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All money laundering and financial crimes countries/jurisdictions. Malaysia

Malaysia is a growing regional financial center and has awell-developed anti-money laundering/counter-terrorist financing(AML/CFT) framework. Malaysia's long porous porous /porous/ (porus) penetrated by pores andopen spaces. porousadj.1. Full of or having pores. 2. Admitting the passage of gas or liquid through pores. land and sea bordersand its strategic geographic position increase its vulnerability totransnational criminal activity, including money laundering The process of taking the proceeds ofcriminal activity and making them appear legal. Laundering allows criminals to transform illegally obtained gain into seemingly legitimate funds.andterrorist financing The of this article or section may be compromised by "weasel words".

You can help Wikipedia by removing weasel words.. Malaysia is primarily used as a transit countrytotransfer drugs originating from the Golden Triangle and Europe; andIranian and Nigerian drug trafficking organizations are the main sourcesof illegal proceeds in Malaysia. Drug trafficking is the main source ofillegal proceeds in Malaysia.

Malaysian authorities also highlight illegal proceeds fromcorruption as a significant money laundering risk. Other commonpredicate In programming, a statement that evaluates an expression and provides a true or falseanswer based on the condition of the data. offenses generating significant proceeds in Malaysiaincludefraud, criminal breach of trust, illegal gambling, credit card fraud Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanismas a fraudulent source of funds in a transaction. The purpose may be to obtain goods withoutpaying, or to obtain unauthorized funds from an account.,counterfeiting, robbery, forgery forgery, in artforgery, in art, the false claim to authenticity for a work of art.The Nature of Forgery


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Because the provenance of works of art is seldom clear and because their origin is often judgedby means of subtle factors, art, human trafficking, extortion extortion, in law, unlawful demandingor receiving by an officer, in his official capacity, of any property or money not legally due to him.Examples include requesting and accepting fees in excess of those allowed to him by statute orarresting a person and, with andsmuggling smuggling, illegal transport across state or national boundaries of goods or personsliable to customs or to prohibition. Smuggling has been carried on in nearly all nations and hasoccasionally been adopted as an instrument of national policy, as by Great Britain. Smuggling ofgoods subject to high tariffs is a major sourceof illicit funds. Customs' efforts to investigate invoicemanipulation identified risks from trade based money laundering.

Free trade zones in Malaysia are divided into Free Industrial Zones(FIZ FIZ Fachinformationszentrum (German)FIZ National Beverage Corp. (stock symbol) ), where manufacturing and assembly takes place,and Free CommercialZones (FCZ FCZ Fishery Conservation ZoneFCZ Forward Combat ZoneFCZ Fussball Club Zurich

FCZ Fussball Club Zurich (Soccer Team Zurich)FCZ Firing Cutout ZoneFCZ Future Control Zone ), generally for warehousing commercial stock. The FIZs aredesigned mainly to promote manufacturing industries manufacturing industries npl industrias fpl manufactureras manufacturing industries npl industries fpl de transformation

producing goodsmainly for export and are dominated by large international manufacturersattracted to the zones because they offer preferential tax and tarifftreatment. Currently there are 17 FIZs and 17 FCZs in Malaysia.Companies wishing to operate in a FIZ or FCZ must be licensed.

Malaysia's offshore financial center on the island of Labuanis subject to the same AML/CFT laws as those governing onshore financialservice providers. The financial institutions operating in Labuan aregenerally among the largest international banks and insurers. Offshore


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companies must be established through a trust company, which is requiredby law to establish true beneficial owners and submit suspicioustransaction reports (STRs).

A number of terrorist organizations have been active on Malaysianterritory, and authorities have taken action against Jemaah Islamiah andother terrorist networks. Terrorist financing in Malaysia ispredominantly carried out using cash and relies on trusted, clandestine CLANDESTINE. Thatwhich is done in secret and contrary to law.

2.Generally a clandestine act in case of the limitation of actions will prevent the act fromrunning. networks.

