Training and Technical Assistance
During 2006, 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 for 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 2006, 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 nongovernmental 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 Brazilian Trade Transparency Unit (TTU) less than nine months after being established in late 2005 augurs well for the nascent TTUs of Argentina and Paraguay. In 2006, INL obligated funds to DHS to establish a TTU in Southeast Asia and will continue to provide funding to DHS for the development of TTUs globally. Similar to the Egmont Group of Financial Intelligence Units that examines and exchanges information gathered through financial transparency reporting requirements, an international network of TTUs would foster the sharing of disparities in trade data between countries and be a potent weapon in combating customs fraud and trade-based money laundering. Trade is the common denominator in most of the world's alternative remittance systems and underground banking systems. Trade-based value transfer systems have also been used in terrorist finance.
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 provides regional and bilateral mentoring, training; and technical assistance to the Pacific Islands Forum's fourteen non-FATF member states for the purpose of developing viable regimes that comport with international standards.
In 2005, INL reserved $900,000 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. GPML resident mentors provided country-specific assistance to the Philippine FIU and asset forfeiture assistance to Namibia. Regional assistance to Central and Southeast Asia and the Pacific was also provided by other GPML mentors.
INL continues to provide significant financial support for many of the anti-money laundering bodies around the globe. During 2006, INL supported FATF, the international standard setting organization. INL continued to be the sole U.S. Government financial supporter of the FATF-style regional bodies, 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) Experts Group to Control 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 capabilities, 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. 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 18,000 officials from over 75 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, Cameroon, Comoros, Congo, the Democratic Republic of Congo, Djibouti, Ethiopia, Gabon, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Seychelles, South Africa, Swaziland, Tanzania, Uganda, and Zambia.
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 the DHS 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 approximately 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), East Timor and China (including Hong Kong and Macau), 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, East Timor, Hong Kong, Indonesia, Laos, Macau, Malaysia, Philippines, Singapore, Thailand and Vietnam. Subject matter experts from the United States, Hong Kong, Japan, Netherlands, Philippines, and Thailand 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). Approximately 600 students participate annually.
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 United States and also from Hungary, Canada, Germany, United Kingdom, Netherlands, Ireland, Italy, Russia, Interpol and the Council of Europe provide instruction. ILEA Budapest 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 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 a 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; and the People's Republic of China (including the Special Autonomous Regions of Hong Kong and Macau); and member countries of the Southern African Development Community (SADC) plus other East and West African countries; 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. ILEA San Salvador was established in 2005. The training program for the newest ILEA is 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 2007, ILEA San Salvador will deliver three LEMDP sessions 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) 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 anti-money laundering training (presented by IRS). Instruction is provided to participants from: Argentina, Barbados, Bahamas, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela.
The ILEA Regional Training Center located in Peru will officially open in 2007. The center will augment the delivery of region-specific training for Latin America and will concentrate on specialized courses on critical topics for countries in the Southern Cone and Andean Regions.
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, examines banking organizations under its supervision for compliance with these statutes. This task was advanced in 2005 with the issuance of the Federal Financial Institutions Examination Council (FFIEC) Bank Secrecy Act/Anti-Money Laundering Examination Manual, which was revised in 2006.
Internationally, the FRB conducted training and provided technical assistance to bank supervisors and law enforcement officials in anti-money laundering and counterterrorism financing tactics in partnership with regional supervisory groups or multilateral institutions. In 2006, the FRB provided training and/or technical assistance to regulators and bankers in Argentina and Mexico. In addition, the FRB hosted an Anti-Money Laundering Examination Seminar in Washington D.C. for bank supervisors from sixteen 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 to 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.
The FRB also presented training courses on International Money Movements 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, and the Drug Enforcement Administration, as well as at the Federal Law Enforcement Training Center.
Drug Enforcement Administration (DEA), Department of Justice
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 2006, more than two hundred participants from The Netherlands, Brazil, South Korea, Spain, People's Republic of China, Singapore, and Russia received this training.
A wide range of DEA international courses contain training elements related to countering money laundering and other financial crimes. The basic course curriculum, which was conducted in Brazil, South Korea, China, and Russia addresses money laundering and its relation to asset identification, seizure and forfeiture techniques, financial investigations, the role of intelligence in financial investigations, document exploitation, and case studies with a practical exercise. The curriculum also includes overviews of U.S. asset forfeiture law, country specific forfeiture and customs law, and prosecutorial perspectives. The advanced course, conducted in The Netherlands, Spain, and Singapore included tracing the origin of financial assets, internet/cyber banking, terrorist financing, reverse undercover operations, electronic evidence and data exploitation, role of intelligence in money laundering investigations, and case studies. Additionally, a legal overview of U.S. methods of administrative, civil, and criminal forfeiture, along with asset sharing, liability, and ethical issues was presented.
The DEA training division also delivers training at the International Law Enforcement Academies in Bangkok, Budapest, Gaborone, and San Salvador. In addition, DEA presented a three-week International Narcotics Enforcement Management Seminar for officials from China, Laos, Philippines, New Zealand, Thailand, Indonesia, Fiji, South Korea, Vietnam, Malaysia, Singapore, Japan, Cambodia, Macau, Hong Kong, and Australia. The DEA Chief of Financial Operations presented a block of training related to the Office of Financial Operations Mission; the stages of drug money flow; the role of U.S. based Financial Investigative Teams; and financial investigative initiatives.
In addition to the financial training described above, the DEA Office of Financial Operations provided anti-money laundering and/or asset forfeiture training in 2006 to officials from Ecuador, the People's Republic of China, Costa Rica, Spain, Mexico, Nicaragua, Latvia, and Canada.
Federal Bureau of Investigation (FBI), Department of Justice
During 2006, 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, the International Training and Assistance Unit (ITAU), 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 intelligence analysts, 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; Gaborone, Botswana; and San Salvador, El Salvador. In 2006, the FBI delivered training in white collar crime investigations to 240 students from 15 countries at ILEA Budapest. At the ILEA in Bangkok, for the Supervisory Criminal Investigators Course, the FBI trained 45 students from Thailand. Similarly, at the ILEA San Salvador, the FBI provided terrorist financing training to 40 students from El Salvador, Panama, Costa Rica, and Ecuador.
The FBI also provided training to officials in the Bahamas, Thailand, Nigeria, Moldova, Suriname, Bulgaria, Tanzania, Indonesia, Jordan, Chile, Egypt, Czech Republic, Philippines, Pakistan, Malaysia, Bangladesh, Kuwait, and the United Arab Emirates. This training includes FBI participation in financial investigation and organized crime seminars that DOJ's Office of Overseas Prosecutorial Development delivered to 59 students in Suriname and Bulgaria. The FBI also delivered 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 was provided to 326 international students in 2006. For the first time, the FBI participated in IRS sponsored Financial Investigations Techniques/Money Laundering courses in Malaysia, Philippines, Bangladesh and Kuwait to 138 participants.
