The UKFIU Podcast

Episode 24 Organised Immigration Crime: Illicit Finance In this episode, panellists from the National Crime Agency (NCA) address the illicit finance angle of the Organised Immigration Crime (OIC). Panellists explain the current threat picture, how Informal Value Transfer Systems (IVTS) play a role in enabling this crime and the actions being taken by the NCA to disrupt organised crime groups involved in OIC. Read the special OIC SARs in Action issue - https://bit.ly/465AS37 OIC - Organised Immigration Crime MSHT - Modern Slavery Human Trafficking IVTS - Informal Value Transfer Systems MLRs - Money Laundering Regulations KRI - Kurdistan Region of Iraq JMLIT – Joint Money Laundering Intelligence Taskforce MSB – Money Service Business For the subtitled version of this episode go to: https://www.youtube.com/watch?v=ibH5650JxXQ

In this episode, this issue of virtual squatting is discussed by panellists from the National Economic Crime Centre (NECC), Institute of Chartered Accountants in England and Wales (ICAEW) and Companies House. Panellists address what is virtual squatting and the role it plays in economic crime, potential signs that professionals should be aware of, and the positive outcomes that resulted from public-private partnership. JMLIT – Joint Money Laundering Intelligence Taskforce ICAEW – Institute of Chartered Accountants in England and Wales SAR – Suspicious Activity Report EDD – Enhanced Due Diligence For the subtitled version of this episode go to:

In this episode, panellists from the Egmont Group and the UK Financial Intelligence Unit’s (UKFIU’s) International team discuss the role of international collaboration in combatting money laundering and terrorist financing. Egmont plays a key role in facilitating UKFIU cooperation with other Financial Intelligence Units and in turn, the UKFIU aims to contribute to the success of the group. Topics discussed include an overview of the structure and role of the Egmont group by the group’s chair, Elżbieta Franków-Jaśkiewicz, the projects the UKFIU has been involved in, and the future strategic goals of the Egmont Group. AML – Anti-Money Laundering CFT – Combatting Financing for Terrorism EC – Egmont Committee ECOFEL - Egmont Centre of FIU Excellence and Leadership EGS - Egmont Group Secretariat ESW – Egmont Secure Web For the subtitled version of this episode go to:

In this episode, our panellists discuss the issue of professional enablers. Jacquie Griffiths (OPBAS), Edgars Pastars (Finance Latvia Association), and Tommas Kaplan (von Poll Immobilien) provide an overview of the challenges sectors encounter and their views on what professionals should consider when de-risking. This includes examples from their own work when encountering those attempting to launder the proceeds of crime and their response to avoid becoming a professional enabler. AML – Anti-Money Laundering CFT – Combatting the Financing of Terrorism OPBAS – Office for Professional Body Anti-Money Laundering Supervision FATF – Financial Action Task Force DNFBPs – Designated Non-Financial Businesses and Professions FIU – Financial Intelligence Unit PBS – Professional Body Supervisor For the subtitled version of this episode go to:

In this episode, panellists discuss the recent work that has been done on illicit company formation activity and transformations to Companies House following legislative changes. These representatives from the National Economic Crime Centre (NECC), Companies House, and private sector members of the NECC’s public private partnerships share their perspectives on this work, including its relation to Suspicious Activity Reports (SARs). Please note the figures provided by Companies House were accurate at the time of recording. TCSP – Trust or Company Service Providers SAR – Suspicious Activity Reports PPP – Public-Private Partnership BAU – Business As Usual For a subtitled version of this episode visit: https://youtu.be/58ClkXN7I60

