Al Capone 2 ISIS

Big Data is Pointing

Money Laundering &

Terrorist Financing

Money Laundering

Process to conceal the

• true origin

• ownership

proceeds of crime

as old as

2000 BC, China

as big as

2-5 % GDP

($000,000,000,000)

Sources

•Corruption (hsbc, swiss banking)

•Evasion (gone in 60 sec)

•Fraud (double shah, samad dadabhoy [ponzi])

•Smuggling (transporter, lord of war)

•Terrorist Activity

10 (Highly Clean) and 0 (Highly Corrupt)

DROP A STONE

IN THE SEA AND

SEE HOW

MONEY

LAUNDERING

OPERATES

Money Laundering in Pakistan

• Real Estate

• Abuse of Corporate Entities

• Trade

• Informal Channels

Pakistan MER 2009

A Risk-Based Approach to Money Laundering and Terrorist Financing

1. Geographic/ Country Risk

2. Business and Entity Risk

3. Product Risk

Activity - Hawala based Schemes

High Risk Relationships

politically

exposed

persons

terrorist

financing

®Recruit and sustain ®Acquire influence ®Build support base ®Carry out terrorism

Why?

Big Data Pointer - 1

• Favors anonymity or involves third party

• Supports high transaction volumes

• Involves cross border transactions

• Involves cash, monetary or bearer

instruments

• Supports high speed movement of funds

Big Data Pointer - 2

• Products not consistent with the nature of

account or business

• Accounts opened/activated by, where

relationship has no economic

justifications

• Private Banking Relationships

• Wire transfers

Company C

Company A

Company B

Company D Mr. W Mr. V

Ms. U Mr. T

Mr. X Mr. Y Ms. Z

Company E

Company F

Mr. S

Ownership/Identification

Bearer Shares ?

Company A requested a new account. Which entities should be

identified???

Syed Abdul Rafey Qadri MBA, CIA, AM(ACAMS), EA(ACFE)

rafey.qadri@taaseer.net

Cell: 0335-3721498