In other FBI training programs, the FBI included blocks of instruction on terrorist financing and/or money laundering for 38 students from 18 Latin American countries participating in the Latin American Law Enforcement Executive Development Seminar and for 24 students from 11 Middle Eastern and Northern African countries participating in the first Arabic Language Law Enforcement Executive Development Seminar. Both seminars were conducted at the FBI Academy. Terrorist Financing instruction was also included in the FBI's Pacific Training Initiative, which served 50 participants from 10 countries, to include Australia, Cambodia, China, Japan, Korea, Micronesia, Pakistan, Philippines, Singapore, and Thailand.
Federal Deposit Insurance Corporation (FDIC)
In 2006, 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 accomplish that objective, the FDIC has 37 individuals available to participate in foreign missions. Periodically, FDIC management and staff meet 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 2006, the FDIC gave such presentations to representatives from Malaysia, Australia, Armenia and India.
In September 2006, in partnership with the Department of State, the FDIC hosted 20 individuals from Iraq, Afghanistan, Yemen, Kenya, and South Africa. The session focused on AML and counter terrorist financing, including the examination process, customer due diligence, and foreign correspondent banking. In December 2006, the FDIC participated in an interagency Financial Systems Assessment Team (FSAT) to Bosnia. The group reviewed the country's AML law and provided information in the areas of customer identification programs, financial intelligence units and the monitoring of nonbank financial institutions.
In December 2006, the FDIC partnered with the Financial Services Volunteer Corp to provide technical assistance to the government of Russia by reviewing its AML legislation and delivering a presentation on the U. S. AML regime from a financial regulatory perspective. FDIC staff reviewed and advised the Russian central bank, financial intelligence unit, and legislature regarding amendments to their AML law. FDIC staff also delivered a presentation at the Eurasian Group seminar in Moscow, Russia in 2006. During 2006, the FDIC also assisted in an interagency assessment of identifying AML/CFT vulnerabilities in South Africa's financial, legal, and law enforcement systems. Additionally FDIC reviewed draft AML legislation for Paraguay in 2006.
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 is the creation and strengthening of FIUs-a valuable component of a country's anti-money laundering/counterterrorism financing (AML/CTF) regime. FinCEN's international training program has two primary focuses: (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) specific training to FIU counterparts regarding FIU operations and analysis training via personnel exchanges and FIU development seminars. 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.
In 2006, 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.
Regarding assistance to nascent FIUs that are not yet members of Egmont, FinCEN hosts FIU-orientation visits and provides training and mentoring on FIU development. In 2006, at the invitation of FinCEN's Director, a delegation from India's nascent Financial Intelligence Unit (FIU-IND) and representatives from Jordan's Central Bank were hosted by FinCEN for week-long seminars that included an overview of FinCEN's operations and programs and briefings from various other U.S. agencies brought in by FinCEN (OFAC, IRS-CI, FDIC, Secret Service, and FBI) to discuss the U.S. AML/CFT regime.
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 having those units become candidates for membership in the Egmont Group Additionally, FinCEN works multilaterally through its representative on the Egmont Technical Assistance Working Group to design, implement, and co-teach Egmont-sponsored regional training programs to both Egmont-FIUs and Egmont candidates.
In addition to hosting delegations for training on FinCEN premises, FinCEN conducts training courses and seminars abroad, both independently and in conjunction with other domestic and foreign agencies, counterpart FIUs, and international organizations. 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. Topics such as FIU primary and secondary functions; regulatory issues; international case processing procedures; technology infrastructure and security; and terrorist financing and money laundering trends and typologies provide trainees with broader knowledge and a better understanding of the topics of money laundering and terrorism financing. By way of example, as a follow-up to Romania's visit to FinCEN in 2005, FinCEN at the invitation of U.S. Embassy in Bucharest participated in a financial investigations seminar co-sponsored by the Romanian FIU and the Romanian National Anti-Corruption Department. FinCEN also prepared and delivered a training module on money laundering, FIUs and international cooperation in Spanish which was given at the ILEA in San Salvador., involving participants from Ecuador, Costa Rica, El Salvador and Panama.
Core analytical training to counterpart FIUs is conducted both on FinCEN premises and abroad, often in conjunction with other U.S. agencies. FinCEN's analytical training program, typically delivered over the course of one to two weeks, provides foreign analysts with basic skills in critical thinking and analysis; data collection; database research; suspicious transactions analysis; the intelligence cycle; charting; data mining; and case presentation. As Nigeria's sponsor for Egmont membership, FinCEN devoted three analysts to provide two weeks of analytical training to the newly formed FIU in Abuja in August 2006. The training, which consisted of basic analysis theory and charting techniques, was delivered to the FIU as well as other agencies, from intelligence to regulatory to enforcement.
Over the last twelve months, in an effort to reinforce the sharing of information among established Egmont-member FIUs, FinCEN conducted personnel exchanges with a number of Egmont Group members: Albania, Canada, and Chile. These exchanges offer the opportunity for FIU personnel to see first-hand how another FIU operates; develop joint analytical projects and other strategic initiatives; and also to work jointly on on-going financial crimes cases. The participants in these exchanges share ideas, innovations, and insights that lead to improvements in such areas as analysis, information flow, and information security at their home FIUs, in addition to deeper and more sustained operational collaboration.
Immigration and Customs Enforcement, Department of Homeland Security (DHS)
During 2006, U.S. Immigration and Customs Enforcement (ICE), Financial Investigations Division and the Office of International Affairs delivered money laundering/terrorist financing, and financial investigations training to law enforcement, regulatory, banking and trade officials from more than 100 foreign countries. The training was conducted in both multilateral and bilateral engagements. 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.
Using State Department INL funding, ICE provided bilateral training and technical assistance on the interdiction and investigation of bulk cash smuggling, for more than 200 officials in the Philippines, Paraguay, Pakistan, Tanzania, Malaysia, and Indonesia. The training was conducted in furtherance of the Financial Action Task Force (FATF) on Money Laundering, Special Recommendation IX on Cash Couriers.
ICE conducted financial investigation/money laundering training programs for more than 300 participants at the State Department sponsored International Law Enforcement Academy (ILEA) locations in El Salvador, Thailand, and Botswana. The specialized training was given three times each at the ILEAs in El Salvador and Botswana, and once in Thailand.