For additional information focusing on terrorist financing, pleaserefer to the Department of State's Country Reports on Terrorism Country Reports on Terrorism isan annual report published by the United States Department of State. In 2005 it replaced thePatterns of Global Terrorism report, which had been released since 1985.,which can be found here: http://www.state.gov/j/ct/rls/crt/

DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY TRANSACTIONS RELATED

TO INTERNATIONAL NARCOTICS narcotics n. 1) techinically, drugs which dull the senses. 2) apopular generic term for drugs which cannot be legally possessed, sold, or transported except formedicinal uses for which a physician or dentist's prescription is required. TRAFFICKING THATINCLUDE SIGNIFICANT AMOUNTSOF US CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN THE U.S.; OR THATOTHERWISE SIGNIFICANTLY AFFECT THE U.S.: NO

CRIMINALIZATION criminalize tr.v. criminalized, criminalizing, criminalizes1. To impose a criminal penalty on or for; outlaw. 2. To treat as a criminal. OF MONEY LAUNDERING:

"All serious crimes" approach or "list"approach to predicate crimes: List approach


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Legal persons covered: criminally: YES civilly: YES

KNOW-YOUR-CUSTOMER (KYC KYC Know Your CustomerKYC Know Your Client ) RULES:

Enhanced due diligence Research; analysis; your homework. This term has caught on in allindustries, because it sounds so "wired." Who would want to do analysis or research when theycan do due diligence. See wired. procedures for PEPs: Foreign: YES Domestic:YES

KYC covered entities: Banks in the conventional, Islamic, andoffshore sectors; offshore listing sponsors and trading agents; stockand futures brokers; unit trust, investment fund, and futures fundmanagers; money lenders and pawnbrokers; money remitters; charge accountand credit card issuers; insurance financial advisers; e-money issuers;leasing and factoring businesses; lawyers, public notaries, accountants,and company secretaries; licensed casinos and gaming outlets; registeredestate agents; trust companies, and dealers in precious metals andstones

SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:

Number of STRs received and time frame: 16,643 in 2010

Number of CTRs received and time frame: Not available

STR STRabbr.synchronous transmitter receiver covered entities: Banks in the conventional, Islamic, andoffshore sectors; offshore listing sponsors and trading agents; stockand futures brokers; wholesale money changers ''For the species of shapechangers in the Culturenovels, see Changers (The Culture) The Changers are a fictional group of anti-hero published by Wildstorm an imprint of DC Comics. ;


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unit trust, investmentfund, and futures fund managers; money lenders and pawnbrokers; moneyremitters; charge account and credit card issuers; insurance financialadvisers; e-money issuers; leasing and factoring businesses; lawyers,public notaries, accountants, and company secretaries; licensed casinosand gaming outlets; registered estate agents; trust companies, anddealers in precious metals and stones

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

Prosecutions: 100 from 2004 to October, 2011

Convictions: 26 from 2004 to October, 2011

RECORDS EXCHANGE MECHANISM:

With U.S.: MLAT MLAT Mutual Legal Assistance Treaty (a law-enforcement treaty)

MLAT Modern Language Aptitude TestMLAT MultilaterationMLat Medieval Latin (linguistics) : NO Other: YES

With other governments/jurisdictions: YES

Malaysia is a member of the Asia/Pacific Group on Money Laundering(APG APG Assists Per Game (basketball)APG Assists Per Game (hockey statistic)APG Aberdeen Proving GroundAPG Automated Password GeneratorAPG Asia Pacific Group on Money Laundering ), a Financial Action Task Force (FATF FATFFinancial Action Task Force on Money LaunderingFATF Fuel Assembly Transfer Form (nuclear power) )-style regional body. Itsmost recent mutual evaluation can be found here: http://www.apgml.org/ documents/docs/17/Malaysian%20MER mer


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Among the Cheremi and Udmurt peoples of Russia, a sacred grove where people of severalvillages gathered periodically to hold religious festivals and sacrifice animals to nature gods. %20-%20FINAL%20August%202007.pdf

Reporting institutions are subject to strict customer due diligence(CDD CDD Contrat A Duree Determinee (French: Fixed Term Contract)CDD Community Development DepartmentCDD Cooling Degree Days (weather derivatives / insurance index converting temperature intoprices) ) rules, and the Government of Malaysia (GOM GOM - Good Old MAD. Don Boettner, U Mich. MAD for the IBM 360. Parts of the MTS time-sharing system were written iGOM. ) has adopted bankernegligence laws that extend criminal liability to bank directors iftheir institution launders money or finances terrorism.

