Your data for transparency and legality

Similar documents
Preventing organised crime infiltration in retail

The role of BO registers in the fight against ML/TF

The investments of organised crime across Europe

THE INVESTMENTS OF ORGANISED CRIME ACROSS EUROPE

Project BOWNET - Identifying the beneficial owner of legal entities in the fight against money laundering Presentation of the final results

Organized Crime Portfolio Project Key Findings

Can data on criminal assets speak about the investments of criminal organisations?

How does serious organised crime hurt legitimate business and society? Data from EU funded Transcrime project (OCP)

Proposal for an experimental model of governance of confiscated companies. Ideas for the discussion.

Executive Summary. Risk factors. Objectives and methodology

the spin-off company of

Ministry of the Interior

José Lopes da Mota Deputy Prosecutor General Former President of Eurojust

IPA 2013 Western Balkans

SDG 16 and Target 16.4: Scope and Consequences for the ATT

Safeguarding EU funds against fraud & corruption. Jana Mittermaier, Director TI EU Office, Brussels

WORKING PAPER OF FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITIES ON THE HANDLING OF ACCOUNTS LINKED TO POLITICALLY EXPOSED PERSONS PEPs

COMMISSION OF THE EUROPEAN COMMUNITIES INTERIM REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

SWITZERLAND BENEFICIAL OWNERSHIP TRANSPARENCY

CORRUPTION. A Reference Guide and Information Note. on the use of the FATF Recommendations. to support the fight against Corruption

Eurojust s Casework in Asset Recovery at a Glance

Conference of the States Parties to the United Nations Convention against Corruption

Anti-Money Laundering Awareness Training Insurance Industry-Hong Kong

INTERNATIONAL COOPERATION IN THE FIELD OF CONFISCATION AND RECOVERY OF CRIMINAL ASSETS: TOOLS AND INSTRUMENTS

Italy Asset Recovery Action Plan Implementation Road Map 2013

Hidden Business Risks in Russia June 16, 2016

Dr.sc. Mario ANTINUCCI

INTERNATIONAL COOPERATION IN THE FIELD OF CONFISCATION AND RECOVERY OF CRIMINAL ASSETS: TOOLS AND INSTRUMENTS

Risk and Regulation Anti-corruption. Corruption prevention in the Engineering & Construction industry

Council of Europe COMMITTEE OF MINISTERS

Financial Crime Governance, Risk and Compliance Fund Managers & Fund Administrators. Thematic Review 2017

JIT GUIDELINES ON THE USE OF JOINT INVESTIGATION TEAMS THB WB. Co-funded by the Prevention of and Fight against Crime Programme of the European Union

Anti-Corruption. Will increased international cooperation stem corruption?

Anti-Money Laundering - A Practical Guide 27th September Doug Hopton Director DTH Associates Limited

David Oliver Senior Manager Compliance

Report on cooperation challenges faced by the Court with respect to financial investigations. Workshop October 2015, The Hague, Netherlands

Anti-Bribery and Corruption Policy

The European Investment Bank. Lessons learnt and challenges on transparency and accountability. Xavier Sol 16/10/2017

Measuring organised crime infiltration in legal businesses

FATF Mutual Evaluation of Ireland 2017

Money Laundering in the Trinidad & Tobago Securities Sector

STEP CERTIFICATE IN ANTI-MONEY LAUNDERING. Syllabus

Anti- Money Laundering & Combating Financing of Terrorism. Training for Insurance Agents By Joseph Owuor

Improving Global AML/CFT Compliance: Ongoing Process - 19 October 2018

Anti-Bribery and Corruption Policy. Viva Energy Group Limited (ACN )

The Protocol to Eliminate Illicit Trade in Tobacco Products: an overview

ECGS COMMENTS ON THE DIRECTIVE FOR BETTER SHAREHOLDER RIGHTS

COMMENT ON THE DIRECTIVE FOR BETTER SHAREHOLDERS RIGHTS

I. INSTITUTIONAL BUILDING / NATIONAL ANTI-DRUG STRATEGY

Canada-South Africa Chamber of Business The Risk Mitigation & CSR Services Series Tuesday October 1 st, London