In this episode our panel of legal experts discuss key considerations and challenges facing legal professionals when it comes to anti-money laundering (AML) and suspicious activity reporting. The legal sector covers everything from large global firms down to sole practitioners and our panellists discuss key money laundering threats, risk areas and the indicators which firms and sole practitioners should be looking for. For the subtitled version of this episode go to: https://youtu.be/FztrHRW0-7U SRA – Solicitor’s Regulation Authority MLRO- Money Laundering Reporting Officer AML – Anti-money laundering WTW – Willis Towers Watson FCA – Financial Conduct Authority CDD – Customer Due Diligence OFSI – Office of Financial Sanctions Implementation Further information can be found here: https://sra.org.uk/aml https://sra.org/sanctions https://www.lawscot.org.uk/members/regulation-and-compliance/financial-compliance/anti-money-laundering/ https://www.lawscot.org.uk/news-and-events/law-society-news/aml-thematic-review-of-suspicious-activity-reports/ https://lawsociety.org.uk/topics/anti-money-laundering/ https://wtwco.com/en-gb

In part two of our Illegal Wildlife Trade (IWT) episode, our panellists discuss the impact on economies, biodiversity and legitimate wildlife trade. They also talk about predicate crimes associated with IWT and the importance of international co-operation, such as that garnered during Project Anton, in tackling it. Information regarding the Statement of Principles, announced by the Prince of Wales at the United for Wildlife Global Summit in November, can be found here: https://unitedforwildlife.org/news/international-statement-of-principles-announced For the subtitled version of this episode go to: https://youtu.be/aLQzDjlxApg

In part one of our episode on the Illegal Wildlife Trade (IWT), we are joined by panellists from Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) and the UK’s National Wildlife Crime unit (NWCU). Our panellists discuss the roles of their organisations and outline the differing threats between their respective countries, but highlight the similar typologies used by serious organised crime groups. Reporters can access key messages and information on IWT related SARs using the following link: https://fintrac-canafe.canada.ca/intel/operation/oai-wildlife-eng For the subtitled version of this episode go to: https://youtu.be/TRM4kvKaypQ?si=C6USuBOOJ-bbTCPz

In this episode, panellists from accountancy sector supervisory bodies discuss Anti-Money Laundering (AML) compliance within the sector. This includes specific cases where a firm may have AML concerns during Know Your Customer (KYC) and Suspicious Activity Report (SAR) practices. The panellists use their extensive knowledge to provide their perspectives on the sector as a whole and specifics relating to their areas of focus, from large accountancy firms to individual bookkeepers. There is also information on opportunities for firms to approach the UKFIU’s Reporter Engagement Team (RET) to improve internal understanding of SARs submission. For the subtitled version of this episode go to: https://youtu.be/D0xYmNQsylA Panellists: Tim Pinkney, Director of Professional Standards, Institute of Financial Accountants (IFA) [formerly Head of Practice Standards] Michelle Giddings, Head of AML and Operations, Professional Standards, Institute of Chartered Accountants in England and Wales (ICAEW) Jody Newman, Head of Compliance and Professional Standards, Institute of Accountants and Bookkeepers (IAB) Acronyms used in this podcast: PBS: Professional Body Supervisors AASG: Accountancy AML Supervisors Group Regs: Regulations POCA: Proceeds of Crime Act (2002) KYC: Know Your Customer CDD: Customer Due Diligence Time Stamps 00:40 Introduction 01:34 Tim (IFA) intro 02:30 Michelle (ICAEW) intro 03:54 Jody (IAB) intro 05:17 key money laundering threats and red flags 10:32 SAR submission numbers in the accountancy sector 15:27 When turning away a client due to AML or KYC concerns 17:55 Biggest challenges firms face with AML compliance and SARs 23:37 Firm opportunities to engage with the UKFIU. 24:34 Final key messages 27:48 Outro

In this episode, panellists from the National Crime Agency (NCA) and National Economic Crime Centre (NECC) discuss the issue of money mules, including key indicators of money muling, types of money mules and strategies used to recruit potential money mules. For the subtitled version of this episode go to: https://youtu.be/bTSKvCIYq90 Acronyms used in this podcast: SARs: Suspicious Activity Reports Time Stamps: 00:11 Introduction 01:09 Money muling explanation 02:27 Money mule account explanation 04:19 How big a problem is money muling and how much is laundered via this? 06:28 Types of money mule account holders 09:31 How are money mules recruited? 11:08 The demographics of money mules 12:49 The difficulty in disrupting money muling 15:13 Key money mule indicators for SAR reporters to watch out for 18:34 Closing statement