The use of informal remittances, which are not subject to AML/CFTcontrols, creates vulnerability for abuse by money launderers andterrorist financiers. Malaysia's competent authority forimplementing its AML/CFT laws, Bank Negara Malaysia Bank Negara Malaysia or BNM is theMalaysian central bank. Its headquarters is located in Kuala Lumpur, the capital of Malaysia, and

was established on January 26, 1959 (as the Central Bank of Malaya or Bank Negara TanahMelayu, should continue itsefforts to encourage the use of formal remittances. Additionally, lawenforcement and customs authorities should examine trade based moneylaundering and invoice manipulation and their relationship tounderground finance and informal remittance Money sent from one individual to another in theform of cash, check, or some other manner.

Financial statements sent by a creditor to a debtor frequently refer to the process of submitting amonthly remittance.

REMITTANCE, comm. law. systems. Malaysia shouldmore aggressively identify, investigate and prosecute drug traffickingkingpins.

In the past 12 months, Malaysia initiated eight new terror financeinvestigations under its AML/CFT legal framework. Malaysia should take


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further steps to increase capacity to identify, investigate, andprosecute terrorist and proliferation proliferation /proliferation/ (pro-lif?er-ashun) thereproduction or multiplication of similar forms, especially of cells.proliferativeproliferous proliferationn. financing.

Malaysia's Labuan Financial Services Authority The Financial Services Authority ("FSA") is anindependent non-departmental public body and quasi-judicial body that regulates the financialservices industry in the United Kingdom. Its main office is based in Canary Wharf, London, withanother office in Edinburgh. (LFSA LFSA Lightweight Flexible Solar ArrayLFSA List of Frequently Seen AcronymsLFSA Latino Faculty and Staff AssociationLFSA Law Firm Services AssociationLFSA Lakeville Fastpitch Softball AssociationLFSA Leukaemia Foundation of South Australia ) isresponsible for ensuring AML/CFT compliance on Labuan, thecountry's international offshore financial center. The LabuanFinancial Services The examples and perspective in this article or section may not represent aworldwide view of the subject.Please [ improve this article] or discuss the issue on the talk page. and Securities Act of 2010

gives LFSA moreregulatory, investigative and enforcement authorities over offshorefinancial services companies licensed in Labuan and removes privacyrestrictions on its access to Labuan-based account activities. In 2011,the Inland Revenue Inland RevenueNoun (in Britain and New Zealand) a government department that collects major direct taxes, such as

income tax Noun 1. Board launched a wide-ranging investigation intomoney laundering and smuggling activities in Labuan.

In February 2009, LFSA issued an operating license to First EastExport Bank (FEEB), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock.


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Notes:In other words, the parent company owns the company outright and there are no minority owners.of Iran-based Bank Mellat Bank Mellat is a state-owned commercial Iranian bank. Its name means"Bank of the Nation". Bank Mellat was established in 1980, with a paid of capital of Rls 33.5bn asa merger of ten pre-revolution private banks comprising: Tehran, Dariush, Pars, Etebarat Taavoni& Tozie, Iran &,which in 2007 was designated by the United States United States, officially United States ofAmerica, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), NorthAmerica. The United States is the world's third largest country in population and the fourth largestcountry in area. under Executive Order(E.O.) 13382 for its proliferation finance activities. FEEB opened itsLabuan operation in August 2009. The United States designated FEEB underE.O. 13382 on November 5, 2009, based on its relationship to BankMellat. On June 9, 2010, UNSCR UNSCR United Nations Security Council Resolution(s) 1929listed FEEB as an entity subject toUN sanctions. The GOM ordered FEEB's assets frozen and prohibitedMalaysian banks from transacting business with FEEB on July 14, 2010, infull compliance with UNSCR 1929. LFSA should remain vigilant to anyattempts to use Labuan for proliferation and terrorism financeactivities.

