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Guatemala is not considered a regional financial center. It continues to be a transshipment route for South American cocaine and heroin destined for the United States and for returning cash to South America. Open source reports suggest that the narcotics trade is increasingly linked to arms trafficking.
Historically weak law enforcement and judiciary systems coupled with endemic corruption and increasing organized crime activity contribute to a favorable climate for significant money laundering in Guatemala. According to law enforcement agencies, narcotics trafficking and corruption are the primary sources of money laundered in Guatemala; however, the laundering of proceeds from other illicit activities, such as human trafficking, contraband, kidnapping, tax evasion, and vehicle theft, is substantial.
There is no indication of terrorist financing activities. The Central America Four Agreement between El Salvador, Guatemala, Honduras, and Nicaragua allows for free movement of the citizens of these countries across their respective borders without passing through immigration or customs inspection. As such, the agreement represents a vulnerability to each country for the cross-border movement of contraband and illicit proceeds of crime. There are free trade zones operating in the country. There are no reported hawala or other similar alternative remittance systems operating in Guatemala.
A significant number of remittances are transferred through banks and appear to pose little risk for money laundering. Do financial institutions engage in currency transactions related to international narcotics trafficking that include significant amounts of US currency; currency derived from illegal sales in the U.
UN lists of designated terrorists or terrorist entities distributed to financial institutions: Banks; finance and leasing companies; credit card cooperatives, issuers, or payment agents; stock brokers; insurance companies; money remitters and exchanges; pawnbrokers; notaries and accountants; tax advisors and lawyers; casinos, raffles and games of chance; dealers in motor vehicles, precious metals and stones, and art and antiquities; and real estate agents.
Enhanced due diligence procedures for PEPs: Its most recent mutual evaluation can be found here: There are relatively few convictions for money laundering, most of which are for the illegal transport of cash. The number of staff at the FIU and the capacity of law enforcement officials may hamper the ability of the authorities to prosecute more cases. Former President Alfonso Portillo was indicted in the United States in December with one count of conspiracy to commit money laundering.
Both a Guatemalan trial and appellate court have approved his extradition to the United States and the case is currently on appeal before the Guatemalan Supreme Court.
A new law regarding asset seizures, passed wholesale trade agents and brokers definition of terrorism Congress in Decemberwill take effect in June and allows Guatemalan authorities to seize cash in structuring transactions and transfer it to the state without first having to obtain a criminal conviction against the courier. The same law will also prevent new businesses from issuing bearer shares of stock.
The law requires any existing business with bearer shares to convert the shares to nominative by Junebut it is not clear what the consequences will be for failure to do so. In October, Guatemalan monetary authorities approved a regulation to establish limits for cash transactions in foreign currency to reduce money laundering and terrorism financing risks.
Casinos are not legal in Guatemala, however, a number of casinos, games of chance and video lotteries operate, both onshore and offshore. There is no regulatory oversight or legal framework for casino operation, although they are listed as covered entities under the AML law. Attempts by the government to enforce requirements are not successful. Unsupervised gaming activity represents a significant money laundering risk.
Alderney and Sark have their own separate parliaments and civil law systems. The Bailiwick is a sophisticated financial center and, as such, it continues to be vulnerable to money laundering. All serious crimes approach. All financial services businesses; lawyers, accountants and estate agents; and eGambling services.
The Bailiwick has been actively involved in the provision of formal mutual legal assistance for many years. The authorities consider themselves able to provide assistance without the need to enter into mutual legal assistance treaties, and this has enabled compliance with requests from a wide range of jurisdictions, including the US, using the full range of investigatory powers in the law.
Money laundering and the financing of terrorism are criminalized fully in line with the FATF standard and the legal framework provides an ability to freeze and confiscate assets in appropriate circumstances. While no shortcomings have been identified in the legal framework, concerns remain with respect to the implementation of the money laundering provisions.
Guernsey is a Crown Dependency and cannot sign or ratify international conventions in its own right unless entrusted to do so. The Government of Guinea-Bissau is not in full wholesale trade agents and brokers definition of terrorism with international conventions against money laundering and terrorist financing because of inadequate resources, weak border controls, and competing national priorities.
