial course consisted of various instruction regarding basic financial investigative techniques, while the advanced course consisted of a two-week practical exercise where the participants worked a simulated investigation.
In Rarotonga, Cook Islands, IRS-CID conducted a two-week Money Laundering and Terrorist Financing course. This class was a more in-depth and comprehensive look at financial investigations to supplement the overview course presented the previous year. The two-week course consisted of a presentation by the IRS Attach� for the region on information available through his office for investigative inquiries, and a discussion of trends and emerging issues in terrorist financing and money laundering within the region. The participants included both government officials with responsibilities of financial investigation and oversight, and private sector individuals from banks and trust companies.
IRS-CID conducted Financial Investigative Techniques courses in three countries. One was a week-long course in Asuncion, Paraguay, for tax investigators from the tax administration of Paraguay, general prosecutors, the IRS Attach� for the region, the Director of the Financial Unit in Paraguay; the Resident Enforcement Advisor from the Treasury Office of Technical Assistance, and the Resident Legal Advisor from the Justice Overseas Prosecutorial Development Assistance. In Manila, Philippines, IRS-CID assisted the Philippines government with three classes for Investigative Agents. In Riga, Latvia, IRS-CID presented a class to 22 Latvian investigators and prosecutors.
IRS-CID conducted three Financial Investigations Training courses in Hong Kong in 2005. IRS-CID and the IRS Attach� for the region assisted the Hong Kong Inland Revenue with two days of courses. The courses were attended by 36 examiners and criminal investigators from Inland Revenue and Hong Kong Treasury accountants assigned to the Hong Kong Police Force. IRS-CID and the IRS Attach� for the region also made a presentation at a two-day terrorist financing seminar jointly hosted by the Hong Kong Police Force and the Federal Bureau of Investigation (FBI), and facilitated the seminar discussion regarding the abuse of charities for the financing of terrorism. FBI also held a two-day Advanced Money Laundering Seminar in which IRS-CID participated. Discussions were held with Hong Kong Police Officials on qualifications and training for a Money Laundering Expert Witness Training Program.
In Pretoria, South Africa, IRS-CID participated in a one-week Money Laundering and Asset Forfeiture Training Program sponsored by the U.S. Secret Service. The course was delivered to 70 investigators from the South African Police, with the remainder of the participants from the elite "Scorpion Unit."
IRS-CID assisted the Office of Overseas Prosecutorial Development Assistance and Training (OPDAT) with a Complex Financial Investigations Course in Balvanyos, Romania, a Terrorist Financing Seminar in Sri Lanka, and two classes with an emphasis on Money Laundering and Terrorism Financing in Manila, Philippines for appellate and trial judges. The training held in the Philippines was funded through the American Bar Association (ABA). IRS-CID assisted the FBI in delivering multiple one-week courses on Anti-Money Laundering and Antiterrorism Financing. During 2005, the course was successfully delivered to participants in Bangladesh, Kuwait, Malaysia, Nigeria, Philippines, Qatar, Turkey, and Thailand.
The IRS-CID Mexico City Attach� delivered financial investigative training courses to 50 bank officials and government attorneys during a one-week Organized Crime Conference sponsored by the Colombian Banking Association (FELABAN), and then to 50 prosecutors from the Mexican Government Attorney General's Office in charge of Money Laundering's (PGR's) International Section (MLAT Unit). The Attach� also participated in a one-week International Financial Fraud training session for 100 prosecutors from PGR's Economic Crimes Section in Quer�taro, and presented Money Laundering/Wire Remittances Investigative Techniques training to both a group of 40 FIU Directors from Central America and Argentina at the Financial Investigative Unit Conference in Vienna, Virginia, as well as to 100 prosecutors and banking officials at the Guatemalan Banker's Association Conference. In Oaxaca, Mexico, the Attach� gave a one-week International Financial Fraud Seminar where he presented on "International Money Laundering," "Money Services Business/Money Remitters" and "Black Market Peso Exchange" to over 100 prosecutors. In Ecuador, IRS-CID Bogot� Attach� provided one-week of Investigative Techniques training on money laundering to 50 banking officials.