Maldives

Maldives has a small financial market but is susceptible to moneylaundering and terrorist financing due to limited oversight capacity. Noofficial figures are available, but anecdotal evidence anecdotal evidence,n information obtained from personal accounts, examples, and observations. Usually notconsidered scientifically valid but may indicate areas for further investigation and research.

suggests thatillegal drug trafficking in psychotropic psychotropic /psychotropic/ (si?ko-tropik) exerting aneffect on the mind; capable of modifying mental activity; said especially of drugs. psychotropicadj. substances and corruptionproduce significant amounts of illegal funds. Drug trafficking is notedas one of the most frequent asset-generating crimes and is estimated toproduce up to $57 million per year. There are indications funds areraised in the country to finance terrorist activities abroad. Otherpredicate offenses include human trafficking, piracy piracy, robbery committed or attempted on the


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high seas. It is distinguished from privateering in that the pirate holds no commission from andreceives the protection of no nation but usually attacks vessels of all nations., and offensescommitted by gangs. Even though the number of corruption cases is low,only a small percentage are prosecuted and reports indicate the sumsinvolved can be significant.

For additional information focusing on terrorist financing, pleaserefer to the Department of State's Country Reports on Terrorism,which can be found here: http://www.state.gov/j/ct/rls/crt/

DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY TRANSACTIONS RELATEDTO INTERNATIONAL NARCOTICS TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNOF US CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN THE U.S.; OR THATOTHERWISE SIGNIFICANTLY AFFECT THE U.S.: NO

CRIMINALIZATION OF MONEY LAUNDERING:

"All serious crimes" approach or "list"

approach to predicate crimes: List approach


KNOW-YOUR-CUSTOMER (KYC) RULES:

Enhanced due diligence procedures for PEPs: Foreign: NO Domestic:NO

KYC covered entities: Banks, security sector licensees

SUSPICIOUS TRANSACTION REPORTING (STR) REQUIREMENTS:


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Number of STRs received and time frame: None in 2010

Number of CTRs received and time frame: Not applicable

STR covered entities: Banks, security sector licensees


Prosecutions: None

Convictions: None


With U.S.: MLAT: NO Other mechanism: YES


Maldives is a member of the Asia/Pacific Group on Money Laundering,a Financial Action Task Force (FATF)-style regional body. Its mostrecent mutual evaluation can be found here:

http://www.apgml.org/documents/docs/17/Maldives%20-%20published%20DAR.pdf

ENFORCEMENT AND IMPLEMENTATION ISSUES In the Business world, companies frequentlset-up a connection between which they transfer data. When the connection is being set-up, it isreferred to as implementation. When issues occur during this phase, they are known asimplementation issues. AND COMMENTS:

Money laundering is criminalized in Maldives only with respect toproceeds of offenses listed in the Drugs Act. Although all categories of


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offenses set out in the international standards have been criminalized,only drug-related offenses are predicate offenses for money laundering,constituting a major shortcoming of the current anti-moneylaundering/counter-terrorist financing (AML/CFT) framework.

No enforceable AML/CFT obligations are in place. A Banking Act wasput in place in 2010 that requires banks to implement basic AML/CFTmeasures such as customer identification and reporting of suspicioustransactions to the financial intelligence unit within the CentralBank's Maldives Monetary Authority Maldives Monetary Authority or MMA acts as the central bankof the republic of Maldives and was established on July 1 1981 under the mandate provided by"MMA Act" of 1981.. Beginning in April 2011,intermediaries in the securities sector are required to implementlimited AML/CFT measures. Oversight efforts are still in the initialstages.

Shortcomings in the overall criminal legislative framework, inparticular with respect to criminal procedure, and the lack of resourcesof competent authorities make it challenging for the Maldives to fighteffectively against money laundering and terrorist financing. Maldives

Police Services, the Prosecutor General's Office and the judiciaryneed capacity building and training to enforce the existing AML/CFTsystem.

