AMLO Standard Operating Procedures and Guidelines for Analysis Standard Operating Procedures and Guidelines for Analysis& Disseminating Financial Intelligence Financial Intelligence Division June 2013 0 AMLO Standard Operating Procedures and Guidelines for Analysis Table of Contents Introduction ................................................................................................................................ 7 Guiding Principles - AMLO Mandate ................................................................................................... 7 Guidelines, Policies and Procedures for Analysis................................................................................ 8 Section 1 Legal Framework for AMLO to Receiving Reports, Analysis and Sharing Financial Intelligence with Law Enforcement................................................................................. 9 Types of Transaction Reports submitted to AMLO pursuant to AMLA: ........................................... 11 Financial Transaction Reports submitted by Financial Institutions, Life Insurance and Securities sectors: .......................................................................................................................................... 11 Suspicious Transaction definition according to AMLA:................................................................. 12 Transaction Reporting for Designated Non Financial Professional and Businesses (DNFPB’s) .... 14 Transactions Reported by Land Office and Financial Advisors ..................................................... 14 Reports from Law Enforcement - Information provided under the Regulation of Office of the Prime Minister on Cooperation of Duties under the Anti -Money Laundering Act, B.E. 2542:.... 15 Legal authority for cases generated from open sources (news media) including the general public (known as AMLO informants) ............................................................................................ 15 Section 2 AMLO Data Bases ........................................................................................................ 17 Section 3 AMLO – FIU Organizational Structure ........................................................................... 20 Financial Intelligence Bureau Unit Structures and responsibilities: ................................................. 23 Section 4 Analysis – General Principles and Guidance for Analyst’s .............................................. 24 Analysis Case Generation - Overview ............................................................................................... 24 1. Verbal reports, written requests (including emails, mail), tips or information received from law enforcement, general public, financial institutions, informants or other government officials; ......................................................................................................................................... 24 2. Foreign LEA and FIU ............................................................................................................... 24 3. Pro-active Suspicious Transaction Report cases .................................................................... 24 Analyst’s Responsibilities .................................................................................................................. 26 Guidelines for Working the Case – Analysis...................................................................................... 27 Step 1. Review and assessment of information and requests ..................................................... 30 Step 2. Research AMLO data base for financial transactions; ..................................................... 30 Step 3. Searches of other databases which AMLO have access to .............................................. 31 Step 4. Identify patterns of transactions/data indicative of ML/FT............................................. 34 Step 5. Link Diagrams and flow analysis charts........................................................................... 35 Step 6. Analytical Report for Law Enforcement .......................................................................... 36 1 AMLO Standard Operating Procedures and Guidelines for Analysis Section 5 38 AMLO STANDARD PROCEDURES & POLICIES ............................................................................... 38 Section 5.1 Preliminary Assessment, Case Assignment, and Responding to Requests ................... 38 Policy Statement ............................................................................................................................... 38 Legislative Reference ........................................................................................................................ 38 General Principles ............................................................................................................................. 38 Related Material ............................................................................................................................... 40 Procedure (1) Preliminary Assessments Information or requests received from law enforcement and Egmont ESW requests ................................................................................................................ 40 Procedure (2) Review of Suspicious Transaction Reports (STR’s), Media Reports and Open source cases .................................................................................................................................................. 44 Procedure (3) Case Assignment ....................................................................................................... 46 Procedure (4) Timeframes for Procedures 1, 2 & 3 –Overview ....................................................... 47 Section 5.2 ................................................................................................................................. 49 Receiving Information from Law Enforcement and General Public ............................................... 49 Policy Statement ............................................................................................................................... 49 Legislative Reference ........................................................................................................................ 49 Related Material ............................................................................................................................... 49 General Principles ............................................................................................................................. 49 Procedure (1) Receiving information from Law Enforcement ......................................................... 50 Procedure (2) Information Provided from the General Public ........................................................ 51 Section 5.3 Querying (Receiving and Responding to Queries) from Foreign Intelligence Units ...... 53 Policy Statement ............................................................................................................................... 53 Legislative Reference ........................................................................................................................ 53 Related Material ............................................................................................................................... 53 General Principles: ............................................................................................................................ 54 Section 5.4 ................................................................................................................................. 59 Preparing Analysis Report for Dissemination to External Agencies............................................... 59 Procedure (1) .................................................................................................................................... 60 Preparing Intelligence package for review by the Secretary General .............................................. 60 6. AMLO Financial Intelligence Report package to include ....................................................... 61 1) Case Summary ....................................................................................................................... 61 2) Fact Sheets –Individuals and Entities .................................................................................... 61 3) Tables and details of Financial Transactions (excel spreadsheets) ....................................... 62 2 AMLO Standard Operating Procedures and Guidelines for Analysis 4) Link Charts (i2) ....................................................................................................................... 62 5) Publicly Available or other Information ................................................................................ 62 6) Feedback form to be completed by recipients of intelligence .............................................. 62 Procedure (2) .................................................................................................................................... 64 Delivering AMLO Financial Intelligence Report package to Law Enforcement Agencies ................. 64 Procedure (3) .................................................................................................................................... 66 Feedback from Law Enforcement Agencies on AMLO Analysis Intelligence Report ........................ 66 Procedure (5) .................................................................................................................................... 67 Statistics collection - AMLO Analytical Intelligence Reports............................................................ 67 Section 5.5 ................................................................................................................................. 68 Record Keeping of AMLO Financial Intelligence Reports .............................................................. 68 Policy Statement ............................................................................................................................... 68 Legislative and Regulatory Reference ............................................................................................... 68 Related materials: ............................................................................................................................. 68 General Guidelines:........................................................................................................................... 68 Procedure (1) .................................................................................................................................... 69 Working File Folder Content (Analyst) .............................................................................................. 69 Procedure (2) .................................................................................................................................... 70 Filing the Working File for records (Operational Support) ............................................................... 70 1. Working file folder where cases did not result in an AMLO Financial Intelligence Report for authorities: .................................................................... Error! Bookmark not defined. APPENDIX .................................................................................................................................. 72 1. Anti- Money Laundering Act (AMLA)..................................................................................... 72 2. FOT Act (to be added later) ................................................................................................... 72 3. Thailand’s 5 year AML/CFT National Strategy (2010-2015) ................................................. 72 4. Egmont ML / FT Indicators .................................................................................................... 72 5. Egmont Principles for Exchange of Information .................................................................... 73 6. FATF ML/FT Indicators ........................................................................................................... 73 7. List of MOU’s with Foreign FIU’s ........................................................................................... 73 8. AMLO Operational forms to support Analysis:......................... Error! Bookmark not defined. i. Receipt of Information form..................................................... Error! Bookmark not defined. ii. Standard AMLO Letter acknowledging receipt of information Error! Bookmark not defined. vi. Operational Check Sheet for Analytical procedures for Foreign FIU Query – In coming requests ........................................................................................... Error! Bookmark not defined. 3 AMLO Standard Operating Procedures and Guidelines for Analysis viii. ix. Responding to FIU Query – information to be provided ..... Error! Bookmark not defined. Law Enforcement Feedback Form ........................................... Error! Bookmark not defined. 9. AMLO Financial Intelligence Report Template for Analyts (Example) ... Error! Bookmark not defined. 10. Training Material ................................................................................................................... 73 11. AMLO Security Policies and Procedures ................................................................................ 73 12. AMLO Data Bases – Guidelines and Procedures ................................................................... 73 4 AMLO Standard Operating Procedures and Guidelines for Analysis ACRONYMS ADB AFET AFTC AG AIMC AML/CFT AMLA AMLB AMLO APG ASCO ASEM ASEAN BAAC BCP BOT CBA CC CCC CDD CPC CSP CTR DA DNFBP DOI DSI EXIM FATF FBA FI FIU FPO FSAP FSRB FT GDP GHB GSB IAIS ISBT IMF KYC LEG MEF MFA - Asian Development Bank Agricultural Futures Exchange of Thailand Agricultural Futures Trading Commission Attorney General Association of Investment Management Companies Anti-Money Laundering and Combating the Financing of Terrorism Anti-Money Laundering Act (1999)1 Anti-Money Laundering Board Anti-Money Laundering Office Asia/Pacific Group on money laundering Association of Securities Companies Asia-Europe Meeting Association of South-East Asian Nations Bank for Agriculture and Agricultural Cooperatives Basel Core Principles Bank of Thailand Commercial Banking Act Criminal Code Civil and Commercial Code Customer Due Diligence Criminal Procedure Code Company Service Provider Cash Transaction Reporting Derivatives Act Designated Non-Financial Businesses and Professions Department of Insurance Department of Special Investigation Export-Import Bank of Thailand Financial Action Task Force Foreign Bankers’ Association Financial institution Financial Intelligence Unit Fiscal Policy Office Financial Sector Assessment Program FATF-style Regional Body Financing of terrorism Gross Domestic Product Government Housing Bank Government Savings Bank International Association of Insurance Supervisors Islamic Bank of Thailand International Monetary Fund Know your customer/client Legal Department of the IMF Ministry of Economy and Finance Ministry of Foreign Affairs 1 This is referred to as the Money Laundering Control Act in the official translation. However, it is more commonly known as the AMLA, mainly because that is its name in an unofficial translation contained within a document commonly known as the “brown book”. This assessment has been conducted using the text of the official translation. 