AUSTRAC sniffs out new analytics system

Australian government financial intelligence unit AUSTRAC will pilot a real-time analysis technology in April, in hopes of providing greater intelligence to other agencies.

The trial, to encompass 35 of its online-capable agencies, will comprise implementation of new search and analysis tools for social networks, geospatial information with improved graphical analysis, data mining, monitoring and data matching capabilities.

The agency collects financial transaction reports from a range of business including financial, money services, gambling and bullion sectors. This includes reports such as large cash transactions, international funds transfer instructions and suspicious matter reports, in order to prevent money laundering and other criminal activities.

Most of these reports are received electronically.

Since the introduction of the Anti-Money Laundering and Counter-Terrorism Financing Act of 2006, it has been challenged by increased data volumes, report complexity, partner agency request and increasing partner agency expectations on turn-around times and quality, according to department documents.

A five-year strategic vision was adopted for the re-engineering of AUSTRAC’s intelligence operations, including the implementation of new ICT architecture to maintain pace with the changing environments. It received $24 million in additional funding from last year's Federal Budget for the technology.

“The new analytics solution will enhance the capability of AUSTRAC and its partner agencies," the documents read. "There are currently 35 agencies that have online access to AUSTRAC’s analytical systems and tools. The objective is to deliver higher value financial intelligence in near real-time and better meet the needs of our stakeholders and the broader intelligence community."

AUSTRAC also wants to introduce a case management and workflow system which will be used to house data on current cases.

Source: Computer World

Austrian bank "laundered drug money"

Austrian Hypo Alpe-Adria-Bank, the dealings of which are being investigated, "laundered drug lord Darko Šarić money".

The amount is said to be EUR 100mn, and the allegation was made by Austrian daily Osterreich.

Šarić is a fugitive from justice, wanted in Serbia in connection to a massive cocaine smuggling operation uncovered last year.

Quoting Serbian authorities, the daily writes that Šarić used off-shore companies "to invest" EUR 100mn in the bank’s accounts, primarily in Lichtenstein.

At the same time, between 2007 and 2009, the bank’s branches in the Netherlands approved two loans worth EUR 100mn to Block 67 Associates, a company which was in charge of building the Belville apartment block in New Belgrade.

According to the Austrian daily, the loan payment stopped very soon and only EUR 8.5mn out of both loans have been paid back. The bank them moved to settle the debt internally from the EUR 100mn account belonging to Šarić.

The investigators believe that this sequence of events was "possible in principle, if the bank's management was aware of it", said the report.

Former Hypo Alpe-Adria-Bank chief Tilo Berlin, who was in office when the bankwas owned by Germany's Bayern LB, stated that he did not know Šarić.

Berlin was at the helm of the bank from 2007 until 2009, when major embezzlement and money laundering took in Croatia under former Executive Board President Wolfgang Kulterer, who is currently in custody.

Source: B92

Spanish Police Bust Bank-Card Fraud Ring

An international organization engaged in duplicating bank cards has been dismantled in an operation involving the arrest of 178 people in 14 countries, Spanish police said Tuesday. The ring, which made off with more than 20 million euros ($24.5 million), also committed other crimes including robbery, extortion, sexual trafficking and money laundering.

The investigation, directed by Spain’s National Court, was launched two years ago in the Mediterranean city of Valencia, where police detected several people forging bank cards to withdraw money from automatic teller machines or to make purchases.

Police discovered that the ring had subgroups based in 14 different countries, each led by an individual who alone had contact with the kingpins.

In Spain, 76 people have been arrested, 120,000 card numbers were made inoperative and 5,000 duplicated cards were seized, while police dismantled six workshops where cards were being copied.

In Romania, 23 searches resulted in 16 arrests, while in France the operation was carried out in three phases that led to 30 arrests and nine searches.

In Italy, two searches ended with seven people under arrest and 3,100 duplicated cards seized.

Another 16 people were taken into custody in Germany, including a man suspected of being one of the most important technicians for creating card-duplicating devices.

Three members of the gang were nabbed in a three-step operation in Ireland, while in the United States another eight people were arrested.

And thanks to information provided by the Spanish police, two suspects were arrested in Australia, another two in Sweden and Greece, three in Finland and four in Hungary.

Source: Latin American Herald Tribune

Terror leader Abu Bakar Bashir found guilty

Indonesian cleric Abu Bakar Bashir has been found guilty of inciting terrorism and financing an Aceh-based terrorist cell and sentenced to 15 years in prison, ending a decade-long effort by authorities to put the firebrand militant who endorsed the Bali bombings behind bars.

Hundreds of Bashir's supporters, who chanted "God is great" as judges spent hours reading through a summary of evidence, erupted in jeers when the verdict was read out.

Bashir was convicted for arranging the financing of a terrorist cell uncovered in the Indonesian province of Aceh last year, a new grouping that included a who's who of the remnants of the terrorist group Jemaah Islamiah and other assorted militants.

Prosecutors said Bashir was the "emir" of figurehead of the group, and had held at least one planning meeting with Dulmatin, a senior figure in the Bali bombings that killed 202 people, including 88 Australians.

Prosecutors had demanded a life sentence.

Amid an extraordinary security presence that included balaclava-clad snipers on nearby buildings, a defiant and beaming Bashir arrived at the court denouncing Australia and America, saying they wanted to "elimiinate" him because he was "fighting for Islam".

"Australia and America have a very big role ... in determining the court's verdict," Bashir said. "[They would] killl me if they can. If they can't, they just want to get me out of society."

He called on his supporters to keep up the fight for an Islamic state but stopped short of advocating violent retaliation if he was given a lengthy prison term.

"Don't be sympathetic to me, but carry out things on the way to Allah."

Maintaining his innocence before the verdict was read out, Bashir insisted "I am not a terrorist.

"If I helped in Aceh, then it is not wrong. It's in the Koran. It's a defence agains the war on Islam."

Among his supporters at the court were men wearing jackets emblazoned in Indonesian "Holy warrior, not terrorist".

One man leading the chanting was decked out in a shirt with Bashir's photograph printed on the front, and a large image of the former al-Qaeda leader Osama bin Laden on the back.

Bashir was implicated in the Bali atrocity as he co-founded Jemaah Islamiah and some of the members of the cell had attended his school. Bashir repeatedly praised the bombings and those involved as "holy warriors".

He labelled Australian and other foreign tourists who frequent Bali as "maggots".

