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Money Laundering & White-collar Crime Issues Bulletin 20 Sept/Oct 2011


Table of Contents Forward Strategic Partnerships Upcoming Clement Advisory Group Speaking or Recommended Events Feature Article FINTRAC Update Articles: An Investors Guide to Buying Influence in China Ailing Canadian seaman caught up in European boat capture FinCENs prepaid access rule Phantom deal scandal Expert warns its easy for certain businesses to be used for money laundering Does Raj Rajaratnam deserve leniency Justice Department Man targeted Midstate law firms in collection scam 120 Arrests in International Steroid Probe Fact Sheet on Syria Notorious Gangs of BC BC Casinos to shift away from cash transactions Boca millionaire helped psychics launder money Border Cash lands Ontario man two years ACAMS commemorates 10th Anniversary of its International AML Conference Rogers Ban Adds to OSFIs Inbox Conrad Black returns to prison DOJ Keeping Islamic Bank Settlement Secret Remember 9/11

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Forward: Strategic Partnerships


( 2. TAMLO designs highly engaging and fully interactive online training for anti-money laundering (AML) and counter-terrorist financing (CTF) compliance. Our award-winning creative team uses video, animation and real-life examples to teach employees about their roles and responsibilities. The course content is reviewed and tested by AML experts. Check-out my video at 3.

CAG continues to work closely with BMG and over a short period of time has come to realize that BMGs strategy is one that will ensure a client has an investment strategy that few companies can match. Nick Barisheffs expertise in the precious metal industry is ensuring clients receive the utmost in investment returns. Nick Barisheffs weekly commentaries on his website are worth viewing for those of you in the investment community. I invite you to have a look at their website. Bullion Management Group Inc. (BMG) is one of the fastest-growing precious metals bullion investment companies. Also you may be interested in checking out Mr. Nick Barisheffs Bullionbuzz Newsletter at: Nick Barisheff []. For anyone

looking to have an investment which continues to garner excellent returns you would be well advised to contact BMG.

4) 5)

( I am pleased to announce that Clement Advisory Group has formed a working relationship with Bateman Mackay. We believe that through a working agreement we are in a better position to provide increases services to our clients. Bateman MacKays partners John Doma, Vinay Khosla and Pal Ghumman, along with their seasoned associates provide a depth of service and experience that will be beneficial to entrepreneurial clients from start up, to growing into mature businesses , preserving wealth and developing a personalized succession plan.


As an Industry Director of Seneca College Centre for Financial Services, Clement Advisory Group continues to be an active supporter of those programs which are deemed to be beneficial to the industry in which we serve. Below find the latest release on our Money Service Business On-Line training program which is proving beneficial to the North American MSB industry:

ACAMS & Seneca College Offer Comprehensive MSB Training ACAMS and Seneca College: Centre for Financial Services have teamed up to provide an exclusive opportunity to receive specialized, comprehensive AML training unique to Money Services Business (MSBs). Register today for this 19-module program , designed to deliver superior education to those in the MSB industry, while providing the convenience of an online learning format. Engaging in this educational program will provide training on new MSB legislative requirements including appointing a compliance officer, registering as an MSB, dealing with suspicious transactions, reporting electronic funds transfers, and conducting internal audits. Review the full curriculum. This program can be completed in as little as 19 hours and will help you: Identify red flags specific for MSBs Learn best practices for designing risk-based reviews Earn Up to 12 CAMS credits after successful completion! Pricing for the complete course of this training is only $500 and completion of the course will present to regulators and enforcement agencies your proactive measures to stay compliant.

For more information on the program, please contact: Garry W. G. Clement, CFS, CAMS, AMLP Seneca CFS Associate Centre for Financial Services Seneca College 416.491.5050 x2015 E-Mail: Gary Butler, Director Centre for Financial Services 416.491.5050 x2060 E-Mail:

You are subscribed as If you'd rather not receive future e-mails from ACAMS, please click Unsubscribe.If you would like to change the contact information we have on record for you, click Update Profile. This email was sent by: ACAMS 80 SW 8th Street, Suite 2350 Miami, FL, 33130, USA 7)

Over the course of the past two months I have had the opportunity to test Bridger Insight XG. This software is designed to streamline business processes and reduce overall costs of compliance. The program delivers a single platform to access key information needed for PEFP screening, global corruption, Watchlist verification and negative media. I can state that having used the platform for conducting due diligence for our clients that our time has been cut significantly and we are able to assure our clients that we have fully delved into an individual and or corporations background relying on open source information. For more information please contact Mr. Rob Weller ( or Andrew Ryan ( 8)

I have continued to work closely with Najette Martin, World-Checks Canadian representative and have been provided access to their platform. World-Check has continued to excel in their product delivery for AML/ATF due diligence solutions. Company Associate Partnerships

Mr. Kevin Sullivan AML EXPERTS Anti-Money Laundering and Bank Secrecy Act Consultants Ms. Connie Fenchel Recent Assignments: 1) MSB Independent Reviews 2 in progress

Upcoming Clement Advisory Group Speaking or Recommended Events:

1) 17th Annual Reg Compliance Conf Nov16-17; 2) ACAMS Canadian Chapter Dear Canada Chapter Members, Noted below you will find your discount code for the Canada Chapter event, Anti-Bribery/AntiCorruption Lunch-n-Learn taking place on November 24, 2011 from 11:30 AM 1:00 PM at RBC (315 Front Street, West - Auditorium A & B - Toronto, Ontario). Note: you will be receiving the main email invitation for ACAMS members in the area, however, please use the information contained in this message to register for the event. Please follow these instructions to secure your Canada Chapter member discount. Lunch-n-Learn: 1. 2. 3. 4. Click on this link RSVP Click Register for this Event on the event page Sign in to your shopping cart account Click Next