5 AMLO Standard Operating Procedures and Guidelines for Analysis ML MLA MOAC MOC MOF MOU NAV NCCTs NGOs NPO NSWPC OECD ONCB ORFT OSEC PEP ROSC RTGS RTP S-G SAQ SEA SEC SEPO SET SFIs SMART SOE SRO STR TA TBA TC Thailand TLAA UN UNSCR USA WB - Money laundering Mutual legal assistance Ministry of Agriculture and Cooperatives Ministry of Commerce Ministry of Finance Memorandum of Understanding Net Asset Value Non-Cooperative Countries and Territories Non-Government Organizations Nonprofit organization National Social Welfare Promotion Commission Organization for Economic Cooperation and Development Office of the Narcotics Control Board Online Retail Funds Transfer Office of the Securities and Exchange Commission Politically-exposed person Report on Observance of Standards and Codes Real Time Gross Settlement Royal Thai Police The Secretary-General of the AMLO Self Assessment Questionnaire Securities Exchange Act Securities and Exchange Commission State Enterprise Policy Office Stock Exchange of Thailand Specialized Financial Institutions System for Management Automated Retail Funds Transfer State-Owned Enterprise Self-regulatory organization Suspicious Transaction Report Technical assistance Thai Bankers’ Association Transaction Committee under the AMLA Kingdom of Thailand Thai Life Assurance Association United Nations Organization United Nations Security Council Resolution United States of America World Bank 6 AMLO Standard Operating Procedures and Guidelines for Analysis AMLO Analysis Operations Framework /Guidance /Standard Operating Procedures Introduction Guiding Principles - AMLO Mandate Thailand’s anti-money laundering program, including the Anti-Money Laundering Office (AMLO), was established in B.E. 2542 (1999) by the Anti Money Laundering Act of B.E. 2542 (AMLA). As the financial intelligence unit (FIU), AMLO’s statutory duties are to, inter alia, receive, analyze reportable financial transactions, investigate and disseminate financial intelligence to law enforcement agencies and international partners to assist combating money laundering (ML) and financing of terrorism (FT). It is also required to analyze data they have legal access pursuant to the AMLA to provide strategic intelligence including statistics and typologies aimed to increase awareness of the general public, financial entities, international partners and government officials of ML/FT trends in Thailand. Further, AMLO as the FIU, are to consult with financial sectors and existing supervisors regarding compliance for quality of reports submitted for analysis pursuant to the AMLA. This document sets out the framework, guidelines and processes for AMLO’s performing of its core functions of analysis and dissemination of financial intelligence to AML/CFT partners. AMLO, together with financial supervisors and law enforcement agencies, contributes to building and maintaining an environment in Thailand that is directed to identify and eradicate money laundering activity and terrorist financing. This objective has national value in its own right as well as fulfilling Thailand’s international obligations to combat money laundering. The successful addressing of these obligations and needs will assist Thailand to combat ML and FT and will have a beneficial effect on Thailand’s relations with foreign countries and international organizations. 7 AMLO Standard Operating Procedures and Guidelines for Analysis The National Strategy for Combating Money Laundering and the Financing of Terrorism (NS) for 2010 to 2015 objectives and implementation clearly establishes joint role and close national cooperation between AMLO as the FIU and Thailand’s law enforcement officials for combatting ML and FT. These procedures entailed within are in line with the NS objectives and are aimed to assist in support improving the effectiveness of the FIU and national cooperation amongst key AML/CFT stakeholders. It is acknowledged that AMLA and Thailand’s AML/CFT program are still incomplete. Further consideration of all relevant issues is required for the program to better meet the global AML/CFT standards. Continuation of the extensive work of Thailand government agencies to facilitate a strong AML/CFT program, together with the FATF, APG and international donors and providers recommendations, can assist Thailand to further develop its program. This includes improving and increasing the effectiveness of AMLO in preforming their core “functions” of analysis and sharing of financial intelligence which was cited as a recommendation in the 2007 mutual evaluation. It hoped through restructuring of AMLO’s analysis unit, increased resources and improvement to existing guidelines, policies and procedures for analysis and working with law enforcement agencies that AMLO can achieve the objectives outlined in the National Strategy. Legislative changes being proposed in the AMLA and increased reporting of STR’s anticipated once Ministerial Regulations are passed in August 2011 for DNFPB’s, will increase the pressures on AMLO’s analysis unit’s workload. Guidelines, Policies and Procedures for Analysis Objectives of this document are to provide guidance to analyst’s for execution of their duties in accordance with the AMLA. Content includes the legal authorities for analysts to performing their role under the AMLA, practical guidelines for conducting analysis and policies for execution of these duties. This document is anticipated to be reviewed frequently and amended with new policies or procedures as required to continue improving AMLO’s analytical functions. 8 AMLO Standard Operating Procedures and Guidelines for Analysis Section 1 Legal Framework for AMLO to Receiving Reports, Analysis and Sharing Financial Intelligence with Law Enforcement This section is to increase Analyst’s understanding of the legal requirements that give the legal platform for preforming their functions and what AML/CFT legal authorities exist under the AMLA that require financial entities to report transactions and Suspicious Transactions. Section 40 AMLA The AMLA sets out broad obligations for all of AMLO’s functions which include law enforcement for conducting ML civil forfeiture investigations, seizure and forfeiture, compliance and conducting analysis. Section 40 provides authority for the receiving, analyzing and dissemination of financial intelligence by AMLO to law enforcement. Powers and Duties of AMLO officers - Section 40 AMLA: (1) to carry out acts in the implementation of resolutions of the Board and the Transaction Committee and perform other secretariat work (2) to receive transaction reports submitted under Chapter II and acknowledge receipt thereof, as well as receive reports and information related to transactions from other sources (3) to receive or send reports or information related to transactions in order to comply with this Act or other laws (4) to gather, compile, monitor, examine, study, evaluate and analyze reports and information in connection with the making of transactions (5) to gather evidence for the purpose of taking legal proceedings against offenders under this Act (6) to conduct projects with regard to the dissemination of knowledge, the giving of education and the training in any fields in accordance with the execution of this Act, or to provide assistance or support to both Government and private sectors in organizing such projects (7) to perform any other acts under this Act or other laws 9 AMLO Standard Operating Procedures and Guidelines for Analysis Pursuit of the Anti- Money Laundering Act, B.E. 2542 and the Anti- Money Laundering Act (No.2), B.E. 2551, AMLO authority to conduct analysis and disseminate financial intelligence is depicted below the working process of “Transaction Committee or Secretary General under Section 34”, as per Article Ministerial Regulation No.8 (B.E. 2543) under the Anti -Money Laundering Act, B.E. 2542. “After the Anti - Money Laundering Office (AMLO) has received a transaction report or information involving transaction, preliminary inspection shall be executed and in case that there is any transaction with reasonably suspicious ground with transference, distribution, shift, concealment or surreptitious removal of any asset associated with offenses, AMLO shall file such case to the Transaction Committee for consideration and making an order under Section 48 without delay, within or before period of seven days from the date of receipt of such case.” Flowchart of Process of Execution on Transaction Analysis overview in accordance with AMLA: FLOWCHART OF PROCESS FOR TRANSACTION ANALYSIS Under the Ministerial Regulation No.8 (B.E. 2543), Article 1 Preliminary Inspection Case open on Information Evaluation of Information In-depth Analysis Transaction with Suspicion Outside information –data Conducted bases AMLO Data Base Analysis findings are summarized for dissemination Analysis Operations Support LE Agencies Unit in Director of Analysis Approval Secretary-General Approval Transaction Committee of Secretary General (Section 34) Asset ML/TF Criminal Forfeiture Liaison Division 10 AMLO Standard Operating Procedures and Guidelines for Analysis Types of Transaction Reports submitted to AMLO pursuant to AMLA: By virtue of Section 13 of the Anti- Money Laundering Act, B.E. 2542, three kinds of transactions shall be reported on basis of involvement of designated amount of transaction, either cash or asset, and suspicious circumstance as: cash in an amount equal to or exceeding 2 million baht; an asset equal to or exceeding 5 million baht; any suspicious transaction without designated amount of transaction, upon consideration of financial institution on suspicious circumstance of that client; Financial Transaction Reports submitted by Financial Institutions, Life Insurance and Securities sectors: All financial institutions under the Anti-Money Laundering Act, B.E. 2542 and the Anti - Money Laundering Act (No.2), B.E. 2551, at present, could be enlisted as: (1) All banks located in Thailand under laws pertaining to bank of Thailand, commercial banks under laws pertaining to laws on commercial banks and any banks established under specific laws; (2) All finance companies, financial enterprises and credit finance businesses under laws on operations of financial business, securities business and credit fanciers business as well as securities companies under laws pertaining to securities and stock exchange; (3) Industrial finance corporations of Thailand under laws pertaining to industrial finance corporation of Thailand and small industrial finance corporations under laws pertaining to small industrial finance corporation; (4) Life insurance companies under laws pertaining to life insurance and non-life insurance companies under laws pertaining to non-life insurance; (5) Cooperatives, only for those cooperatives with working capital from two million baht upwards and have objectives regarding services on or for deposit, loan, credit, mortgage or pawn of assets or procuring of money and assets in any method, under laws pertaining to cooperatives; (6) Juristic persons working on other businesses associating with finance under the Ministerial Regulations, consisting of: (6.1) Juristic persons with specific purposes under laws pertaining to juristic persons with specific purposes on or for securitization; 11 AMLO Standard Operating Procedures and Guidelines for Analysis (6.2) Juristic persons with foreign exchange licenses under foreign exchange regulations; (6.3) Financial institution asset management corporations under laws pertaining to financial institution asset management corporation; (6.4) Asset management companies under laws pertaining to asset management company; Transaction report of financial institution thus is considered as the main source of information submitted to AERS and Section 13 of Anti Money Laundering Act, B.E. 2542, also stipulates that: “Section 13: Whenever a transaction takes place at a financial institution, the financial institution has a responsibility to file a report of that transaction with the Office, if any transaction appears to be one of the following: (1) A transaction involving cash in an amount equal to or exceeding the significant amount set forth in the Ministerial Regulations; (2) A transaction involving an asset equal to or exceeding the significant value set forth in the Ministerial Regulations; or (3) Any suspicious translation, whether or not it is in accordance with (1) or (2); “A financial institution has a continuing obligation following the filing of a report to provide to the Office without delay, any additional facts or significant information about which it becomes aware that is relevant to the reported transaction.” Suspicious Transaction definition according to AMLA: "Suspicious transaction" means a transaction that is more complicated than the norm by which that transaction is usually conducted, a transaction that lacks economic rationale; a transaction where there is probable cause to believe that it was conducted for the purpose of avoiding the compliance of this Act; or a transaction related to or possibly related to a commission of any predicate offense, whether the commission of such transaction is conducted once or more” Preliminary inspection on suspicious transaction, the financial institution is recommended to follow general instructions on categories of transactions that shall be considered as suspicious transaction or observation towards person/ juristic person with reasonably suspicious ground, as follows: 12 AMLO Standard Operating Procedures and Guidelines for Analysis Examples of AMLO’s guidance to reporting entities on types of transactions that shall be considered suspicious 1. Transactions with cash in an amount less than 2 million baht (approximately 1.8+ to 1.9+ million baht), executed more than 1 time within same or different account but same client in adjoining period of time (on same or next date of the date of transaction); 2. Any account that has transactions with huge amounts of money in high frequency; 3. Any Thai client or foreign client particularly carrying travelers cheque or foreign cash to exchange into Thai currency in huge amounts of money and in high frequency, in an amount equal to or exceeding 1 million baht per each transaction or exchange; 4. Any account with incoming or outgoing transfers in huge amounts of money, from or foreign country where the risk of money laundering or financing on of terrorism