The Government of the Maldives should become a party to the UnitedNations Convention against Transnational Organized Crime In 2000 the United Nations adoptedthe Convention against Transnational Organized Crime, also called the Palermo Convention, and

the two Palermo Protocols thereto:.

Mali

Mali is not a regional financial center, and presently has no freetrade zones or offshore sectors. Like most West African West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largelycontrolled by colonial powers until the 20th century.


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West African adj. & n. countries, Malirelies on cash for virtually all daily transactions. Illegal proceedsderive from rampant trafficking of drugs, small arms small arms, firearms designed primarily to becarried and fired by one person and, generally, held in the hands, as distinguished from heavyarms, or artillery.Early Small Arms

The first small arms came into general use at the end of the 14th cent., people, andeveryday commodities across the Algerian and Mauritanian borders in thesparsely-populated north of the country. Authorities believe thatterrorist cells from al-Qaida in the Islamic Maghreb, known to operatein the north, are involved in smuggling as well as kidnapping kidnapping, in law, the taking away ofa person by force, threat, or deceit, with intent to cause him to be detained against his will.Kidnapping may be done for ransom or for political or other purposes. for ransomas funds-generating activities. Malian authorities believe that proceedsfrom cocaine trafficking into Europe from South America South America, fourth largest continent(1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the twocontinents of the Western Hemisphere. may be passedthrough Malian banks, but lack the resources to make such adetermination.

Mali is a member of the West African Economic and Monetary Union The West African Economicand Monetary Union (or UEMOA from its name in French, Union conomique et montaire ouest-africaine) is an organization of eight states of West Africa established to promote economicintegration among countries that share a common currency, (WAEMU WAEMU West AfricanEconomic and Monetary Union ), which also includes Benin, Burkina Faso Burkina Faso (burk`nf`s), republic (2005 est. pop. 13,925,000), 105,869 sq mi (274,200 sq km), W Africa. It

borders on Mali in the west and north, on Niger in the northeast, on Benin in the southeast, and onTogo, Ghana, and, Cote D'Ivoire,Guinea-Bissau, Niger, Senegal, and Togo. All of the WAEMU members sharea common currency, the (West African) CFA, and have developed a commonanti-money laundering/combating the financing of terrorism (AML/CFT)framework, including legal and financial intelligence unit (FIU FIU Florida International UniversityFIU Financial Intelligence UnitFIU Fingerprint Identification Unit (Sony)FIU Fire Investigation UnitFIU Fraud Investigation Unit (UK)FIU Facsimile Interface Unit )


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Number of CTRs received and time frame: 13 in 2011

STR covered entities: Specialized financial organizations, banks,the Public Treasury, microfinance entities, the post office, currencyexchanges, insurance companies and brokers, securities and asset brokersand managers, the regional stock exchange, mutual funds, attorneys,notaries, auditors, real estate and travel agents, non-governmentalorganizations, casinos and gaming establishments, and dealers ofhigh-value goods and precious metals and stones


Prosecutions: Six in 2011

Convictions: None in 2011




Mali is a member of the Inter Governmental Action Group AgainstMoney Laundering in West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largelycontrolled by colonial powers until the 20th century.

West African adj. & n. (GIABA), a Financial Action Task Force(FATF)-style regional body. Its most recent mutual evaluation report can


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be found here: http://www.giaba.org/reports/mutual-evaluation/Mali.html

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

Although Mali's anti-money laundering law covers a number offinancial sectors, very few comply with their legal reportingobligations. While businesses are technically required to report cashtransactions over approximately $10,000, most do not. With the exceptionof casinos, designated non-financial businesses and professions are notsubject to customer due diligence requirements. While Mali criminalizestipping off for terrorist financing-related STRs in its December 2010legislation, it does not appear to have criminalized tipping off inrelation to other types of STRs.

