Anti-Money Laundering

Anti-Money Laundering is the definitive reference on money laundering and practice. First an outline will be given of the general approach taken by supra-national organisations like the United Nations and the European Council. Next the approach taken by international organisations and initiatives on the basis of the supra-national initiatives will be outlined by senior members of those organisations. A number of countries will then describe their specific prevention legislation. Countries involved will all be member-countries of the FATF (Financial Action Task Force on Money Laundering). Finally there will be an overview to enable the reader to make a comparison between the most important topics of money laundering legislation and rules in the different countries.

Acknowledgements xi

Alliance Partners xii

About this book xv

About the editors xvi

Foreword xix
Professor Kader Asmal, President FATF 2005–2006

Anti-Money Laundering – A short history 1
Wouter H. Muller (editor), Zurich

International Issues 13

Compliance and AML – Standards, education and training 15
William B. Howarth, president ICA, Birmingham (UK)

Anti-Money Laundering Regulation and Trusts 23
Martyn Frost, STEP Deputy Chairman, Oldham (UK)

International Organizations and Initiatives 35

The United Nations Security Council and the effort to combat money laundering and the financing of terrorism 37
Joel Sollier, UNSC Counter-Terrorism Committee, New York

UN Anti-Money Laundering Initiatives 49
Rick McDonell, UNODC, Vienna

Initiatives of the European Commission 57
Franco Frattini, EU Commission, Brussels (Belgium)

The Financial Action Task Force 69
Alain Damais, Executive Secretary FATF, Paris (France)

The Egmont Group 83
Wouter H. Muller (editor), Zurich

The Wolfsberg Process 93
Mark Pieth, University of Basel

Countries 105

The Americas 107

USA 109
John W. Moscow, Rosner Moscow & Napierala LLP, New York

Canada 127
Nancy J. Carroll & Barbara A. McIsaac, McCarthy Tétrault, Toronto/Ottawa (Ontario)

Panama 141
Ricardo M. Alba & Eloy Alfaro de Alba, Tapia, Linares & Alfaro, Panama City

Argentina 157
Sebastián A. Soler, Marval, O’Farrell & Mairal, Buenos Aires

Brazil 167
Eliana Maria Filippozzi, Noronha Advogados, London Robert Ellis Williams, Noronha Advogados, São Paulo

Uruguay 181
Fabián Rivero, Estudio Bergstein, Montevideo Ady Beitler, Montevideo

Chile 195
Cristóbal Eyzaguirre, Felipe Dalgalarrando & Patricio Middleton Claro y Cia., Santiago de Chile Bahamas, Bermuda and Caribbean 211

Bermuda 213
Craig W. MacIntyre, Conyers Dill & Pearman, Hamilton

Bahamas 233
Cheryl E. Bazard & Tanya C. McCartney, Bahamas Association of Compliance Officers, Nassau

Cayman Islands 249
Martin Livingston, Maples & Calder, Grand Cayman

British Virgin Islands 261
Craig W. MacIntyre, Conyers Dill & Pearman

Barbados 275
Carolyn Hanson, ICA and Barbados Association of Compliance Professionals Christ Church, Barbados

Netherlands Antilles and Aruba 295
Aede Gerbranda, Smeets Thesseling van Bokhorst, Curaçao/Amsterdam

St Kitts and Nevis 307
Shawna Lake & Idris Fidela Clarke, Ministry of Finance, Basseterre, St Kitts Europe 319

Switzerland 321
Judith Schmidt, Swiss Money Laundering Control Authority, Berne

Liechtenstein 341
Johannes Gasser & Markus Schwingshackl, Advokaturbüro Dr. Dr. Batliner & Dr. Gasser, Vaduz

Austria 355
Thomas Schirmer & Markus Uitz, Binder Grösswang Rechtsanwälte, Vienna

United Kingdom 369
Peter Burrell & Kate Meakin, Herbert Smith LLP, London

Jersey 381
Andrew le Brun, Jersey Financial Services Commission, St. Helier, Jersey

Guernsey 399
Mark G. Ferbrache, Ferbrache Richardson, St. Saviours, Guernsey

Cyprus 419
David Stokes, Andreas Neocleous & Co, Limassol

Isle of Man 435
Nick Verardi & Mark Conway, Dickinson Cruickshank, Douglas (IoM)

Ireland 451
John Handoll, William Fry Solicitors, Dublin

Germany 467
Olaf Otting, Gleiss Lutz, Frankfurt am Main

France 483
Philippe Blaquier-Cirelli & Pierre-Yves Couturier, Jeantet Associés, Avocats àlaCour, Paris

Monaco 499
Donald Manasse & Sophie Marquet, Donald Manasse Law Offices, Monaco

Spain 513
Javier García Sanz & Guillermo San Pedro, Uría Menéndez, Madrid

Italy 529
Alberto Giampieri & Paolo Iemma, Gianni, Origoni, Grippo & Partners, Rome/Milan