is considered high. 5. Client with account opening in distance from his working or residential areas; 6. Client as an ordinary person opening several accounts in same category with irregularity, as if, opening for 5 savings accounts upwards,; 7. Any account with irregular flow of cash, as if, in regular there is only transaction not exceeding 100,000 baht for one time, but then there is incoming transfer or deposit 1 million baht, ; 8. Any account with incoming transfer of huge amount of money and then transfer whole of such amount within very short period of time after incoming transfer; 9. Any request for closing of newly opened account with huge flows of cash (this shall be assumed as an account for specific purpose on passing of huge amounts of cash); 10. Irregularities of safe deposit box usages, i.e. request for rental of oversized safe deposit box or of several safe deposit boxes with frequent usages, or keeping of cash in a safe deposit box, or assigning of authority to any person differing with one who has made a contract of rent; 11. Deposit of huge amounts of money in an account with numbers of minor valued notes or using huge amounts of cash or cashier cheques to purchase instruments; 12. Money transfer from provinces in the south, i.e. Songkhla; Narathiwat; Suratthani; Phuket and Ranong to provinces in the north, i.e. Chiangmai, Chiangrai, Maehongson and Tak; 13. Transfer of huge amount of money from one account to another account, then within very short period of time, such same amount or slightly different amount of money is transferred back to original account; Examples of instructions on categories of transactions that shall be observed as a person/ juristic person with reasonably suspicious ground, as follows: 1. Person/juristic person without any present of documents for identity-proofing; 2. Person/juristic person with concealment of occupation (work) or source of income or assets; 3. Person/juristic person with regular avoidance of visits to financial institutions; 13 AMLO Standard Operating Procedures and Guidelines for Analysis 4. Transaction of person/juristic person with commission of representatives or juristic persons on behalf of such person/juristic person; 5. Person/juristic person with record of loss in business, but still has huge amounts of money and assets in transactions; 6. Transactions from account of juristic person to personal account; Transaction Reporting for Designated Non Financial Professional and Businesses (DNFPB’s) By Virtue of Anti Money Laundering Act B.E. 2551 Section 14 stipulates that: (1) Professions listed in subsection (2) shall have the duty to report to the Office: (a) Cash transactions of a value exceeding the amount prescribed by Ministerial Regulation, provided the profession is a juristic entity. The Office shall have the power to give a written order to natural persons under this Section to report such transactions to the Office; and (b) Suspicious transactions or attempted suspicious transactions. (2) The professions under subsection (1) shall include the following: (a) Professions relating to trading of precious stones, diamonds, gems, gold, or ornaments decorated with previous stones, diamonds, gems or gold; (b) Professions relating to trading or hire-purchase of cars; (c) Professions acting as a dealer, broker or an agent in buying of selling immoveable property; (d) Professions relating to trading of antiques under the law governing selling by auction and trading of antiques; Transactions Reported by Land Office and Financial Advisors By virtue of Section 15 under the Anti - Money Laundering Act, B.E. 2542: Section 15:The Land Office of Bangkok Metropolitan, the Provincial Land Office, the Branch of Land Office, and the District Land Office, have a duty to report to the Office whenever a request for registration of rights and juristic act involving an immovable asset when a financial institution is not involved as any party to such request and the transaction appears to involve any of the following: (1) When payment is made in cash exceeding the significant amount set forth in the Ministerial Regulations; (2) When an immovable asset has an estimated value on the registration of rights and juristic act in an amount exceeding the significant value set forth in the Ministerial Regulations; except in the case of transfer by succession to a statutory heir; or 14 AMLO Standard Operating Procedures and Guidelines for Analysis (3) When it is a suspicious translation And under Section 15 (1) and (2), the Land Office of Bangkok Metropolitan, the Provincial Land Office, the Branch of Land Office, and the District Land Office, have a duty to report to the Office whenever a request for registration of rights and juristic act involving an immovable asset with payment made in cash or such immovable asset has estimated value as follows: (1) When payment is made in cash in accordance with Section 15(1), in an amount equal to or exceeding 2 million baht; (2) When an immovable asset has an estimated value in accordance with Section 15(2), in an amount equal to or exceeding 5 million baht; By virtue of Section 16 of Anti Money Laundering Act, B.E. 2546 stipulates that: “A person who is engaged in a business of operating or advising to engage in investment transactions, or the movement of capital has a duty to report to the Office where there is probable cause to believe that such transaction may relate to asset involved in a commission of offense or is a suspicious transaction” And in case that there is any additional fact or significant information about which it is relevant to confirm or deny the original information about the reported transaction in the first paragraph, a person in the first paragraph has a continuing obligation following the filing of a report to provide to the Office without delay.” Reports from Law Enforcement - Information provided under the Regulation of Office of the Prime Minister on Cooperation of Duties under the Anti -Money Laundering Act, B.E. 2542: The Regulation of Office of the Prime Minister on Cooperation of Duties under the Anti- Money Laundering Act, B.E. 2542 stipulates that an officer in any LEA working on investigation towards predicate offenses under the Anti -Money Laundering Act, B.E. 2542, has a duty to report, upon designated formats, to the Office. Legal authority for cases generated from open sources (news media) including the general public (known as AMLO informants) 15 AMLO Standard Operating Procedures and Guidelines for Analysis Pursuant to Anti Money Laundering Act, B.E. 2542, AMLO can generate cases from news reports, information received from general public and AMLO informants under the authority of the Act. AMLO receive information from registered secret informants of 2AMLO. During 2010 AMLO received approximately 60,000 reports on monthly basis through electronic system from financial institutions, while for the non-commercial bank, e.g. land offices, cooperatives, life and non-life insurance companies submitted over 3,000 reports in hard copies of transactions per month to AMLO. 2 Currently there are around 70,000 registered secret informants with receipt of 7,000 reports. 16 AMLO Standard Operating Procedures and Guidelines for Analysis Section 2 AMLO Data Bases Analysts almost have immediate access to all incoming reports since the reports are received electronically and are loaded directly in to the AMLO mainframe computer for access. This includes STR’s, Large Cash Transactions (LCTR) and other financial transaction reports AMLO receive. This is a unique advantage to timeliness of producing analytical products. The quality of electronic reports received is very good since the electronic reports have mandatory fields which if not completed, results in the report not being able to be input into the database until the information is completed. ALMO has utilized electronic reporting since its inception in 1999. Reports received from LEA’s are loaded separately Analysts use Smart Search and Visual Links 2L to facilitate production of analytical reports. These are link analysis software tools used for charting of relationships between the financial transactions and the targets by manual inputting information gathered from the information sources that AMLO analysts have access to. Authorities state that this can be time consuming inputting this information so they are actively looking developing software that will interface with all the data bases they have access to in efforts to reduce the manual inputting demands on the analyst. Present IT systems that ALMO analyst commonly works with are: 1.) AMLO electronic Reporting System (AERS) - : This system collects financial transactions reports or suspicious transaction reports; 2.) AMLO Financial Institute Information System (AMFIS): This system makes a request for banking information from financial institutions for specific customer information. Highly secured system which tracks all queries; 3.) AMLO Central Integration System (AMCIS): This the web-based application that supports the transferring of information from government data bases (including competent authorities and informant data bases); 4.) AMLO Central Data Warehouse system (AMCES): warehouses data received from government agencies; 17 AMLO Standard Operating Procedures and Guidelines for Analysis 5.) Smart Search & Decision Support System (DSS): This system is used for deep search by comparing with reports received by law (i.e.. STR's, Cash Reports and Assets declarations) and other internal data (government information).This system is designed to assist the analyst make decisions as to what transaction or information is relevant. Analyst also use smart search for analyzing data of suspects from various sources of data received regarding the predicate offence they are being investigated for; 6.) AMLO Case Management System (AMCAM): This system is designed for managing the case and cataloguing the information collected during investigations conducted by AMLO's asset seizure unit. Analyst can access this system to draw information for conducting analysis of financial transactions; 7.) Visual Links 2:L - Artificial Intelligence System is the advance search system that was developed for the purpose of search and analyzes complex data from all sources that AMLO analyst has access. This software allows the analyst to display and interpret the information plus produce charts showing these links. Smart Search - Overview Web Client Smart Search & DSS Server Web Client Microsoft Windows Server Web Client TCP/IP Apache Tomcat Server AMCeS TCP/IP TCP/IP DXG Web Client Decision Script Server Web Client Microsoft SQL Server 2000 AMLO Data Warehouse Web Client 18 AMLO Standard Operating Procedures and Guidelines for Analysis Smart Search - Features Smart Search & DSS Server AMCeS Smart Search System AMLO Data Warehouse AERS Search Result Report Search Suspect’s Data Search Results Advanced Search AIS MIS Suspect List Search for Suspect List Search Laws DXG Laws TDBS Decision Support System FDBS DSS Analysis Report Laws Keywords Classify Suspect’s Crimes Classify Suspect’s Penalties DSS Analysis Case Management System (AMCAM) AMLO Transactions Committee AMLO Secretary General Information & Analytical Center Pre-Investigation Stage (1) Information & Analytical Center External Gov. Org. Bank & Pub. Officer Reports Director Basic Analysis Examination & Litigation Division Asset Management Division Examination & Litigation Division Officer Director General Case Mgmt. Database Basic Analysis OK? Request for Case Initiation Case Initiation Authorization Form Case File Case Initiation Approval Search for Information Suspect Information AMLO Secretary OK? Case File Search Suspect Information Financial Information Request Form AERS / AI Request for Financial Info. Search Non-AMFIS AMFIS Intelligence Collection & Analysis Financial Info. Search Approval Financial Info. Search Approval Search Financial Info. Case File OK? 19 AMLO Standard Operating Procedures and Guidelines for Analysis Section 3 AMLO – FIU Organizational Structure Proposed organizational structure changes3 for AMLO will see increased focus on core FIU functions of analysis and dissemination of financial intelligence to law enforcement agencies. Primary units involved in FIU functions will be: The Financial Intelligence Bureau (FIB) will be responsible for analysis and dissemination of financial intelligence to domestic law enforcement agencies (including Customs) and AMLO to assist with investigations relating to Money Laundering (ML) and Financing Terrorism (FT). FIB will also be responsible for developing strategic intelligence including methodologies and typologies for ML and FT trends. These strategic products will be shared with key law enforcement agencies, government officials, general public and financial sectors; International Cooperation Bureau will handle all foreign requests including the Egmont Web Site (EWS) queries, and will coordinate all requests from AMLO to foreign FIU’s for assistance. Asset Forfeiture Bureau Criminal Investigations Branch (ACIB) will be mandated to work with LEA officials to pursue criminal cases for ML and FT. FIB will disseminate cases to ACLIB who will work closely with key LEA’s. Compliance Bureau will work closely with FIB to ensure quality of reports that AMLO receive pursuant to AMLA. Information Technology Bureau (ITB) will provide support for development of IT tools for FIB and ICB analysis and development of strategic products. ITB will also support electronic reporting processes for financial entities and Compliance Bureau operations. 3 The new structure will see the units to be re-organized during early 2012 with resources phased in as they become available to be fully staffed by 2013. 20 AMLO Standard Operating Procedures and Guidelines for Analysis AMLO Organizational Chart to be implemented starting in January 2012 21 AMLO Standard Operating Procedures and Guidelines for Analysis Financial Intelligence Bureau Organizational Chart to be implemented in January 2012 22 AMLO Standard Operating Procedures and Guidelines for Analysis Financial Intelligence Bureau Unit Structures and responsibilities: Each of these units will have a designated “team leader” who will report to the Director of FIB. I. STR Unit: Generating “pro-active” cases reviewing incoming STR’s, open sources (newspapers, other media sources, etc.) and general public reports. This unit will also be responsible for generating ML /FT “patterns” cases from data mining of the financial transactional records held in the AMLO data base. II. ML Analysis Unit (6 – Regional Divisions): Units will respond to ML predicate law enforcement units (including AMLO) requests4. This includes cases generated by AMLO informants providing information on ML related matters. III. TF Analysis Unit: Responsible to respond to law enforcement requests relating to terrorism financing. This includes cases generated by AMLO informants providing information on FT related matters. IV. Strategic Analysis Unit: Responsible to generate ML/FT trends and typologies, statistical reports and other strategic products from AMLO data base for the distribution to government, general public, domestic and international AML/CFT partners including financial reporting entities. V. Operational Support and Client Relationships: Support operations of FIB by coordinating receiving and distributing analytical cases to appropriate law enforcement agency, will establishing point of contacts (POC) for all external law enforcement agencies, receiving LEA assistance requests, training presentations requests and follow up consultations and feedback 5where AMLO has provided analytical reports. 