But authorities failed in an attempt to bring him to justice on unrelated terrorism offences soon after the first Bali bombings in 2002 and Bashir only served a short term for "rebellion".

A second, later, attempt to convict him of conspiracy involving the Bali attacks also failed after an initial guilty verdict was overturned on appeal.

Before the verdict, Bashir said he would appeal against any finding of guilt against him.

It is feared the sentence could spark an angry response from the supporters, and authorities have been on high alert for the possibility of retaliation.

Prosecutors had demanded a life sentence for Bashir, who was accused of using the radical organisation which he now leads, Jemaah Ansharut Tauhid, as a front to fund a terrorist cell and paramilitary camp found last year in a mountainous jungle area of Aceh on the northern tip of Sumatra.

AAP reports: Reading out the verdict, the chief judge said the evidence presented in the case had proved the defendant had "incited others" to commit acts of terrorism by persuading them to undertake military training at the Aceh camp.

"As well, he persuaded them to commit violence, which led to the deaths of policemen, and which created an atmosphere of terror ... especially for the people of Aceh in general."

Bashir, the former spiritual leader of Jemaah Islamiah, the group responsible for the 2002 Bali bombings, has denied the charges throughout the trial, which began in February.

He has not denied knowing about the Aceh camp but has previously said the activities happening there were merely a type of training called idad, which all Muslims must undertake.

A large cache of ammunition and weapons, including AK-47 rifles, was found when the paramilitary camp was raided by police in February last year.

Source: SMH

Corrupt Chinese officials transfer their assets overseas

Corrupt officials and company executives in China transfer their assets overseas through at least eight channels, according to a report released on Monday by the Anti-Money Laundering Monitoring and Analysis Center set up by the People's Bank of China.

Often a combination of legal and illegal channels is used to make cross-border transfers of ill-gotten gains, the report said.

The eight main channels are smuggling cash, underground banking services, trade under current accounts, overseas investment, credit cards, offshore financial centers, direct overseas payments and payments to family members or lovers living overseas.

However, the exact amount of assets transferred overseas, since Chinese officials on corruption charges began to flee the country at the end of the 1980s, remains a mystery, said the report.

The report quotes statistics released by the Chinese Academy of Social Sciences, which estimate that up to 800 billion yuan ($123 billion) has been transferred overseas by fleeing or missing officials and company executives since the mid-1990s.

The cross-border transfer of such assets causes huge losses to the country as the majority cannot be recovered and their whereabouts are hard to find, the report added.

The report also provided details about the destinations for corrupt officials and businesspeople.

People with a higher rank or larger assets tended to flee to Western countries such as the United States, Canada, Australia and the Netherlands.

Those who cannot reach Western countries directly, use Hong Kong or some small countries in Africa, East Europe and Latin America as a stopover.

Those with lower rankings or smaller assets often find safe havens in China's neighboring countries such as Thailand, Myanmar, Malaysia, Mongolia and Russia.

Source: China Daily

Satyam Wins Pegasystems Partner Innovation Award for AML Solution

October 30, 2007: 12:33 PM EST

HYDERABAD, India, Oct. 30 /PRNewswire/ -- Satyam Computer Services Ltd. , a leading global consulting and IT services provider, announced today that it won the 2007 Pegasystems Partner Innovation Award in financial services. The announcement was made at PegaWORLD 2007, Pegasystems' annual conference, and one of the business process management (BPM) industry's flagship events.

Satyam won the esteemed award for its advanced Anti-Money Laundering (AML) solution, which enables financial institutions to intelligently track, manage and quickly resolve potentially fraudulent and criminal activity with greater speed and accuracy and to comply with stricter AML regulations. Satyam used Pegasystems' SmartBPM(R) Suite to create the new solution, which addresses a critical and underserved need in the market.

"Financial institutions now have an innovative way to fight fraud and financial crime, as well as stay in compliance with BSA/AML/KYCC statutes," said Anil Kumar, the Global Head of Satyam's Financial Services Business.

Integration among Satyam experts accelerated the solution's development and deployment.

"Satyam's business process management and banking experts leveraged Pegasystems' SmartBPM platform to rapidly deliver an advanced solution without additional and costly software development," said Joseph Lagioia, head of Satyam's Consulting and Enterprise Solutions Practice. "We are very proud and pleased to win this prestigious honor."

Satyam's AML solution optimizes a financial institution's existing transaction-monitoring systems-detecting suspicious activity such as the deposit of very large sums, multiple accounts for the same person, and suspicious names-while at the same time minimizing the number of false positives, which has been a nagging problem in the past. The solution also allows financial institutions to recognize suspicious transactions quickly, rather than waiting until the end of the day, which is the norm for institutions using case management systems.

"Satyam combines superior subject matter expertise in financial services with deep understanding of Pegasystems technology to deliver truly innovative business solutions in an accelerated fashion," said Douglas Kim, managing director of Global Alliances and Business Development for Pegasystems. "We're proud of our long-standing relationship with Satyam and are delighted to recognize them with this award."

About Satyam

Satyam , a leading global business and information technology services company, delivers consulting, systems integration, and outsourcing solutions to clients in 20 industries and 57 countries.

Satyam leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance. The company's 45,700* professionals excel in engineering and product development, supply chain management, client relationship management, business process quality, business intelligence, enterprise integration, and infrastructure management, among other key capabilities.

Satyam development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia serve 599* clients, 173 of which are Fortune Global 500 and Fortune US 500 corporations. For more information, see http://www.satyam.com.

*As of Sept. 30, 2007

Safe Harbor

This press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward- looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading "Risk Factors" in our report on Form 6-K concerning the quarter ended June 30, 2006, furnished to the United States Securities Exchange Commission on July 28, 2006 and the other reports filed with the Securities Exchange Commission from time to time. These filings are available at http://www.sec.gov.

http://money.cnn.com/news/newsfeeds/articles/prnewswire/DCTU00430102007-1.htm

Businessman on laundering charge

A BUSINESSMAN was released on $5 million bail today after appearing in court on charges that he laundered $30 million in an international stock scheme.

Sydney man Michael Milne, 52, appeared in Central Local Court after officers from the Australian Federal Police and the Australian Tax Office raided his home and his office in the CBD yesterday.

Crown barrister Dean Jordan described a "complex" scheme that Mr Milne allegedly used to illegally transfer the $30 million to Australia.