In this episode, panellists from the National Crime Agency (NCA) and UAE Financial Intelligence Unit (UAEFIU) discuss the nature of MSBs and exchange houses in the UK and UAE, the risks of money laundering associated with both sectors, patterns of criminality, how this type of financial service has changed and why there is still a need for them in an increasingly cashless world. For the subtitled version of this episode go to: https://youtu.be/zSHK63hIugU Acronyms used in this podcast: MSB: Money service bureau or money service business SME: Subject-matter expert SARs: Suspicious Activity Reports AML: Anti-money laundering CFT: Combatting financing of terrorism, or CTF (counter-terrorist financing) STR: Suspicious Transaction Report HOSSP: A report published by the Financial Action Task force (FATF) on ‘the role of Hawala and other similar service providers in money laundering and terrorist financing’ IVTF: Informal value transfer system IBAN: International bank account number EMI: Electronic Money Institutions Time Stamps 00:07 Introduction 00:55 MSB’s explanation 03:05 Hawala explanation 04:12 How does this differ to an exchange house within the UAE? 04:51 What steps have been taken to identify financial crime through suspicious activity reporting in the UK? 06:16 What steps have been taken to identify financial crime through suspicious activity reporting in the UAE? 09:45 What are some of the key areas of concerns regarding these areas of financial services? 11:50 What concerns does the UAE have around Hawala type services? 12:30 Patterns of criminality associated with MSBs in the UK 14:32 Patterns of criminality associated with Exchange Houses in the UAE 19:12 Why is there a need for MSBs or Exchange Houses in an increasingly cashless world? Do the benefits to customers outweigh the challenges to law enforcement or regulators? 22:38 Conclusion

We continue our series of podcasts focused on fraud. In this podcast we will be looking at fraud intensification. In 2022 the National Economic Crime Centre (NECC) with assistance from the City of London Police, implemented a period of intensification of activity across law enforcement. There were a number of objectives of this intensification: to increase public confidence that law enforcement is committed to tackling fraud offending in the UK; to act as a deterrent through the promoting of successful initiatives to arrest or interview under caution suspects of fraud; to seize the proceeds of fraud and repatriate money to victims; and to increase confidence across government in law enforcements commitment to tackling fraud. To explain this work further, we hear from Oliver Little, the Deputy Head of Operations in the NECC on what is ‘intensification’ in this context and how does it apply to work aimed at combatting fraud. This is the second podcast of a special series of UKFIU podcasts focused on fraud. 00:00 Introduction 01:41 Explaining fraud intensification 02:55 How much victims lose annually as a result of this criminality 04:19 Who are the partners in this intensifications work and how exactly do you all work together 05:43 What the intensification of fraud activity actually entails and what was the outcome of this intensification period 07:49 How has the anti-fraud message been delivered to the general public 09:24 Intensification work planned for 2023 11:22 Conclusion

Fraud Communications Fraud accounts for over 40% of all crime and recent statistics have shown that 1 in 15 people are a victim of fraud. To facilitate a coordinated response to tackling this, a framework has been developed by key partners, based on insight from across various sectors, to create a streamlined, comprehensive approach. It is hoped that by having a consistent and comprehensive response to fraud, the public will be empowered to protect themselves and to act appropriately if they are targeted. To explain what this all means, we speak with Jessica Kenny, a Strategic Engagement Manager in the National Crime Agency. This is the first of a special series of UKFIU podcasts focused on fraud. 00:00 Introduction 01:29 Explaining the fraud communications toolkit 04:40 Core behaviours 08:01 The need for consistent fraud messaging 09:34 Methods of communication 12:46 Who is the toolkit aimed at? 13:50 Promoting behavioural change 16: 50 Conclusion