Greece 541
D. Karamagiolis, Tsibanoulis & Partners, Athens

Belgium 557
Françoise Lefèvre & Olivier Praet, Linklaters de Bandt, Brussels

Netherlands 575
Enide Perez & Max Vermeij, Stibbe Advocaten, Amsterdam

Luxembourg 595
Pit Reckinger, Elvinger, Hoss & Prussen, Avocats à la Cour, Luxembourg

Russian Federation 615
Valery Tutykhin, John Tiner & Partners, Moscow

Ukraine 627
Dmytro Korbut, Andreas Neocleous & Co, Kiev

Middle East 641

United Arab Emirates 643
Graham Lovett & Charles Barwick, Clifford Chance, Dubai (UAE) Asia Pacific 659

Singapore 661
Chee Fang Theng, KhattarWong Advocates & Solicitors, Singapore

Japan 681
Takashi Nakazaki, Anderson Mori & Tomotsune, Tokyo

China 703
Donna Li, AllBright Law Offices, Shanghai Gu Xiao Rong, Institute of Law of Shanghai Academy of Social Sciences,Shanghai

Hong Kong 719
Steven R. Sieker & L. Travis Benjamin, Baker & McKenzie, Hong Kong

Australia 739
Andrew White, Faculty of Law, University of Melbourne, Victoria

New Zealand 763
David Craig & Simon David, Bell Gully, Barristers and Solicitors, Wellington Africa 777

South Africa 779
Pieter K. Smit, Financial Intelligence Center, Pretoria

Index 795

Wouter H. Muller, TEP, Senior Consultant at Henley & Partners in Zurich, is a lawyer and trust specialist with more than 35 years experience in international trust management and private banking. He obtained a doctorate in civil law at the Law School of the University of Groningen, worked as a solicitor in the Netherlands before joining Pierson, Heldring & Pierson in 1981. He was previously a managing director of the PHP trust company in the Netherlands Antilles, a director of the MeesPierson Bank and Trust company in Luxembourg, Zurich and Zug.

Christian H. Kälin, TEP, Partner at Henley & Partners in Zurich, is an international real-estate, tax and estate-planning specialist and licensed as a financial intermediary in Switzerland. He is the editor and one of the co-authors of the International Real Estate Handbook as well as the Switzerland Business & Investment Handbook. After completing Zurich Business School and his training at a Swiss private bank, he lived and studied in several countries before graduating from the University of Zurich with a cum laude Masters degree in law.

John G. Goldsworth, Editor of Trusts & Trustees, is a barrister based in London and Of Counsel to Henley & Partners in Jersey, Channel Islands. He holds an LLB (Hons) from the University of London and an LLM in International Business Law from the University of Exeter. He frequently acts as a chairman and lecturer at professional conferences and advises governments, institutions and companies on the proper use and development of international financial activities and on the development of legislation for inward and outward investment, including company law, trusts, tax law, financial law and the relevant regulatory framework.

"It is our professional duty to protect our clients and ourselves from possible involvement in Money Laundering. This standard work offers an indispensable overview of applicable rules in the relevant jurisdictions. It belongs on the desk of all Legal and Compliance people in our business." - Bas Schreuders, CEO Fortis Intertrust

"Brining Together the expertise of authors from key jurisdictions, this guide is an eminently readable account covering the full problematics of the use of the financial system for the perpetuation of criminal activity; an essential and practical tool in the battle aginst a threat to social integrity." - Dimitris Paraskevas, Managing Partner, Elias Paraskevas Attorneys 1933

"This is an estimable contribution to the world of anti-money laundering. Practitioners will thrive on the comparative treatment of this social, political and economic evil but there is also much for officials and members of the public in the book, It points us in the right direction with a clear and perceptive approach to what may other wise appear to be an obscure or arcane area." - Professor Kader Asmal, M.P., President, Financial Action Task Force, 2005-2006

Anti-money laundering has become increasingly important and complex for anyone involved in international financial services – from bankers, fiduciaries and trustees to lawyers, accountants, fund managers and many others. The USA Patriot Act and the FATF’s standards regarding anti-money-laundering (AML) and to combat the financing of terrorism (CFT) are just two significant measures which, together with other relevant legislation in individual countries, have created a complex, globally interconnected system of laws and regulations that international financial professionals must understand.

The complexity of AML/CFT regulations in different countries is so immense that there is an obvious need for a practical, concise handbook that gives clear information in this field for all those involved in relevant international business.

Anti-Money Laundering: International Law and Practice gives a concise overview of:

• how institutions like the UN Security Council, the EU or the Wolfsberg Forum develop ways to fight money laundering and terrorist financing, and
• how the Recommendations of the FATF and the Directives of the European Commission concerning AML/CFT are implemented in the legislation of their member countries
• includes detailed information from a wealth of specialists outlining the implementation of anti-money laundering measures in a total of 41 countries and territories.

Accordingly, the handbook is a must for anyone whose activities are affected by AML/CFT regulations as well as the principal point of reference in this field from an international perspective.