Mali's financial intelligence unit, the Cellule cellule /cellule/ (selul) a small cell. cellulen.A small cell. Nationale de

Traitement des Informations Financieres (CENTIF), seeks closer relationswith foreign financial intelligence units, which will likely come topass since CENTIF became a member of the Egmont Group The Egmont Group of FinancialIntelligence Units is an informal international gathering of financial intelligence units (FIUs). TheGroup was formed in 1995, and took its name from the palace in Brussels where the meeting tookplace. of FIUs in 2011.CENTIF's staff includes secondments from the customs service,police, and gendarme forces; additional training is needed for new

CENTIF staff members. Significant challenges to the effectiveness ofMali's AML/CFT regime remain, including a lack of resources toperform outreach and mount sensitization sensitization /sensitization/ (sen?si-ti-zashun)1. administration of an antigen to induce a primary immune response. 2. exposure to allergen that results in the development of hypersensitivity. and training forfinancialinstitutions as well as other financial sectors.

Mali also lacks capacity in investigation of money laundering and


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YES

KYC covered entities: Banks, currency exchange offices,stockbrokers, insurance companies, money remittance/transfer services,real estate agencies, auditors, accountants, notaries, tax advisors,trust and asset managers, company formation agents, nomineeshareholders, casinos, auctioneers, and dealers in art, precious metalsand stones


Number of STRs received and time frame: 73 in 2010


STR covered entities: Banks, currency exchange offices,stockbrokers, insurance companies, money remittance/transfer services,

real estate agencies, auditors, accountants, notaries, tax advisors,trust and asset managers, company formation agents, nomineeshareholders, casinos, auctioneers, and dealers in art, precious metalsand stones


Prosecutions: Eight in 2010

Convictions: One in 2010




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Malta is a member of the Committee of Experts on the Evaluation ofAnti-Money Laundering Measures and the Financing of Terrorism(MONEYVAL), a Financial Action Task Force (FATF)-style regional body.Its most recent mutual evaluation can be found here:http://www.coe.int/t/dghl/monitoring/moneyval/Countries/Malta en.asp


The Malta Police Economic Crimes Squad is responsible for theinvestigation of all financial related crimes. Its Money Laundering Unitinvestigates reports sent by the financial intelligence unit as well asreports from other sources.

The Government of Malta should continue to enhance its anti-money

laundering/counter-terrorist financing legislation and procedures, asappropriate.

Marshall Islands Marshall Islands, officially Republic of the Marshall Islands, independent nation(2005 est. pop. 59,000), in the central Pacific. The Marshalls extend over a 700-mi (1,130-km)area and comprise two major groups: the Ratak Chain in the east, and the Ralik Chain in

The Republic of the Marshall Islands (RMI (Remote Method Invocation) A standard from Sun fordistributed objects written in Java. RMI is a remote procedure call (RPC), which allows Javaobjects (software components) stored in the network to be run remotely. ) is not a regionalfinancial center. It consists of 29 atolls and five islands, covering 70square miles of land, spread across 750,000 square miles of ocean. Thecountry is not economically developed and has limited resources fordevelopment. The RMI signed a Compact of Free Association with theUnited States in 1986, and relies on the United States for the majorityof its economic support. There are no known terrorist or narcotics moneylaundering activities in the Marshall Islands. There are two banks inthe country and no brokerage houses or other types of financial firms.


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Land cannot be sold, and there are no realtors. There are no casinos inthe Marshall Islands.

The RMI offshore corporate sector is vulnerable to moneylaundering. The Marshall Islands Trust Company and the Marshall IslandsMaritime & Corporate Administrators, Inc., provide for a robustregistration of corporations and ships. The RMI fleet is the thirdlargest flagged fleet in the world, although few of the vessels come tothe Marshall Islands. Available information indicates non-residentcorporations (NRCs), the equivalent of international business companies,can be formed online. NRCs are allowed to offer bearer One who is the holder or possessor of aninstrument that is negotiablefor example, a check, a draft, or a noteand upon which a specificpayee is not designated. shares, andcorporate officers, directors, and shareholders may be of anynationality and live anywhere. NRCs are not required to disclose thenames of officers, directors, shareholders or beneficial owners, andcorporate entities may be listed as officers and shareholders. Thecorporate registry program, however, does not allow the registering ofoffshore banks, offshore insurance firms, online gaming See gaming. institutions, orother companies which are financial in nature. Although NRCs mustmaintain registered offices in the Marshall Islands, corporations can