Of all West African countries, none has been so thoroughly penetrated and corrupted by Latin American drug cartels as Guinea-Bissau. Drug barons from Latin America and their collaborators from the region and other parts of the world have taken advantage of the extreme poverty, unemployment, political instability, lack of effective customs and law enforcement, and general insecurity to make the country a major transit point for cocaine destined to consumer markets, mainly in Europe.
One of the poorest countries in the world, the value of the illicit narcotics trade in Guinea-Bissau is much greater than its national income. Wholesale trade agents and brokers definition of terrorism threats wholesale trade agents and brokers definition of terrorism bribes, drug traffickers infiltrate state structures and operate with impunity. In April,the United States Treasury froze the assets of two top Guinea-Bissau military officers and designated them as major drug kingpins.
Article 26 of National Assembly Resolution No. Although the law establishes asset forfeiture authorities and provides for the sharing of confiscated assets, a lack of coordination mechanisms to seize assets and facilitate requests for cooperation in freezing and confiscation from other countries hampers cooperation. The government needs urgent help to restore sovereignty, administer justice and regain wholesale trade agents and brokers definition of terrorism of its borders.
It should also amend its terrorist financing law to comport with international standards. It should work to improve the training and capacity of its police and judiciary to combat financial crimes.
Guinea-Bissau should undertake efforts to eradicate systemic corruption. International donors reacted to the Haitian wholesale trade agents and brokers definition of terrorism, tropical storms and cholera epidemic of by pumping much-needed currency and investments for disaster relief and reconstruction into the country.
The earthquake impacted all aspects of Haitian life including ripple effects in the banking, commercial and criminal justice institutions. Despite improving financial intelligence and enforcement capacity, the weakness of the Haitian judicial system and prosecutorial mechanism continues wholesale trade agents and brokers definition of terrorism leave the country vulnerable to corruption and money laundering.
Haitian organized crime groups are engaged in drug trafficking and other criminal and fraudulent activity, but do not appear to be involved in terrorist financing. Haiti is the poorest country in the Western Hemisphere and relies heavily on remittances from the large expatriate Haitian community.
Banks and non-bank financial institutions including casinos and money remittance institutions. Haiti suffered a devastating earthquake on January 12, which destroyed 28 of 29 Haitian ministry buildings and the Presidential Palace.
In addition, an outbreak of cholera, floods and a contested Presidential election were all contributing factors slowing, but not stopping, the activities of the key institutions involved in financial intelligence, anti-money laundering enforcement, and asset forfeiture and seizure. The Government of Haiti GOH remains hampered by ineffectual and outdated criminal and criminal procedural codes, and by the inability of judges and courts to address cases referred for wholesale trade agents and brokers definition of terrorism. A Presidential commission has drafted new criminal and criminal procedural codes that require parliamentary approval.
The anti-terrorist legislation drafted and submitted to Parliament wholesale trade agents and brokers definition of terrorism also awaiting Parliamentary approval. The UCREF also lost office space as a result of the earthquake and, together with a few other law enforcement agencies, has relocated to a building confiscated from a Colombian drug dealer.
The UCREF is making plans to review casino operations in Haiti and ensure that casinos are properly licensed and are made aware of their responsibilities as defined in the GOH anti-money laundering legislation. BAFE, a unit within the Haitian National Police continues to work closely with the DEA to seize and confiscate properties owned by convicted drug traffickers serving prison sentences in the United States.
Hong Kong does not differentiate between offshore and onshore entities for licensing and supervisory purposes. The primary sources of laundered funds in Hong Kong are corruption, tax evasion, fraud, illegal gambling and bookmaking, prostitution, loan sharking, commercial crimes, and intellectual property rights infringement.
Criminal proceeds laundered in Hong Kong are derived from local and overseas criminal activities, but Hong Kong law enforcement authorities attribute only a small percentage of these laundered funds to drug-trafficking organizations. Do financial institutions engage in currency transactions related to international narcotics trafficking that include significant amounts of U. Banks, securities and insurance entities, and money exchangers.
