U.S. DEPARTMENT OF STATE
INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT MARCH 1996:
FINANCIAL CRIMES AND MONEY LAUNDERING

United States Department of State

Bureau for International Narcotics and Law Enforcement Affairs

TRAINING AND TECHNICAL ASSISTANCE

FinCEN's international training program has two main components (1) instruction provided to a vast array of government officials, financial regulators and others on the subjects of money laundering and FinCEN's mission and operation; and (2) training on financial intelligence analysis and creation and operation of financial intelligence units, modeled after FinCEN.

FinCEN works closely with other agencies in supporting US interests overseas. It participates in the Department of State Democracy and Law Program in Russia, the NIS, Eastern Europe as well as Ecuador and Panama. FinCEN's involvement encompasses (1) advising officials on how to establish advanced systems for detecting, preventing and prosecuting financial crimes; (2) recommending ways in which to develop a partnership between government and financial institutions to prevent money laundering (3) offering specialized training and technical advice in computer systems architecture and operation; and (4) providing assessments of money laundering risks as well as evaluations of anti- money laundering laws, regulations and procedures. While much of FinCEN's international training is done abroad, increasingly FinCEN is providing training to foreign senior officials at its headquarters in Vienna, Virginia.

During FY 95 FinCEN conducted the following money laundering international training, under the sponsorship of the Department of State: Australia, Canada, Brazil Great Britain, Singapore, Panama, Poland, France, Thailand, Netherlands, Argentina, Switzerland, Italy, Korea, Ukraine, Anguilla, Nigeria, Honduras, Poland, Cyprus, Finland, Chile, Venezuela, Colombia, Spain and Paraguay.

In April, 1996, FinCEN will co-host with Interpol in San Francisco, California the 5th Working Group on Financial Records. Several countries will make presentations on creating and running a financial information unit.

The Financial Action Task Force (FATF) plans to conduct a money laundering seminar for South African countries with the Commonwealth Secretariat. This seminar will take place in South Africa during FY 96.

India has expressed an interest in developing a financial information unit and other counter money laundering strategies. FinCEN expects a request for some assistance in late FY 95 or mid FY 96.

During FY 96, FinCEN will be leading an effort under the auspices of the Egmont Group to develop a curriculum (a) on financial crimes and money laundering intelligence analysis and (b) on creating and running a financial information unit. The objective is to have an initial pilot course offered by the end of 1996 at several venues internationally.

Nigeria is currently seeking information on enforcement strategies and creation of a financial information unit development from the United States. FinCEN anticipates being asked to conduct some presentations for them in FY 96.

The US Customs Service conducted international money laundering training in Venezuela, The United Arab Emirates, South Africa, Guatemala, Israel, Belgium, Pacific Rim (Hawaii), Brazil, Finland, Colombia, the Bahamas, Mexico, San Diego, California (for Northern Mexico), Japan, Peru, Ecuador and Guyana. A total of 18 training seminars in Central America, South America, Europe, Asia and Africa were conducted during 1995. One Special Agent was sent on tour of duty to the Guatemalan Banking Authority to provide on the job training to investigators. The main mission of the US Customs international money laundering control training was: a) To develop awareness and recognition of the threat posed by financial crimes to the host country's government, financial institutions, commerce, and populace. b) To develop international law enforcement cooperation and enhance the information gathering and investigative processes.

The FY 1996 international money laundering control training plans for the US Customs Service include: a) To conduct executive level anti-money laundering awareness seminars and short term advisor programs. Current scheduling training in eleven (11) foreign countries. b) To participate in asset forfeiture training schools with DEA. Coordinate with DEA to augment their Asset Forfeiture Training by providing US Customs special agents to conduct 4-hour blocks of training. Specifically, to describe the Department of Treasury Asset Forfeiture/Sharing program, Currency Reporting requirements of the Bank Secrecy Act, the Money Laundering Control Act, and the role of the US Customs Service in combatting international money laundering; c) To coordinate with World Customs Organization to conduct financial investigation seminars; d) To conduct international money laundering courses at the International Law Enforcement Academy (ILEA) in Budapest, Hungry; e) To coordinate representation at international seminars sponsored by foreign banking, regulatory, or other professional associations and f) To support the Treasury's Executive Office of Asset Forfeiture, special agents of the US Customs Service in participating in seminars, which includes representatives from all Treasury enforcement, to provide training to foreign law enforcement officials regarding the Treasury's enforcement responsibilities.

During 1995 the Drug Enforcement Administration's International Training Team conducted various types of law enforcement and money laundering training throughout the world. The countries include Austria, Bolivia, Burma, Cambodia, Chile, Colombia, Egypt, El Salvador, Georgia Guatemala, Hungry, Italy, Laos, Latvia, Lithuania, Malaysia, Malta, Mexico, Netherlands Antilles, Panama, Poland, Russia, Singapore, Thailand, and Turkey. Specifically, DEA conducted Asset Forfeiture Seminars in Dubai, United Arab Emirates; Capetown, South Africa; Brussels, Belgium and Stockholm, Sweden. In-country/regional training included such instruction as seminars in Basic Drug Enforcement, Advanced Drug Enforcement, Regional Executive Leadership and International Asset Forfeiture. DEA held a Mini-International Narcotics Enforcement Seminar in Anatalya, Turkey June 5-16, 1995. Participants from Georgia, Kazakhstan, Kyrgystan, Tajikistan, Turkey and Uzbekistan were in attendance.

In addition to its international training initiatives, DEA also provided CONUS narcotics enforcement seminars in Arlington, Virginia and Deerfield Beach, Florida to international participants from Russia and Central and South America respectively. International training was also provided foreign participants at the National Training Academy in Quantico, Virginia.