4 ML analytical unit’s regional responsibilities to be aligned with AMLO’s Examination and Investigation Units (civil forfeiture) regional operations. Six regions include Bangkok (2), North, South East, South and Central zones. 5 Assist coordinating analyst’s involvement 23 AMLO Standard Operating Procedures and Guidelines for Analysis Section 4 Analysis – General Principles and Guidance for Analyst’s Analysis Case Generation - Overview All cases for analysis are approved by the Secretary General of AMLO. Cases once approved are assigned to the Director of Financial Intelligence Bureau or Director of International Cooperation Bureau6who will assign cases to the appropriate analysis Unit depending on the nature of the crime reported i.e./ ML or FT, type of report and the location of the suspected activity7, foreign request, etc. Cases for analysis are initiated by: 1. Verbal reports, written requests (including emails, mail), tips or information received from law enforcement, general public, financial institutions, informants or other government officials8; 2. Foreign LEA and FIU Requests that are received via the Egmont secure web site9, written or verbal requests from foreign law enforcement agencies. Cases received via the Egmont web site are printed by International Cooperation Bureau and submitted to SG for approval to open a new case. Same applies for any written or verbal requests received from foreign counterparts; 3. Pro-active Suspicious Transaction Report cases that are generated by analyst’s daily reviewing financial transaction reports – Suspicious Transaction Reports and Attempted transaction 6 New cases received via Egmont web site are submitted by International Cooperation Bureau to SG for approval 7 Specialize units established to be responsible to conduct analysis for cases based on whether ML or FT and provinces in the Kingdom of Thailand that the request is received from or that the criminal activity is prominently occurring in. 8 Refer to policies and procedures for processing requests 9 These cases will be handled by International Liaison Unit 24 AMLO Standard Operating Procedures and Guidelines for Analysis reports, Large Cash Transaction reports, Property reports, Custom Currency Declarations and Open sources such as media reports) that are submitted to AMLO electronically and held in the AMLO Electronic Reporting System (AERS) data base. The review of STR’s is undertaken daily and is a manual process and relies on the assessment by the analyst. STR cases are the responsibility of the STR Unit and once the analyst completes the preliminary assessment the cases is submitted to the Director of FIB who once approves will submit to the Secretary General for approval to open case to conduct further in depth analysis. It is important to note for STR cases, the analyst’s will have to have completed a preliminary assessment workup which involves the analyst’s conducting searches and assessing the intelligence to determine if sufficient suspicious based on the financial transactions and circumstances require a case be open for further analysis. Below is an overview of the case generation process10: 10 Refer to Section 4 -for further procedures for developing cases. 25 AMLO Standard Operating Procedures and Guidelines for Analysis Analyst’s Responsibilities Analyst’s pursuant to Sec 40 AMLA and Sec 6 (5) Ministerial Regulations Anti Money Laundering Office B.E. 2550 refer AMLO officers duties include supporting law enforcement agencies (including AMLO) conducting ML and FT investigations by providing financial intelligence. Security – Analysts handling of Sensitive information: Analysts are required while conducting analysis and preforming FIU functions to comply with security policies relating to handling of sensitive information with in AMLO’s data bases. Ensuring preserving confidentiality of information and using intelligence in AMLO’s data bases is an important aspect of analyst’s daily responsibilities11. Objectives of Analyst work AMLO’s role as the FIU is to provide financial intelligence to law enforcement agencies and foreign FIU’s to support and assist combatting criminal Money Laundering and Terrorist Financing crimes12. Analyst’s priorities are to review, analyze, identify and prepare financial intelligence reports that will assist supporting law enforcement ongoing investigations. Analysts must rely upon ongoing communication and feedback from law enforcement agencies as to how AMLO can improve their intelligence sharing to meet their needs. Feedback on cases provided is crucial to ensure that the intelligence provided is useful or what additional information will assist law enforcement. It is very important that cases are prepared in a timely manner and relevant to be useful for authorities and feedback is a way of determining this. 11 Refer to AMLO security polices 12 This can include sharing of intelligence for both criminal and civil ML or FT investigations. 26 AMLO Standard Operating Procedures and Guidelines for Analysis Objectives of AMLO analyst’s work could include: Providing relevant, timely & accurate financial intelligence to assist law enforcement conducting ML or FT investigations; Assist law enforcement identify previously unknown ML or FT criminal activity (new targets); Assist law enforcement conducting ongoing ML and FT criminal investigations Provide key financial transaction information from AMLO data base that will assist law enforcement identifying and seizing assets of ML or FT targets; Provide law enforcement access to financial intelligence that they do not have direct access Assist LEA prioritize investigations i.e. / targets financial wealth can be an indicator/ nature of transactions etc. Show hierarchy criminal organizations, identify targets, associates, plans; Identify proceeds of crime (assets) relating to ML and FT; Show law enforcement where to look domestically and internationally for evidence, assets and targets ML /FT investigations Guidelines for Working the Case – Analysis Outlined below are the 7 stages of a typical case. Depending on the size of a case and circumstances these stages may vary. These same steps are taken whether a domestic or responding to an international request. 13 Case Assessment / Analysis / Analytical report /Follow up 1. Review and assessment of information received; 2. Research AMLO data base for additional financial transactions; 3. Search databases (Open sources, law enforcement, etc.); 4. Look for patterns of transactions that are indicative of ML/TF; 5. Creation of link chart of transactions/parties; 6. Prepare report of findings for law enforcement; 7. Feedback and consultation with law enforcement. 13 Further detail relating to processes referred to Section 4 - Procedures. 27 AMLO Standard Operating Procedures and Guidelines for Analysis LEA Request or STR case or Foreign request Step 1 Screening &Step 2 Evaluation Data Collection & Collation Step 3 Analysis Steps 4 & 5 Authorization & Dissemination Steps 6& 7 FEEDBACK Guidelines and processes for assessment of cases for analysis are outlined below. Proper evaluation of cases is essential to ensure that cases provided to law enforcement are substantiated by the standard processes followed by Analysts and that suspicion is based on recognized ML/FT indicators such as those provided by the Egmont or FATF. Analysts require training in ML/FT principles, law enforcement financial investigations, evaluating financial transactions and preparing analytical reports in order to be effective in their role as an analysis14. 14 Refer to AMLO HDR training plans for FIB and CIB Analysts 28 AMLO Standard Operating Procedures and Guidelines for Analysis AMLO’s Flow Chart of FIU’s Work Procedures Source of subject for examination Source of subject for examination Financial Investigation Unit/ Complaint/ informing a clue Transaction report Financial Investigation Unit Procedures Data Analysis Use AMLO’s database from information technology Requesting information from agencies Civil Registration Database Commercial registration (BOL) Criminal record Do an analysis Fact information of Crime’s evidence AERS system and AMCIS system Tax information from Revenue department Drugs information from Office of the Narcotics Control Board Oversea travelling information Phone Called Record Vehicle registration data Open source from Information technology Head of Work Group consider and YES Send task to internal agencies to implement AMLA Information from others agencies to help analysis YES Stop implementation when there is insufficient information and then keep information in AMLO’s database NO Send task to external agencies to implement relating to involved law 29 AMLO Standard Operating Procedures and Guidelines for Analysis Step 1. Review and assessment of information and requests Written requests for assistance received from law enforcement, Foreign FIU queries through Egmont, general public or other government agencies are to be evaluated to ensure that the request complies with the legal authorities of the AMLA (relating to ML or FT and their predicate offences). Once this is confirmed the case can be assigned for follow up to the Director of Analysis Bureau or for Egmont cases, International Cooperation Bureau. Other considerations such as priority of the request, work required and what unit will be responsible will be determined. For STR’s cases or others generated by AMLO - “pro-active” files, these cases will be submitted to the Secretary General for approval once the initial work up has been completed and the case meets the legal requirements pursuant to the AMLA. Step 2. Research AMLO data base for financial transactions; AMLO Electronic Reporting System (AERS): AERS is AMLO’s primary data base that holds all financial transactions received by AMLO in accordance with the AMLA. Analysts rely on data from AERS for conducting analysis and preparing analytical reports. AMLO staff is the only persons allowed access to AERS. Only AMLO employees working in related areas are authorized to access the system and only these staff members are issued usernames and passwords to access the system. AERS is only accessible while in AMLO’s offices (no remote access). External Requests (LEA’s and Foreign FIU’s) For external written requests for assistance received by AMLO, analysts are to search the AMLO data base to ascertain if any financial transactions exist in the data base relating to the individuals or businesses identified in the requests. If transactions exist, then the case remains open for further evaluation (Proceed to Step 3) If no transactions exist, then the case can be closed and recorded in the AMLO data base in case future inquiries or financial transactions are received relating to these targets. STR or “Pro Active” Cases 30 AMLO Standard Operating Procedures and Guidelines for Analysis The STR unit is responsible for evaluating incoming STR’s daily to identify patterns of financial transactions that are indicative of ML/TF. When transactions are identified to be suspicious of MF/FT pursuant to the AMLA, AMLO can disseminated “pro- actively” these findings to domestic ML/FT law enforcement agencies and foreign FIU’s. Analysts also rely on the detail of the information contained in the STR’s, nature of the financial transactions and FATF or Egmont accepted ML/FT indicators to assist in evaluating transactions15. Examples of ML indicators are: Other criteria that Analysts can use to assist in evaluation of transactions: Multiple entities reporting suspicions Reporting entity indicated possible link to criminal activity Law enforcement demonstrated interest in (individual, corporation, charity, etc.) Are the parties associated to transactions related to ongoing or previous law enforcement or AMLO cases; Pending criminal charges for predicate offences or business has been associated to criminal behavior Step 3. Searches of other databases which AMLO have access to Once financial transactions are identified in AERS believed to be associated to ML or FT, analysts may need to conduct further queries to assist verifying or 15 Refer to for Egmont principles and ML/FT indicators Policies and Procedures 31 AMLO Standard Operating Procedures and Guidelines for Analysis identity of targets, targets addresses, businesses and associates by conducting a SMART which will search all other AMLO data bases – AMCES, AMCAM, AMFIS and AMIS (refer to AMLO data bases procedures for processes for conducting searches) Data Bases accessible to AMLO Analysts: Online database hereby is defined according to AMLO policies “as information that shall be directly retrieved and accessed for any users in charge of duties who can be able to log-in with given user names and passwords ”.Online data base accessible for analyst’s are as follows: Vehicle Registration System: Vehicle registry records for automobiles include owner’s information, address, driver’s licenses #, vehicle description and purchase details. Businesses Registration System: Department of Business Development under Ministry of Commerce is a responsible entity on operating of the Business Registration System, and for the gist of management on recording of business information, Business on Line (BOL), a private company with authorization from Department of Business Development, is managing it with commercial purposes. Acquiring and searching of business information including locations, owners, board of directors, types of businesses and financial statements. AMLO analysts must obtain username and password for acquiring and searching of information through online system. Online Information from Newspapers: This information could be applied for acquiring on information in supplementary. Recently, AMLO is a member of NEWSSTAND Company with services on English and Thai newspapers. For using of these services, keywords would be designed and filled-in search engines of the Company, then all news with such specified keywords would be enlisted with highlight of those keywords in red color inside contents of news including searching for ML and FT cases in news reports. 