5. Click Next again 6. Click on Register Now 7. Enter Klotz-Dent in the discount box on the page 8. Click Apply Discount 9. Click Check Out 10. Enter your payment information 11. Click Submit Order Teleconference: 1. Click on this link RSVP 2. Click Register for this Event on the event page 3. Sign in to your shopping cart account 4. Click Next 5. Click Next again 6. Click on Register Now 7. Enter Riddolls-Dent in the discount box on the page 8. Click Apply Discount 9. Click Check Out 10. Enter your payment information 11. Click Submit Order We look forward to seeing you there! Sincerely, The Canada Chapter Executive Board

FEATURE ARTICLE: Jeanne Flemming Victoria, British Columbia October 17, 2011

INTRODUCTION Thank you for that introduction. I am pleased to return to this conference and I commend Chris Walker for once again convening this event and bringing everyone together. We all have a stake in Canada's efforts to combat money laundering and terrorist activity financing. For many of you, the law creates obligations that must be met. For others, for example, those who work in law enforcement, the benefit is found in the financial intelligence that is produced at the end of the line. Regardless of individual roles, you all make important contributions to the integrity of the Canadian financial system and help ensure that those who would abuse it are detected in their attempt-- or deterred before they even begin. The theme for this year's conference is raising the bar in compliance management. From my perspective, it is hard to quarrel with that. If you are responsible for a compliance program or if you work within one, setting higher goals for your approach to compliance is a good thing. The expectation that we hold at FINTRAC is that reporting entities need to understand their legal obligations and consistently meet them. After ten years, businesses should have well established policies, procedures and training programs. And, since 2008 they should be conducting risk assessments. These are just a few of the elements of an effective compliance program, but I will pay particular attention to risk assessment in my talk this morning. It is a fundamental concept that guides our own compliance program when we decide where to allocate resources and where to conduct exams. This morning, I have divided my talk into two parts: compliance with the law and the production of intelligence. First, I will describe FINTRAC's approach to ensuring compliance and reflect on how that approach has progressed over the years along with the law itself. As I mentioned earlier, the evaluation of risk plays an important role in that approach, as do the efforts that are made to mitigate the identified risks. Second, I want to update you on FINTRAC's work as a financial intelligence agency. As much as the law will permit, I will tell you what is being done with the transaction reports that are being sent to FINTRAC and how we are using that information to produce financial intelligence. After ten years, we have improved our ability to analyze the data that we hold and our ability to provide assistance to a variety of criminal investigations. That assistance takes the form of both tactical and

strategic intelligence and I will describe the difference between these two forms so that you might have a clearer sense of FINTRAC's finished products. I will conclude my remarks with a forecast of the coming year. The most significant upcoming event appears to be the Parliamentary review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The future is hard to predict, but if the past review is a prologue to the future, the upcoming review is something that may influence future legislative change and the work that we all share. COMPLIANCE I will begin with compliance with the law. The law creates legal obligations for many persons and businesses. For many of you, your relationship with FINTRAC is centred on those obligations. As such, it seems a sensible place to start. Examinations continue to be our primary method of ensuring that reporting entities are complying with the legislation. Our compliance work is focused on both onsite examinations and desk examinations. To give you an idea how this work breaks down, we completed 684 examinations in the last fiscal year, of which:

376 were onsite examinations, or 55% of the total; and 308 were desk examinations, which represents the other 45%.

In terms of FINTRAC's process for selecting which reporting entities to examine, we have applied a riskbased approach. This approach is driven by two fundamental considerations: the risk of non-compliance with the law and the impact that non-compliance would have. With respect to the current fiscal year, FINTRAC further refined and enhanced its risk-based approach. We did so by focusing, in part, on two important groups, namely, financial conglomerates and large reporting entities. Regarding financial conglomerates, we are examining the many business lines that exist within them. It is possible that the approach to compliance will differ across the business lines of the conglomerate, but the fundamentals should be there and risk should be assessed in each of them. New business lines need to approach compliance with the law as a vital and necessary part of the business, rather than merely a cost centre. For this to happen the tone from the top is very important to the way compliance is approached by the business line. It falls to senior management to set this tone. As for large reporting entities, they represent the key market players in their respective sectors. They have been given weight because of the number of transactions that they conduct and their importance to the whole regime. To assist all reporting entities in evaluation of risk, FINTRAC has published a series of Trends and Typologies reports. Our most recent report deals with suspicious transaction reporting and some of the trends that we have observed in Canada thanks to the reports that have been sent to us. Our analysis has revealed that what is found to be suspicious appears to be biased toward cash transactions.

If you operate in a line of business that involves few or no cash transactions that does not mean that you are immune from money laundering. There is a perception that seems to have taken root in some businesses that they will likely never encounter money laundering because their business involves so very few cash transactions. Not so, the proceeds of crime can be, or can be converted into any type of asset or commodity. This is an important consideration to keep in mind if you are conducting risk evaluations of different business lines. Every reporting entity is required to conduct a risk assessment that takes into account factors such as the client, the geographic location and the product or service being offered. Reporting entities are also expected to complete a review of their own compliance programs every two years. The purpose of this review is to test the effectiveness of their compliance regime. These reviews and the training of staff these should be approached as ongoing activities that, along with risk assessment, are the cornerstones of a robust compliance program. The use of a risk-based approach is now commonplace around the world. It has become the adopted practice in most countries that have anti-money laundering legislation and this fact was reflected in a recent survey of world's 1000 largest banks, commissioned by KPMG in 2010. This survey has been repeated over a number of years. It initially found, in 2004, that 81% of banks indicated that they were applying a risk-based approach to every new account. This has climbed steadily over the years, with 91% of banks in 2010 responding that it is now their practice. Conducting a risk assessment of the client must be taken into account and it is welcome news that it has become a global practice. It must also be weighed against other factors, such as the business or service being offered and the potential vulnerability to money laundering and terrorist activity financing. Geography is something that must also be considered in a risk assessment. When it comes to a risk-based approach for compliance, there is a parallel between the risk assessments that are conducted by reporting entities and those that are conducted by FINTRAC. We have to make decisions about where to allocate our resources and where to conduct examinations. In doing so, we take into account many of the factors that I have described as well as the potential impact of noncompliance on the whole regime. Those questions give us a means to evaluate risk, a way to set priorities and tailor our compliance efforts. As I have mentioned, this has led us to focus our efforts on financial conglomerates and large reporting entities. Over time, FINTRAC has moved from what had initially been a focus on outreach and awareness to more of a focus on enforcement of the law. Now, after ten years, we expect awareness and compliance with the law, which includes submitting reports to us and we stress that negligence in these areas will lead to enforcement actions and penalties. It has been ten years since the obligation to report suspicious transactions came into force in November 2001. It is an anniversary worth noting. There have been legislative amendments and other compliance obligations, but the coming into force of STR reporting was an important milestone because it began an important flow of information from reporting entities to FINTRAC. With the arrival of the first STR reports we had the start of a database that would allow us to produce financial intelligence.