Office of the Comptroller of the Currency (OCC), Department of Treasury
The Office of the Comptroller of the Currency charters, regulates and supervises all national banks and federal branches and agencies of foreign banks. The OCC's nationwide staff of examiners conducts on-site reviews of national banks and provides sustained supervision of bank operations, including Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance.
With the assistance of State Department funding, the OCC has conducted AML training for foreign bank supervisors and examiners two to three times per year for the past six years. Over 250 foreign bank supervisors have participated in this training program. In total, the OCC's AML schools have trained approximately 650 OCC examiners over the past seven years. In addition, the OCC consistently provides instructors for the Federal Financial Institutions Examination Council schools, which are now patterned after the OCC's school.
The OCC conducted and sponsored a number of anti-money laundering (AML) training initiatives for foreign banking supervisors during 2005. In January 2005, the OCC presented an Anti-Money Laundering/Antiterrorist Financing program to a visiting Chinese delegation. In May 2005, the OCC sponsored an Anti-Money Laundering/Anti Terrorist Financing School in Washington, D.C. The school was designed specifically for foreign banking supervisors to increase their knowledge of money laundering and terrorist financing activities and of how these acts are perpetrated. The course provided a basic overview of AML examination techniques, tools, and case studies. Twenty-five banking supervisors from the following countries were in attendance: Austria, Bahrain, Canada, China, Egypt, Guatemala, Japan, Indonesia, Luxembourg, Nigeria, Philippines, Russia, St. Vincent & Grenada, Turkey, and United Kingdom.
The OCC, with the World Bank, also produced a DVD presentation of the March 2004 OCC sponsored Anti-Money Laundering/Terrorist Financing School held in Washington, D.C. This training was produced for distribution to foreign banking supervisors. In November 2005, the OCC provided instructors to a FDIC sponsored Anti-Money Laundering/Terrorist Financing School in Washington, D.C. The school was designed specifically for foreign banking supervisors to increase their knowledge of money laundering and terrorist financing activities and of how these acts are perpetrated. The course provided a basic overview of AML examination techniques, tools and case studies. Twenty banking supervisors from the following countries were in attendance: Afghanistan, Bangladesh, Indonesia, and Morocco. Also in November, the OCC presented an Anti-Money Laundering/Antiterrorist Financing program to Poland's Department of Financial Information as part of a week-long on-site visitation with FinCEN.
The OCC had originally scheduled an Anti-Money Laundering/Terrorist Financing School for the fourth quarter of 2005 in Lebanon, designed specifically for foreign banking supervisors to increase their knowledge of money laundering and terrorist financing activities. Due to security concerns, this training was postponed.
Office of Prosecutorial Development Assistance and Training & the Asset Forfeiture and Money Laundering Section (OPDAT and AFMLS), Department of Justice
Training and Technical Assistance
The Overseas Prosecutorial Development Assistance and Training (OPDAT) section is the office within the Justice Department that assesses, designs and implements training and technical assistance programs for our criminal justice sector counterparts overseas. OPDAT draws upon components within the Department, such as the Asset Forfeiture and Money Laundering Section (AFMLS) and the Counterterrorism Section, to provide programmatic expertise and to develop good partners abroad. Much of the training provided by OPDAT and AFMLS is provided with the assistance of the Department of State's funding.
In 2005, OPDAT provided training in the areas outlined below. In addition to programs that are targeted to each country's needs, OPDAT also provides long term, in-country assistance through Resident Legal Advisors (RLAs). RLAs are federal prosecutors who provide in-country technical assistance to improve the skills, efficiency and professionalism of foreign criminal justice systems. RLAs live in a country for one or two years to work with counterparts such as ministries of justice, prosecutors and the courts. To promote reforms in the criminal justice system, RLAs provide assistance in legislative drafting, modernizing institutional policies and practices, and training law enforcement personnel including prosecutors, judges, police and other investigative or court officials. For all programs, OPDAT draws on the expertise of the Department of Justice's Criminal Division and other components as needed. OPDAT works closely with AFMLS, the lead Justice section that provides countries with technical assistance in the drafting of money laundering and asset forfeiture statutes compliant with international standards.