32 AMLO Standard Operating Procedures and Guidelines for Analysis Online Civil Registration System: this system is regularly used for proofing of personal identity with existence and spelling of name and surname with personal information, e.g. names of family members, parents and relatives. This acquiring and searching has been done with the assistance of Department of Provincial Administration for allowing AMLO to access to special search engines for acquiring either from name or number of identity card involving with an offense or associated with predicate offenses. Passport System: Requires written request to Passport department16. This system could be applied with searching or acquiring of name, surname or identity information as per appearance in a request for passport or any travelling document, since spelling system for Thai name in Thai language is very diversified and sometimes it would differ from common spelling way, so searching and acquiring of information sometimes could be initiated from spelling system in English, then groups of information would be narrowed down with clear identification, e.g. name in Thai and English with 13 digits of identity card number, etc. Immigration System: Requires written request to Immigration department17.This system shall be beneficial for searching and acquiring of information, particularly for any alleged foreigner. Immigration Bureau record details of every passenger who has traveled to and from Thailand, showing nationality, purpose of traveling, occupation and etc. Suspicious person with time and date of arrival and departure from Thailand, if any, could be detected and found from this system. This would differ from database of Passport System since that could be able to detect only Thai persons. Database from Immigration System records show history of travelers with all destinations of travelling; this would help for tracing of assets of suspicious person in overseas destinations. 16 Request is submitted to Secretary General AMLO for forwarding 17 Request is submitted to Secretary General AMLO for forwarding 33 AMLO Standard Operating Procedures and Guidelines for Analysis Law enforcement data bases: Office of the Narcotics Control Board (ONCB), Department of Special Investigations (DSI) and Royal Thai Police (RTP): Requires written request to RTP and DSI18. Databases include details of investigations. AMLO can request information related to ML and FT and their predicate offences to further assist in conducting analysis. o ONCB have been linked to AMLO data base AERS which analysts have access, for the purpose of cross-checking of information on criminal records particularly with affiliation of drugs. o DSI and RTP data bases include all investigations undertaken by theirs agencies relating to ML or FT predicate offences. AMLO is not allowed to automatically access to these databases, so an official request for criminal investigation records needs to be done on caseby-case basis19 Criminal Records: This database would be accessible at the Royal Thai Police, but currently, AMLO is not allowed to automatically access to this database, so an official request for criminal records needs to be done on case-by-case basis. Step 4. Identify patterns of transactions/data indicative of ML/FT Analysts need to review and assess the intelligence to organize and identify primary targets suspected to be involved in criminal activity, money flows and source, connections between conductors and individuals who are laundering funds. Analysts may be required to enter date into spreadsheets or used event flow charts, link diagrams or other programs to assist determine these connections. Intelligence to be summarized may include: 18 Request is submitted to Secretary General AMLO for forwarding 19 This same approach applies with other Thai law enforcement agencies i.e. / Tourist Police, Border Patrol, etc. 34 AMLO Standard Operating Procedures and Guidelines for Analysis • • • • • • STR’s transactions ( value, number of reports & institutions involved) LCTR’s (value, number of reports and institutions involved) information from law enforcement AMLO data bases – business registration, Vehicle records, AERS, etc. Open source information(internet) – newspapers, general public information from a foreign FIU, Internationally accepted ML /FT indicators of the FATF and Egmont principles can assist analyst’s identify transactions or activity that associated to ML or FT which are included in Section 5. Step 5. Link Diagrams and flow analysis charts Linkage of financial transactions and other information with suspected criminal activity is the critical focus of analysis. Charting assist analysts identify criminal links between financial transactions, target relationships and summarize the results of the analysis so that authorities receiving the report can easily interpret. Analysts are encouraged to use charting whenever possible. Different types of charting method that AMLO analysts should consider to be use include: Associated Matrix - confirm links through associations Link Analysis charting – show relationships amongst people and entities Event Flow analysis – events by chronology sequence (good for complex cases – patterns of behaviors) Commodity flow analysis (flows of money) which establishes associations Activity flow analysis (sequence of events) AMLO Transaction analysis systems includes two existing software programs (i) I2 program system; and (ii) Artificial intelligence system (Visual Link). Note: All analyst’s will require and be provided extensive training for using excel and i2 for collecting and charting financial transactions. Below is an overview of the i2 system and charts used for financial intelligence. 35 AMLO Standard Operating Procedures and Guidelines for Analysis Link Charts are developed with the support of i2 software. Objectives of link charting is to assist analyst’s illustrated in a “picture format” intelligence collected during the analytical process (financial transactions entered in excel spread sheets and other data collection) to assist the analyst’s identify :suspicious transactions, types and patterns of financial transactions, person committing transactions, banks or financial institutions involved, associations between targets and sequence of events. Artificial Intelligence (AI) Program System: The Artificial Intelligence (AI) Program System is an artificial intelligence system can be used to produce reports for identifying linkages of information held by AMLO including all: financial transactions submitted pursuant to the AMLA, ML/FT civil related investigations conducted by AMLO e.g. Targets financial transactions, telephone, address (location), identity card and account numbers, etc. This information is available to be retrieved from database of Alto be linked with other external databases. Step 6. Analytical Report for Law Enforcement Once the Analyst’s has completed the analysis then they are required to prepare a summary report which is submitted to the Director of Financial 36 AMLO Standard Operating Procedures and Guidelines for Analysis Intelligence Bureau for approval and forwarding to Secretary General’s office for sign off for dissemination to the appropriate law enforcement agencies. All analytical reports finding should include the same contents as outlined in procedures. 1. Case Summary Narrative report that includes an overview of the case, contents of the analytical report, reason for suspicion i.e./ ML or FT indicators used to base findings and other pertinent information including the analyst’s name and who should be contacted if further information is required. This would include a summary of contents (index) of the case package, 2. Fact Sheets –Individuals and Entities. Details of personal information on targets and persons, financial institutions and other businesses referred in the report or link charts20 3. Tables and details of Financial Transactions (Excel spreadsheets) Financial transactions used in analysis from AMLO data based not including STR’s 21. 4. Link Charts (i2) 5. Publicly Available or other Information Open source or other information that was used in analysis 6. Feedback form to be completed by recipients of intelligence Feedback form to be completed by agency receiving report. Evaluate intelligence provided and make further requests for assistance. 22 20 Template for personal information Fact sheets on targets – See Section 4 Procedures 21 Excel spreadsheets for transactions. STR’s are not to be disclosed to protect the identity of the reporter. This may depend and Is to be dealt with on a case by case basis at the direction of the Directors of FIB and ICB or the SG 22 Refer to AMLO feedback form – Section 4 Procedures 37 AMLO Standard Operating Procedures and Guidelines for Analysis Section 5 AMLO STANDARD PROCEDURES & POLICIES Section 5.1 Preliminary Assessment, Case Assignment, and Responding to Requests Policy Statement All incoming reports and open source information received by AMLO concerning suspicion of money laundering and terrorist activity financing are to be analyzed and assessed by AMLO analysts. Specifically, received Suspicious Transaction Reports (STR) including Attempted Transactions Reports (ATR), Cross Border Currency reports (CBR), Law Enforcement requests, Media Reports, reports from private and general public and property transaction reports, are recorded and reviewed daily for follow up. Legislative Reference Anti- Money Laundering Act Ministerial Regulation of Anti Money Laundering Office B.E. 2550 provides authority to receive reports Section 40 AMLA provides authority for analyst’s to analyze and assess reports General Principles • Intelligence or information believed to be related to money laundering or terrorist financing received by AMLO via mail, courier, email, Egmont Web Site (EWS), the media or verbal reports received from law enforcement, general public, reporting entities, informants or any other sources will cases will be submitted to the Director of Financial Intelligence Bureau23 (Domestic cases) or the Director of International Cooperation 23 Directors of FIB will conduct initial review, assign to analyst or team lead and then submit all cases to the Operational Support Unit to open in AMCES system. Cases will then return cases to analyst to conduct preliminary review. 38 AMLO Standard Operating Procedures and Guidelines for Analysis Bureau24(Egmont and Foreign requests) who will assign cases to Team Leaders25(or analysts)to conduct the preliminary assessment of the information. • Suspicious Transaction Reports (STR), Attempted Transactions Reports (ATR) , Cross Border Currency Reports (CBR) and Property Transaction Reports (PTR) are loaded daily in to the AMLO Electronic Reporting System (AERS) transaction data base and the Artificial Intelligence (AI) Program System are reviewed daily by the STR analytical unit analysts. • Analysts on STR Unit will be responsible for conducting preliminary assessment of incoming daily STR’s, ATR’s, PTR’s, CBR’s received in AERS and forward potential cases (based on suspected ML or FT indicators, open source, AERS – arm chair analysis) to the Director of FIB who will review and assign the case to the appropriate unit (Regional ML or FT unit) for further preliminary review. • STR Unit Media Review analyst(s) conducts daily review of open source media reports (including newspapers, television, on the web etc.) and forwards potential cases to the Director of FIB who will assign to Team Leader in charge of that Region for follow up. • All cases opened, generated from STR’s or other reports (pro-active) or received foreign or domestic cases will be submitted within 7 working days of being received for the approval of the Secretary General (SG). Each cases submitted by FIB or ICB will include findings, recommendations and action plan describing further analysis required or reasons for case closure. • AMLO will respond in writing to all foreign or domestic requests within 15working days to acknowledge receiving requests and whether a case is proceeding for further analysis or will be closed. All cases will be responded to by the SG based on the recommendations of FIB and ICB’s analyst’s 24 Director of ICB will assign analyst to entered EWS and foreign requests in AERS system. 25 Cases will be assigned to Team Leaders based on Region. Team leaders will assign analysts to follow up. 39 AMLO Standard Operating Procedures and Guidelines for Analysis preliminary findings. 26 Operational Support Unit will be responsible to track cases, prepare SG’s responses and liaise with domestic authorities. • Cases approved by SG for further analysis will be returned to the Director of FIB or Director of ICB who will assign cases for more in depth analysis. • All active and closed cases are to be loaded by the analyst into the AMLO case management system for ongoing or future reference. • Analysts, Operational Support Unit and all AMLO employees involved in handling requests and responses to agencies are responsible to treat all information in accordance with AMLO Privacy and Security measures pursuant to AMLA. Related Material • AMLO Security Policies • AMLO Policies for handling sensitive information • Procedures for receiving information from law enforcement, general public and foreign agencies • Analytical and Analysis approval processes; • AMLO Data Bases Procedures – AMCES, AMIS, AERS, AMCAM • AMLO Artificial Intelligence (AI) system procedures Procedure (1) Preliminary Assessments Information or requests received from law enforcement and Egmont ESW requests 1. Requests received from law enforcement, general public and foreign FIU’s are recorded in accordance with AMLO’s receiving information procedures. Information received is entered into AMLO Case Management System 26 Secretary General may delegate this responsibility to the Director of Financial Intelligence Bureau or Director of International Liaison Group 40 AMLO Standard Operating Procedures and Guidelines for Analysis (AMCAM) and a file is open, hard copies, emails, faxes and related documents are retained. 2. Once the file has been generated on ACAM and file number assigned the hard copies and ACAM reference material is submitted to the Secretary General in accordance with AMLO’s policies for seeking approval to open the case and proceed with the preliminary assessment and analysis. 3. After approving the case for further assessment, the SG will assign domestic ML/FT cases to the Director of Financial Intelligence Bureau (FIB) or for foreign related cases to the Director of International Cooperation Bureau (ICB). Directors will then assign the case to their Team Leaders for assigning to analyst for follow up. 4. Domestic cases will be assigned to FIB Regional team leaders based on location of suspected activity ML activity or to the team leader of the Financing Terrorism team if the case is related to terrorism. 5. The Team Leader is responsible to evaluate the potential case and respond to the Director with 5 days whether a case should be closed or further in depth analysis is required. However, the Team Leader may require assistance from an Analyst within the unit to assist in the process. 