The transaction reports that are sent to FINTRAC and the quality of the information that they contain are the foundation of our intelligence work. Before moving on to describe what we are achieving with that information, let me underscore the importance of data quality. Any field of transaction data can become a necessary linking point in our analysis. We rely on the transaction reports and their quality matters to us. INTELLIGENCE After ten years, the transaction information we hold is a remarkable resource that we seek to exploit to the best possible advantage to fulfil our mandate. It allows us to conduct analysis and produce financial intelligence that benefits a variety of recipients. FINTRAC is doing more than ever before to support the work of the Canadian Security and Intelligence Service, the Canada Border Services Agency and the Canada Revenue Agency. Our output of case disclosures to these agencies has grown considerably.

For CSIS, we produced 21 case disclosures in 2005-06; five years later, the number has grown to 120. For the CBSA, the growth has been from a single case in 2005-06 to 82 last year. The growth is even greater with the Canada Revenue Agency, where we sent 3 case disclosures in 2005-06; last year, the number had grown to 136.

Most of FINTRAC's disclosures to the CRA concern persons suspected of deriving taxable income from illegal activities, and these cases may subsequently result in criminal investigations when suspected tax evasion has been established. In 201011, the 136 case disclosures that FINTRAC provided helped the CRA to identify cases of significant tax non-compliance, and resulted in the reassessment of more than $27 million in federal taxes. I can see three drivers for the increases in case disclosures that I have just described:

The first is a growing demand for financial intelligence as more of our partners recognize its benefit. The second is the result of striving to produce something that is relevant and helpful for these partners and aligning with their priorities when it comes to investigations. The third driver for the increase is that FINTRAC has matured to the point where we have the ability and the data necessary to produce better intelligence more quickly.

Here is a concrete example of why the reports sent to us are critical. In the last year, our output rose to more than 700 case disclosures. These disclosures were a type of tactical financial intelligence; that is to say, they are packages of information dealing with the transactions of individuals and businesses that are quite often already the subject of criminal investigations. In one case last year, we worked with the financial intelligence unit in another country to identify wire transfers of funds from Canada that were part of a suspected international fraud. The fifteen victims of this alleged fraud were all in Canada. They were all between fifty and seventy years old and part of the same cultural group. Over six years, the victims had been tricked into sending money to nine different

countries to assist a relative in jail, or to resolve other problems for a relative in a foreign country. Our analysis revealed that despite the many destinations for the money, the money trail led back to one man, a suspected con artist living in yet another country. He was the ultimate beneficiary of all money that was sent. So, you can see tactical intelligence can give a ground-level view that helps an investigator seek evidence in a case. We have produced tactical intelligence to assist money laundering investigations where the suspected predicate offences have involved organized crime, drugs, corruption and fraud. In addition, our tactical intelligence has allowed law enforcement to understand relationships between individuals suspected of involvement in street gangs and has allowed them to gain new insights into the financial relationships between different gangs. When I became Director of FINTRAC, I recognized there was a need to develop another type of intelligence as well. The other type of intelligence that FINTRAC now produces is strategic financial intelligence, which examines higher-level patterns and trends over time related to money laundering and terrorist activity financing. It provides interpretation and possible explanations of the methods and techniques used by launderers and terrorism financiers. To date, we have produced strategic intelligence reports that examined financial activities of terrorist and criminal groups conducted through various business sectors and multiple jurisdictions. Some reports have also focused on the flow of funds between Canada and specific countries or regions of the world in an effort to identify and explain unusual financial patterns. Other strategic financial intelligence products assessed vulnerabilities posed by emerging technologies or new methods of money laundering. In a nutshell, FINTRAC's strategic financial intelligence served to inform and educate reporting entities, other domestic and international regime partners, and therefore assisted decision and policy makers. The anti-money laundering and anti-terrorist financing regime has come a long way, as has FINTRAC. As I have mentioned, demand for our product has grown steadily, as has the appreciation of it. This is exemplified by the recognition we received recently by the Canadian Association of Chiefs of Police. The association adopted a resolution at their national conference in August that acknowledged FINTRAC's significant contribution to organized crime investigations. The resolution recognized that financial advantage is the key goal for all criminal organizations and that consequently financial intelligence must be an integral component of all organized crime investigations. The CACP's resolution went even further to say that FINTRAC has been recognized as a key partner and should be made aware of the law enforcement priorities across Canada. Knowing the national and provincial priorities of police will allow FINTRAC to target high-priority criminal investigations and to offer greater assistance to investigators. It is very gratifying that FINTRAC's financial intelligence has been recognized in this way. Now let me give you my forecast for the coming year. I can tell you that at FINTRAC we will continue to conduct compliance examinations based on our evaluation of risk. We will continue to align the financial intelligence we produce to the highest-priority investigations of our partners. We will continue

to produce strategic intelligence assessments to help you, policy makers and other stakeholders in your work and your setting of priorities. As I said, there will be a Parliamentary Review of our Act. No date has been set for this review but one is mandated by law every five years. The last review brought significant changes to the legislation, including the introduction of an Administrative Monetary Penalties regime. Just as the law requires that reporting entities review their own compliance regime regularly, so too the law and the whole regime must have regular reviews that take into account new risks, changes in business operations, the deficiencies and gaps within the current law and, above all else, how to improve and ensure that it continues to serve its objectives. So, if the last ten years are any indication, FINTRAC and the law that governs us will continue to evolve, as will the world's efforts to combat money laundering and terrorist activity financing. Thank you and I wish you a successful conference.