Mr Jordan told the court Mr Milne used a company to sell shares that were purposely undervalued "to create a falsely low tax position".

He also said Mr Milne used another company to move the shares to the Netherlands and then "wandered" them "back to Australia".

Mr Milne, of Neutral Bay, was released on bail on condition of entering into a $5 million bond agreement and surrendering his passports.

He will reappear in Downing Centre Local Court on March 18.

http://www.theaustralian.news.com.au/story/0,25197,23296269-12377,00.html

NZ raids over money laundering

An Australian expatriate living in Vanuatu will face charges over a $A100 million ($NZ119.4 million) money laundering scheme that police say could involve up to 400 people after raids involving New Zealand.

Raids were carried out on Monday in Australia, New Zealand and Vanuatu and Australian police warned more arrests will follow, including from the "higher end of town".

Robert Francis Agius, 58, a former Sydney accountant, was on Monday ordered to be extradited from Perth to Sydney to face charges of conspiring to defraud the commonwealth, conspiracy to cause a loss and to laundering a total of more than $A1 million.

The Australian Federal Police (AFP) told Perth Magistrates Court it will be alleged the father of three evaded up to $A13 million in taxes on $A100 million of his customers' business profits.

They say he has received $A1.4 million in commissions, through foreign bank accounts, since 2000.

It's alleged Australian customers would transfer money to accounts in Vanuatu and New Zealand, claiming them as a business expense.

The money would then be returned to Australia less commission in the form of a loan, and a repayment would be treated as a tax reduction.

Agius told the court he had been arrested on Monday at the home of a Perth friend, in front of his friend's child.

Commonwealth Director of Public Prosecutions (DPP) prosecutor Pauline Caust said since November 2000, Agius had set up more than 49 bank accounts in foreign company accounts, allegedly used to launder the money, before it was deposited back in his clients' accounts.

Agius had charged clients $A8,000, ad hoc fees of between 3% and 6% and annual US fees of $US1,350 ($A1,445), she said.

Agius allegedly used the companies of trusted friends, including the late Sydney accountant Owen T Daniel, to recruit clients.

Caust said 13 of 20 of Agius's clients had been audited so far.

She said Agius held at least five passports and had used false addresses on incoming passenger cards on flights to Australia because he did not want his Australian premises to be raided.

Company names incorporated in different jurisdictions, mainly the United Kingdom, Ireland, the Unites States, Vanuatu and New Zealand, were used by Agius to establish New Zealand bank accounts, Caust said.

Agius, who was not represented during Monday's hearing, admitted to having bank accounts in New Zealand but said he did not do business in Australia.

He described the charges he would face in New South Wales as "trumped up", facetious and "nebulous matters".

"The figures and the documentation just aren't correct," Agius said.

Agius told Magistrate Elizabeth Langdon he was not a resident of Australia and did not work in Australia or hold an Australian passport.

"Australia doesn't control New Zealand and it certainly doesn't control Vanuatu," Agius said.

But Langdon said given the seriousness of the allegations she would grant a warrant to extradite Agius so he could appear in court in Sydney on Wednesday.

The AFP said further arrests were expected, with up to 20 people being investigated.

A total of 400 people would be contacted by letter, asking them to come forward, because they had been identified as participants in the scheme.

"Those people we believe knowingly participated in not paying their share of tax and further, they were involved in this money laundering scheme. We expect to make quite a few more arrests," AFP economic operations commander Warren Gray said in Sydney.

"We're certainly concentrating on the higher end of town at the moment."

Police in Vanuatu said four businesses in the island nation were raided today but no arrests were made.

An AFP spokeswoman said 19 search warrants were expected to be executed in Vanuatu.

Three New Zealand premises were raided but no arrests were made, the spokeswoman said.

The New Zealand raids are believed to have been carried out at a bank, an accounting firm and a private residence.

The Australian Taxation Office (ATO) says it is also conducting 80 audits examining allegedly false tax deductions exceeding $A90 million.

"Anyone involved in these schemes is encouraged to come forward voluntarily and co-operate with the authorities," it said.

http://www.amlosphere.com/australia/aml/nz-raids-over-money-laundering.html

Japan, U.S., Australia pledge close strategic partnership

Top diplomats of Japan, the United States and Australia undertook Friday to work in close strategic partnership to boost stability and security in the Asia-Pacific region as well as the world at large.

The decision was unveiled in a joint statement released after Masahiko Komura, Stephen Smith, foreign ministers of Japan, Australia respectively, and U.S. Secretary of State Condoleezza Rice held talks at the third ministerial meeting of the Trilateral Strategic Dialogue Friday, following the conclusion of the G8 foreign ministers meeting.

During the talks, the three ministers underscored the importance of promoting trilateral cooperation to ensure peace and prosperity in the Asia-Pacific region as it is faced with a wide range of challenges, including the proliferation of weapons of mass destruction, terrorism, and natural disasters.

Noting that their cooperation should be forward-looking and responsive to emerging security issues, the three nations vowed to further strengthen trilateral initiatives in various areas, including humanitarian assistance and disaster relief as well as counter-terrorism, security and defense cooperation.

With distinguished performance in response to natural disasters and other humanitarian emergencies, Japan, the United States and Australia highlighted strengthened cooperation on disaster management and emergency response.

In addition to developing arrangements to exchange information to ensure the best use of assets and other resources in responding to humanitarian emergencies, the ministers instructed relevant officials to formulate guidelines to expedite the trilateral cooperation and information-sharing on humanitarian assistance and disaster relief.

On counter-terrorism, the top diplomats put emphasis on efforts to tackle the threat of chemical, biological, radiological and nuclear terrorism, to sever terrorist financing and to mitigate and counter radicalization.

They also affirmed the commitment to practical security and defense cooperation in holding air mobility seminars, and participating in humanitarian activities by U.S, medical ships and Proliferation Security Initiative exercises.

Rice arrived in Kyoto on Thursday to attend the G8 foreign ministers meeting, which opened later in the day.

The two-day meeting was the last of a series of ministerial conferences held in the run-up to the G8 summit scheduled for July 7-9 at the Toyako (Lake Toya) resort area in Hakkaido.

Editor: Bi Mingxin

Source: Xinhua

Jersey lawyer criticises inconsistency of EU money laundering 'white list'

A Jersey lawyer specialising in the field of money laundering and financial services regulation has questioned the validity of the European Union's 'white list' of countries whose money-laundering controls are considered to be equal to those of EU member states, and which notably excludes leading offshore fund jurisdictions in Europe and the Caribbean.

