NAEA Seminars – 2014
Content
NCA Overview
$207 Million Cash Seizure
SAR Regime
Best Practice
Case Studies
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Trends
At least 1 in 4 organised crime groups retain a corrupt
individual in the legitimate financial sector
Illicit profits are often laundered through cash-rich overt
businesses, which very often operate on the high street and
typically include nail bars, food and licensed premises,
companies offering security services, taxi firms and car
washes.
Complicit, negligent or unwitting professionals in the
financial, accountancy and legal professions in the UK
facilitate money laundering on behalf of organized criminals.
UK organised crime groups also use specialist money
launderers, some overseas, who manage laundering for
multiple criminal enterprises.
Government Serious Crime Review – Oct 2013
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National Crime Agency (NCA)
Keith Bristow
Intelligence Hub
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UKFIU Structure
Alan Hislop
Head of UKFIU
Roy Affleck
UKFIU Operations
Donna Carruth
Policy, Coordination
& Communications
Keith White
Financial Relationships
International
Dialogue
Policy
International Corruption
Intelligence Cell
Systems and Futures
SAR Management
Consent
Data Exploitation
Communications
Terrorist Finance
HMRC
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Money Laundering &
UK Legislation
Trends
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UK Legislation
Primary Legislation
Proceeds of Crime Act 2002 (POCA)
Terrorism Act 2000 (TACT)
Secondary Legislation
Money laundering Regulations 2007
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POCA Interpretation
POCA – Criminal Conduct
S.340(2)
Any conduct which constitutes an offence in any
part of the UK or would constitute an offence in
any part of the UK if it occurred there
POCA – Criminal Property
S.340(9)
Any benefit derived from criminal conduct.
Property includes money, all forms of property,
real or personal, heritable or moveable, things
in action and other intangible or incorporeal
property
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POCA – Money Laundering Offences
s.327 Concealing, disguising, converting, or
transferring criminal property
s.328 Being concerned in an arrangement in
relation to criminal property
s.329 Acquisition, use or possession of criminal
property
PENALTY – 14 years imprisonment
Where a suspicious transaction is pre-advised, Consent must be sought
from the NCA to proceed
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POCA – Other Offences
s.330 Failure to disclose – applies to the regulated sector.
A person commits this offence if he knows or suspects or
has reasonable grounds for knowing suspecting that
another is engaged in money laundering and fails to
report it
PENALTY: 5 years imprisonment
s.333 Tipping off
“Knows or suspects” that a disclosure (report) has been
made
&
(b)Makes a disclosure which is likely to prejudice any
investigation which might be conducted following the
disclosure
PENALTY: 2 years imprisonment
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SAR Best Practice
SAR Best Practice
 Put in all KYC / CDD information
 Address & date of birth vital if known
 Make sure your reason for suspicion is clear
 Reason for suspicion should be in first line of text
 Glossary code should be used
 Always put postcode in even if previously reported on
 If you need Consent be specific (and tick the box)
 Submit via SAR Online / Fax
 Be available during the notice period
 Consider business / reputational risk
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Consent – Essential Elements
The information or other matter which gives the grounds
for knowledge, suspicion or belief
A description of the property that is known, suspected or
believed to be criminal or terrorist property
A description of the prohibited act for which consent is
sought
The identity of the person or persons known or suspected
to be involved in money laundering or committing or
attempting to commit an offence under s15 to 18 of TACT
The whereabouts of the property that is known or
suspected to be criminal or terrorist property
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POCA Interpretation
www.nationalcrimeagency.gov.uk
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SAR Usage
SAR Submissions by Year
SARs Volumes
350,000
316,527
300,000
278,665
255,589
250,000
195,702
200,000
150,000
212,291 207,704
221,144
231,172
241,244
143,638
100,000
50,000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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Case Studies
Operations Prestige / Gumia
Cavan & Jamie
Hanna
(14 years)
£1,135,910
Koli’s Ferrari
12 Stonechat Mews
£2,683,395
Darren Rankin
Cash Courier
(5 Years)
£32,010
Martin Winter
Drug Courier
(21 Months)
John Bastable
Cash Courier
(5 Years)
Steven Creasey &
Anthony Pitts
£201,488
Raj Koli
Money Launderer
(5 Years)
£414,770
George Webb
(24 weeks / 200 CS)
£649,650
Stephen Mee
(5 Years)
Nimesh Shah
Director & MLRO
MSB
(15 Months)
£154,760
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ML Modus Operandi
Front Company?
Luxury Car Hire Company
Cash Smuggling?
£5,131,211 recovered
Property?
Building plots, warehouse
Rental Properties?
14 properties across South East London
Professionals Involved?
Foreign Bank Accounts?
Other Accounts?
Bling Lifestyle?
Bank accounts in names of Limited Companies
£400k in solicitor’s client account
Jewellery, cars
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Op Showcase - Smurfing
Nasrullah Khan
10 Years
Fazal Hussain
7 Years
Muhammed Habib
3 Years
Mark Owens
3 Years
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Threat Areas – Property Sector
Targeting by OCGs – value knowledge / access
Identity fraud / false documentation to evade
KYC / CDD procedures
Complicit / bogus professionals
High cash turnover businesses / unusually
profitable
Increased OCG use of offshore accounts & Company
Service Providers
Overseas links / international cash flow
Protect Yourselves – Be Suspicious
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Contact Details
• SAR Online & Glossary of Terms –
www.nationalcrimeagency.gov.uk
• UKFIU Support desks –
• UKFIU Dialogue Team via
0207 238 8282
ukfiusars@nca.x.gsi.gov.uk
• SAR Confidentiality Breach Line –
0800 234 6657
• NCA General Enquiries Number –
0370 496 7622
• Fraud Reporting
www.actionfraud.org.uk/report_fraud
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Any Questions?
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