FINTRAC UPDATES FINTRAC issues administrative monetary penalties against two entities September 27, 2011 Ottawa, September 27, 2011 The Financial Transactions and Reports Analysis Centre of Canada has assessed administrative monetary penalties against two entities. The penalty was imposed for violating the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). 1. Services Financiers C.M. Inc., a money services business in Montreal, Quebec, was issued a penalty of $9,500 on August 2, 2011, for committing four violations:

Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. o Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. o Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph

71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. o Failure of an applicant or a registered person or entity to submit a notification of a change to the information provided in a prescribed application in the prescribed manner and with the prescribed information, which is contrary to section 11.13 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, paragraph 4(b) and section 5 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. 2. Jory Capital Inc., securities dealer in Winnipeg, Manitoba, was issued a penalty of $28,500 on June 2, 2011, for committing four violations:

Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. o Failure of a person or entity to assess and document the risk referred to in subsection 9.6(2) of the Act, taking into consideration prescribed factors, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(c) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. o Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(d) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. o Failure of a person or entity to institute and document the prescribed review, which is contrary to subsection 9.6(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and paragraph 71(1)(e) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. A number of business sectors in Canada are required to keep certain records, identify clients, maintain compliance regimes, and submit reports to FINTRAC consistent with their obligations under the PCMLTFA. These sectors include banking, life insurance, trusts, securities, real estate credit unions, casinos and money services businesses. Money services businesses also have the obligation to register their business with FINTRAC. FINTRAC has had the authority to issue administrative monetary penalties in response to noncompliance with the PCMLTFA and related regulations since December 30, 2008. Penalties are used as a last recourse after other measures to ensure compliance with the law have been exhausted. Administrative monetary penalties serve as an adjunct to existing criminal penalties. Both criminal and civil penalties cannot be issued against the same instances of non-compliance. Violations are classified as "Minor", "Serious" or "Very Serious", and carry maximum penalties of $1,000, $100,000 and $500,000 respectively.

FINTRAC remains committed to working with reporting entities in ensuring compliance with the PCMLTFA and related regulations. The new penalties are a tool to encourage compliance. FINTRAC is an independent federal government agency with a mandate to assist in the detection, deterrence and prevention of money laundering and the financing of terrorist activities. FINTRAC analyzes financial transaction reports and discloses financial intelligence to law enforcement and CSIS where it has reasonable grounds to suspect that the information would assist in the investigation of money laundering and terrorist activity financing offences or threats to the security of Canada. FINTRAC is part of Canada's Anti-Money Laundering and Anti-Terrorist Activity Financing Initiative. The initiative is led by the Department of Finance and includes the RCMP, CSIS, Public Safety Canada, Canada Revenue Agency, Canada Border Services Agency, Communications Security Establishment Canada and the Department of Justice.


Edmonton man charged in $7M mail fraud CBC News Posted: Oct 17, 2011 4:28 PM MT Last Updated: Oct 18, 2011 1:42 PM MT A 39-year-old Edmonton man is facing fraud and money laundering charges in a $7-million mail fraud scam. The investigation ran from August to December 2010.

Some of the 2,200 scam letters removed from the United States and Canadian mail systems during the investigation. RCMP RCMP worked with Canadian Postal Inspectors and the U.S. Postal Inspection Service to discover the identity of the accused, locate victims and to remove more than 2,200 mail items from both the US and Canadian mail systems. Rabbi arrested in immigration fraud 'mill' has checkered past 10/12/2011 COMMENTS (0) NEW YORK, Oct 12 (Reuters) - In January 2004, Earl S. David's fate rested with a panel of judges from the appellate division of the New York State Supreme Court. The 39-year-old attorney and rabbi had participated in a securities fraud, money laundering and bribery scheme in the early 1990s, but had agreed to testify for the prosecution, eventually helping the SEC and criminal authorities convict 39 defendants. Now the judges had to decide how long to bar him from practicing law. Turkey seeks wider cooperation against money laundering

Font Size: Larger|Smaller Tuesday, October 11, 2011 ANKARA - Anatolia News Agency Turkey plans to broaden international cooperation to combat money laundering and the financing of terrorism, according to recent attempts by the countrys Financial Crimes Investigation Board (MASAK), the Anatolian news agency reported. Turkey recently asked German authorities to sign an agreement to combat money laundering used for financing terrorism in both countries, the agency reported yesterday. No agreement has yet been signed; Germany said preparations would take more time. MASAK currently cooperates with Indonesia, Portugal, Sweden, Mongolia, Afghanistan, Georgia, Albania, Syria, Romania, Croatia, Macedonia, South Korea, Bosnia and Herzegovina, Japan, Ukraine, Norway, Jordan, Senegal, Luxembourg, Britain, Canada, Monaco, Finland and Belarus while it is currently in talks with the United States.

Canadian man pleads guilty to cocaine trafficking Updated 06:47 p.m., Monday, October 3, 2011 FARGO, N.D. (AP) A Canadian man accused of leading a conspiracy to sell drugs in North Dakota and other states admitted Monday that he tried to buy 30 kilograms of cocaine from undercover agents. Jerome Catacutan pleaded guilty in federal court Monday to conspiracy to possess with intent to deliver a controlled substance, and money laundering. He faces life in prison without parole. Prosecutors said Catacutan engaged in ongoing negotiations with U.S. agents posing as large-scale cocaine traffickers. The agents allegedly met with Catacutan at a Bloomington, Minn., bar in October 2009. A co-conspirator expecting to receive 30 kilograms of cocaine was arrested the following month in Rogers, Minn., with a large bag containing nearly $577,000 in Canadian money, authorities said.