Stephen Platt, an English barrister and chairman of BakerPlatt Group, queries the inclusion on the list of countries such as Russia, Argentina and Mexico, as well Australia and Canada, which have been adjudged to be less than 25 per cent compliant with the international standards established by the Financial Action Task Force.

Platt describes as "bewildering" the suggestion that the white list countries have higher standards of anti-money laundering controls than leading offshore financial services jurisdictions including the UK's Crown Dependencies.

"Having researched the background to some of the countries included, we question why countries that fall behind recognised international standards are on the list, while finance centres such as Jersey, the Bahamas and the Cayman Islands are not," says Platt, who advises governments and regulators on the implementation of regulatory and anti-money laundering rules.

An analysis by BakerPlatt and its alliance partner in London, Seven Bedford Row, notes that the first mutual evaluation report on Russia in 2001 by the European Committee on Crime Problems noted as a "critical deficiency" the country's lack of comprehensive laws and regulations implementing international standards on money laundering.

Although a second evaluation in 2004 noted significant improvements, it also found that numbers of investigations, prosecutions and convictions for money laundering were falling and know your customer procedures remained deficient.

A report on Argentina by Gafisud, a regional FATF offshoot for South America, noted inherent weaknesses in legislation that had the effect of impeding successful prosecution of money laundering, while no offence of terrorist financing existed. The country was criticised for its failure to provide statistics in anti-money laundering areas, preventing an assessment of the implementation of core requirements from being carried out.

The FATF's September 2004 report described the application of anti money laundering measures in Mexico as somewhat haphazard, and said the lack of mutual legal assistance legislation not only inhibited the country's ability to co-operate internationally, it also undermined national prosecutions. Bank and trust secrecy was also criticised as impeding investigations.

In addition, the lawyers say, while the FATF praised South Africa for developing a legislative structure to combat money laundering, the absence of a framework to combat the financing of terrorism was noted, whilst the framework in place was so new it needed time to be assessed for its effectiveness.

BakerPlatt notes that Jersey, which was not included on the white list, was assessed as 76 per cent compliant at the time of the island's last assessment by the International Monetary Fund in 2003. The most recent FATF assessments, issued in November last year, rated the Bahamas as 45 per cent compliant and Cayman as 78 per cent compliant.

However, five of the 13 countries on the list were far below this level, according to their most recent IMF assessments: Australia (24 per cent), Canada (14 per cent), Singapore (23 per cent), Switzerland (22 per cent) and the US (31 per cent).

"Australia's and Canada's staggering level of non-compliance with FATF recommendations makes it difficult for the EU to justify their inclusion on the white list on the grounds of 'equivalence'," Platt says.

"Given that the EU recently announced that it is to pursue infringement measures against 15 of its member states for failing to implement the Third Money Laundering Directive into national law, it would perhaps be better placed to give a jurisdiction such as Jersey the recognition it deserves, and the role model some of its member states appear to need, as the leader in the field of anti-money laundering."

Source: HedgeWeek

Australia: Money laundering watchdog on guard

AUSTRALIA'S money laundering regulator, AUSTRAC, has geared up for a deluge of suspicious transaction reports as tough know-your-customer rules become law.

Financial services firms must report anomalies in customer behaviour that may suggest involvement in money laundering or terrorism financing.
Since December 12, banks, credit unions, brokers, lenders, advisers and casinos are obliged to verify the identity of every customer before conducting business with them.

AUSTRAC chief executive Neil Jensen says more than 19,000 "diverse reporting entities" are now required to have an anti-money-laundering and counter-terrorism financing program in place.

Customers may be asked to produce a birth certificate, driver's licence or passport each time they seek financial services, but he is not expecting major disruption to business.

What differences will people notice when they go to open a bank account or take out a loan?

I imagine there'll be very little change for 99 per cent of the population. People will still need to be identified and have their identity verified. It will be up to each financial institution what process they use.

Some may still use the 100-point system, if they decide, under their risk-based system, that it is appropriate to use that system. Others might use different processes, but basically it should not change much at all.

Banks are the first to make changes under the new laws, mainly because they're already required to do some transaction reporting. Have they found it hard to adapt?

We've worked closely with them over the past two years in developing the rules, guidance notes, and so on. The main industry associations have been with us, sitting across a table, dotting the Is and crossing the Ts.

There has been a very close consultation process.

Do you expect that approach will extend into the next phase, when real estate agents, jewellers, lawyers and financial advisers have to begin mandatory reporting?

We don't know what's happening with the second tranche of the legislation because it's up to the current government whether and how they go forward with that.

We are awaiting word. The previous government said there would be a second tranche and draft designated services were drawn up. These were published on the attorney-general's website and a number of comments were received. Then the election was called, so the process had to stop.

Because the legislation wasn't before the parliament, it's now up to the new government to decide what we do.

Do you think the government will review the proposal?

I'm sure it will, but in opposition Labor was very supportive of the legislation.

Your new electronic reporting system, Austrac Online, has just been launched. Are you confident it will handle the volume of transactions?I'm extremely confident about all of our systems.

We were building systems before these sorts of things were available in the marketplace. The systems we built have stood the test of time.

We've been in operation for more than 18 years.

In the mid-1990s we built almost a risk system, if you like, when there were none around.

Into the 2000s, I had people knocking on my door saying they wanted to sell us products, and they knew the sort of work we were doing, and they would describe a system similar to what we had built five or 10 years before. I have great faith in my IT people, the systems they build and the staff who operate those systems. I have absolutely no doubt they'll be fine.

How about analytic capabilities?

Those capabilities are exceptional. We're now getting some data mining tools off the shelf and incorporating them into the work we're doing, but our successes come from the analysts who use those tools.

Our financial intelligence unit was compliant with the requirements of the Financial Action Task Force (the international anti-money-laundering co-ordinator) and we're highly regarded globally for the work we're doing.

Austrac received about 25,000 reports of suspicious transactions last year. How will you manage a greatly increased workload?

We anticipate people will make mistakes and over-report (in the US and Britain they refer to this as defensive reporting) but we'll be able to manage it.

The difference between us and the US and Britain is that we have good technology. We're developing a program to use technology to analyse all the suspicious transaction reports we receive and give the more important of those to higher priority.