ICE also provided training to foreign police, judicial, banking and public sector officials at seminars and conferences sponsored by the FATF, the Caribbean Financial Action Task Force and the Asia/Pacific Group on Money Laundering Under the auspices of these multinational organizations, ICE delivered training on money laundering, financial investigations, bulk cash smuggling, and trade based money laundering to officials from more than 100 countries.
With INL funding, ICE worked to expand the network of foreign Trade Transparency Units (TTU) beyond Colombia. With ICE established TTU's in the Tri-border area countries of Brazil and Argentina. ICE also exchanged trade data with the Government of Paraguay and ICE is in the process of establishing a TTU for that nation.
ICE updated the technical capabilities of Colombia's TTU and trained new TTU personnel, to include members of the Financial Intelligence Unit (FIU). Additionally, ICE strengthened its relationship with the Colombian TTU by deploying temporary duty personnel to work onsite and provide training. This action had an immediate, positive impact on information sharing between the U.S. and Colombia and resulted in ongoing joint criminal investigations.
TTUs identify anomalies related to cross-border trade that are indicative of international trade-based money laundering. TTUs generate, initiate and support investigations and prosecutions related to trade-based money laundering, the illegal movement of criminal proceeds across international borders, alternative money remittance systems, and other financial crimes. By sharing trade data, ICE and participating foreign governments are able to see both sides of import and export transactions for commodities entering or exiting their countries. This makes trade transparent and assists in the investigation of international money launderers and money laundering organizations.
Internal Revenue Service (IRS), Criminal Investigative Division (CID) Department of Treasury
In 2006, the IRS Criminal Investigative Division (IRS-CID) continued its involvement in international training and technical assistance efforts designed to assist international law enforcement officers in detecting criminal tax, money laundering and terrorism financing. With funding provided by the Department of State, IRS-CID delivered training through agency and multi-agency technical assistance programs to international law enforcement agencies. Training consisted of basic and advanced financial investigative techniques as needed. IRS-CID provided instructor and course delivery support to the International Law Enforcement Academies (ILEAs) in Bangkok, Thailand; Budapest, Hungary; Gaborone, Botswana; and San Salvador, El Salvador.
At ILEA Bangkok, IRS-CID participated in one Supervisory Criminal Investigator Course (SCIC) and was the coordinating agency of the Complex Financial Investigations (CFI) course. CFI is provided to senior, mid-level, and first-line law enforcement supervisors and officers from the countries of Cambodia, Hong Kong, Indonesia, Macau, Malaysia, Republic of China, Philippines, Singapore, Thailand, Timore-Leste, and Vietnam.
At ILEA Budapest, IRS-CID participated in six sessions, ILEA 53-58. For ILEA 58 IRS-CID provided a class coordinator to coordinate and supervise the daily duties and activities of the participants. The countries that participated in these classes are Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Bulgaria, Georgia, Hungary, Kazakhstan, Kyrgyzstan, Macedonia, Montenegro, Moldova, Romania, Russia, Serbia, Tajikistan, and Ukraine.
IRS-CID participated in five Law Enforcement Executive Development (LEED) programs LEED 17-21 at ILEA Gaborone. Countries that participated in these classes are Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia, Djibouti, Ethiopia, Kenya, Seychelles, Uganda, Nigeria, Cameroon, Comoros, Republic of the Congo, Democratic Republic of Congo (DRC), Gabon, and Madagascar. IRS-CID participated in two Latin America's Law Enforcement Development (LEMDP) programs, LEMDP 002 and 003 at ILEA San Salvador. LEMDP stresses the importance of conducting a financial investigation to further develop a large scale, criminal investigation.
IRS-CID conducted Financial Investigative Techniques (FIT) courses in Malaysia, Peru, and Philippines. These programs focused on Financial Investigative Techniques while investigating criminal tax, money laundering and terrorism financing investigations. The twenty-four participants that attended the week long course in included members of the Royal Malaysian Police, Inland Revenue Board, members of the Intelligence and Special Investigative Unit, Central Bank of Malaysia, Ministry of Finance, and Customs. Two one-week classes were presented in Lima, Peru, to forty (40) law enforcement officials, prosecutors and judges from Peru and Brazil. The curriculum was designed to parallel the progress of a simulated case exercise. The week-long course in Manila, Philippines attended by forty-three (43) participants from twenty-five (25) different organizations completed FIT training. The curriculum consisted of techniques focusing on money laundering with attention called to the unlawful activities of drug trafficking, public corruption, terrorism financing and kidnapping for ransom.
In Kuwait, IRS-CID presented a one-week conference with a total of forty seven participants from seventeen different federal agencies and banks. In Dhaka, Bangladesh IRS-CID conducted both a one-week basic and a one-week advanced course, which provided a more in-depth, and comprehensive look at financial investigations. In accordance with the International Criminal Investigative Training Assistance Program (ICITAP) IRS-CID conducted six advanced money laundering classes in Bogot�, Colombia. This training provided along with the Federal Law Enforcement Training Center (FLETC), was the first multi-agency joint effort to develop, coordinate and instruct an advanced money laundering course based on the new accusatory judicial system in Colombia. Along with the participation of the Attach� in Bogot�, approximately 144 judges, magistrates, government attorneys, and law enforcement officers received instruction on financial investigative techniques focusing on working a case from start to completion.
IRS-CID continued to assist the FBI in delivering multiple one-week courses on anti-money laundering and antiterrorism financing. During 2006, the course was successfully delivered to participants in Tanzania, Indonesia, United Arab Emirates, Jordan, Egypt, Philippines, and Pakistan. In conjunction with the Office of Overseas Prosecutorial Development Assistance and Training (OPDAT), IRS-CID presented an Asset Forfeiture Unit course. Participants included 140 participants composed of advocates, investigators and administrative personnel of the National Prosecuting Authority of South Africa.
The National Criminal Investigation Training Academy (NCITA) hosted a delegation of four investigators from Her Majesty's Revenue & Customs (HMRC) of the United Kingdom for a week long Money Laundering Investigations Workshop. The delegates received presentations on money laundering investigative methods. The HMRC delegation also visited the Savannah CID Field Office and met with prosecutors at the U.S. Attorneys Office in Savannah (Southern Judicial District of Georgia).
The IRS-CID Mexico Attach� assisted with the coordination and served as a liaison between Treasury Office of Technical Assistance Representatives and the Mexican Government Attorney Generals Office's (PGR) Money Laundering Unit Director during an Advanced Money Laundering training session for various Mexican Officials, to include prosecutors, judges, attorneys and investigators. In addition, the IRS-CID Mexico Attach� participated in a Money Laundering/Terrorist Financing Awareness Conference sponsored by the Panama Financial Investigative Unit before an audience of approximately 230 law enforcement officials from that country. This conference was sponsored by the Narcotics Affairs Section (NAS) of the U.S. Embassy and the Drug Enforcement Agency (DEA) Office in Panama. IRS-CID Hong Kong Attach� coordinated and supported a Financial Investigative Techniques/Anti-Money Laundering course in Macau in 2006. It was a week long course for approximately 45 law enforcement and regulatory participants from Macau, China.