Federal government launches cyber-security campaign BY CARMEN CHAI AND TOBI COHEN, POSTMEDIA NEWSOCTOBER 3, 2011

The federal government on Monday launched a public-awareness campaign about cyber security. Photograph by: File, Postmedia News OTTAWA The best way to fight the growing threat of cybercrime is through prevention, which is why the federal government launched a website and ad campaign Monday aimed at getting Canadians to do their part. Public Safety Minister Vic Toews unveiled at the University of Ottawa as part of the kickoff to Cyber Security Awareness Month which runs through October.

The campaign, he said, is designed to help Canadians protect themselves and their families by better understanding the threats that they can face online. "Our increasing reliance on cyber technologies makes us more vulnerable to those who would attack our digital infrastructure to undermine our national security, economic prosperity and quality of life," Toews said. "Increasingly, cyberspace is being used and exploited. It's being used by foreign governments and unscrupulous corporations to steal intellectual property and confidential information to gain military, commercial and economic advantages. "It's being used by organized crime groups who engage in identity theft, money laundering and extortion. It's being used by terrorists to spread the message of hate, to co-ordinate their activities and recruit others and Canada and Canadians are not immune." RCMP Supt. Tony Pickett of the cybercrime branch added the Internet has breathed new life into old crimes. Fraud has moved online, he said, along with drug trafficking and money laundering. 17/story.html B.C. judge decides terrorist act violates Charter for lawyers


A B.C. judge has found that provisions of Canadas money laundering and terrorist financing legislation are unconstitutional as they apply to lawyers. B.C. Supreme Court Justice Laura Gerow has stuck down certain sections of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The judge concluded the act infringes Section 7 of the Charter of Rights and Freedoms insofar as it applies to lawyers and law firms because it puts both lawyers and their clients liberty interests in

jeopardy by requiring lawyers to collect and retain information about clients, and make the information available to the government to aid in combating money laundering and terrorist financing. Gerow also concluded that the infringement was not justified under Section 1 of the Charter, so decided the appropriate remedy is to read down some of the impugned provisions, and sever and strike down other portions. John Hunter, who represented the Federation of Law Societies of Canada in the case, said the ruling is important for the profession. Its a reaffirmation that law societies regulate lawyers, he said, adding lawyers still have to abide by law society rules that they not accept cash and obtain proper identification when handling client funds. Lawyers now are not subject to the federal regime that required lawyers to keep records on clients that could be used by law enforcement, Hunter said. An injunction in 2001 had required lawyers to abide by law society rules but not the federal legislation. The full judgment is online: y.html

Evesham man indicted for stealing $500,000 from clients Wednesday, September 28, 2011 TRENTONAn Evesham man and his Canadian partner were indicted this month on charges they posed as investment bankers and financial advisors to steal more than $500,000 from clients who were promised millions of dollars in venture capital, New Jersey State Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced. According to Taylor, the Division of Criminal Justice Financial and Computer Crimes Bureau obtained a state grand jury indictment on Sept. 16 charging Albert A. Paramito Jr., 39, his company Paramito Global Holding Inc., a Nevada corporation with an address in Voorhees, and Priti Ramjee, a Toronto woman who is Paramitos partner, with conspiracy, theft by deception and money laundering, all in the second degree. Paramito and Ramjee were also charged with second-degree misconduct by a corporate official, according to Taylor. It is alleged, according to the attorney generals office, that between October 2006 and September 2008, Paramito and Ramjee demanded advance fees from six clients, ranging from $40,000 to $284,000, fraudulently claiming that they would arrange for millions of dollars in financing for the clients projects. According to the attorney generals office, the defendants allegedly stole about $534,000 in fees, while never arranging any financing.

Paramito and Ramjee portrayed themselves as high-powered financiers who could raise millions of dollars in venture capital, but we allege that, in reality, they are nothing but slick con artists, Dow said. If convicted, they could face up to 10 years in prison. Are Cash Transactions for Online Casinos Quickly Becoming Obsolete By Dror Pumper | 27th September 2011 | Online Casino News The government in Canada, including all the provinces, are currently having a number of concerns over all online gambling transactions as well as money laundering after opening the doors to the internet gambling market. Their concerns lies the proof they have seen coming from other countries about possible criminal activities, such as money laundering, which many be traced to a number of fraudulent crimes, including terrorism, taking place with the transactions made in cash via online casinos. The Lottery Corporation in the Canadian province of British Columbia has started a new move that looks to limit the total sum of cash online gamblers are able to utilize when participating with an online casino. Because of investigations conducted in the United States to look into big cash transactions which turned out to be deceitful and made the announcement that it is quite possible that the large cash transactions were being used to benefit crime, British Columbia decided that it is necessary to maintain vigilance on all online casino gaming transactions as well. The Canadian government prefers electronic funding as the payment method of choice. Electronic funding means that there is a written record of the transaction, which would deter the possibility of criminal activities, including money laundering. Cash transactions do not have any written record, as well; there are no possibilities of tracing where the cash funds originated from or where they will end up. This creates an opportunity ripe for illegal activity. In light of this, the Canadian government is looking to create a new law that all online gambling transactions need to be electronically made. Agreeing with this approach is the Public Safety Ministry. They believe that by using beneficial incentives, online casino players will easily make the switch from cash to electronic transactions. This new approach is not to hinder online gambling but make a separation between legal and illegal online gaming. Fraud scheme: Texas man gets 45 years in prison LARRY O'DELL, Associated Press Updated 08:00 p.m., Tuesday, September 27, 2011 RICHMOND, Va. (AP) A Texas businessman convicted in a $100-million fraud scheme was sentenced Tuesday to 45 years in federal prison.