We do that manually at present, we have staff who look at the reports but, because we anticipate an increase in numbers, we're building a system to help us through that process. It will be successful. Just to indicate the level of our technology, a couple of years ago, the Canadian government was unhappy with a system it had used for four years and decided a new one was needed.

I got together with my counterpart and agreed they could send six of their IT specialists over here for six months, during which time they built their software in Australia, based on ours. The Canadian system works very well. Their analysts are over the moon.

I understand you've also been working with some Pacific island nations.

Yes, we identified a need for Pacific islanders to have a product. Under global standards they must have a financial intelligence unit (FIU) that is efficient and effective.

So we built a microcosm of our database and put it in a black box so it can't be tampered with. We call it an FIU in a box. It's a standalone computer that they can put into their systems and the maintenance is very low.

The benefit to Australia is that we know what they're dealing with, and if we need information they'll have it analysed in a particular way. We've provided those to about six countries. It helps them and it helps us. Also, we've been working in Southeast Asia to help regulators develop systems and processes.

What about extended data-matching of information held by government agencies here in Australia?

We work very closely with the Australian Tax Office in particular, and we abide by the National Privacy Principles.

If there is a data matching program, and we have one going with the tax office at the moment, we consult the Privacy Commissioner on protocols. We actually have someone working in the tax office looking at how we can develop programs for the future.

Also, I have agreements with all the federal and state police commissioners. We have staff stationed with the federal police and we have people who work with the state police all the time.

How are you tackling potential money launderers in the field?

We're visiting a range of businesses we believe may be involved in designated services. We're informing people about the law and giving them educational material.

It doesn't matter where it is or what it is, whether it's a big organisation or a very small business, we're out there. Last month we sent out 19,000 letters to smaller entities to explain that they may have obligations under the law.

As more businesses are required to collect personal details and report transactions, is there increased risk of fraud and identity theft?

There is a lot information about us already out there, and we would hope the good corporate citizens that are reporting entities will work to deter that sort of conduct.

What about small businesses, such as service stations selling prepaid phone cards? They may not have great security in place to protect identity information.

If you've had your car serviced there, they'd already have your personal details on file.

Not my date of birth, surely?

They could probably find that from a range of sources.

It's important to understand how much information people actually put on the internet, and that others can abuse that information if they so desire.

On Facebook, for example, people put their birthdate, their interests, where they went to school, where they work.

A colleague said it's like tattoos: when you're young you think they're wonderful, but when you get to 40 you wish you had never done it.

Social networking sites are very similar: in a few years you may wish you hadn't put your information out there.

http://www.australianit.news.com.au/story/0,24897,23085585-24169,00.html

Sri Lanka: International Conference on Countering Terrorism

Sri Lanka: International Conference on Countering Terrorism draws international terrorism experts to Colombo

20th October 2007

The three-day International Conference on Countering Terrorism is now on in Colombo on the theme 'Terrorism: A Challenge to Democratically Elected Governments.' The Conference, brought together renowned terrorism experts, including from the academia and the media, from 23 countries including Australia, China, Czech Republic, France, Germany, India, Indonesia, Russia, Singapore, South Africa, the United States and Vietnam. It was also widely attended by the Diplomatic Community .

Delivering the Inaugural Address, Foreign Minister Rohitha Bogollagama, highlighted that "Sri Lanka had been a foot soldier in the battle against terrorism over a long period of time and notwithstanding some impediments and setbacks, can in several aspects count itself as having been a success story in the battle against terrorism." Sri Lanka's refusal to compromise or condone terrorism while constantly seeking to resolve the conflict through political means, to persuade other states to proscribe the LTTE, prevent money flows and apprehend those conniving with terrorists, has been significant. Successive governments and the people of Sri Lanka have also shown considerable resilience in the face of terror, whilst also ensuring that economic growth was not compromised. The Minister hoped that the deliberations of this Conference would, among other matters focus on the need for states to go beyond merely adopting conventions, to convert these into tangible action by developing enabling legislation and taking concrete action against those including terrorist front organizations operating from their soil. Noting that a bulk of maritime traffic passes through the Indian Ocean region and that in recent times many acts of terrorism had taken place in these waters, the Minister emphasized the urgent necessity to develop robust modalities to arrest the growing threat that faces Indian Ocean states from terrorists.

The former Director of the European Center for the Study of Conflicts in France, and one of the earliest writers in the field of terrorism, Dr. Gerard Chaliand traced the evolution of terrorism over the years. Referring to the LTTE, he said "the independence they ask cannot be granted and should not be granted, not only because no State is willing to accept such a blow to its sovereignity but also because, like the Shining Path or the Khmer Rouges, the LTTE under the leadership of V. Prabhakaran is a totalitarian movement, which has transformed its groups into a killing machine." He said "the most important thing about the LTTE is that it is a totalitarian movement fighting in a country which is democratic." He said the "LTTE has brutally eliminated all other parties or groups willing to represent the Tamils". "An absolutely intolerant sect, no peace seems possible with V. Prabhakaran as we have seen from the peace process of 2002-2005, which was but a tactical truce", Dr. Chaliand added.

Secretary of Foreign Affairs, Dr. Palitha Kohona delivering the vote-of-thanks repeated the unprecedented challenge Sri Lanka faces in combating terrorism and Sri Lanka. He said the world had focused on international terrorism only after 9/11 but terrorism had affected countries long before then. He emphasized that "the international rule of law against terrorism is being strong themed each year," adding that "there are 13 UN Conventions addressing different dimensions of the global terrorist threat and a comprehensive convention is being negotiated." The Foreign Secretary pointed out that "terrorism will never be eradicated solely by cooperation among law enforcement officials. It requires a concerted political effort and policy coordination among countries. Further it also requires an ability to understand and minimize the motivation and impetus that inspire terrorist acts."

Renowned Chairman of the French Anti-Terrorist Judges, Judge Jean Louis Bruguiere, who was the Guest of Honour of the Conference, and addressing the first panel of the day focused on the international responses to terrorism, traced the manner in which international efforts at responding to terrorism have evolved over the years, stating that if the fight against terrorism is an inescapable requirement, "we owe it to ourselves to reinforce our international cooperation at every level, notably by adopting multilateral or bilateral conventions in the field of judicial cooperation as well as extradition." He said the French Government considers "that an organization like the LTTE is a terrorist organization like any other and that its activities even in the area of logistics, have to be repressed with the same vigour as for terrorist networks operating on our [French] soil and threatening us directly" and that on this basis "that in April this year the French Government had dismantled a vast network of Tamil militants who actively supported the LTTE, notably at the financial level."