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. They review, among other things, the bank's internal controls, internal and external audit and compliance with law, including Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance.
The OCC offers three internal courses for examiners that have significant BSA/AML components; these are the Basic Consumer Compliance School, Bank Supervision School and FinCEN Database Training. The OCC also periodically develops and provides other BSA/AML training to examiners as needed, such as the Federal Financial Institutions Examination Council BSA/AML Examination Manual.
In addition to hosting BSA/AML Schools for OCC examiners, the OCC offers its AML School to foreign bank supervisors. The OCC conducted and sponsored a number of anti-money laundering (AML) training initiatives for foreign banking supervisors during 2006. In August 2006, 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-two banking supervisors from the following countries were in attendance: Argentina, Bahrain, Canada, Cayman Islands, Croatia, Czech Republic, Mexico, Netherlands, Nigeria, Panama, Philippines, Singapore, Slovenia, Turkey, and United Kingdom.
In October 2006, the OCC provided an instructor to the IMF sponsored Anti-Money Laundering/Combating Terrorist Financing Workshop for the Eastern Caribbean Central Bank in St. Kitts, W.I. The workshop was designed specifically for foreign banking supervisors to increase their knowledge of money laundering and terrorist financing activities and how these acts are perpetrated. The course provided a basic overview of AML examination techniques, tools and case studies. Twenty-one banking supervisors from the Eastern Caribbean Central Bank and off-shore bank regulators attended the workshop. The ECCB is the monetary authority for a group of eight islands-Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines.
OCC officials participated in numerous international conferences on combating money laundering. For example, in February and March of 2006, OCC officials were part of a body of U.S. regulators presenting to the international audiences at the Florida International Bankers Association and the Money Laundering Alert's International Conference on Combating Money Laundering. In addition, the OCC's senior compliance official was a guest speaker at the Inaugural Conference on Combating Money Laundering and Terrorist Financing by the U.S.-Middle East/North Africa Private Sector Dialogue group that was held in Cairo Egypt with over 300 participants from 23 countries.
Office of Overseas Prosecutorial Development, Assistance and Training, the Asset Forfeiture and Money Laundering Section, & Counterterrorism Section (OPDAT, AFMLS, and CTS)), Department of Justice
Training and Technical Assistance
The Office of 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 (CTS), 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 2006, OPDAT provided technical assistance in the areas outlined below. In addition to programs that are targeted to each country's specific 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 normally 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 criminal justice sector components. For all programs, OPDAT draws on the expertise of the Department of Justice's Criminal Division, National Security 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 2006, 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 2006 included developments in money laundering legislation and investigations, complying with international standards for anti-money laundering/counterterrorist financing regimes, 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.
AFMLS provides technical assistance directly in connection with legislative drafting on all matters involving money laundering, asset forfeiture and the financing of terrorism. During 2006, AFMLS provided such assistance to 16 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 nonconviction based asset forfeiture law and the G-8 working groups on corruption and asset sharing and the CARIN Group on asset recovery.
AFMLS provided training to government officials concerned with money laundering and asset forfeiture issues in Azerbaijan, Andorra; Bangladesh, Brazil; Bulgaria; Estonia; Kosovo, Macedonia, Peru, the Republic of Korea, Sri Lanka, and Turkey. These officials attended in-depth sessions on money laundering and international asset forfeiture. Additionally, in 2006, AFMLS provided technical assistance to Afghanistan, Albania, Bangladesh, Brazil, Bulgaria, Pakistan, Indonesia, Iraq, Kenya, Kosovo, Malawi; Sri Lanka, the Republic of Korea, Tanzania, Thailand, and Turkey.
In an effort to improve international cooperation, AFMLS, in conjunction with the Italian Ministry of Justice, co-hosted a conference in Rome, Italy, April 4-6, 2006, on International Forfeiture Cooperation for prosecutors and investigators to discuss "What Works? What doesn't and Why?" Practitioners and other experienced government officials from Austria, Brazil, Canada, Denmark, Estonia, France, Guernsey, Hong Kong, Isle of Man, Ireland, Israel, Luxembourg, the Netherlands, South Africa, Sweden, United Kingdom and the United States participated. This conference brought practitioners and international experts, including representatives from Egmont, Eurojust and the private sector, together to share experiences and ideas to provide practical tools to further international cooperation in forfeiture.
With the assistance of Department of State funding, in 2006 OPDAT provided training to government officials on money laundering and financial crime related issues in more than eleven countries, including Romania, Slovenia, Nigeria, South Africa, Suriname, Malawi, Azerbaijan, and Albania. OPDAT RLAs in these countries organized in-country seminars on money laundering, asset forfeiture, terrorist financing and financial crime investigations and prosecutions.
In February 2006, OPDAT conducted a three-day conference on financial crimes, asset forfeiture and money laundering in Abuja, Nigeria, for approximately 50 Nigerian prosecutors and police. Topics included money laundering, asset forfeiture, financial investigations, prosecuting complex financial cases, and offshore banking and electronic funds transfer systems.
In February and March 2006, OPDAT organized a series of three anti-money laundering/counter terrorist financing workshops conducted by AFMLS in Ankara, Antalya, and Istanbul, Turkey, for approximately 100 Turkish prosecutors and investigators. The workshops focused on providing an interactive platform for participants to examine the tools (legislative, investigative, prosecutorial) available in financial crime cases.
In April 2006, OPDAT RLA to Bosnia and Herzegovina organized two financial crimes training seminars in Sarajevo, Bosnia and Herzegovina. Each of the two-day sessions included an in depth examination of current issues regarding financial and transnational crimes. The seminars explored various investigative techniques (money laundering detection, asset forfeiture) and the roles of different agencies (prosecutors, finance police, financial intelligence units, bank regulators).
In May 2006, OPDAT conducted an intensive three-day workshop in Paramaribo, Suriname, on best practices for financial investigations and prosecutions. The OPDAT training team, consisting of a U.S. federal prosecutor and an FBI special agent, presented the course to an audience of Surinamese prosecutors, investigators, and a legislative expert.