U.S. District Judge Robert E. Payne sentenced Christian Allmendinger, 40, of Houston, after hearing emotional testimony from six victims who lost their life savings or retirement funds in the scam. Prosecutors had sought a 125-year sentence, arguing that the judge should ensure that Allmendinger never gets out of prison. Allmendinger's attorney asked for a sentence of 12 years, which would have been slightly more than the 10 years given to a co-defendant who pleaded guilty. A jury convicted Allmendinger of seven counts of fraud and money laundering in March. Allmendinger was the co-founder of Houston-based companies known as A&O that bought life insurance policies from insured people at less than face value and promised investors hefty returns when those people died and the benefits were paid. Marlton con artist, Canadian partner charged with allegedly stealing $534K from clients Published: Saturday, September 24, 2011, 6:30 AM Updated: Saturday, September 24, 2011, 8:17 AM

By Christopher Baxter/Statehouse Bureau

Patti Sapone/The Star LedgerN.J. Attorney General Paula Dow in this March file photo. The Attorney General's office charged 2 Marlton women with allegedly conning $534K from clients. MARLTON They pitched themselves as financial moguls, authorities said, able to bankroll major projects like blockbuster movies with millions of dollars.

But Albert Paramito Jr., 39, of Marlton and his partner were allegedly nothing more than slippery tricksters, the state Attorney Generals Office said Friday, stealing $534,000 and never providing their clients with a dime. Paramito and Priti Ramjee, a Toronto woman, were indicted Sept. 16 on charges that from 2006 to 2008 they duped six clients into paying hundreds of thousands of dollars in advance fees to line up investors for high-profile ventures across North America. html Poker website accused of swindling $440 million from players


Charges laid in the U.S. against online gaming sites will help drive government-run online gaming in Canada, say spokespeople for government lottery agencies. Photograph by: REUTERS/Toby Melville, REUTERS/Toby Melville A possible Ponzi scheme involving one of the world's largest online poker sites could be an ace in the hole for Canadian government-run online gaming, according to a spokesman for the Ontario Lottery & Gaming corporation. If online gaming is run by the government, "people know they're going to get paid," said Tony Bitonti, spokesman for OLG, which plans to launch online games, including poker, in 2012. The U.S. Attorney General has accused Full Tilt Poker of swindling $440 million from players around the world, with up to $15 million stolen from Canadian gamblers, who themselves are breaking the law by playing.

Full Tilt Poker "defrauded players by misrepresenting that their funds on deposit in online gambling accounts were safe, secure, and available for withdrawal at any time," the U.S. Attorney's office for Southern Manhattan said. 83/story.html No new significance in Sri Lankan money laundering busts, say local police Posted By Eleanor Johnstone On September 20, 2011 @ 1:59 PM In Politics | 2 Comments Sri Lankan police are investigating a large-scale money laundering case based in Colombo, that reportedly extends to the Maldives. Local police representatives say no significant case has been filed with Maldivian authorities so far. According to local media, money was being transferred from the Maldives to various illegal money transfer agents in neighboring Sri Lanka. The money is suspected to be used for such criminal activities as purchasing and distributing narcotics and other contraband. Last week, Rs. 81.76 million (Rf11.4 million) was seized at Sri Lanka Customs, the largest amount of foreign currency to be detected at Bandaranaike International Airport (BIA). Haveeru reports that dollars from Australia, Canada and the US, as well as sterling pounds, Kuwaiti dinars, UAE Dirhams, Saudi Riyals, Swiss Francs and Euros were included in the stash. Local police reported no case being lodged regarding the money laundering circuit in Colombo, and cautioned that the information that was given to local media regarding the transport of finances from the Maldives might not be reliable. Officials did say that money laundering has been a problem in the Maldives. Police Sub-Inspector Ahmed Shiyam said that the issue of money laundering in the Maldives is growing, and credit cards are being abused more. An official from the Fraud and Financial Branch said there have been suspicions of money laundering, but charges can not be pressed for that alone. Individuals have been charged for drug possession, which might be related to money laundering, but we are currently unable to prosecute someone for money laundering alone. We plan to work on that in the future, he said. International Monetary Fund (IMF) reports state that money laundering became a bigger concern internationally post-9/11, when it became heavily linked to terrorism. Although many countries have since adopted IMF anti-money laundering (AML) policies, few have developed legislation to enforce these guidelines. The latest IMF review [1] of Sri Lanka, dated 2008, indicated that AML standards were adopted by signature but that legislation was not in place. A 2011 review [2] of the IMF program found that international organizations were cooperative, but did not indicate that individual governments and banks had adopted AML procedures.

Sri Lankan police have conducted raids on unauthorized money transfer agencies in the past few weeks, reports Haveeru. Earlier this month the Colombo Fraud Bureau, an arm of the Sri Lankan police force, arrested several suspects and seized approximately Rs. 9 million (Rf1.25 million) in foreign currency, Haveeru reports. Four key Maldivian narcotics peddlers who were busted by Maldivian authorities in June for their involvement in the smuggling of narcotics via Colombo to Male since 2005 had allegedly used a prominent money transfer agency in Colombo, reports Haveeru. Call for crackdown on dodgy shell companies 7:44 PM Tuesday Sep 20, 2011

Commerce minister Simon Power is calling on the taxman to help crack down on dodgy NZ-registered companies. Photo / Sarah Ivey Commerce Minister Simon Power wants the taxman to help crack down on NZ registered companies implicated overseas in smuggling, money laundering and tax fraud. Over a four year period 143 New Zealand registered companies have been implicated in criminal activities overseas such as smuggling, money laundering and tax fraud with New Zealand Police and the Customs Service receiving 134 enquiries about them, Commerce Minister Simon Power says. This revelation comes in a cabinet paper from Power seeking direction from his cabinet colleagues on addressing threats to the integrity and reputation of New Zealand's companies regime and proposes to give the Registrar of Companies stronger powers to respond to risks around the integrity of information on the companies register. The changes are needed, Power says, because of evidence that individuals and groups, especially from overseas, are misusing the New Zealand company incorporation process and therefore threatening New Zealand's international reputation.