6. The Team Leader will prioritize the information to be assessed by taking different factors info consideration (e.g. time, sensitivity, law enforcement priorities and/or projects, follow-up/ additional information to an ongoing AMLO or law enforcement cases); The Team Leader will or the designated Analyst: 1. After receiving the request and hard copies relating to the requests, will ensure all the information has been entered correctly in the AMCAM and a file opened in accordance to AMCAM procedures and policies; 2. Analysts reviews request details and identifies primary targets to focus analysis in accordance with requesting agency or foreign (EGW)request; 3. If clarification of the information is required then Analyst will discuss with Team Leader who will request approval from Director of FIB or ICB to 41 AMLO Standard Operating Procedures and Guidelines for Analysis request additional information (Operational Support Unit will request in domestic cases); 4. Provided sufficient information exists to proceed with analysis, Analyst in consultation with Team Leader will conduct data base searches for primary targets identified in case originators request. 5. Analysts will firstly conduct inquiries for financial transactions report in the AMLO Case Storage Systems data base by doing a SMART search which searches all AMLO data bases. If no reports are found in the data base associated to targets then the analyst will recommended to the Team Leader that the case be closed. See responding to requests procedures for closing cases and processes for advising requesting agencies results. 6. If financial transactions are identified in the AMCIS data base, transactions are reviewed and upon review are believed to be suspicious in nature in line with ML /TF indicators27 then the Analysts in consolation with the Team Leader will consider conducting further queries with available AMLO data bases (without having to make special requests): I. II. III. IV. V. VI. VII. VIII. IX. X. 27 SMART SEARCH System – Searches all AMLO data systems – AMCAM, AMCES, AMFIS and the AERS System – Financial Transaction reports Civil Forfeitures Registration Database – AMLO records / previous cases Drugs information from Office of the Narcotics Control Board Commercial Companies registration (BOL) Tax payment record from Revenue Department Telephone records Immigration travelling information Passport Information from Department of Consular Affairs Vehicle information from Department of Land Transport Open sources In line with FATF and Egmont principles of ML/FT indicators 42 AMLO Standard Operating Procedures and Guidelines for Analysis 7. Analysts will consult with Team leaders to determine which data bases are relevant and need to be checked. Data base inquiries will vary on a case by case basis. 8. Written requests for additional access to data bases such as criminal records checks, Royal Thai Police or DSI records will be considered on a “case by case” basis. Approvals for written requests for access to these data bases will be discussed with Team Leader’s and require approval by Director FIB or ICB before being submitted to SG for approval. 9. All relevant information found from data base inquiries will be entered in case working file folder in AMCAM. 10.The Team Leader or designated Analyst will assess all the available information pertaining to the subjects to determine if there is reasonable suspicion 28 that the information is related to money laundering or financing of terrorism pursuant to the legal requirements of the AMLA. Evaluation will be based on the ML/FT indicators and other intelligence collected29 11.When the Team Leader determines from the preliminary analysis reveals sufficient information exist to warrant further analysis then the case will be returned to the Director of FIB or ICB with recommendations that the case be proceeded with for a more in depth analysis. 12.Director of FIB and ICB will submit cases to SG for approval to proceed with more in depth analysis. 13.Case will be submitted to the SG with findings within 7 days of being received whether analysis is completed or not. 14.If the Team Leader finds there is insufficient information or suspicion to proceed then then the case will be recommend to be concluded. Concluding report approved by SG will be prepared and retained in the AMCAM to be retained for future reference. 28 Reasonable grounds to suspect requires a level of suspicion above “mere suspicion” and below “reasonable belief” (it is more than an hunch; more than an impression; more than a gut feeling; more than mere suspicion; and less than reasonable belief). Determination is made on a case by case basis. 29 Refer to FATF and Egmont ML/FT indicators 43 AMLO Standard Operating Procedures and Guidelines for Analysis 15.Team leader, will prepared correspondence for originator of request and provide to FIB Operational Support Unit for distribution to the requesting agency advising the status of the case. Procedure (2) Review of Suspicious Transaction Reports (STR’s), Media Reports and Open source cases A. Review of STR’s: Director of Financial Intelligence Bureau will designate the Suspicious Transaction Reports (STR) Unit Team Leader to assign Analysts to daily review incoming STR transactions in the AERS data base and Media reports to identify suspicious cases relating to ML or FT. 1. 1st Stage - Assessment of incoming STR’s and Media reports will be undertaken daily to determine if: i. The information meets the criteria of AMLA – related to ML or FT or their predicate offences ii. Linked to any present or past AMLO cases iii. Predicate offence is clearly identified in the narrative of the STR iv. Multiple related transactional/reports indicate a pattern of ML/TF activity 2. The Assessment analyst may conduct further queries through data bases AMLO has access to create further justification for creating a case. To be decided on a “case by case” in consultation with the Team Leader whether required. Refer to Procedure 1 for list of data bases to be considered. 3. If the case criterion is met then the Analyst will forward the case to the Director of FIB who will submit the case to the SG for approval to pursue and conduct a more in depth analysis. 4. Once approved by SG, the Director of FIB will assign the case to the Team Leader in charge of the region (ML or FT) for follow up. The 44 AMLO Standard Operating Procedures and Guidelines for Analysis Regional Team Leader may assign an analyst to conduct the further analysis 2nd Stage - If no hits on STR during this query, then the case will only be reviewed further if: i. Multiple related transactions /reports indicate a pattern of ML/FT ii. Related previous cases /active cases iii. Compelling description in STR of suspicion If neither Stage 1 nor 2 reviews are met then the case will not proceed and the STR filed AERS for future reference. B. Review of Open Source Information/Media Review Process 1. Director of FIB will designate the STR Unit for conducting a daily media review in order to identify potential cases relating to ML or FT that AMLO analysis may assist law enforcement conducting investigations. 2. The designated analyst (s) will review Online Information from Newspapers for top stories to identify potential ML or FT cases. 3. Considerations for generating cases from media reports will include: I. AERS query reveals that financial transactions exist in AMLO data base relating to primary suspects II. AMLO mentioned in the story III. AMLO was mentioned and a check of the data based (AMCAMS – SMART search) reveals that AMLO have provided information on this case before IV. Date of offence /investigation V. Size of the investigation VI. Relevance – in line with AMLO priorities or government priorities (ML or FT related) 45 AMLO Standard Operating Procedures and Guidelines for Analysis VII. Identifying information –able to confirm identify of suspects 4. Media cases will be review by the STR Unit Team Leader and recommended to be open if after assessment the criteria are met. Team leader will present case to Director of FIB for review and submission to SG for approval. Procedure (3) Case Assignment 1. All cases to be opened or assigned for analysis are to be approved by SG.30 2. Once approved, SG will designate the Directors of FIB and ICB to assign cases to Team Leaders for follow up. 3. Team Leaders will either take custody of the case or assign for an analyst’s to follow up on 4. Cases will be prioritize by the Team Leaders in consultation with the Directors of FIB and ICB 5. Cases will be assigned to Units based on type of offences (ML or FT) and Region of where suspected activity is occurring. 6. The decision to assign case is based upon a variety of factors, including but not limited to the following considerations: 30 I. Time Sensitivity II. Law Enforcement Priorities and/or projects III. Follow-up / additional information to an existing case IV. Location of suspected activity V. Complexity (more complex cases assigned to senior analysts) VI. Priority (nature of case) Cases are prepared and recommended by the Directors of FIB and ICB 46 AMLO Standard Operating Procedures and Guidelines for Analysis VII. Type of Report (STR) 7. Team Leaders will share files amongst Units if resources are unavailable to deal with workload or incoming volumes of cases. 8. STR and Open source (Media) case assignment will rely on these same procedures & principles Procedure (4) Timeframes for Procedures 1, 2 & 3 –Overview 1. All cases received from foreign FIU’s (EWS) or domestic law enforcement preliminary assessment will be completed within10 working days with results to be submitted by the Director of FIB or ICB for the approval of the Secretary General (SG) to proceed with a case for more in depth analysis or recommendations for no further action to be taken. Each cases submitted by FIB or ICB will include findings, recommendations and action plan describing if further analysis is required or reasons for case closure. 2. The Team Leader of STR Unit is responsible to evaluate (based on analyst daily review of incoming reports and preliminary assessment) potential or viable STR’s, Media or open source cases are to be submit to the Director of FIB within 5 working days or as soon as possible. The Director of FIB will forward cases for SG approval and once approved, will assign case to ML or FT Unit Team Leader (depending on nature of case) for more in depth analysis once approved by SG. 3. Analysts will be required to prepare the Case Summary and Rational for Disclosure report (ML or FT indicators) in relation to their findings to be referenced in the working file. 47 AMLO Standard Operating Procedures and Guidelines for Analysis 4. Team Leaders will update Director of FIB or ICB every 15 days working days in writing as to the status of each on going case their unit is responsible for. 5. SG will respond in writing to all foreign (ETW) or domestic requests within 15 working days to acknowledge receiving requests and whether a case is proceeding for further analysis or will be closed. FIB Operation Support Unit will assist coordination and preparation of these responses. 6. Every 30 days or earlier as directed by the Directors of FIB or ICB (depending on the case), after the acknowledgment letter has been sent to external agencies by the SG, Team Leaders will prepare for SG approval, an update report on the status of ongoing cases/requests from external agencies and Foreign FIU’s. 7. Procedures for responding or disseminate completed analysis reports are referred in Policies and Procedures 48 AMLO Standard Operating Procedures and Guidelines for Analysis Section 5.2 Receiving Information from Law Enforcement and General Public Policy Statement AMLO receives requests from law enforcement and other government AML/CFT agencies about suspicious of money laundering or the financing of terrorist’s activities. Legislative Reference Ministerial Regulation of Anti Money Laundering Office B.E. 2550 provides authority to receive reports Section 40 AMLA provides authority for analyst’s to analyze and assess reports and other information Related Material • • • • • AMLO Security Policies AMLO Policies for handling sensitive information AMLO Analytical and Analysis approval processes; AMLO Electronic Reporting System (AERS) procedures AMLO Artificial Intelligence (AI) system policies and procedures for opening cases and tracking • Preliminary Assessment of cases procedures • Standard Letter acknowledging receipt of information General Principles • Employees must be aware of AMLO’s policies and procedures for receiving information from law enforcement agencies and the general public • AMLO’s preference is to receive requests in writing but will accept emails or verbal requests • All requests from law enforcement for assistance will be received either by mail directly the Secretary General (SG) or received by the Financial Intelligence Bureau Operational Support Unit (OSU) 49 AMLO Standard Operating Procedures and Guidelines for Analysis • OSU will assist receiving and coordinating responses relating to requests from law enforcement and the general public. • OSU will establish point of contacts at all law enforcement agencies for responding or receiving information • Only designated employees of OSU will receive requests and assist with responding • Requests received will be prioritize based on nature of the request, urgency attached to request and factors to be evaluated by Team Leaders in consultation with SG, Directors of FIB and ICU. • All responses and receiving requests from law enforcement or general public will be handled in accordance with AMLO security policies for handling sensitive information. Procedure (1) Receiving information from Law Enforcement 1. All requests from law enforcement or other domestic enforcement agencies are to be approved by the Secretary General and then forwarded to the Director of FIB for follow up. 2. Preference will be for AMLO to receive written requests (email, mail, hand delivered) from law enforcement agencies however in extenuating circumstances verbal request will be accepted. 3. Financial Intelligence Bureau - Operational Support Unit (OSU) will assist handling requests and responses to law enforcement at the direction of the Director of FIB. 4. OSU will establish point of contacts (POC’s) at each law enforcement agency to facilitate receiving and responding to cases. 5. OSU will be responsible for keep the list of POC’s current and will maintain ongoing relationships with the POC’s. 6. Analysts will not contact POC directly without the assistance of OSU. 7. Analysts will request Team Leaders to contact OSU to contact agencies if further information is required to conduct the preliminary assessment or in depth analysis. 50 AMLO Standard Operating Procedures and Guidelines for Analysis 8. OSU or Analysts will ensure that all requests from law enforcement agencies are entered in to the AERS data base within 3 days of being received. 9. For detail instructions for opening cases and preliminary assessments refer to Section 4.1 Policies and Procedures. 10.Information received from law enforcement agencies will be handled confidentially in accordance with AMLO‘s securities policies. 