In July 2006, OPDAT deployed its new RLA to Azerbaijan. The RLA placed renewed emphasis on establishing a legal framework in Azerbaijan to investigate and prosecute money laundering, terrorist financing and financial crimes, including pushing for the passage of the draft AML/CFT law and the creation of a financial intelligence unit (FIU). Passage of a comprehensive AML/CFT (Anti-Money Laundering/Counter-Financing Terrorism) law and the development of an FIU that complies with international standards are significant USG priorities for Azerbaijan. OPDAT and AFMLS have provided detailed technical assistance on the draft AML/CFT law for the last year, but the draft appeared stalled. In late 2006, the RLA identified several specific obstacles to passage of this law and strategies to overcome them, with the goal of seeing the AML/CFT law passed by the end of the first quarter of 2007. These steps included engaging the government of Azerbaijan (GOAJ) at multiple levels, and creating opportunities to substantively assist the GOAJ in areas that were holding up the passage of the law. In furtherance of this strategy, the RLA took a delegation of Azerbaijani officials to an anti-money laundering conference sponsored by the SECI Center held in Moldova in September 2006. This conference impressed the Azerbaijani delegation with the progress being made by many other countries in the region and stressed the need to move forward with their own legislation in a timely manner. The RLA also coordinated with the President's Office and the Council of Europe to organize a comprehensive conference on the creation of a FIU in Azerbaijan-an issue that is significantly delaying the passage of the AML/CFT. In October 2006, the OPDAT RLA, in collaboration with AFMLS, organized the aforementioned FIU conference in Baku, Azerbaijan, for an audience of over 50 participants from a dozen different ministries and agencies, including the National Bank, the Prosecutors Office and the President's Office.
In July 2006, OPDAT RLA to South Africa coordinated a training session with participation by AFMLS for all the members of the South African Asset Forfeiture Unit (AFU). In August 2006, the RLA also arranged for three financial investigators from the AFU to attend a U.S.-based financial investigation training in New York City provided by AFMLS. All reports point to the fact that the training was substantive and very relevant to the work of an AFU investigator. These three talented investigators are now positioned as resources on financial investigation techniques for the rest of the AFU investigators and the core financial investigation competency of the AFU has increased. Of particular note during this period was the OPDAT conference on organized crime (August 28-September 1) that was attended by the National Prosecution Service and the Scorpions. For the first time and at the direction of the OPDAT RLA, attorneys from the AFU helped plan the conference and participated in the program. As a result, the conference educated South African prosecutors on the importance of prosecution components (National Prosecution Service and the Scorpions) calling upon the expertise and involvement of the AFU in the early stages of important investigations. This will help meet the AFU goal of increasing the amount of illicit proceeds that are recovered by the AFU in conjunction with significant criminal prosecutions. According to the Chief of the Pretoria Division of the AFU, the OPDAT program finally made the AFU a full law enforcement partner.
As part of Plan Colombia, in 2006, 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.
In October-November 2006, OPDAT in cooperation with the Federal Bureau of Investigation organized a week-long anti-money laundering U.S.-based study tour in Washington, DC, for a 15-person, senior-level Malaysian delegation headed by the Solicitor General of Malaysia and the Inspector General of the Royal Malaysia Police. The delegation consisted of officials from the Attorney General's Chambers, Royal Malaysia Police, Anti-Corruption Agency, Central Bank of Malaysia, Ministry of Finance, as well as representatives from other law enforcement and legal agencies. The program focused on the legal aspects surrounding money laundering investigations and prosecutions, as well as asset forfeiture and the management and disposal of forfeited properties.
During 2006, 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 the Strike Force's working relationship with officials in Albania, Bulgaria, Kosovo, Macedonia, Montenegro, and Serbia-through mentoring and training programs on investigating and developing organized crime case strategies.
In February 2006, OPDAT RLA to Albania organized training for 40 prosecutors on the organized crime amendments to the Albanian Criminal Procedure Code. This training was part of a series of trainings for all 250 prosecutors in the nation, addressing the host of new anti-organized crime laws and Code amendments that were enacted in 2004.
Also in February 2006, OPDAT conducted a three-day conference on investigating and prosecuting terrorism and other organized crimes in Manila, Philippines. The program focused on familiarizing 22 Filipino judges, prosecutors, and investigators with methods of combating transnational organized crime and terrorism offenses, including effective investigative and prosecutorial techniques.
In March 2006, an OPDAT RLA to Macedonia organized a two-week U.S.-based study tour program on combating organized crime for a ten-member delegation from Macedonia, which consisted of seven prosecutors and three judges. The program focused on familiarizing the Macedonians with collecting evidence and building organized crime cases, especially in cases relating to trafficking in persons, corruption, narcotics, financial crime and money laundering, as well as related asset forfeiture.
In June 2006, OPDAT conducted a week-long program on combating prosecuting organized crime in Hanoi, Vietnam, for an audience of 35 Vietnamese judges, prosecutors and investigators. The program focused on the methods of combating transnational organized crime, including effective investigative and prosecutorial techniques.
In July 2006, OPDAT's RLA to Serbia organized a three-day seminar for 30 Serbian prosecutors and police officials focused on the task force approach to combating organized crime and corruption.
In September 2006, OPDAT deployed an Intermittent Legal Advisor (ILA) to Pretoria, South Africa, for a three-month assignment that focuses on assisting the South African prosecution authority in its efforts to combat organized crime. The same ILA has already completed several previous three to six-month tours of duty in South Africa. Throughout these tours of duty, the ILA developed and began implementing several iterations of a training program for prosecutors on combating organized crime and racketeering. The ILA has already trained nearly 500 prosecutors at several sessions all over the country. In addition, the ILA is meeting with prosecutors and investigators throughout the country and conducting case audits. During this process the potential use of the South African racketeering statute is discussed. The statute is the South African equivalent of the U.S. RICO statute that has been so effective in combating organized crime in the U.S. As a result of these consultations the prosecutorial use of the racketeering statute in charging crimes has increased dramatically. Much of this increase can be attributed directly to the ILA's work in South Africa.
In 2005, OPDAT placed two RLAs overseas in Indonesia and Nicaragua to provide technical assistance on a long-term basis specifically on corruption cases. In 2006, both RLAs continued to provide technical assistance on anticorruption matters for prosecutors and investigators to improve their investigative and prosecutorial abilities to combat public corruption. In Nicaragua, OPDAT RLA supported the creation of a vetted Anti-Corruption and Money Laundering Unit ("Task Force") that consists of members of the Nicaraguan National Police and the Attorney General's Office who are tasked with investigating money laundering and other corruption-related crimes. The RLA is helping train the Nicaraguan anticorruption specialists, making the Task Force a cornerstone in the U.S.-Nicaragua cooperation in the fight against corruption. The RLA is providing technical assistance and training to the Task Force and serves as a conduit of information between the unit and U.S. law enforcement agencies.