This session, which was chaired by the Dean of the Faculty of Arts of the University of Colombo, Prof. Amal Jayawardena,while the discussants were the Executive Director of the Regional Centre for Strategic Studies, Dr. Rifaat Hussain and the Senior Terrorism Prevention Officer of the United Nations Office on Drugs and Crime, Vienna, Dr. Ms. Irka Kuleshnyk.

Addressing the panel on regional responses to terrorism, former Commander of the Indian Army, Gen. V. P. Malik emphasized the need to combat and defeat terrorism in all its manifestations. He said "terrorist activities anywhere will stop only when their fuel runs out." Gen. Malik who traced the important steps taken to counter terrorism in South Asia, emphasized the need for a regional strategy and cooperation, but essentially local operatives and doctrines.

Former Secretary General of SAARC, Ambassador Nihal Rodrigo, chaired this session, while the discussants comprised the Associate Research Fellow of the China Institute of International Studies, Prof. Zhang Lijun, the Deputy Director of the Russian Foreign Ministry, Mr. Vladimir Titokerni as well as the Pro-Chancellor and Director of the School of Science and Forensic Science, National Law University Rajastan, India, Prof. P. Chandra Sekharan.

The third thematic session focused on the domestic dimensions of terrorism where the head of the International Centre for Political Violence and Terrorism Research in Singapore, Dr. Rohan Gunaratna, who was the principal speaker, who joining the deliberations on a video link, highlighted the recent successes of the security forces in combating LTTE terrorism. He noted that within the year the Sri Lanka Navy destroyed eight merchant vessels. In order to defeat the LTTE, Dr. Gunaratna articulated the need for strengthening and building capacity in the intelligence field, with a high degree of professionalism, and also stressed the necessity for special forces and elite units that could target the leadership of the LTTE.

Former Inspector General of Police, Mr. Chandra Fernando chaired the discussion at which intervention were made by Deputy Solicitor General, Mr. Dappula de Livera and Prof. Karunaratne Hangawatte of the University of Nevada.

The final panel discussion of the day focused of the critical area of combating terrorist financing, where the Founder and CEO of World-Check, Mr. David Leppan spoke extensively on the manner in which terror groups collect funds and their illegal activities.

Researcher of the Centre for Policing, Intelligence and Counter Terrorism of the Macquarie University of Australia, Mr. Shanaka Jayasekera the co-speaker at this session noted that the LTTE's supply chain capability has been significantly disrupted, estimated at between 65% to 70%. This would result in the need for the LTTE to aggressively campaign for fund raising activities in the 12 top level resource mobilization countries. In order to maintain the advantage the Government has achieved, it is imperative that the fund-raising be curbed with international cooperation in the next few months. Therefore it is suggested that a contact group be established as a prelude to the commencement of a political process."

The Deputy Governor of the Central Bank, Dr. Ms. Ranee Jayamaha chaired the sessions, at which the discussants were Mrs. Joan De Zilva Moonesinghe formerly of the Financial Investigation Unit and the Advisor of the Financial Investigation Unit of the Central Bank, Mr. Eric Stonecipher.

Ministry of Foreign Affairs
Colombo

20 October 2007

Australia: Agency clueless on terror funding

AS financial institutions prepare to pay upwards of $100 million to comply with new anti-money laundering and terror financing regulations, the head of the agency charged with detecting illegal transactions conceded authorities had no idea how much terror funding occurs in Australia.

AusTrac chief executive Neil Jensen said while authorities could estimate the amount of money laundering that took place annually, identifying terror funding was like searching for a "needle in a hayfield".

Mr Jensen's comments came as the director of the Australian Bankers Association, Tony Burke, put the cost to industry of complying with the reporting requirements at "upwards of $100 million", plus continuing annual costs.

In December last year, the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 came into force. The legislation, which is being introduced in two tranches, requires brokers, funds managers, financial planners, banks, bullion dealers and casinos to report transactions above $10,000.

The second tranche affects mainly accountants, jewellers, real estate agents and certain law firms.

A 2004 estimate put the amount of money being laundered in Australia at about $4.5billion, Mr Jensen said.

However, he said most terror financing concerned amounts of money too small to be detected.

Nevertheless, he defended the regime, saying it provided an important deterrent to terrorists. "The social and economic costs of terrorism financing far, far outweigh anything that we're doing to try to stop it," Mr Jensen told The Australian.

He said similar legislation was in place in other parts of the world, meaning Australia would be vulnerable if it did not follow suit. "We're part of a global program with global standards. If we don't meet the standards, we can be severely criticised."

Mr Burke said complying with the new rules - breaches of which can attract fines of up to $11 million for organisations and $2.2 million for individuals - had been "a huge undertaking".

"The impact on the institutions has been very significant both in terms of their policy development activity and now in respect of implementation," he said.

Mr Burke dismissed the argument that by meeting the requirements, banks would be ahead because they would have more information on their own clients. He said there were no significant commercial benefits for the banks.

Australian National University terrorism expert Clive Williams said he knew of no estimate that put a dollar value on terror financing in Australia.

http://www.theaustralian.news.com.au/story/0,25197,23082230-2702,00.html

Liechtenstein bank data expose Indian tax evaders

John Samuel Raja D / New Delhi August 18, 2008

The Indian government has received sensitive information from its German counterpart regarding tax evaders, who have channelled money in a tax haven bank in Liechtenstein, a small European country known for hosting such banks, and it is unwilling to make these details public.

It is not known at this point of time whether the information exchanged between the two countries contain details of account holders from India.

It all started in February this year, when a former employee of LGT Bank in Liechtenstein sold data on about 1,400 people to tax authorities across the world. This was followed by investigations by Germany, the US, the UK, Australia, Italy and others. After receiving the stolen data, the German government initiated action against around 600 taxpayers for possible tax evasion. It has reportedly offered to provide data to any country that seeks information.

Subsequently, India’s finance ministry wrote its first letter to German authorities in February 2008 seeking information on Indian account holders and followed it up with another letter in June 2008, the government disclosed in a reply to a Right to Information (RTI) application filed by the Indian-chapter of Transparency International.