Money Laundering/Asset Forfeiture
During 2005, the Justice Department's OPDAT and AFMLS continued to provide training to foreign prosecutors, judges and law enforcement, and assistance in drafting anti-money laundering statutes compliant with international standards. The assistance provided by OPDAT and AFMLS enhances the ability of participating countries to prevent, detect, investigate, and prosecute money laundering, and to make appropriate and effective use of asset forfeiture. The content of individual technical assistance varies depending on the specific needs of the participants, but topics addressed in 2005 included developments in money laundering legislation and investigations, complying with international standards for anti-money laundering/counterterrorist financing regime, illustrations of the methods and techniques to effectively investigate and prosecute money laundering, inter-agency cooperation and communication, criminal and civil forfeiture systems, the importance of international cooperation, and the role of prosecutors. In 2005, OPDAT also cosponsored with the Department of State and the Organization for Security and Cooperation in Europe (OSCE) a money laundering conference for all West and Eastern Europe countries, and Russia and Kyrgyzstan.
AFMLS provides technical assistance directly in connection with legislative drafting on all matters involving money laundering, asset forfeiture and the financing of terrorism. During 2005, AFMLS provided such assistance to 14 countries and actively participated in the drafting of the forfeiture provisions for the OAS/CICAD Model Regulations. AFMLS continues to participate in the UN Working Group to draft a model non-conviction based asset forfeiture law and the G-8 working groups on corruption and asset sharing.
With the assistance of Department of State funding, AFMLS provided training to government officials concerned with money laundering issues in the United Arab Emirates, Kenya, Sri Lanka, Afghanistan, Pakistan, Bangladesh, the Maldives, Thailand, Malaysia, Indonesia and the Philippines. These officials attended in-depth sessions on money laundering and international asset forfeiture. AFMLS attorneys participated in the meeting of the Intergovernmental Experts Group on International Asset Sharing which was convened in Vienna, Austria by UNODC. In preparation for the Experts Group meeting, AFMLS crafted the first draft from which experts worked to craft the model agreement. Ultimately, AFMLS was instrumental in the development and adoption of the "Model Bilateral Agreement on the Sharing of Confiscated Proceeds of Crime and Property" by the UN General Assembly in December 2005. Additionally, in 2005, AFMLS provided technical assistance to Afghanistan, Albania, Bangladesh, Brazil, Bulgaria, Pakistan, Indonesia, Iraq, Kenya, Sri Lanka, the Republic of Korea, Tanzania, Thailand, and Turkey.
In an effort to improve international collaboration in investigating and prosecuting intellectual property/counterfeiting cases, and to examine methods for forfeiting the proceeds of those crimes, the AFMLS hosted a conference in Hong Kong, April 12-15, 2005, on Forfeiting the Proceeds of Counterfeiting Crimes for prosecutors and investigators. Practitioners and other experienced government officials from Australia, China, Hong Kong, New Zealand, Singapore, South Korea, Thailand, and the United States participated. This conference brought practitioners and international experts, including those acting on behalf of private sector victims, together to share experiences and ideas to provide practical tools in combating counterfeiting crimes, including the freezing and forfeiting the proceeds of counterfeiting crimes.
During November 2005, AFMLS attorneys conducted a workshop on asset forfeiture, money laundering and terrorist financing in Seoul for 36 prosecutors from the Korean Supreme Public Prosecutor's Office (SPPO). The agenda was specifically tailored to the prosecutors' needs and in-depth and interactive discussions that took place over three days. The Republic of Korea was in the process of presenting legislative proposals to its parliament on money laundering and forfeiture related issues, and several attorneys working in the legislative office were present at the workshop to follow up on particular questions regarding drafting assistance previously provided by AFMLS, particularly with respect to the creation and operation of a forfeiture fund and asset sharing. AFMLS is hopeful that this workshop will be the springboard to joint money laundering cases and legislation affording more aggressive and expansive forfeiture opportunities. The two Directors of the SPPO in charge of narcotics, cybercrimes and financial crimes, including money laundering, attended the workshop and pledged enhanced cooperation with the USG in the future.
In November 2005, the RLA in Bulgaria and AFMLS conducted a two-week program in four cities in Bulgaria for approximately 100 prosecutors and police on the importance of conducting a financial investigation in human trafficking cases. Topics included money laundering, asset forfeiture, mutual legal assistance and the importance of conducting complex financial investigations.
