Trade-based money laundering: development of the «red flags» system

The OECD and the FATF highlight the problem of money laundering via international trade with a view to disguising illicit gains and moving value through the use of trade transactions. For example, inaccurate invoices may be used, which, according to the Global Financial Integrity estimates, resulted in $0,9 trillion to $1,7 trillion losses in 148 countries in 2006–2015. In Russia, the authorities attempt to reduce the risks of money laundering within the framework of international trade through the use of currency regulation, while foreign countries are using a risk-based approach by developing the “red flags” systems that allow financial intelligence agencies, customs and other state bodies as well as subjects of financial market (through which the payments for export-import transactions are made) and the companies participating in international trade themselves to determine whether a transaction entails risks of money laundering. In addition, internal and international inter-agency exchange of information related to money laundering in international trade, including trade and financial data, is being developed.

Data protection rules applicable to Financial Intelligence Units: still no clarity in sight

Financial information can play a key role in tackling money laundering, terrorist financing and combatting serious crime more generally. Preventing and fighting money laundering and the financing of terrorism were top priorities of the European Union’s (EU) Security Strategy for 2020-2025, which might explain the fast developments regarding legislative measures to further regulate anti-money laundering (AML) and counter terrorism financing (CTF). In May 2020, the European Commission put forward an Action Plan to establish a Union policy on combatting money laundering and shortly afterwards, proposed a new AML Package.Financial Intelligence Units (FIUs) play a crucial role in analysing and exchanging information concerning unusual and suspicious transactions, serving as intermediaries between the private sector and law enforcement authorities (LEAs). Such information includes personal data, which is protected under the EU data protection acquis. The latter is constituted of two main laws, the General Data Protection Regulation (GDPR), which applies to general processing and the so-called Law Enforcement Directive (LED) that is applicable when competent law enforcement authorities process personal data for law enforcement purposes.This Article argues that the current legal framework on AML and CTF legislation is unclear on the data protection regime that applies to the processing of personal data by FIUs and that the proposed AML Package does little or nothing to clarify this dilemma. In order to contribute to the discussion on the applicable data protection framework for FIUs, the assessment puts forward arguments for and against the application of the LED to such processing, taking into account the relevant legal texts on AML and data protection.

The Effectiveness of Maldives’ Financial Intelligence Unit in Combating Money Laundering

Money laundering has become a vast global concern, and the rates are growing. Hence, there is a need for a good preventive and monitoring mechanism that monitors suspicious transactions at the source. In Maldives, a Financial Intelligence Unit (FIU) was introduced to gather, analyse, and provide financial intelligence report to law enforcement agencies to proceed with an investigation. The FIU plays a vital role in the Anti-Money Laundering (AML) Regime in successfully combat money laundering activities. Since the AML Regime in Maldives was established in 2014, there is a need to conduct a study to investigate the effectiveness of the FIU in combating money laundering in the Maldives. Based on questionnaires collected from 122 enforcement officers, findings show that reporting mechanisms significantly influence the effectiveness of the FIU. The legal framework and the role of the officer did not significantly influence the effectiveness of FIU. It shows that the competency of LEAs in combating money laundering in the Maldives is still low. Therefore, the government needs to enhance the awareness and competencies of enforcement officers in combating money laundering. Future research may conduct a comparative study to understand further the best reporting mechanism that can help enhance the effectiveness of law enforcement agencies. Keywords: financial intelligence unit, money laundering, reporting mechanism

FINANCIAL INTELLIGENCE OF SMALL ENTREPRENEURS IN MANAGING FINANCIALS

Micro, Small and Medium Enterprises have a significant contribution to the economy in Indonesia, but a phenomenon that often occurs is the problem of business actors who do not use financial reports in running their business but their business is still running, this study aims to find out how the financial intelligence of small entrepreneurs in managing finances his efforts.This research is a qualitative research, data collection techniques are carried out by observation, interviews, and documentation studies. Selection of informants using purposive sampling method based on the criteria that the informants are small entrepreneurs who have run their business for at least 5 years and do not make financial reports.The findings of this study indicate that the importance of financial intelligence in the financial management of micro, small and medium enterprises (MSMEs) is considered to be still poorly understood by entrepreneurs and still lacks understanding of financial reports. Small and medium entrepreneurs are still working on bookkeeping to the extent of recording income and expenses. As a result, the company's net income and income tax estimates are difficult to know. This becomes a difficulty for many small entrepreneurs to determine a business development strategy.

BAKAT ANAK DALAM PERSPEKTIK PSIKOLOGI

Talent is a capacity or potential that is influenced by experience orlearning, talent is related to the possibility of mastering a pattern of behavior in certainaspects of life. In my opinion talent is innate which is the potential to actualize himself as aservant (abid) who serves Allah and is the potential to actualize himself as (Khalifatullah)on earth, therefore talent must always be developed through exercises, so that talent will bewill help to become a responsible caliph. There is a close relationship between intelligenceand talent of children. This is indicated by the understanding of the child's own talentwhich means great potential in a type of intelligence. While intelligence itself is dividedinto several aspects, namely logical and mathematical intelligence, language intelligence,visual-spatial intelligence or imagination, kinesthetic or physical intelligence, musicalintelligence, interpersonal or social intelligence, intrapersonal intelligence, naturalistintelligence, spiritual intelligence, and financial intelligence. . This means that a person'stalent can lead to one of these intelligences.

The existing financial intelligence tools and their limitations in early detection of terrorist financing activities

Purpose This paper aims to inform the readers about the existing financial intelligence tools that are being used by financial intelligence units. It tries to demonstrate, with the help of a literature review, what the limitations of these tools are and how these limitations hinder the potential of the financial intelligence tools for early detection of terrorist financing activities. Design/methodology/approach The literature review method was adopted to discuss the financial intelligence tools, their limitations and the implications of the limitations for early detection of terrorist financing activities. Findings It was found that although the financial intelligence tools were introduced with a view to detect terrorist financing activities early, there are some inherent limitations of the tools relating to technical design features and operational procedures that hinder early detection of terrorist financing activities. Research limitations/implications The existing financial intelligence tools need to be repaired by removing the inherent limitations of the tools. Practical implications The financial intelligence units should take into cognizance the importance of early detection of terrorist financing activities for preventing terrorist attacks and need to redesign the existing tools in such a way that make these tools effective for early detection of terrorist financing activities. Social implications Peace will be established in society by preventing terrorist attacks through early detection of terrorist financing activities. Originality/value The originality of the paper lies in identifying the limitations of the existing financial intelligence tools for the early detection of terrorist financing activities.