When Transparency International asked for copies of correspondence between the two governments and the list of account holders in LGT Bank, the finance ministry replied saying that the exchange of information between India and Germany is covered under Double Taxation Avoidance Agreement (DTAA), which prohibits countries from sharing information.

“It’s not acceptable that the government is not disclosing the correspondence with the German government,” said Anupama Jha, executive director of Transparency International India.

In an e-mail response to a questionnaire sent to them, LGT Group said Indian authorities have not contacted them so far. “Due to client confidentiality laws, we are unable to disclose any client names. Also, with regard to stolen client data, we do not provide any nationality break-downs”, LGT spokesperson Christof Buri said. The German government did not respond to the questionnaire.

If the German government had given details of Indian account holders in LGT Bank, which is owned by the princely house of Liechtenstein, it will help domestic tax authorities to investigate tax evasion for money deposited in tax haven destinations. Tax haven locations thrive mainly because of difference in tax rates, often levying nil or very low taxation. Banks that operate in these locations are alleged to create complex offshore structures that will enable their clients to hide the assets from tax authorities.

This sort of tax evasion, according to a report prepared by the US senate sub-committee last month, had estimated that it cost US taxpayers $100 billion every year. LGT Group was one of the two entities named in the report.

But LGT denied the charges, saying, “Liechtenstein has very strict money laundering and KYC (Know Your Customer) regulations in place, and clients of LGT Group (as of any other Liechtenstein bank) are obliged to disclose the beneficial owner and have to give detailed information regarding the source of their assets”. But it said LGT is neither responsible for nor in control of the tax compliance of its customers.

LGT Group is a wealth and asset management group with or $91.5 billion of assets under its management.

Source: Business Standard

Major firms linked to accused money launder Robert Agius

By Peter Gosnell
June 17, 2008 12:00am

SOME of Australia's biggest companies have unwittingly enriched the man accused of running a $100 million money laundering scheme.

Telstra, Optus, the Commonwealth Bank of Australia and National Australia Bank are among a list of high-profile firms counted as clients of Pyrmont-based security and investigative software outfit Nuix Pty Ltd.

As revealed exclusively in The Daily Telegraph yesterday, company documents show that alleged money launderer Robert Francis Agius is the sole director of Ferodale Limited, a New Zealand-registered company which owns 243,600 shares in Nuix.

Ferodale is owned by New Zealand businessman Anthony Bowden, currently under investigation by New Zealand's Companies Office and Securities Commission following the $80 million collapse of Five Star Consumer Finance group in New Zealand late last year.

In a statement yesterday, Nuix said it stood by its position as a reputable leader in the provision of software for forensic email discovery.

However Nuix's directors, who include former Macquarie Bank adviser and LookSmart director Anthony Castagna, refused to say whether Nuix received any funds from Ferodale, Agius or Bowden, in exchange for the shares.

"Nuix Pty Ltd acknowledges that while Ferodale Limited is one of a number of shareholders of Nuix, Ferodale's associated entities and directors have no management or other involvement with Nuix," Nuix chief executive Eddie Sheehy said.

"The investment by Ferodale Limited is legal and was made and accepted in good faith."

Any such funds could potentially be subject to legal processes under proceeds of crime legislation brought by investigators from Project Wickenby, the multi-agency probe into tax evasion which is alleging Agius to be the mastermind of Australia's biggest money laundering scheme.

Spearheaded by the Australian Federal Police and codenamed Operation Starlifter, the investigation is examining whether up to 400 Australians are evading tax by shifting it through offshore tax structures in Vanuatu and New Zealand set up by Agius.

Source: The Daily Telegraph

System transfers funds to radicals

An "underground" banking system - investigated by the US for allegedly transmitting funds for terrorist operations - is suspected of being used in Australia to channel money to extremists in Africa.

Counter-terrorism agents and African community leaders have warned that Hawala - a remittance system used to transfer money overseas, especially tocountries lacking traditional financial structures - is being used to funnel private and community-raised funds to terrorist groups in Somalia and other African nations.

The Australian Transaction Reports and Analysis Centre - the financial intelligence authority that monitors the thousands of Hawala outlets - yesterday also admitted it was unable to determine the final destination of transactions and largely relied on Hawala dealers to report suspicious clients.

Somalian Muslim spiritual leader Hersi Hilole said Hawala was abused by community members to bankroll al-Qa'ida-linked terror networks in Somalia.

"There are people who are collecting money from the community and sending that money through this Hawala system to terrorist organisations or organisations that are linked to terrorists," the Sydney imam said yesterday. He said that while Hawala - meaning transfer in Arabic - was largely used by ethnic communities in Australia to subsidise their families' living expenses overseas, authorities needed to do more to track down anyone misusing it.

Hawala is an ancient financial transfer system widely used in Asia and Africa. The funds given by clients to Hawala dealers are often not physically transferred. Instead, a Hawala operator would contact their counterpart overseas by phone and ask them to pass on the sum of money to the third party. The Hawala dealers square up at a later date. Austrac chief executive Neil Jensen said Hawala was a "high-risk" system open to exploitation by terrorism financiers.

He said Austrac was wary that Hawala dealers may refuse to tip off the body about untoward transfers - despite risking jail sentences and thousands of dollars in fines - to protect clients.

"Hawala is generally related to an underground type of activity outside of the normal financial system," Mr Jensen said.

"Through financing of terrorists' studies, facilitators have been found to use alternative remitters services to move money for money laundering or terrorist financing-related issues. As a consequence, they are considered globally to be a high risk for those activities."

He said Hawala operators were required by law to be registered with Austrac, a process that obligates them to report all electronic transfers, including those done by phone. Unregistered dealers risk being locked up or fined under the Anti-Money Laundering and Counter-Terrorism Financing Act.

But security agents said Hawala operators were not rigorous with keeping records of transactions.

"No one knows where the money ends up," one source said. "It's a good system when there's no other system in place, but it's open to being abused. There's no track record or paper trail, so it makes things hard for security agencies trying to track certain transactions down. It's largely self-regulated."

A Hawala operator in Melbourne, al-Barakat, had its funds frozen in 2001 and was subsequently shut down after its US business arm was investigated by the Bush administration for allegedly helping terror organisations fund their activities.

While al-Barakat was cleared of any wrongdoing, the Melbourne branch was closed.

Source: The Australian

Realtors help combat organized crime and terrorism

The federal government's new regulations to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act come into force on June 23 this year.