In May 2006, OPDAT in collaboration with AFMLS and the General Secretariat of the Organization of American States (OAS), held a seminar on the recovery of the proceeds of the acts of corruption in Miami, Florida. The workshop was in line with the G-8 and Summit of the Americas commitments to deny safe haven and assets to those who are corrupt and to those who corrupt them.
Also in May 2006, the OPDAT RLA to Indonesia organized a one-day workshop on investigating and prosecuting corruption cases in Bogor, Indonesia. The assembled 59 participants included police investigators, prosecutors, and auditors from the state auditing agency. The one-day workshop focused on familiarizing the participants with investigative and prosecutorial strategies for public corruption cases, which are not commonly used in Indonesia.
In May-June 2006, the OPDAT RLA to Bosnia and Herzegovina sponsored a three-day seminar on tax fraud cases for prosecutors and tax administrators in Sarajevo, Bosnia & Herzegovina. The 60 participants in the program included prosecutors and tax administrators from the various districts and regions of the country. The seminar taught the participants the basics of investigating and prosecuting tax fraud cases. In addition, it promoted cooperation and communication between the two groups.
Since 2001 OPDAT, the DOJ's 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 seven RLAs assigned overseas who are supported by the interagency Terrorist Financing Working Group (TFWG), co-chaired by State INL and S/CT. The RLAs are located in Bangladesh, Indonesia, Kenya, Pakistan, Paraguay, Turkey, and the United Arab Emirates. Working in countries where governments are vulnerable to or may even be complicit in terrorist financing, these 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 anti-money laundering and counterterrorist financing procedures.
In August 2003, OPDAT dispatched its first counterterrorism RLA to Asuncion, Paraguay, part of the Tri-Border area (with Brazil and Argentina) where the 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 Paraguay RLA in 2006 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.
In January 2006, OPDAT organized a trial advocacy course in Nairobi, Kenya, following the successful trial advocacy training provided by the OPDAT RLA in August 2005. In addition to U.S. prosecutors, U.S. judges and FBI agents, presenters included two prosecutorial trainers from the U.K. Crown Prosecution Service who provided a British perspective on Kenyan legal practice. After the first OPDAT RLA to Kenya departed Nairobi in November 2005, OPDAT sent out its second RLA to Kenya in May 2006. During his first few months in country, the RLA met with all the regional offices of the Department of Public Prosecutions, setting the stage for a country-wide prosecutorial training program. The RLA also monitored the progress of the pending Kenyan counterterrorism legislation, offering DOJ expertise in guiding the development of the counterterrorism strategy for Kenya and the region as needed.
In July 2006, OPDAT sent a new counterterrorism RLA to the United Arab Emirates (UAE) to work on financial crimes, terrorist financing, and money laundering issues. The RLA immediately engaged local officials responsible for money laundering and terror finance issues. The RLA held meetings with the Anti-Money Laundering and Financial Crimes Unit (AMLFCU) of the Dubai Police Department, Criminal Investigation Division, to discuss future training and collaboration. OPDAT expanded the UAE RLA portfolio to include assistance to other states in the Gulf Region in combating money laundering and terrorist financing. In September 2006, the RLA traveled to Kuwait and Jordan to meet with the key players in the Anti-Money Laundering/Terrorist Financing (AML/TF) field in the Kuwaiti and Jordanian governments. In November 2006, the RLA again traveled to Kuwait to discuss the possibility of providing training that would strengthen the Kuwaiti FIU and the capacity of Kuwaiti prosecutors and judges to combat financial crimes. As a result, the RLA is currently in the process of planning AML/CTF trainings in both Kuwait and Jordan, set to take place in early 2007.
In December 2006, OPDAT's RLA to the UAE also engaged with Saudi Arabian officials. The RLA was a member of the U.S. delegation to the U.S.-Saudi Arabia Strategic Dialogue Working Group sessions that took place December 3-5, 2006, in Riyadh. These consultations were focused on a bilateral exchange of ideas regarding possible future technical assistance programs involving the Saudi justice sector. The results were positive and future programs in Saudi Arabia on money laundering/counter terrorism financing (including perhaps charities regulation) are anticipated.
In March 2005, OPDAT placed its first RLA in South Asia at Embassy Dhaka with the goal of assisting the Government of Bangladesh in strengthening its anti-money laundering/terrorist financing regime, and improving the capability of Bangladeshi law enforcement to investigate and prosecute complex financial and organized crimes. During 2006, the RLA continued to provide assistance to Bangladeshi officials in their efforts to establish an effective anti-money laundering and terrorist financing regime. Specifically, the RLA continued her work on forming a financial crimes task force and a Financial Intelligence Unit (FIU) to be housed in the central bank. The RLA achieved a major step forward on task force development when she facilitated the signing, by five relevant government agencies, of an inter-agency agreement promoting the creation of a task force for money laundering and terrorist financing cases. The signing came at the end of a two day retreat organized in September for just this purpose, bringing together the key figures at each relevant agency. The group consisted of the Bank of Bangladesh (the central bank), the Attorney General's Office, the Finance Ministry (the tax authority), Criminal Investigation Division CID), and the Home Affairs Ministry. The agreement sets forth the process by which anti-money laundering cases initiated by the central bank will be investigated and prepared for trial. Among the critically important agreed upon provisos: CID will designate 6 officers to work anti-money laundering/terrorist financing (AML/TF) cases and will also work with prosecutors throughout the investigation. The September retreat represented the culmination of six months of work by the RLA.
In October 2006, the Bangladeshi Law Minister (the country's lead prosecutor) designated four attorneys to handle money laundering and terrorist financing cases on the task force. The first money laundering investigations by the task force commenced in November, based on Bank of Bangladesh referrals to the CID of suspicious transaction reports. Training for the task force members continued throughout the quarter and into the second quarter of FY2007. In November, the RLA worked with a team from the IRS to provide two weeks of interactive training for officials from four agencies on accounting methods used to detect money laundering. In December, the prosecutors dedicated to the task force participated in a workshop with DOJ Asset Forfeiture and Money Laundering Section (AFMLS) Deputy Chief Linda Samuel; particular emphasis was given to working with these prosecutors on how to anticipate defense arguments in pre-trial and trial proceedings and prepare counter arguments.
