The Egmont Group International Cooperation

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The Egmont GroupInternational Cooperation
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Overview

• Overview
• The Egmont Group
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• Money laundering and financing of terrorism are
• truly transnational. Countering them requires
• effective international cooperative effort.
• Following the money trail is vital and this
  strategy
• has been extremely successful in identifying the
• finances and financiers of crime and terrorism.
• The world's leaders have publicly recognised the
• need to find the money trail in countering
  serious
• crimes, including money laundering, and
  terrorism.

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Origins of the Egmont Group
The Egmont Group

• A group of FIUs met for the first time in
  June1995 at the Egmont-Arenberg Palace, Brussels,
  Belgium.
• Provides a forum for FIUs to improve support to
  their respective national anti-money laundering
  programs.

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The Egmont Group
Definition of an FIU The Egmont Group of
Financial Intelligence Units adopted the
following definition of an FIU in November 1996
that was amended in 2004

• A central, national agency responsible for
  receiving, (and as permitted, requesting),
  analysing and disseminating to the competent
  authorities, disclosures of financial
  information
• concerning suspected proceeds of crime and
  potential financing of terrorism,
• or
• required by national legislation or regulation
• in order to combat money laundering and terrorism
  financing.

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The Egmont Group

• Purpose of the Egmont Group
• Expand and systematize international cooperation
  in the reciprocal exchange of financial
  intelligence information
• Foster better communication among FIUs and share
  expertise
• Identify existing and emerging counterpart
  agencies
• To offer training to increase the effectiveness
  of FIUs
• To increase the application of technology

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The Egmont Group
The Egmont Group
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Principles of information exchange
Principles of information exchange
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Principles of information exchange

• Egmont principles of information exchange
• General framework
• Conditions for the exchange of information
• Use of information
• Confidentiality

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Principles of information exchange

• General framework
• International cooperation between FIUs should be
  encouraged
• FIUs should take steps to seek information that
  will assist law enforcement agencies or financial
  supervisory agencies
• FIUs should work to encourage standards and laws
  that do not inhibit the exchange of information
  between FIUs
• Information sharing arrangements must recognise
  and allow for room for case-by-case solutions to
  specific problems

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Principles of information exchange

• Conditions for the exchange of information
• FIUs should be able to exchange information
  freely with other FIUs on the basis of
  reciprocity or mutual agreement
• An FIU requesting information should disclose the
  reason for the request and the purpose for which
  the information will be used

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Principles of information exchange

• Use of information
• Information exchanged between FIUs may be used
  only for the specific purpose for which the
  information was sought or provided
• The requesting FIU may not transfer information
  shared by a disclosing FIU to a third party
  without the prior consent of the FIU that
  disclosed the information

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Principles of information exchange

• Confidentiality
• All information exchanged by FIUs must be
  subjected to strict control and safeguards to
  ensure that the information is used only in an
  authorized manner
• At a minimum, all exchanged information must be
  treated as protected by the same confidentiality
  provisions that apply to the receiving FIUs
  domestic sources

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Principles of information exchange

• Limits to exchange information
• Information to be shared between FIUs only
• Authorisation from FIU giving information is
  required if information is to be used for another
  purpose
• Limits established by national legislation
• Confidentiality
• No obligation to exchange information when the
  matter is under a judicial process

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Memorandums of Understanding

• Memorandum of Understanding
• Definition
• A Memorandum of Understanding (MOU) is
• an informal agreement between FIUs on a national
  legislation basis

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Memorandums of Understanding

• Purpose
• The purpose of an MOU is to allow the exchange of
  information in relation to money laundering and
  terrorism financing
• An MOU ensures that both parties agree to abide
  by the Egmont Principles

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Becoming an Egmont member
Becoming an Egmont member
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Becoming an Egmont member

• Benefits of becoming an Egmont Member
• FIUs are the decision makers within the Egmont
  Group
• FIUs participate in the activities of the working
  groups and design the ways we operate and
  cooperate
• FIUs may participate in Egmont Group sponsored
  training

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Becoming an Egmont member

• Benefits of becoming an Egmont Member (cont.)
• Increased cooperation and intelligence sharing
  with other FIUs
• Access to information and advice from other FIUs
• Meets FATF Recommendation 26 and other FATF
  requirements
• Egmont FIUs have access to the Egmont Secure Web
  (ESW) for exchange of intelligence

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Becoming an Egmont member

• Admission requirements
• Meet the Egmont Definition
• Fully operational as an FIU
• Legal basis and willingness to cooperative with
  counterpart FIUs
• Sponsor FIUs
• Requirements in terms of Terrorism Financing

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Becoming an Egmont member

• Admission procedure
• Initial monitoring phase
• 2. Preparation of onsite visit
• Onsite visit
• Following onsite visit
• Discussion within the WGs
• Consultation between OWG LWG
• Recommendation to Heads
• Commitment in writing

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• Admission procedure (cont)
• Initial monitoring phase
• Identify FIU that might meet the Egmont
  definition
• Identify sponsor FIUs that will initiate
  monitoring phase.

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• Admission procedure (cont)
• 2. Preparation of onsite visit
• Inform OWG of (final) on-site visit date to
  confirm operational status
• Forward legislation to OWG
• OWG forwards legislation to LWG
• LWG sends questionnaire to applicant and relevant
  documents. LWG opinion forwarded to sponsor in
  preparation of onsite visit.

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• Admission procedure (cont)
• 3. Onsite visit
• Discuss operational issues. Finalise ansders to
  LWG questionnaire and clarify issues raised by
  LWG.

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• Admission procedure (cont)
• 4. Following on site visit
• Preparation of onsite visit report
• FIU submits LWG questionnaire to EGS
• EGS develops a comprehensive information package
  concerning candidate that includes
• OWG onsite assessment report
• Completed LWG questionnaire
• All relevant legislation and other supporting
  documents.

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• Admission procedure (cont)
• 5. Discussion with the WGs
• OWG LWG discuss candidates application and the
  sponsors findings.

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• Admission procedure (cont)
• 6. Consultation between OWG LWG
• Consult regarding concerns and seek clarification
  where necessary.
• Make recommendation to Heads if both WG reach
  ositive conclusion.

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• Admission procedure (cont)
• 7. Recommendation to Heads
• LWG makes final recommendation to Heads during
  annual Plenary meeting.

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• Admission procedure (cont)
• 8. Commitment in writing
• If Heads endorse membership, membership is
  effective upon committing in writing to the
  Egmont Charter.

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Egmont Group members
Becoming an Egmont member
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Thank YouQuestions ?