In November 2005, OPDAT conducted a conference on Asset Forfeiture for Caribbean prosecutors and police in the Bahamas. It provided substantive technical assistance and promoted collaboration among prosecutors and investigators in the Caribbean in money laundering and forfeiture cases. The conference especially focused on the added benefit of using civil or non-conviction based forfeiture in the disruption of criminal organizations.
As part of Plan Colombia, in 2005, OPDAT continued to provide assistance to enhance the capability of Colombia's National Asset Forfeiture and Money Laundering Task Force to investigate and prosecute money laundering and other complex financial crimes, and to execute the forfeiture of profits from illegal narcotics trafficking and other crimes. These efforts are complemented by a comprehensive long-range program to assist the country's judges, prosecutors and investigators in making the transition from the inquisitorial to the accusatory system.
During 2005, OPDAT organized a number of programs for foreign officials on transnational or organized crime, which included such topics as corruption, money laundering, implementing complex financial investigations and special investigative techniques within a task force environment, international standards, legislation, mutual legal assistance, and effective investigation techniques.
OPDAT RLAs continued to support Bosnia's Organized Crime Anti-Human Trafficking Strike Force and judges, prosecutors and police in Albania, Bulgaria, Kosovo, Macedonia, and Serbia and Montenegro through mentoring and training programs on investigating and developing organized crime case strategies.
OPDAT placed two RLAs overseas to provide technical assistance on a long-term basis specifically on corruption cases. In March 2005, OPDAT conducted a technical assistance program for prosecutors and investigators to improve their investigative and prosecutorial ability to combat public corruption
In May 2004, OPDAT placed the first RLA dedicated to anticorruption issues in Managua, Nicaragua. In January 2005, the RLA conducted a program for 50 Nicaraguan prosecutors and police on the techniques and tools involved in preparing and bringing corruption cases to trial in an accusatory criminal justice system. Although Nicaragua switched over from an inquisitorial criminal justice system in 2002, it is still in the process of training prosecutors, investigators, and judges in the trial advocacy skills needed to implement the new criminal procedure code. This year, the G-8 selected Nicaragua to participate in its Anticorruption/transparency Pilot Program. A finite objective is to establish an Anticorruption Task Force of prosecutors and investigators who will be vetted and specially trained to handle fraud and corruption cases. In September 2005, OPDAT sent a second RLA to Managua to replace the first RLA who departed during the summer.
Additionally, from June-August 2005, the OPDAT RLA to Indonesia provided a weekly seminar series for prosecutors and investigators of the Indonesia Corruption Eradication Commission (known as the KPK). During the summer of 2005 the OPDAT RLA also provided a similar seminar series for the Special Crimes Branch of the South Jakarta District Office.
Since 2001 OPDAT, the Counterterrorism Section (CTS), and AFMLS have intensified their efforts to assist countries in developing their legal infrastructure to combat terrorism and terrorist financing. OPDAT, CTS, and AFMLS, with the assistance of other Department of Justice (DOJ) components, play a central role in providing technical assistance to foreign counterparts both to attack the financial underpinnings of terrorism and to build legal infrastructures to combat it. In this effort, OPDAT, CTS, and AFMLS work as integral parts of the U.S. Interagency Terrorist Financing Working Group (TFWG) in partnership with the Departments of State, Treasury, Homeland Security's ICE, and several other DOJ components.
OPDAT currently has five RLAs assigned overseas who are supported by the interagency Terrorist Financing Working Group (TFWG), co-chaired by State INL and S/CT. Working in countries where governments are vulnerable to or may even be complicit in terrorist financing, RLAs focus on money laundering and financial crimes and developing counterterrorism legislation that criminalizes terrorist acts, terrorist financing, and the provision of material support or resources to terrorist organizations. The RLAs also develop technical assistance programs for prosecutors, judges and, in collaboration with DOJ's International Criminal Investigative Training Assistance Program (ICITAP), police investigators to assist in the implementation of new money laundering and terrorist financing procedures.