OPDAT placed its first RLA in Indonesia in June 2005. In 2006, the RLA continued his work in providing 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. He also assisted the general prosecutors with skill-building and integrity development to ultimately enlarge the cadre of counterterrorism prosecutors. The RLA provided legislative drafting assistance and skills development seminars, and invited experts from other components of DOJ to demonstrate techniques for effective mutual legal assistance. Upon the departure of the first RLA in June 2006, OPDAT deployed its second Indonesia RLA to Jakarta in July 2006. The new RLA helped establish the Attorney General's Terrorism and Transnational Crime Task Force as an operational unit. He negotiated and arranged for the procurement and delivery approximately $80,000 in office supplies and computers to the Task Force. As a result, the Task Force is now actively supervising cases against 21 defendants. The RLA also spoke at a regional counterterrorism conference in Makassar, Indonesia, on police/prosecutor cooperation-a major obstacle in Indonesia.
In September 2006, OPDAT deployed its first-ever RLA to Ankara, Turkey, with the goal of assisting Turkey to amend and implement effective money laundering legislation, and other related and potentially affected criminal statutes, codes, laws and regulations. In the same month, OPDAT also deployed its first ever RLA to Pakistan. The RLA spent his first month in country appraising the capacity of Pakistan's criminal justice system to function effectively. Since then, the Ambassador asked the RLA to place a heavy emphasis on laying the foundation with Pakistani prosecutors and investigators for future trainings on financial crimes.
In addition to the programs organized by the seven counterterrorism RLAs, in 2006 OPDAT conducted both bilateral and regional counterterrorism training programs. In June-July 2006, OPDAT RLA to Bosnia and Herzegovina conducted a nine-day study tour to the United States for thirteen members of the Counter-Terrorism Task Force (CTTF) of Bosnia and Herzegovina. The program introduced the delegation to the working procedures of U.S. inter-agency task forces, thereby promoting cooperation and information sharing between and among Bosnian prosecutors and police agencies.
In April 2006, OPDAT conducted a South Asia regional seminar in Colombo, Sri Lanka, on safeguarding charities from abuse. Law enforcement officers, prosecutors, and financial sector officials from Sri Lanka, Afghanistan, Bangladesh, the Maldives, and Pakistan participated in the event. The conference stressed the importance of mutual cooperation in preventing the ability of terrorists to generate and disperse terrorist funds.
Justice Sector Reform
In 2006 DOJ's Justice Sector Reform Program in Colombia focused on four specific areas: (1) continued assistance in implementation of accusatory system, (2) assistance in specialized areas of criminal law, (3) implementation of justice and peace law, and (4) security and protection programs. In 2006, DOJ trained over 1,000 prosecutors; 6,000 police; 300 judges; and 100 forensic scientists in the accusatory system and implementation of the new Colombian Criminal Procedure Code, most of who will be implementing the new Code in their respective judicial districts in 2007 as part of the gradual, region by region implementation of the new law. This training involved intensive, practical training in the concepts and legal underpinnings of an accusatory system and the new Code, as well as the technical skills and practical application necessary for implementation-crime scene management, forensic development and presentation of forensic evidence, witness interview, trial preparation, chain of custody and presentation of evidence at trial, trial techniques, investigation and prosecution strategy, police/prosecutor cooperation. DOJ also provided equipment to facilitate the implementation of the new Code. DOJ's assistance in specialized areas of criminal law included training for prosecutors, investigators, and forensic scientists in money laundering, antikidnapping, sex crimes, anticorruption, forensic anthropology, intellectual property, and human rights. DOJ also provided equipment and operational funds to specialized units within the Prosecutor General's Office. DOJ initiated training and technical assistance as well as providing equipment, office and court facilities development, and operational funds for the Prosecutor General's Justice and Peace Unit tasked with the investigation, interviewing and prosecution of demobilized paramilitary members under the Justice and Peace law. DOJ also provided similar assistance to the Colombian magistrates who will be involved in the court proceedings under this law. In the area of protection, DOJ continued to provide judicial protection training to Colombian protection details and began a shift in this protection training and assistance to courtroom and courthouse security. Over 200 protection personnel were trained in 2006. In addition, DOJ placed a U.S. Marshals Service (USMS) official in the Embassy in Bogota to assist the Colombian Prosecutor General's Office to develop a viable witness protection program. The goal is to train over 100 protection personnel as well as to enhance the structure for a protection program.
OPDAT currently has eight Resident Legal Advisors (RLAs) in Iraq assisting the Iraqi justice sector in enhancing sustainable institutions built on rule of law principles, with plans to expand the program in the near future. Presently, two RLAs are stationed at the Embassy in Baghdad and six RLAs are deployed as Rule of Law Coordinators to Provincial Reconstruction Teams (PRTs) in Iraqi provinces, one each in Ninewa (Mosul), Tamim (Kirkuk), Babil (Hillah), Salah ad Din (Tikrit), and Baghdad. As members of the interdisciplinary reconstruction effort, OPDAT RLAs work with local police and judges to identify and overcome obstacles to effective, fair prosecutions. The RLAs stationed at the Embassy in Baghdad advise the Multi-National Corps-Iraq, the U.S. Embassy, the Central Criminal Court of Iraq, the Iraq Ministry of Justice, and the Iraqi Higher Juridical Council on criminal justice, rule of law, and judicial capacity building.
Office of Technical Assistance (OTA), Treasury Department
The Treasury Department's Office of Technical Assistance 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 reform related to money laundering, and other financial crimes.
Sixty-three highly experienced intermittent and resident advisors comprise the Financial Enforcement Team. These advisors provide diverse expertise in the 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: Europe and Asia; Africa and the Middle East; and the Americas. Each region is managed by a full-time regional director.
OTA receives funding from USAID country missions and direct appropriations from the U.S. Congress. 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.
Assessing Training and Technical Assistance Needs
The goal of OTA's Financial Enforcement program is to build the capacity of host countries to prevent, detect, investigate, and prosecute complex international financial crimes by providing technical assistance in three primary areas: money laundering, terrorist financing, and other financial crimes; organized crime and corruption; and capacity building for financial law enforcement entities.
Before initiating any training or technical assistance to a host government, the OTA Enforcement team conducts a comprehensive assessment to identify needs and to formulate a responsive assistance program. These needs 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 2006, such assessments were carried out in Ethiopia, Nigeria, Namibia, Mauritius, Seychelles, Kuwait, and Maldives.
Anti-Money Laundering and Antiterrorism Financing Training
OTA specialists delivered anti-money laundering and antiterrorism financing courses to government and private sector stakeholders in a number of countries. These course components, included an overview of money laundering and financial crimes investigations; identifying and developing local and international sources of information; how banks and nonbank financial institutions operate, how they are regulated, and what records they keep and in what form; investigative techniques, including electronic surveillance and undercover operations; forensic evidence, including fingerprints, and ink and paper analysis; computer assistance; interviewing; 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 and forfeiture procedures. OTA delivered such courses in several African countries, including Ethiopia, Lesotho, Malawi, Namibia, Senegal and Zambia. In Asia, OTA conducted financial investigative techniques training in Macau. OTA has also conducted several training sessions for Philippine border control agencies on bulk cash smuggling.