All persons, irrespective of entity or amount of transaction involved. Cooperation includes wholesale trade agents and brokers definition of terrorism investigative efforts, information exchange, training, and extraditions. In Octoberthe Government of Hong Kong introduced to wholesale trade agents and brokers definition of terrorism legislature a draft bill that, if passed, would provide statutory backing to existing financial regulatory wholesale trade agents and brokers definition of terrorism, provide for administrative and criminal sanctions authority, and establish a regulatory regime for money changers.
In Aprilthe Government of Hong Kong initiated a study to evaluate the implementation of a cross-border currency reporting system. Hong Kong still needs to institute mandatory oversight for designated non-financial businesses and professions, and implement mandatory cross-border currency reporting requirements, both potential loopholes for money launderers and terrorist financiers.
As a major trading hub, Hong Kong should also closely examine trade-based money laundering. Tax avoidance and the proceeds of economic crimes including fraud, cyber crime and identity theft are still the mainstay of money launderers in India, but laundered funds are also derived from human and narcotics trafficking, transnational organized crime, illegal trade, particularly in endangered wildlife and illegal gems principally diamondsand corruption.
India also faces an increasing inflow of high-quality counterfeit currency, which is produced primarily in Pakistan but smuggled to India through multiple international routes. Criminal networks exchange counterfeit currency for genuine notes, which not only facilitates money laundering, but also represents a threat wholesale trade agents and brokers definition of terrorism the Indian economy. Additionally, India is a major producer of licit acetic anhydride, the precursor chemical required to convert morphine base into heroin, making producers susceptible to abuse by illicit networks.
India is also a significant target for terrorist groups, both wholesale trade agents and brokers definition of terrorism and domestic. Most terrorist activities are conducted by international terrorist groups and entities linked to the global jihad, with the support of both state and non-state external actors. In addition, several domestic separatist and insurgent groups are active. Terrorist groups often use counterfeit currency and hawaladars, as well as physical cross-border currency smuggling, to move funds wholesale trade agents and brokers definition of terrorism external sources to finance their activities in India.
The OBUs are prohibited from engaging in cash transactions and are restricted to lending to the SEZ wholesale commercial sector. Although located in India, OBUs essentially function like foreign branches of Indian banks, but with defined physical boundaries and functional limits.
SEZs were established to promote export-oriented commercial businesses, including manufacturing, trading and services mostly information technologyand access is controlled by Customs officers.
Banks and merchant banks; insurance companies; housing and non-banking finance companies; casinos; payment system operators; authorized money changers and remitters; chit fund companies; charitable trusts that include temples, churches and non-profit organizations; intermediaries; stock brokers; sub-brokers; share transfer agents; trustees, underwriters, portfolio managers and custodians; investment advisors; depositories and depository participants; foreign institutional investors; credit rating agencies; venture capital funds; collective schemes including mutual wholesale trade agents and brokers definition of terrorism and the post office.
Enhanced due diligence procedures PEPs: Its most recent mutual evaluation is available here:. The Government of India GOI should ensure reporting entities fully implement appropriate due diligence procedures, to include both computerized tracking systems and active engagement by trained frontline personnel.
The GOI should also emphasize the importance of human intervention and analysis in terrorist financing cases, as the varied profiles of these cases may not trigger an automated report. The GOI issued circulars requiring financial institutions to examine more closely transactions involving higher risk jurisdictions. The circular requires that written reports be available to competent authorities and auditors.
The GOI has taken action against certain hawala activities, but its successes generally stem from prosecuting legitimate businesses that conduct hawala transactions on the side. Hawaladars operating entirely outside of the formal economy are difficult to trace, and provide money launderers and terrorist organizations ready access to an extensive but unmonitored network in India.
However, the GOI no longer criminalizes operating a money transfer business without a license. The remaining administrative penalties do not serve as a sufficient deterrent to those engaged in criminal activity. The GOI should re-criminalize operating without a license. The GOI should also facilitate the development of alternative money transfer services, including mobile banking.
The GOI should press for presidential approval to implement the Foreign Contribution Regulation Actwhich would extend foreign contribution reporting requirements to any non-profit organization that has a political, cultural, economic, educational or social focus and automate notification of suspicious transactions to the FIU.