In August 2003, an RLA was dispatched to Asuncion, Paraguay, part of the Tri-Border area (with Brazil and Argentina) where its rather porous borders facilitate money laundering and bulk cash smuggling. The second counterterrorism RLA arrived in Nairobi, Kenya in December 2004, to assist with terrorism legislation, training in complex financial crimes and, in general, to bolster the capacity of the prosecutor's office. Both RLAs have conducted significant legislative reform and/or training programs during their tenure. The RLA in Paraguay in 2005 continued his focus on needed reforms to the Paraguayan Criminal Procedure Code, providing counsel and technical assistance to the legislative commission assigned with the task of reform. Two study tours to Puerto Rico allowed Paraguayan legislators from the commission, judges and prosecutors to observe first hand how an effective, efficient criminal justice system functions using modern professional investigative tools. In October 2005, the RLA also arranged for the new Attorney General of Paraguay to visit the United States Attorney General to bolster support for law reform and to begin a new and more cooperative relationship with the USG. The legislative commission in Paraguay is finishing its work on procedural code reform and should begin initiating reforms in 2006.
In September and December 2005, the RLA in Nairobi, Kenya organized two sequential iterations of an advanced trial advocacy course for prosecutors. In addition to U.S. prosecutors, U.S. judges and FBI agents, presenters included two prosecutorial trainers from the Crown Prosecution Service who provided a British perspective on Kenyan legal practice. In January 2005, OPDAT sent a third counterterrorism RLA to the United Arab Emirates (UAE)—OPDAT's first RLA in the Gulf States—to work on financial crimes, terrorist financing, and money laundering issues. Following an initial comprehensive assessment of the legal system in the UAE, including the influence of Sharia law, the RLA organized DOJ participation in a conference on bulk cash smuggling and began planning a workshop on money laundering. The workshop entitled "Regional Conference on Investigating and Prosecuting Advanced Financial Crimes" was held in November 2005 and cosponsored by OPDAT, the UAE Central Bank and MENA-FATF, the regional style FATF body. The 150 participants included the UAE Ministry of Justice and the Gulf Cooperation Council (GCC) (Saudi Arabia, Bahrain, Oman, Kuwait, Qatar, and the UAE). Presentations by USG Terrorist Financing and GCC experts focused on money laundering, bulk cash smuggling, regulation of hawala, and safeguarding charitable donations from being diverted to fund terrorist activities. Member of the GCC expressed interest in holding a similar event again in 2006.
In March 2005, OPDAT placed its first RLA in South Asia at Embassy Dhaka at strengthening the Government of Bangladesh's anti-money laundering/terrorist financing regime, and improving the capability of Bangladeshi law enforcement to investigate and prosecute complex financial and organized crimes. During 2005, the OPDAT RLA provided extensive advice, materials, guidance and background on the UN International Convention for the Suppression of Terrorist Financing to key Bangladeshi officials as they considered signing that document. The RLA also worked closely with officials from the inter-government consultation group to address concerns about the Convention. As a result, in June 2005, the government announced it would sign the convention, and by August, the instrument was ready for the Foreign Minister's signature and subsequent deposit at the UN.
In June, 2005, our OPDAT program placed an experienced prosecutor in Jakarta, Indonesia for one year to serve as the RLA. His role is to provide assistance to the Indonesian Counter Terrorism Task Force (CTTF) to augment their advanced criminal procedures, criminal laws, and prosecutor skills to prepare and try complex terrorism and other organized crime cases. His role is also to assist the general prosecutors with skill-building and integrity development to ultimately enlarge the cadre of CT prosecutors. The RLA has provided legislative drafting assistance and skills development seminars, and invited in experts from other components of DOJ to demonstrate techniques for effective mutual legal assistance.
In June 2005, OPDAT conducted a South Asia regional conference in Colombo, Sri Lanka on counterterrorist financing. Law enforcement officers, prosecutors, and financial sector officials from Sri Lanka, the Maldives, Bangladesh, Pakistan and Afghanistan participated in the event.
Office of Technical Assistance (OTA), Treasury Department
Treasury's OTA is located within the Office of the Assistant Secretary for International Affairs. OTA has five training and technical assistance programs: tax reform, government debt issuance and management, budget policy and management, financial institution reform, and more recently, financial enforcement reforms related to money laundering and other financial crimes.
Sixty highly experienced intermittent and resident advisors comprise the Financial Enforcement Team. These advisors provide diverse expertise in development of anti-money laundering/combating terrorist financing (AML/CTF) regimes and the investigation and prosecution of complex financial crimes. The Financial Enforcement Team is divided into three regional areas: Eastern/Central Europe; Asia, Africa and the Middle East; and the Americas. Oversight and coordination of Financial Enforcement activities in each Region is provided by full-time Regional Advisors reporting to the Associate Director for Financial Enforcement.