11. Information received from law enforcement agencies cannot be shared or be utilized to query a foreign FIU’s whom AMLO have an information sharing agreement without the written consents of the law enforcement agency who made the original request Procedure (2) Information Provided from the General Public 1. AMLO will make best efforts to receive information from the general public about suspicion of money laundering and the financing of terrorist activities. 2. Information from the public must be provided to AMLO in writing (by mail, facsimile, hand delivery, courier or email). AMLO will not accept verbal information from the public. 3. AMLO accepts anonymous voluntary information submitted by the public. 4. Operational Support Unit (OSU) will assist handling requests from general public as directed by the Director of FIB. 5. If a AMLO employee is approached by a member of the public with information the employee may not accept the information but instead, will ask that all such information be submitted to AMLO in writing (by mail, facsimile, hand delivery, courier or email) 6. All requests from general public will be entered in to the AERS data base within 3 working days of being received 51 AMLO Standard Operating Procedures and Guidelines for Analysis 7. Report or requests received by Fax, Mail, Hand delivery and Secured Courier I. Operational Support Unit (OSU) will assist handling incoming assistance FIU‘s requests or information from law enforcement and general public received via fax, mail and hand delivered. OSU will be directed by the SG and Director of Financial Bureau II. Information provided to AMLO via fax, mail, hand delivery or secured courier will be prepared by OSU to deliver to the Secretary General31 for initial review within 3 days of being received. III. If information is received by a non-designated AMLO official (not in OSU) then this employee should immediate stop reading the information and give directly OSU for submission to the Secretary General’s office for processing. 8. Cases received via Email should be handles as follows: I. If Information is received by an employee or via the email address located on the AMLO web site, the owner of the administrator of the mail box, if not authorized to receive information , should stop reading the email or if they are authorized, print the email and provide to OSU or the office of the Secretary General office for processing. II. OSU will assist handling requests, logging information into AMCAM system and submitting requests to the Director of FIB who will review and submit to Secretary General for file opening approval within 3 days of being received. III. Requests will be recorded on the AMLO receipt of information form by OSU and entered in to AMCAM case management system. 31 Secretary General may designate the Director of FIB or ICB. 52 AMLO Standard Operating Procedures and Guidelines for Analysis Section 5.3 Querying (Receiving and Responding to Queries) from Foreign Intelligence Units Policy Statement AMLO may make a query for information regarding money laundering or terrorist financing offence, from Foreign Financial Intelligence Units (FIU’s) under Memo of Understanding (MOU) arrangements or on a case by case basis at the discretion of the SG with countries that no MOU has been signed. AMLO will respond to all FIU queries (nil response or positively) when an MOU is in place with that country and on case by case basis at the discretion of the SG with countries who AMLO have not signed MOU’s. AMLO on a case by case basis will also accept requests from foreign law enforcement agencies on case by case basis at the discretion of the SG. AMLO will respond to all FIU or foreign law enforcement queries whether results are positive or nil results. All foreign requests or Egmont Secure Web Site (ESW) requests will be handled by the International Cooperation Bureau (ICB) Legislative Reference Section 40 AMLA provides authority for analyst’s to analyze and assess reports and other information Related Material • AMLO Security Policies • AMLO Policies for handling sensitive information • Procedures for receiving information from law enforcement, general public and foreign agencies • Analytical and Analysis approval processes; 53 AMLO Standard Operating Procedures and Guidelines for Analysis • AMLO Electronic Reporting System (AERS), AMLO Case Management System (AMCAM) procedures policies and procedures for opening cases and tracking • Preliminary Assessment of cases procedures • Check sheet form for processing ESW and Foreign Requests • Memorandum of Understandings with foreign jurisdictions • Standard Letter seeking Permission from Foreign FIU’s without MOU’s in Place to Disclose information to domestically • Standard Letter acknowledging receipt of information • Egmont Principles for Information Exchange General Principles: • AMLO have entered in MOU’s with foreign FIU’s and law enforcement agencies that provides the frame work for sharing of financial intelligence relating to money laundering and terrorist financing. • AMLO does accept other requests from foreign FIU’s and law enforcement agencies where no MOU’s exist which are handled on a case by case basis at the direction of the SG. • AMLO has the authority to request assistance from foreign FIU’s under the governance of existing terms of MOU’s • Requests for assistance shall be done in writing, either on paper or electronically utilizing the Egmont Secure Web Site (ESW). • As a member of the Egmont Group of Financial Intelligence Units, AMLO respects the Egmont “Principles for Information Exchange” as they are consistent with AMLA legislative frame work and signed MOU’s. • Dedicated computer in ICB is equipped to receiving information submitted by Foreign FIU’s through the ESW. The system is accessible only to designated members of the ICB. 54 AMLO Standard Operating Procedures and Guidelines for Analysis Procedure (1) Query a MOU Partner FIU32 1. Analyst working on a case may identify the need to query a foreign FIU if a link to a foreign country is identified. 2. The Analyst should refer to AMLO’s list of MOU’s that AMLO has in place to confirm that an MOU exists with the foreign country identified. 3. The Analyst must discuss this with the Team Leader or Director of FIB before query. Factors and considerations should include: I. The relevancy of the query to the case – will the anticipated response make a difference to the case; II. Timeliness – the urgency of the case; and, III. Sensitivity of the information – is the information to be provided with a caveated? The Analyst and Team Leader will draft a proposed statement that identifies the information to be provided in the query 4. The analyst with the assistance of the Team Leader will complete the FIU Query Form to be submitted for approval. 5. The Director of FIB will seek approval from the Secretary General for all proposed AMLO queries of an FIU partner. 6. Once query is approved, some or all of the information identified in the case maybe be supplied to the foreign FIU in accordance with the approval given by the Secretary General. 7. All approved queries will be communicated to MOU partner FIU in accordance with the terms of the MOU in place. 32 Refer to signed AMLO MOU’s with foreign FIU’s 55 AMLO Standard Operating Procedures and Guidelines for Analysis 8. All foreign FIU queries will be transmitted by the International Cooperation Bureau (ICB). The preferred method is via the Egmont Secure Web site (ESW). 9. ICB will only transmit what information has been approved by the Secretary General. ICB will maintain and update the lists of countries and FIU contact points for requests. 10. ICB with the support of FIB will draft a letter for approval by the Secretary General, requesting permission from the FIU to enable AMLO to transmit or disclose any information received to other law enforcement agencies in Thailand. 11.Queries may only be sent thorough the following means in accordance with MOU’s terms with other FIU’s : I. Egmont Secure Website (ESW) II. Secure fax III. Diplomatic bag – through Embassy channels 12. All foreign queries are recorded by the Analyst on AMCAM’s system 13. ICB will maintain records and statistics relating to number of foreign requests made monthly. Procedure (2) Processing Responses to an AMLO Query sent to an MOU FIU Partner 1. ICB will monitor the timeliness for receiving a response to the query by updating the applicable file information and will follow up with FIB 2. ICB will print out any negative or positive responses received from the MOU partner and provide to the Director of FIB who once approves will provide to the Team Leader or analyst who made request. 3. The analyst at the direction Team Leader, will assess the information and include information in analytical report in accordance with Analytical and Approval Process; 56 AMLO Standard Operating Procedures and Guidelines for Analysis 4. In the case of positive responses, ICB will make a note if the MOU partner FIU provided authorizations to further disclosures Procedure (3) Processing for Receiving (and Responding to) an FIU Query from an MOU FIU Partner 1. Queries from FIU’s are received by ICB through the Egmont Secure Web site (ESW) will be handled by ICB. 2. When ICB receive a query then a response will be send as soon as possible to acknowledge receipt of the query – refer to the AMLO FIU Query acknowledgment form (Appendix). This will be done without assessing the request. 3. ICB will be responsible for printing the request and entering the report in AMCAMS. 4. If a query from an FIU is received by a unit other than ICB or by email or mail, then the Director of ICB will determine the appropriate action to be taken regarding the request. 5. Once copied and entered in AMCAMS, the ICB will conduct analysis of the request based on the procedures Section 4.1 Preliminary Assessment, Case Assignment, and Responding to Requests. i. Considerations in addition to Section 4.1, for Foreign FIU requests : • Details about the case and target information provided in the request • Criminal charges have been laid against targets • Jurisdiction making request • Previous cases with requesting FIU • Does the request look like a “Fan out” to many FIU’s with no specific reference or information to indicate the targets association to Thailand 57 AMLO Standard Operating Procedures and Guidelines for Analysis 6. If FIU request has insufficient information to proceed with the case, the Director of ICB may direct : i. Analyst to prepare a request for further information from the foreign FIU; ii. Recommend the analysts close the case, prepare response to FIU that case has been closed unless further information is provided. 7. ICB will be responsible to monitor the progress and provide updates to the requesting Foreign FIU as required. 8. ICB will respond the results of the analysis according to AMLO form templates (refer to Appendix) : i. AMLO will provide information; ii. AMLO is not in the position to provide any information; iii. Information is not covered under the terms of the FIU so AMLO will not respond; 58 AMLO Standard Operating Procedures and Guidelines for Analysis Section 5.4 Preparing Analysis Report for Dissemination to External Agencies Policy Statement: Part of AMLO’s mandate is to provide financial intelligence to appropriate police agencies to detect, deter and prevent ML and FT activity. This includes providing financial intelligence to law enforcement agencies in timely manner, that is relevant, and that will assist supporting ML and FT investigations. In doing so, AMLO ensure that reports have a standardize structure to allow law enforcement to interpret reports easily. AMLO feedback processes allow law enforcement an opportunity to provide feedback on analytical reports. AMLO’s mandate is also to protect the personal information under its control. In executing its mandate, AMLO In providing this information must follow up with the appropriate security precautions in the delivery of intelligence reports to law enforcement. Legislative and Regulatory Reference 1. Anti-Money Laundering Act B.E. 2542 as amended by the Anti-Money Laundering Act(No. 2) 2. Ministerial Regulations B.E. 2543 under Anti-Money Laundering ActB.E. 2542 Related materials: • AMLO Intelligence Feedback Form • AMLO Receipt of Information Form • AMLO Security Policy • AMLO’s Analyst Case check list • Procedures for receiving information from law enforcement, general public and foreign agencies • AMLO Analytical and Analysis approval processes; 59 AMLO Standard Operating Procedures and Guidelines for Analysis General Principles & Procedures • AMLO Analytical reports provided to law enforcement will have standardize appearance • Once analysts have completed a case the analytical report and supporting documents will be submitted to the Director of FIB who will review for comment and approval. • Once approved, the reports will submit to Operational Support Unit (OSU) who will be responsible to coordinate submission of the report for the Secretary General’s approval. • Once approved, The Secretary General in consultation with the Director of FIB, will decide the appropriate law enforcement agency the analytical report will be provided to. The OSU will coordinate delivery of the intelligence package to the appropriate law enforcement agency. Procedure (1) Preparing Intelligence package for review by the Secretary General 1. The Operational Support unit will coordinate at the direction of the Director of FIB; submit the analytical report with request for approval to the Secretary General’s office for approval. 2. These reports for submitted for approval to Secretary General for dissemination to law enforcement agencies will be referred as AMLO Financial Intelligence Report that will have a standard format “look and feel” that includes reports as detailed within this Procedure. 60 AMLO Standard Operating Procedures and Guidelines for Analysis 3. All intelligence collected in the working file is to be considered to be included in each for AMLO Financial Intelligence Report. Guidelines and standard forms have been developed to assist the analysts to prepare a case for dissemination (Refer to Procedures Appendix’s). Analysts are to consult with Team Leader’s when preparing the case. 4. AMLO Financial Intelligence Report cases contents may vary depending on the circumstances. The Director of FIB and team leaders will work with the analysts to determine contents of AMLO Analysis Intelligence Report. 5. AMLO Financial Intelligence Report requirements for each case are detailed in Sections (1), (2), (3) and (6) below. Additional reports may also be contained in the AMLO Financial Intelligence Report package which analysts will considered on a case by case basis as directed by Team Leaders or the Director of FIB. 6. AMLO Financial Intelligence Report package to include: 1) Case Summary Analysts will prepared a narrative report that includes an overview of the case, contents of the analytical report, reason for suspicion i.e./ ML or FT indicators used to base findings and other pertinent information including the analyst’s name and who should be contacted if further information is required. This would include a summary of contents (index) of the case. 2) Fact Sheets –Individuals and Entities. 