In Europe, OTA teams delivered a variety of technical assistance products, including financial investigation training programs in Bulgaria; anti-money laundering and antifraud training for the insurance and gaming industries in Romania; a "train-the-trainer" program on auditing techniques for concerned officials in Armenia; assistance to develop the criminal tax enforcement capability of Croatia; investigative training for the financial police in Georgia; and anti-money laundering seminars for investigative agencies in Montenegro.
In the Caribbean, OTA delivered Phases II and III of a train-the-trainers initiative, begun in 2005 and centered on the Financial Investigative Techniques (FIT) course. Advisors presented the Phase I two-week course, comprising state-of-the-art techniques, 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 and Tobago, and Turks and Caicos. Brazil also attended this first phase training course at the REDTRAC training facility in New Kingston, Jamaica. In 2006, OTA met again with students it trained at REDTRAC in 2005, and provided them with Basic Instructor Training (BIT) to prepare them to teach the FIT course on their own. Following this training, OTA advisors mentored REDTRAC trainers as they delivered the FIT course to students drawn from Caribbean law enforcement agencies charged with the investigation and prosecution of financial crimes. To ensure continued sustainability of this training effort, OTA will meet periodically with REDTRAC trainers to provide them with updates to FIT materials, thus ensuring REDTRAC's continued ability to provide the latest FIT training to Caribbean law enforcement authorities.
Support for Financial Intelligence Units
In Afghanistan, OTA assisted in the establishment and development of a FIU as a semi-autonomous unit within Da Afghanistan Bank. In Sri Lanka, OTA's resident advisor helped to stand up an operational FIU. Resident advisors in Albania, Bulgaria, Montenegro, and Serbia continued efforts to streamline and enhance host governments' FIU's. In Senegal, OTA continued to assist the FIU in achieving operational status and begin receiving suspicious transaction reports and training its staff. In Namibia and Jordan, advisors were engaged to the respective Central Banks. In Malawi, OTA assigned a resident advisor under the Millennium Challenge Corporation Threshold Program to assist in the passage of AML/CFT laws, establish an FIU, and work to improve the capacity of the government to combat financial crimes.
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, including FIU personnel, to provide the capacity for auditing and inspecting casino operations and all games of chance. In addition, advanced technical workshops have been conducted 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. They also view the assistance as very beneficial in fostering the host country's compliance efforts with the FATF 40 Recommendations as they relate to casinos. In 2006, the OTA Casino Gaming Group conducted an assessment in the Philippines, a follow-up assessment in Panama, and conducted technical assistance and training as described above in Antigua and Barbuda, El Salvador, Panama, Nicaragua, Chile, Montenegro and Romania. Also during 2006, the Casino Gaming Group participated in conferences in Macau and Argentina to highlight the FATF 40 Recommendations for casinos, and their obligations pursuant to the specific FATF Recommendations.
Money Services Businesses
Money services businesses (MSB's) offer several types of services (check cashing, money transmissions, currency exchange, etc.). Because of the high volume of their cash transactions, and because account relationships with related customer identification procedures are absent, resulting in an uncertain audit trail, MSB's are vulnerable to abuse for the purpose of money laundering and terrorist financing. FATF Recommendations call upon governments to regulate MSB's.
OTA collaborated with the Caribbean Group and the Central American Council of Bank Supervisors in the organization and presentation of two workshops for the oversight, regulation, and examination of MSB's. The first, in June 2006, was a workshop hosted by the Bank of Jamaica and was presented to regulators from fifteen of its English speaking member countries. The second workshop, presented in October, was hosted by the Superintendent of Banks, Santo Domingo, Dominican Republic, in collaboration with the Central American Council of Bank Supervisors for regulators from its seven member countries.
In May 2006, OTA began its program to provide technical assistance relating to insurance enforcement. Compromise of an insurance system weakens an economy and provides avenues for money laundering. Since inception of the program, insurance assistance has been provided in all three OTA geographic regions. In Paraguay, OTA completed an assessment for AML assistance to establish regulation, inspection procedures, and manuals and training. In Jordan, assessment for fraud and AML purposes has been completed to establish an antifraud investigation unit; amend legislation; and establish electronic reporting and case management systems, public awareness campaigns, training and other related activities. Internal company fraud inspection procedures have been prepared for Romania. Participation in training covering both AML and fraud subjects was provided for a number of countries including Romania, Ukraine, Jordan, Jamaica, Turks and Caicos, and Anguilla. OTA also gave assistance to the National Association of Insurance Commissioners relative to international AML programs for its training efforts.
Regional and Resident Advisors
OTA resident advisors continued international support in the areas of money laundering and terrorist financing. In April 2006, OTA placed a regional advisor in Pretoria, South Africa with regional responsibilities for Africa and the Middle East. In September 2006, OTA posted an advisor to the Africa Development Bank in Tunis, Tunisia to provide assistance in the development and implementation of an anticorruption strategy for the Bank and its member countries.
As noted, the resident advisors in Albania, Bulgaria, Montenegro, and Serbia continued efforts to streamline and enhance host governments' FIU's. Supporting national efforts against financial crimes was the focus of the resident advisors in Albania and Zambia. Resident advisors for the Caribbean focused on national efforts against financial crimes as well as on bank regulatory compliance. OTA resident advisors in Armenia and Albania provided technical assistance on internal audit. OTA continued to work with the Secretariat of the Eurasian Group to Combat Money Laundering and Terrorist Financing. OTA placed a resident advisor in Kabul, Afghanistan, in March 2006, and assisted in the establishment and development of a FIU as a semi-autonomous unit within Da Afghanistan Bank. OTA also placed a resident advisor in Colombo, Sri Lanka in August 2006. This advisor has been assisting in the development of an effective anti-money laundering and counterterrorism financing regime, to include the establishment of an FIU that meets international standards. 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 relative to anti-money laundering and border controls, including the use of wireless value transfers. The advisor also provided assistance to the Philippines' Anti-Money Laundering Council that resulted in charges being filed in several high-profile money laundering cases.
Under the auspices of the Millennium Challenge Corporation Threshold Program established for Paraguay, OTA placed a resident advisor there to continue work begun in 2003 that culminated in the establishment, by Presidential Decrees, of an internal affairs unit within the Ministry of Finance, and criminal investigation units in the Customs and Tax Administrations. OTA worked with counterparts in the Ministry of Finance towards the establishment of these units; the identification, vetting, and training of personnel; and the provision of workplaces. Each of these units has made significant progress in identifying and investigating matters under its jurisdiction.