Anti-Corruption and Bribery Policy

Anti-corruption and compliance in Russia

Addressing Vehicle Cloning

Member States capabilities in fighting tax crimes

Annual Media Conference, 7 April 2016

9 th MEETING OF THE EU ASSET RECOVERY OFFICES' PLATFORM (LJUBLJANA, JUNE 2014, Hotel Lev, Vosnjakova Ulica 1, Karantanija Hall) 26 June 2014

The Criminal Finances Act 2017: The Six Guiding Principles to Inform Prevention Procedures

Eva Rossidou Papakyriacou Senior Counsel of the Republic Head of the Unit for Combating Money Laundering (MOKAS)

MAPPING THE RISK OF SERIOUS AND ORGANISED CRIME INFILTRATION IN EUROPE

Practical Implementation of UN Standards and Financial Action Task Force on Money Laundering (FATF) Recommendations: Challenges and Assistance

Anti-Bribery and Anti-Corruption Policy

The Kremlin Playbook II

topic: Introduce of BAK, current cases of BAK and the main - problems of corruption/economic - investigations (for an European/Austrian investigator)

The Hague, 11 December 2014 REPORT

Anti-Corruption Enforcement and Defense in the EU

Embedding resilience Anti-bribery and corruption briefing

G20 High-Level Principles on Beneficial Owner Transparency (SPAIN)

Case Study Overview and Analysis of the UK Bribery Act Professor Rob McCusker Transnational Crime Analyst

Anti-Money Laundering Training Seminar for Prosecutors, Public Legal Sector, Judges, Magistrates and Registries

- PACS - Project Anti-Corruption System. (Construction Projects) Template 4. Disclosure Assessment Guide

WHL ANTI-BRIBERY, CORRUPTION AND SANCTIONS POLICY

MONEYVAL Jersey Report Industry Briefing. 08 June 2016

Conference of the States Parties to the United Nations Convention against Corruption

The latest threats; Which types organizations are most at risk; How to fight back against these crimes.

Govern d Andorra Missió Permanent del Principat d Andorra a l OSCE NOTE VERBALE

THE PROBLEM OF LAUNDERING MONEY OBTAINED BY CRIMINAL OFFENCES ON THE BALKAN ROUTE

UK Department for Business Discussion Paper

Industry Perspective - Illicit Tobacco Trade and How to Tackle It. WCO Knowledge Academy Brussels 3 July 2014

Preconference IV: Is Brazil the Next Hot Spot?

AC NOTE FICA. What FICA governs and requires

ANTI BRIBERY AND CORRUPTION POLICY

KUWAIT TURKISH PARTICIPATION BANK INC. SUMMARY OF ANTI MONEY LAUNDERING AND COMBATING FINANCE OF TERRORISM POLICY

Subject ANTI BRIBERY POLICY Section POLICY STATEMENT Sponsor CHIEF LEGAL OFFICER

This course is presented in London on: March 2018, October The Banking and Corporate Finance Training Specialist

Anti-Bribery and Corruption Policy

Recent Amendments to Anti-Money Laundering Laws in Switzerland

Pareto Meeting. Best practice for NHY bonds on identification and flagging of corruption issues" Richard Sjøqvist and Finn Bjørnstad.

Payments to third parties for referral / assistance in winning and retaining clients

Anti-Bribery and Anti-Corruption Policy

THE THE COMBATING OF MONEY LAUNDERING CONFERENCE

NOTICE TO BANKS MONETARY AUTHORITY OF SINGAPORE ACT, CAP. 186

Anti Money Laundering - The road to effectiveness. Thursday, 29 November 2012 Reykjavik, Iceland Special Adviser RUNE GRUNDEKJØN

ANTI MONEY LAUNDERING (AML) POLICY

Performance budgeting and efficiency. Helmer Vossers Ministry of Finance The Netherlands June 9th 2008

Emmi UK Ltd - Tax Evasion Facilitation Prevention Policy Version 1 - Issued July 2018

EXECUTIVE SUMMARY. 4. Individuals and groups seeking to

ANTI -MONEYLAUNDERING

First I would like to extent a sincere thank you the organizers of this conference. The topic is

NEW LEGISLATION FRAMEWORKS IN ASSET RECOVERY

CONFISCATION OF CRIMINAL PROCEEDS IN THE EUROPEAN UNION CRIMINAL LAW

Transcription:

ECRF 2014 CONFERENCE Rome, June 4-5, 2014 Your data for transparency and legality Michele Riccardi michele.riccardi@unicatt.it Università Cattolica Sacro Cuore - Milan (Italy) Transcrime Joint Research Centre on Transnational Crime www.transcrime.it

2 An ordinary tale of illegality Colosseo Ltd is a public construction company Managers of Colosseo Ltd are found to pay a bribe to the local government for getting a public contract Investigators find out that shareholders of Colosseo Ltd are linked with some Mafia groups The prosecutor is able to prove this Mafia connection during the criminal proceeding Colosseo Ltd is then confiscated according to the national legislation The relevant national agency has to find the best management/disposal plan for the confiscated company And the (new) local government asks to prevent new Colosseo cases: how can risky companies be identified before crimes occur?

And the role played by business registers In all the scenes of Colosseo Ltd story, business registers play a crucial role, as they help to answer key questions: During the investigation: who is behind Colosseo Ltd? In the criminal proceeding: which official document is needed as legal evidence of Colosseo Ltd s connection with Mafia members? In the management of the company once confiscated: Is Colosseo profitable? Is it able to survive on the legal market? Who are the competitors? In the risk assessment exercise: Which are the risky business areas where the monitoring must be strentghened in order to prevent other Colosseo Ltd cases? 3

4 How can business registers become even better actors? However, to become main stars of the story, business registers could still improve certain skills: Information on administrators and owners Timeliness, completeness and reliability of data Access to official and certified documents Systems allowing cross-border queries More user-friendly access (e.g. avoiding credit cards) Links to other sources of information (e.g. media, freezing lists) Data on peers and competitors Aggregate statistics (see also Bownet project findings www.bownet.eu)

Business registers and risk assessment tools But what could help business registers win the Oscar Academy Awards? The biggest challenge is finding out how they could contribute to the development of powerful risk assessment tools Risk assessment - on the top of the political agenda: - when talking about money laundering - when talking about corruption - when talking about customer due diligence activity of banks and other intermediaries - when talking about security of the supply-chain of private companies 5

An example: assessing the risk of Mafia infiltration among Italian companies Which business areas in Italy are at highest risk of Mafia infiltration? Question driving many Transcrime projects, both at Italian and EU level Questions answered by integrating different pieces of information: - Crime data (e.g. statistics on confiscations) - Data from business registers - Other data (e.g. judiciary evidence, police reports, etc) 6

Source: Riccardi 2014, Transcrime 2013 (www.investimentioc.it) Which Italian regions are at highest risk? Rate between confiscated companies and registered companies (1983-2012) across Italian provinces About 2,000 companies confiscated between 1983-2012 Highest rate in Southern Italy But selected Northern provinces also affected

Which business sectors are at highest risk? Identification of the business sectors most exposed to Mafia infiltration Weight of Mining and quarrying among Mafia companies is 15 times higher than among registered companies in Italy Mining and quarrying 15 Construction 2 Wholesale and retail trade Agriculture Manufacturing 1 0.4 0.2 0 2 4 6 8 10 12 14 16 Source: Riccardi 2014; Riccardi and Soriani 2014; Transcrime 2013

Which are the characteristics of Mafia companies? Analysis conducted using financial and ownership data taken from business registers: In most cases Mafia companies are LLC Profitability in line with or lower than legal companies (often due to bad management) Low financial and bank debts Low level of property, plant, equipment Most of the assets held in cash or current activities These patterns may become predictors (red flags) for the identification of risky companies Source: Riccardi 2014; Riccardi and Soriani 2014; Transcrime 2013

Conclusions and policy implications Business registers may be crucial in many activities related to the control of crime and illegality, e.g.: - for investigation purposes - for the management and disposal of criminal assets - for risk assessment and prevention This enlarges the audience and the group of potential end-users of business registers But it poses challenges in terms of improving certain registers services and data And asks to strengthen links with other data sources and actors able to interpret the data: data alone is not enough!

Transcrime - Who we are Transcrime Joint Research Centre on Transnational Crime (www.transcrime.it) Università Cattolica (Milan) + University of Trento More than 100 projects (funded at national, EU and international level) on the study of: - Money laundering - Corruption - Organised crime - Supply-chain security Development of risk indicators and risk assessment models Contact: Michele Riccardi (michele.riccardi@unicatt.it) 11