61 AMLO Standard Operating Procedures and Guidelines for Analysis Details of personal information on targets and persons, financial institutions and other businesses referred in the report or link charts. 3) Tables and details of Financial Transactions (excel spreadsheets) Financial transactions used in analysis from AMLO data based not including STR’s. 4) Link Charts (i2) Link Charts created by the analyst through (i2) system to show financial transactions, target relationships and other relevant information to for the analytical report. 5) Publicly Available or other Information Open source or other information that was used in analysis 6) Feedback form to be completed by recipients of intelligence Feedback form to be completed by agency receiving report. Evaluate intelligence provided and make further requests for assistance. Intelligence and transaction report information that Analysts are to consider to include in the analytical report Sections (1)-(6) above: Title/Category Title/Category Attempted transactions The number and types of reports on which a disclosure is based Expansion of conductor to include “any The number and categories of person or entity involved in transactions” persons or entities that made the or any person or entity acting on their reports behalf 62 AMLO Standard Operating Procedures and Guidelines for Analysis Name of each partner, director or The indicators relied upon by the officer of an “entity involved in Centre to justify a disclosure transactions” or of an entity acting on their behalf Address, electronic mail address and The telephone number of “any person telephone number of each partner, or entity involved in transactions” director or officer of an “entity involved in transactions” or of an entity acting on their behalf Whether a person or entity involved in The telephone number of the place of transactions or a person or entity acting on business where the transaction occurred their behalf has a criminal record or has had any criminal charges laid against them The relationships between any persons The type of account involved in a or entities involved in transactions or financial transaction persons or entities acting on their behalf and any other persons or entities Whether a person or entity involved in The name & address of all persons transactions or a person or entity acting on authorized to act in respect of account their behalf has a financial interest in the (signing authority, power of attorney, entity on whose behalf the transaction etc.) was made The person directing the money The type of report from which the laundering or terrorist financing information on the financial transaction is compiled The ML/FT indicators or other reasons on which basis a person or entity made a report on which a the report is based 63 AMLO Standard Operating Procedures and Guidelines for Analysis Procedure (2) Submitting AMLO Financial Intelligence Report package to Secretary General for approval 1. Once an analyst has prepared the intelligence package in consolation with the Team Leader, the case will be submitted to the Director of FIB for approval. The Team Leader will ensure that the report includes all the relevant information and required documents in line with Procedure (1). 2. The Director of FIB will make recommendations as to who would be the appropriate law enforcement agency to receive the package. This could be more than one law enforcement agency depending on the case and the location of the suspected FT and ML activity. 3. Once approved by the Director FIB, the case will then be submitted to the Secretary General for approval to be disseminated to the appropriate law enforcement agency. 4. The Operational Support Unit will be responsible for coordinating the delivery of intelligence reports to the Secretary General for approval. Procedure (3) Delivering AMLO Financial Intelligence Report package to Law Enforcement Agencies 1. Once approved the cases for dissemination, The Secretary General will decide the appropriate law enforcement agency and direct the method for delivering intelligence to law enforcement agencies. 64 AMLO Standard Operating Procedures and Guidelines for Analysis 2. Operational Support Unit (OSU) will be responsible for coordinating the delivery of intelligence reports to the appropriate law enforcement agency as directed by the Secretary General. 3. Before cases are disseminated the analysts will consult with Operational Support Unit to ensure that the entire case contents have been properly entered in AMCAMS. This will be approved by the Director of FID. 4. Approved Financial Intelligence Reports(as per Procedure 1) will include a letter from Secretary General of introduction to the case with instructions on feedback processes (Procedure 4) and the contact person at AMLO if the recipient investigating agency requires further information or clarification on the report contents follow reports (Form letter Appendix) 5. When possible, agencies will be invited to AMLO for presentations on analysis findings otherwise, preference will be that all cases are delivered by hand. Delivery of cases will be the responsibility of the OSU. 6. The Operational Support Unit will establish and maintain a list of point of contacts at key law enforcement agencies to facilitate delivery of AMLO analytical reports. 7. When possible analytical cases material and documents will be transferred to CD for sharing with law enforcement agencies. 8. Analysts should review to ensure that all information on the working file to ensure all information has been included in the Financial Intelligence Report. 65 AMLO Standard Operating Procedures and Guidelines for Analysis Procedure (4) Feedback from Law Enforcement Agencies on AMLO Analysis Intelligence Report 1. Approved AMLO Financial Intelligence Reports (as per Procedure 1) will include a letter from Secretary General of introduction to the case with instructions on feedback processes. 2. Operational Support Unit (OSU) will ensure that point of contacts at key law enforcement agencies (Procedure 3) are aware of feedback processes. The OSU will ensure that the AMLO feedback form is included in each AMLO Financial Intelligence Report package with instructions as to how to complete and submit the feedback report to AMLO. 3. Operational Support Unit will follow-up within 30 days on each AMLO Financial Intelligence Report with the recipient investigating law enforcement agency to ensure feedback forms are completed on each case. Agencies will be encouraged to provide feedback in writing, when possible hand delivered to AMLO. OSU will liaise with law enforcement agencies POC’s to develop the most appropriate process for transmitting of feedback forms to AMLO that are in line with security policies for transmission of sensitive material. 4. Feedback forms received will be recorded by OSU (Procedure 5) and submitted to Secretary General for review to be forwarded to the Director of FIB for action if required. 66 AMLO Standard Operating Procedures and Guidelines for Analysis Procedure (5) Statistics collection - AMLO Analytical Intelligence Reports 1. The Operational Support Unit will be responsible to collect statistics for outgoing AMLO Financial Intelligence Reports and feedback from law enforcement. OSU will undertake this responsibility with the support of FIB and analysts who prepared analytical report. 2. Statistical data to be collected for AMLO Financial Intelligence Reports to include: • total number of reports provided to law enforcement • law enforcement agencies who received reports • total number of cases generated by STR (pro- active) • total number of cases generated by LEA requests • types of financial transactions in report • total number of transactions in report • total value of the transactions • total number of targets and businesses • total number and types of financial institutions referred to in report • location of suspected ML or FT activity • suspected activity in the report related to ML or FT offences • Feedback received (positive or negative) and agencies who submitted feedback. 3. Operational Support Unit will provide a summary of statistical reports on AMLO Analysis Analytical Reports to Secretary General and the Director of FIB every 60 days which will include the information detailed in Para. 2 above. 67 AMLO Standard Operating Procedures and Guidelines for Analysis Section 5.5 Record Keeping of AMLO Financial Intelligence Reports Policy Statement The Working File folder packages information, on paper, relating to a specific AMLO Financial Intelligence Report, or supporting documentation and the preliminary cases not pursued are to be stored in accordance with AMLO security polices for handling of sensitive information. This includes electronic files relied upon to complete the analysis which includes financial transaction records. Proper procedures for storage of material are required. Legislative and Regulatory Reference 1) Anti-Money Laundering Act B.E. 2542 as amended by the Anti-Money Laundering Act (No.2 to No.4) 2) Ministerial Regulations B.E. 2543 under Anti-Money Laundering Act B.E.2542 AMLO is required under the provisions of the legal authorities and government policies to retain Financial Intelligence Reports and working file for a minimum of 10 years. (Actually AMLO prefers to retain WF forever by scanning them into Server) Related materials: • AMLO Security Policy • AMLO’s Analyst Case check list • AMLO Analytical and Analysis processes; General Guidelines: • The working file folder facilitates the organization and execution of the Analyst’ work to prepare intelligence reports for dissemination to law enforcement. If the case is not pursued, it supports the Preliminary Case Analysis and retaining a record of that work. 68 AMLO Standard Operating Procedures and Guidelines for Analysis • The working file folder includes the source of documentation, the relevant results of the procedures performed, the results of the analysis, and the conclusions reached in the analysis of the case. • The Analyst’s is responsibility to assure that all the appropriate electronic documentation has been appended (printed) to the working file for reference. • Analysts are responsible to ensure all information is secured in accordance to AMLO security policies relating to handling of sensitive information. • Once a file is concluded as approved by the Director of FIB or ICB, Analysts will provide the working file to the Operational Support Unit who will record statistical information from the file. • Analysts will ensure that all information has been loaded in the AMLO Case Management system in accordance with AMLO data entry policies. Procedure (1) Working File Folder Content (Analyst) 1) According to AMLO security policies and procedures, working file will be created and identified by security classification. Analysts will handle file in accordance with these policies. 2) Analyst working files consists of (not limited to): a. Case originator number b. Narrative on Analyst action taken on the file. c. Copies of all correspondence generated by the file i. Copy of original request from LEA ii. outgoing written acknowledgements by AMLO to LEA’s iii. requests to outside agencies for data base checks 69 AMLO Standard Operating Procedures and Guidelines for Analysis d. WF – Case Summary and Rational for Disclosure form (ML or FT indicators) e. WF- Fact sheets on Targets f. WF- Transactions tables collected from data bases g. WF–i2 charts h. WF- Open source information i. WF- Information provided by foreign FIU’s j. Final AMLO Financial Intelligence Report k. Other information relied upon by the analyst to develop the case 3) Running diary dates entries will be captured in the working file to track the progress of the case. Team leaders will monitor the progress of analyst’s file in line time lines as prescribed by AMLO policies and procedures. Procedure (2) Filing the Working File for records (Operational Support) 1. Working file folder where cases did not result in an AMLO Financial Intelligence Report for authorities: • The working file to be reviewed by Team Leader and information removed that is not required. Correspondence is destroyed by the Analysts. • Once the file has been review, the case is provided to Operation Support Unit for statistically collection and then the file is stored in accordance with AMLO policies 2. Working file folder where cases did result in a AMLO Financial Intelligence Report for authorities: • Work file is label in accordance with AMLO’s file systems 70 AMLO Standard Operating Procedures and Guidelines for Analysis • Copies of working file, the AMLO Financial Intelligence Report and other related correspondence (including CD with copies of reports) including letters from AMLO to be filed for future reference. • Complete file to be stored in accordance with AMLO file storage and security policies. • Once the file has been review, the case is provided to Operation Support Unit for statistically collection in accordance with AMLO policies. • Operational Support Unit will take completed file to be stored in accordance with AMLO file storage and security policies. File should be easily accessible in case additional inquiries are received about the case. 71 AMLO Standard Operating Procedures and Guidelines for Analysis APPENDIX 1. AMLO Operational forms to support Analysis: i. Receipt of Information form ii. Standard AMLO Letter acknowledging receipt of information iii. Summary and Rational for Disclosure form (ML or FT indicators) iv. Operational Check Sheet for Analytical procedures for Domestic cases v. Fact Sheets Template vi. Form Letter seeking Permission from Foreign FIU’s without MOU’s to disclose information to domestic law enforcement agencies vii. Operational Check Sheet for Analytical procedures for Foreign FIU Query – In coming requests viii. Acknowledge of receipt to Foreign FIU Query ix. Responding to FIU Query – information to be provided (Example) x. Law Enforcement Feedback Form xi. Statistics template 2. AMLO Financial Intelligence Report package (Example) 3. Anti- Money Laundering Act (AMLA) 4. Financing Of Terrorism Act (FOT) 5. Thailand’s 5 year AML/CFT National Strategy (2010-2015) 6. Egmont ML / FT Indicators 72 AMLO Standard Operating Procedures and Guidelines for Analysis 7. Egmont Principles for Exchange of Information 8. FATF ML/FT Indicators 9. List of MOU’s with Foreign FIU’s 10. Training Material i. ML Techniques ii. FT Concepts iii. Financial analysis and investigations techniques iv. Open source analysis techniques v. FATF 40 + 9 Methodology – Rec 26 - FIU core functions (Analysis) 11. AMLO Security Policies and Procedures 12. AMLO Data Bases – Guidelines and Procedures 73
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