The paper says investigations by the Organised and Financial Crime Agency of New Zealand (OFCANZ) into SP Trading Ltd, a New Zealand registered company that hit the headlines in 2009 and 2010, have provided more details on the extent of the problem, says Power. SP Trading was involved in the charter of a plane intercepted at Bangkok airport with a cargo of weapons. The flight originated in North Korea and UN Security Council sanctions prohibit trading in arms with North Korea. "They confirm that the basic modus operandi employed in the formation of SP Trading has been followed by a number of New Zealand-based company formation agents, who sell a 'package' of company documents to an overseas company broker," the cabinet paper says. "In many of the cases which have come to OFCANZ's attention, both the sole director and the sole shareholder are based overseas. OFCANZ considers that many of the clients of the formation agent responsible for the formation of SP Trading are involved in illegal activity." It goes on to say that from January 2006 to February 2010 the New Zealand Police and the New Zealand Customs Services, combined, received 134 enquiries about 143 New Zealand registered companies. Furthermore, the Inland Revenue Department believes if these companies are involved in criminal activity overseas, they are also likely to be involved in tax fraud or evasion, says Power. "A New Zealand registered company with its effective base in Panama recently committed a significant tax fraud in the United Kingdom. This sort of fraud affecting our OECD partners impacts negatively on New Zealand's international reputation. "IRD is concerned that New Zealand will receive a poor report in an OECD forum later this year because it is unable to provide information which many other countries would be able to supply about such companies," the cabinet paper says. Green Party co-leader Russel Norman recently questioned Power about New Zealand International Savings & Loan Ltd, which is New Zealand registered with its registered office at 9/22 Curran Street, Herne Bay, has its sole director - Rodrigo Edgardo Alvarado - located in Panama, and its shareholder listed as the Stockholm-based Eurocapital New Zealand Limited Partners SA. September 18, 2011 Outlaw biker ranks growing in Alberta By PAMELA ROTH, QMI Agency

EDMONTON - Seven years ago, Shannon Trottier was left with a gaping hole in her life when she watched her 34-yearold son die in her arms. Joey Campbell, also known as Joey Morin, was rushed to hospital after he was sprayed with bullets outside a west-end strip club, but his injuries were too severe to overcome. A second man, Robert Simpson, died at the scene from multiple gunshot wounds. Both men were affiliated with outlaw motorcycle gangs -- at that time the Bandidos -- and the killer has yet to be brought A member of the Warlocks motorcycle to justice. club says the group is more of a brotherhood than a gang. (Perry Mah, The shooting marks the last time any significant violence among bikers erupted on city streets and police are holding QMI Agency) their breath it will stay that way given the province's changing biker club scene. According to Sgt. Marc Labonte of the Edmonton Integrated Intelligence Unit for the RCMP, during the last two years, Alberta has seen one of the largest increases in outlaw motorcycle gangs across the country. Labonte wouldn't name the specific clubs that have set up shop in the province, but he said there are now four main clubs referred to as "one-percenters" -- a term given to outlaw motorcycle clubs that aren't always just out for a good time -- as opposed to one main group with four chapters. Two new one-percenters showed up in the last year, and each one has one to three chapters. In addition, police have identified at least eight "puppet " clubs or associate clubs, which consists of members aspiring to become part of the main clubs, so they conduct certain business to prove themselves worthy. In early 2009, Labonte said there were maybe two or three associate clubs in the province. The bikers are also spreading their wings. Vancouver man convicted in Ontario of possession of the proceeds of crime


Scales of justice. Photograph by: Vancouver Sun files, . A Vancouver man caught with $1.7 million in illicit drug profits has been convicted in Ontario of possession of the proceeds of crime. Tuan Van Dinh was arrested in 2008 after the Toronto office of the RCMP's Integrated Proceeds of Crime unit, working with U.S. Immigration and Customs Enforcement, infiltrated a criminal organization responsible for laundering bulk cash in Canada. Toronto IPOC spokesman, Cpl. Dale Duchesne, said in a news release that police dismantled the money laundering network which got cash from drug distribution throughout Canada, the States, Mexico, and Colombia. He said all the cash seized in Canada was concealed in large suitcases and duffel bags.

Inspector Mark Pearson, head of IPOC in Toronto, praised the efforts of his unit. "Our ability to seize, restrain, and forfeit proceeds of criminal activity allows us to dismantle criminal organizations and enhances the safety & security of the communities in which we live. In this joint investigation Canadian law enforcement successfully forfeited $1.7 million and removed it from the hands of a criminal organization," Pearson said. 707/story.html

Canadian government aware of Malaysian money-laundering allegations

Prime Minister Stephen Harper alerted over massive Taib family-linked property holdings in Ottawa Canadian police commends the Bruno Manser Fund but refuses to confirm or deny a criminal investigation OTTAWA, CANADA, September 15, 2011 /WORLD-WIRE/ Only days after the German government announced a money-laundering investigation into Deutsche Bank over its close ties with the Malaysian Taib family, Sarawak potentate Abdul Taib Mahmud (Taib) might be facing difficulties from yet another Western government. In July 2011, the Swiss Bruno Manser Fund alerted the Canadian government about suspected money laundering activities of the Taib-family-founded Sakto Corporation, an Ottawa-based property developer. Sakto owns and administers properties in Ottawa, Ontario, estimated to be worth well over 100 million US dollars. Sakto is also the center of a Taib family-linked property empire with significant holdings in the United Kingdom, the United States and Australia. In a letter sent to Prime Minister Stephen Harper, the Bruno Manser Fund asked the Canadian government to launch a formal investigation into Sakto and various Taib family members over suspected money laundering. A copy of the letter was sent to a number of cabinet ministers, Canadas moneylaundering authority, FINTRAC, and William Elliott, the Commissioner of the Royal Canadian Mounted Police.