OTA receives funding from the State Department's Bureau of International Narcotics and Law Enforcement Affairs (INL), USAID country missions, and direct appropriations from the U.S. Congress. Recently, OTA has been designated as the recipient of Millennium Challenge Corporation funding to provide assistance to a number of Threshold Countries to enhance their capacity to address corruption and related financial crimes indigenous to developing countries.
Assessing Training and Technical Assistance Needs
The goal of OTA's Financial Enforcement program is to build the capacity of the countries to prevent, detect, investigate, and prosecute complex international financial crimes providing technical assistance in three primary areas:
Before initiating any training or technical assistance to a host government, the OTA Enforcement team conducts a comprehensive needs assessment to identify needs and to formulate a responsive assistance program. These assessments address the legislative, regulatory, law enforcement, and judicial components of the various regimes and include the development of technical assistance work plans to enhance a country's efforts to fight money laundering, terrorist financing, organized crime and corruption. In 2005, such assessments were carried out in Afghanistan, Botswana, Brazil, Malawi, Colombia, Chile, Honduras, Kyrgyzstan, and Sao Tome and Principe. OTA also assessed Colombia's program to supervise financial institutions and formed a proposed program for implementation in 2006, which includes drafting of manuals and procedures for the examination of all supervised entities, as well as the presentation of related training courses. In addition to these OTA Enforcement Team assessments, OTA participated in Department of State led interagency assessments in Tanzania and Nigeria to identify areas in need of future technical assistance.
Anti-Money Laundering and Antiterrorism Financing Training
OTA specialists delivered anti-money laundering and antiterrorism financing courses to government and private sector stakeholders in several countries. The specific training components delivered in any given country depended on a country's specific needs and legal requirements. In formulating training programs OTA experts delivered one or more of several course components including, for example: identifying and developing local and international sources of information; how banks and non-bank financial institutions operate, how they are regulated, and what records they keep and in what form; investigative techniques including pen registers, electronic surveillance, undercover operations; forensic evidence including latent prints, ink and paper analysis; case development, planning and organization; report writing; and, with the assistance of local legal experts, rules of evidence, search and seizure as well as asset seizure/forfeiture procedures.
Such courses, including many of the mentioned course components and others, were delivered in several African countries, including Ethiopia (jointly with the United Nations Global Programme against Money Laundering), Lesotho, Senegal and Zambia. In Asia, OTA provided assistance to the Philippines. An OTA resident advisor posted to the Asian Development Bank (ADB) at its Manila headquarters provided guidance and operational support to the financial and governance sector operations of ADB Regional Departments related to anti-money laundering and border controls.
In Europe, OTA teams conducted a number of training programs, including: financial investigation training programs with financial profiling in Bulgaria; mortgage practice training for examiners and banks to manage the credit risk arising from the dramatic expansion of the mortgage market in Romania; a "train-the-trainer" program on auditing techniques for concerned officials in Armenia; and anti-money laundering seminars for the Ministry of Interior, Customs Administration, Securities Commission, Central Bank, and Tax Administration, both bank and non-bank institutions in Serbia and Montenegro.
In the Caribbean, a Financial Investigations Techniques two week course and comprising all topics identified above was provided to financial crimes investigators from Antigua and Barbuda, Bahamas, Barbados, Bermuda, Cayman Islands, Grenada, Guyana, Jamaica, St. Kitts & Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad & Tobago, and Turks and Caicos. Brazil also attended the training course at the REDTRAC training facility in New Kingston, Jamaica. Assisting the Government of Haiti's efforts to combat corruption and to recover substantial assets pilfered from the government's treasury, the OTA technical assistance team has worked with the Unite Centrale de Renseignements Financiers (UCREF) in the identification and gathering of evidence for use in prosecutions in Haiti and abroad. In 2005, OTA revitalized its assistance program in Honduras to improve that country's capacity to effectively prosecute complex financial crimes.