"In 2007, the Financial transactions and Reports Analysis Centre of Canada (FINTRAC) reported 193 case disclosures to CSIS and other law enforcement agencies with a total value of $9.8 billion. Of theses cases, half had a real estate component of some sort," explains Andrew Peck, Royal Pacific Realty vice-president and past president of the B.C. Real Estate Association.

"Realtors are important partners in the federal government's push to combat criminal activity and terrorism in Canada," he says.

FINTRAC is a federal government agency created to provide suspicious transaction information to police and the CSIS. FINTRAC collects and analyses reports from accountants, banks, casinos and real estate professionals as part of Canada's program to halt money laundering and terrorist financing.

Since 2001, when the original legislation was passed, realtors have reported any transactions of $10,000 or more to FINTRAC.

Now, under the new regulations, they will also document proof of a client's identity. If the client is a corporation, they'll ask for a copy of official corporate records, and for directors' names and where clients are overseas, they will use an agent to identify third parties.

"Realtors care about the quality of life in their neighbourhoods and communities," says Peck. "Money laundering and terrorist financing is a growing problem and we're doing everything we can to help combat it."

Source: The Vancouver Sun 2008

Kiwibank CEO questions NZ money laundering push

Financial institutions are facing costs in the “hundreds of millions” to comply
with new money laundering legislation, but the effort will have little effect
and cost IT organisations dearly, according to Kiwibank CEO Sam Knowles.

The laws, aimed at preventing money-laundering and the financing of terrorism, and other regulations governing big-money transactions have yet to be finalised. It is proposed that the regime apply not just to financial institutions but to other big-money businesses such as real-estate and jewellery sales.

However, speaking at the government’s Managing Identity conference, held in Wellington last month, Knowles said that policing such transactions will cost hundreds of millions of dollars and will have “little result”.

The task of checking the provenance of large transactions is likely to rebound on bank ICT departments as well as on other business units.

The Ministry of Justice has commissioned a report from consultancy Deloitte on the financial impact of complying with the proposed regime, but this will likely lead to just minor tweaks to the regulations, according to the department’s spokesman, Gregor Allen.

The ministry has consulted fully with industry over more than a year so any
amendment to the core legislation is unlikely, he says.

“The banks understand that a lot of this is mandated by international agreement,” says Allen. And for a New Zealand bank to decline to “follow in the slipstream” would be to risk being cast adrift from vital international banking links.

The anti-laundering push is being coordinated by an inter-governmental body called the Financial Action Task Force (FATF).

Most New Zealand based banks are already coming under pressure from their Australian owners to quickly put in place policies that the Australians have implemented since about 2005, says Allen.

Kiwibank is, of course, New Zealand-owned and, coincidentally, is running an advertising campaign depicting the bank as part of a resistance movement against foreign domination.

Deloitte’s report is expected to be completed in a week or two, says Allen.

This will then set in motion the time-frame for policy to be approved by Cabinet around mid-year and legislation to be passed before the end of the year.

http://computerworld.co.nz/news.nsf/scrt/7A7BB9A1918F0357CC257447006E1546

New Zealand: MP suggests gang money laundered by corporates

New Zealand First MP Ron Mark today released an email alleging that gangs were highly valued corporate customers of big banks, getting preferential treatment and good interest rates with no questions asked about where the money came from.

Mr Mark gave details in Parliament of the allegations. Cabinet Minister Phil Goff responded he would be willing to investigate the claims.

"I would be very concerned if the information contained in that email is correct; that corporate people are facilitating the laundering and banking of money by gang members."

The email released to NZPA was written by a man who said he used to be a corporate banker.

"It's not common knowledge but most of the major gangs are corporate customers (the biggest and best) of the trading banks, with their own managers, exchange and money market dealers, enjoying risk grade A (the best) interest rates. And their key staff enjoy preferential services and interest rates too."

The man said that in the late 1980s and early 1990s when only major companies could afford financial information services such as Reuters, which gives up to the minute foreign exchange and shares information, "the Mongrel Mob was so equipped".

"Of course gangs run legitimate operations, which presumably are fantastic ways to launder money."

He said far tougher measures were needed to get at the money behind organised crime.

Mr Mark said life should be made difficult for gangs by outlawing them and have high level investigations into the money side of organised crime.

Mr Goff said the Government was watching closely how effective the serious and organised crime legislation that had just come into effect in Australia was.

He said the Government had tightened controls on financial institutions to clamp down on money laundering and taken other measures.

The email writer said he had had to move his business because of a Headhunters gang pad next door.

Source: Stuff

Malaysia: Anti-Corruption Commission Bill will be tabled in Parliament

The Anti-Corruption Commission Bill will be tabled in Parliament following its approval by the Cabinet yesterday, said Prime Minister Datuk Seri Abdullah Ahmad Badawi.

He said the bill would replace the Anti-Corruption Act and provide for the setting up of the Malaysian Commission on Anti-Corruption.

“The bill will be tabled for first reading in Parliament as soon as possible. God willing, when it is passed, it will be the foundation for the formation of an anti-corruption commission that is effective and subject to independent monitoring through a comprehensive check-and-balance system,” he said in his keynote address at the National Integrity Convention here yesterday.

Abdullah said he envisioned the commission to be staffed by experts in a wide range of fields such as forensic auditing for investigating commercial crimes.

“The Public Services Department is now in the final stages of preparing a new service scheme for the commission’s officers.

“This is important to help attract professionals and experts to serve with the commission,” he said.

He said the Cabinet also agreed to allow the commission to conduct its own administrative affairs including the hiring and firing of officers.

“I hope these steps will enhance the efficiency and effectiveness of the commission in carrying out its duties and responsibilities,” he said.

To further strengthen the commission, Abdullah said the Cabinet also approved the formation of two panels, one to evaluate its operation and the other on consultation and prevention of corruption.

“The operation evaluation panel will ensure that the commission’s actions and investigations are done transparently and responsibly.

“The panel on consultation and prevention of corruption will assist the commission in educating the public on fighting graft,” he said.

The Prime Minister also said the commission will be modelled on some of the best anti-corruption agencies in the world, including Hong Kong’s Independent Commission on Anti-Corruption and the Independent Commission Against Corruption in New South Wales, Australia.

It will be supported by a check-and-balance mechanism comprising an advisory board and a special committee on corruption to ensure its accountability, transparency and effectiveness.

Source: The Star