As the number of choices available to banking customers in the UK has grown to include non-traditional platforms, the pool of institutions that regularly report SARs has expanded and diversified. Terms such as ‘challenger bank’, ‘digital bank’, ‘FinTech’, ‘e-wallet’, ‘e-money’ and ‘cryptocurrency exchange’ are now commonplace within the SARs regime and the terminology used to discuss these reporters can be crucial to understanding the different services that they offer. In this podcast, we chat with Mike Venn, the Group Head of Risk and Compliance with Modulr to try and get a better understanding of this area. 00:00 Introduction 01:23 Modulr introduction 03:21 Emerging, mobile-based firms 05:44 Clarification of services offered 07:11 Know Your Customer (KYC) 09:45 Identifying suspicious activity 12:05 Interaction with the UKFIU 14:03 Conclusion Resources mentioned in this podcast UKFIU pages on the NCA website: https://nationalcrimeagency.gov.uk/what-we-do/crime-threats/money-laundering-and-illicit-finance/suspicious-activity-reports https://nationalcrimeagency.gov.uk/what-we-do/crime-threats/money-laundering-and-illicit-finance/ukfiu SARs In Action magazine issue 18: https://nationalcrimeagency.gov.uk/who-we-are/publications/625-sars-in-action-december-2022/file

In this edition we speak with the National Wildlife Crime Unit, examining the illegal wildlife trade (IWT) and how red flags can be potentially identified through Suspicious Activity Reports. IWT is a significant business, long reported as being the fourth largest crime in the world, and believed to generate approximately GBP 15 billion a year.

Episode 9 looks at how the UKFIU works with overseas partners, ensuring that intelligence on money laundering and financial crime is effectively shared with international partners and includes John O’Sullivan (UKFIU International manager) and USA ILO Mike Manley as panellists. Topics discussed are: · Demystifying some of the UKFIU international terms used in the SARs Annual Reports · Intelligence sharing with global partners · An explanation of the ILO network · Close working between the UK and US · How the ILO network works with the UKFIU · Why SARs are so important to the ILO work · Why sharing financial intelligence internationally is so important

In this edition we examine virtual assets – what they are, how they work, complexities faced by law enforcement and the role SARs and reporters can play. We hear from the NECC, the National Police Chiefs’ Council cybercrime programme and the reporting sector, and examine the impact of the fifth money laundering directive regulations on SARs regime stakeholders. Note: value based analysis of cryptocurrency/virtual assets referenced in the podcast was accurate at the time of recording. For the subtitled version of this episode go to: https://www.youtube.com/watch?v=5Jjf9JBWllk&list=PLvYg7_Lx5KSovJ8R2OTP29a_P2ezxR1iy&index=8

Did you know that SARs are a valuable source of financial information for safeguarding potentially vulnerable members of society? Or that the UKFIU identifies and fast-tracks such SARs to police forces who will, in many cases, arrange visits by local officers to offer advice to prevent fraud or further losses? In this podcast we speak to reporters and law enforcement to learn the value of such fast-tracking and hear the measures they’re taking to help safeguard communities to prevent fraud. For the subtitled version of this episode go to: https://www.youtube.com/watch?v=BJk4VvWxKxs&list=PLvYg7_Lx5KSovJ8R2OTP29a_P2ezxR1iy&index=7

In this podcast we chat with Graeme Biggar, Director General of the National Economic Crime Centre (NECC). Graeme discusses: the work and remit of the NECC, particularly with regards to the UKFIU’s position in it; the headline figures from the 2020 SARs Annual Report; plans for the future of the UKFIU and the SARs regime; and how SARs can make a big difference in cutting serious organised crime. For the subtitled version of this episode go to: https://www.youtube.com/watch?v=5d6hl9dbC90&list=PLvYg7_Lx5KSovJ8R2OTP29a_P2ezxR1iy&index=6

County Lines describes gangs and organised criminal networks involved in moving illegal drugs across the UK, using dedicated mobile phone lines, and frequently exploiting children and vulnerable adults to move drugs and money. In this podcast, we look at how Suspicious Activity Reports are being used to tackle this criminality, the UKFIU's work to identify this threat and the work being undertaken by the National County Lines Coordination Centre to enhance the law enforcement response. For the subtitled version of this episode go to: https://www.youtube.com/watch?v=yrhfdeaH0fY&list=PLvYg7_Lx5KSovJ8R2OTP29a_P2ezxR1iy&index=5