Support for Financial Intelligence Units
In Paraguay and Peru, OTA advisors trained FIU analysts. Advisors worked with the FIUs and other agencies to improve domestic and international communications, establishing memoranda of understanding for other information exchange protocols with relevant authorities including prosecutors and police authorities, other countries, and the Financial Crimes Enforcement Network. In both countries, the assistance provided involved the installation and training in the use of information technology systems, analytical databases and software tools. In Peru and the Republic of Montenegro, this type, and other assistance, helped both strengthen their FIUs and obtain membership in the Egmont Group.
In Ukraine, OTA continued efforts to help streamline the national FIU and assisted Ukraine in developing a strategy for meaningful engagement with international money laundering control organizations and specific foreign enforcement and financial intelligence agencies.
In Senegal, assistance was provided to assist the FIU achieve operational status and begin receiving suspicious transaction reports, train its staff, and assist in the development of procedures and regulations. In collaboration with the FIU, OTA hosted a series of fora for entities required to report suspicious transactions under the Anti-Money Laundering law, including banks, insurers, microfinance institutions, and the liberal professions (attorneys, accountants, auditors, and notaries), to train them on the new law's requirements. OTA also conducted a 3-day seminar for the FIU and Customs and Tax authorities, with the goal of enhancing cooperation between the services. OTA also participated in two regional seminars on FIU development and financial institutions, hosted by UNGPML and the French government, respectively.
In the Casino Gaming Group, OTA combines experts from its Tax and Financial Enforcement Teams and has been providing technical assistance to the international community in the areas of Gaming Industry Regulation since 2000. The program provides assistance in the drafting of gaming legislation, and in drafting the regulations required to implement the laws. The program also includes the provision of technical training to gaming industry regulators to provide the capacity for auditing casino operations, national lotteries and all games of chance. In addition, advanced technical workshops have been conducted in conjunction with the Nevada Gaming Commissioner in Las Vegas involving regulators from participating countries. The program has been well received by host country officials who see it as both a valuable revenue-producing project and an anticorruption measure. In 2005, the OTA Casino Gaming Group conducted an assessment in Antigua and Barbuda, and conducted technical assistance and training as described above in El Salvador, Costa Rica, Honduras, Montenegro, Panama, and Nicaragua. Also during 2005, the OTA Casino Gaming Group brought 15 gaming regulators from Honduras, Panama, Costa Rica and Nicaragua to Las Vegas for a series of lectures, tours and workshops. The Casino Gaming Group conducted an assessment of Chile's newly created regulatory regime for the gaming industry and provided assistance vetting casino license applicants.
Regional and Resident Advisors
OTA resident advisors continued international support in the areas of money laundering and terrorist financing. In 2005, OTA placed a resident advisor in Argentina to work with the GAFISUD Secretariat in the identification and implementation of training and technical assistance initiatives for its member governments. In February 2005, OTA placed a resident advisor in Senegal to work with Inter Government Action Group Against Money Laundering (GIABA), a regional body funded and supported by the Economic Community of West Africa States (ECOWAS), to assist it in reaching recognition as a Financial Action Task Force (FATF)-style regional body. In addition to her primary assignment with GIABA, the advisor also provides assistance to Senegal's nascent FIU. OTA is working jointly Treasury's Office of Financial Crimes and Intelligence to finalize the placement of a resident advisor in Amman, Jordan to assist in the development of the FIU and intelligence sharing capacity. The resident advisors in Bulgaria and Serbia and Montenegro continued efforts to streamline and enhance host governments' FIUs. Supporting national efforts against financial crimes was the focus of the resident advisors in Peru, Paraguay, Albania, Ukraine, Zambia and Romania. Resident advisors for the Caribbean focused on national efforts against financial crimes as well as on bank regulatory compliance. OTA has placed resident advisors in Armenia and Albania to provide technical assistance on internal audit and a resident advisor in Moscow, Russia to work with the Secretariat of the Eurasian Group on Anti-Money Laundering. OTA also concluded plans to place a resident advisor in Kabul, Afghanistan in early 2006, and to focus its technical assistance on the establishment and development of a FIU as a semi-autonomous unit within Da Afghanistan Bank. Lastly, while continuing its intermittent assistance to the Government of Sri Lanka, OTA finalized plans to place a resident advisor in Colombo in the late spring of 2006. This advisor will assist in the development of an effective anti-money laundering and counterterrorism financing regime, to include the establishment of an FIU that meets international standards.