The Bruno Manser Fund can confirm that our letter aroused great interest amongst the Canadian government and was brought to the attention of several top politicians, including the Minister of Finance, James M. Flaherty, the person who is ultimately responsible for money-laundering issues. Department of Justice: Money launderers will be prosecuted and incarcerated You may be interested to know that the RCMP (Royal Canadian Mounted Police)s Integrated Market Enforcement Team is a group of highly acknowledged specialized investigators that are dedicated to ensuring that those who commit serious capital markets fraud offences will be discovered, investigated, prosecuted, and incarcerated in an effective and timely fashion, a top executive of Canadas Department of Justice told the Bruno Manser Fund. However, Canadas federal police refused to disclose if Sakto Corporation and the Taib family were under investigation: The RCMP does not normally confirm or deny the existence of any criminal investigation, Chief Superintendent and Criminal Operations Officer Serge Therriault from the RCMPs A Division stated to the BMF. The A Division is an international anti-corruption unit that focuses on detecting and investigating bribery, embezzlement and money laundering. Canadian National Sentenced to Serve 50 Months in Prison for Role in Fraud and Money Laundering Conspiracies Involving New Jersey Environmental Protection Agency at Superfund Site

WASHINGTON A former executive at Bennett Environmental Inc. (BEI), a Canada-based company that treats and disposes of contaminated soil, was sentenced today to 50 months in prison for participating in money-laundering and fraud conspiracies in connection with contracts at a Superfund site in New Jersey, as well as impeding a proceeding before the U.S . Securities and Exchange Commission (SEC), the Department of Justice announced. The United States Environmental Protection Agency (EPA)designated Superfund site, Federal Creosote, is located in Manville, N.J. prison_for_role_in_fraud_and_money_laundering_conspiracies_involving_new_jersey_environmental_ protection_agency_at_superfund_site.html Deutsche Bank faces money-laundering investigation over dealings with Malaysian chief minister September 12, 2011

Banking giant Deutsche Bank is under investigation by the German Federal Financial Supervisory Authority (BaFin) for its dealings with the family of Abdul Taib Mahmud, the chief minister of the Malaysian state of Sarawak, reports the Bruno Manser Fund, a group that campaigns on behalf of forest people in Borneo. Chief Minister Taib is accused of using cozy ties with the state's logging and plantation companies to acquire vast amounts of wealth. Research by the Sarawak Report, a muckraking group, suggests that Taib's family controls hundreds of millions of dollars in overseas assets, including real estate in the United States and Canada. Taib is already under investigation by the Malaysian Anti-Corruption Commission (MACC) for alleged timber corruption during his 30 years in office. The Swiss Financial Market Supervisory Authority, FINMA, in May announced an investigation into Taib assets in Switzerland. The newest development out of Germany came after the Bruno Manser Fund and other groups sent a letter to German Chancellor Angela Merkel calling attention to Deutsche Bank's "close business relations" with Taib. In a statement, the Bruno Manser Fund explained the ties between the German bank and the chief minister: Since 2004, Deutsche Bank has processed transactions worth several hundred million euros for the Sarawak government and is engaged in a joint venture in Malaysia with the Cahya Mata Sarawak company (CMS), which is controlled by the Taib family.

Nevin Shapiro Laundered Drug Money For Turkish Terrorists, Woman Claims In Court By Tim Elfrink Thu., Sep. 8 2011 at 10:09 AM

It seems Nevin Shapiro, the scrawny, debauched Ponzi schemer currently trying to dynamite University of Miami athletics, is even slimier than we thought. A woman now claims that Shapiro, along with his

convicted felon stepdad, once helped launder drug profits for the PKK, a notorious Turkish terrorist group. The claims would be incredible -- except most of the facts stated in document provided to New Times and filed yesterday in federal court indeed seem to line up. Nevin's step-father, a Canadian businessman named Richard Armand Adam, was in fact charged in 1997 with engineering a $6 million fraud. The new filing by a co-defendant in that case claims a previously undisclosed part of the scheme involved laundering PKK drug money. After Adam was busted, Nevin and his mother, Ronnie, took over the fraudulent enterprise. "The Adam-Shapiro crime family aided the PKK, a recognized terrorist enemy of the United States, through money laundering," charges Barbara Murray, a real estate agent who recruited investors for Adam and is appealing her conviction. Maria Elena Perez, who is Nevin Shapiro's attorney, also represented Adam in the criminal case. She says Murray's claims are untrue.

"This is completely crazy on all points," she writes in an email to Riptide. "The issue of Mr. Adam's and Mr. Shapiro and his mother's ties to any terrorist group is a complete fabrication ... Barbara Murray is upset because she opted to go to trial ... and was convicted as a co-conspirator of Mr. Adam while Mr. Adam was fighting extradition in Canada." Snakes in the grass By Avi Jorisch Human smuggling is a lucrative business. Despite the best efforts of customs officials around the globe, smugglers remain in business, in part because of their access to capital and law enforcements reluctance to use some of the most advanced tools on the market. Smuggled Chinese arrive in the United States by land, sea, and air. Some travel directly, while others transit through Mexico or Canada and then cross overland illegally. Although exact figures are unavailable regarding how many Chinese are smuggled into the United States every year, credible estimates put the number at 50,000. The number of Chinese smuggling groups worldwide is not known, with estimates ranging from seven to 50. The Chinese use the term "snakehead" for smugglers and "human snake" to describe those being smuggled. These terms stem from the idea of slithering from point to point along clandestine routes. One of the biggest players in the Chinese-American human smuggling industry was put behind bars in 2006. Chen Chui Ping, also known as Dajie Ping (Big Sister Ping) was widely known as the "mother of all snakeheads". She was convicted of conspiracy to smuggle aliens into the United States, hostage taking, money laundering, and trafficking in ransom proceeds, among other charges. Over the course of her smuggling career, she is reported to have netted more than US$40 million. This money was effectively laundered using international banks and the informal financial sector.

Sister Ping, of course, is only one example of a criminal who successfully smuggled thousands of people across international borders. But what most law enforcement and customs officials miss is that Ping along with other smuggling enterprises worldwide - was able to sustain her operations as a direct result of her ability to move money internationally. Ping used a money remitting business and a restaurant to launder the proceeds of her smuggling activities and facilitate her operations. Located in New York City's Chinatown, her money laundering operation was directly across the street from a branch of the Bank of China. Her underground banking system was reportedly so effective that it eventually became one of the Bank of China's principal competitors. The global industry in human smuggling is worth an estimated $7 billion per year, with Chinese traffickers alone reportedly making between $2.4 billion and $3.5 billion. We have the analytical tools and the intelligence to fight more effectively. It is time to start using them.