transfer domicile domicile (dm`sl'), one's legal residence. This may or may not be the place whereone actually resides at any one time. The domicile is the permanent home to which one ispresumed to have the intention of returning whenever the purpose into and out of the RMI withrelative ease. Marketersof offshore services via the Internet promote the Marshall Islands as afavored jurisdiction for establishing NRCs. In addition to NRCs, theMarshall Islands offer nonresident nonresident adj.

1. Not living in a particular place: nonresident students who commute to classes. 2. trusts, partnerships, unincorporated Adj. 1. unincorporated - not organized and maintained as alegal corporationunorganised, unorganized - not having or belonging to a structured whole; "unorganized territorieslack a formal government" associations, and domestic and foreign limited liability companies. Nocurrent information is available on the extent of offshore corporateoperations.



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TO INTERNATIONAL NARCOTICS TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNOF US CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN THE U.S.; OR THATOTHERWISE SIGNIFICANTLY AFFECT THE U.S.: NO


"All serious crimes" approach or "list"approach to predicate crimes: Not defined



Enhanced due diligence procedures for PEPs: Foreign: YES Domestic:YES

KYC covered entities: Financial institutions; insurers, insurancebrokers and intermediaries; securities, exchange and interest rateinstruments dealers, futures and options funds and brokers, and bullion BULLION. In its usualacceptation, is uncoined gold or silver, in bars, plates, or other masses. 1 East, P. C. 188.

2. In the acts of Congress, the term is also applied to copper properly manufactured for thepurpose of being coined into money. dealers; businesses issuing, selling or redeeming travelerschecks,money orders, or similar instruments; payroll service businesses

involved in collecting, holding and delivering cash; gambling houses,casinos, and lotteries; currency dealers and exchangers, and moneytransmission services


Number of STRs received and time frame: 14 from January 1 toDecember 7, 2011


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Number of CTRs received and time frame: 2,971 from January 1 toDecember 7, 2011

STR covered entities: Financial institutions; insurers, insurancebrokers and intermediaries; securities, exchange and interest rateinstruments dealers, futures and options funds and brokers, and bulliondealers; businesses issuing, selling or redeeming travelers'checks, money orders, or similar instruments; payroll service businessesinvolved in collecting, holding and delivering cash; gambling houses,casinos, and lotteries; currency dealers and exchangers, and moneytransmission services


Prosecutions: None

Convictions: None


With U.S.: MLAT: YES Other mechanism: NO


The Marshall Islands is a member of the Asia/Pacific Group on MoneyLaundering (APG), a Financial Action Task Force (FATF)-style regionalbody. Its most recent mutual evaluation can be found here:http://www.apgml.org/documents/docs/17/RMI%20ME%202.pdf



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With the assistance of the United States and EU donors, the RMIpassed national laws that can be used to prosecute money launderingcrimes; however, these laws have not yet been used. The lawscriminalizing money laundering cover both individuals and corporations,although predicate crimes are not defined either by list or an allserious crimes approach. The statutes do not include incarceration Confinement in a jail or prison;imprisonment. Police officers and other law enforcement officers are authorized by federal, state, and locallawmakers to arrest and confine persons suspected of crimes. The judicial system is authorized toconfine persons convicted of crimes. as apenalty. Although there presently are no casinos in the RMI, they arecovered under the AML AML - A Manufacturing Language laws. The RMI should establishdisclosureprotections and criminalize criminalize tr.v. criminalized, criminalizing, criminalizes1. To impose a criminal penalty on or for; outlaw. 2. To treat as a criminal. tipping off. The RMI should also strengthenKYC requirements, large currency transaction reporting, and recordsretention.

The RMI should establish an independent national system andmechanism for freezing terrorist assets in a timely manner.

The RMI should ensure its offshore sector is adequately supervisedand that information on company ownership and management is available to

law enforcement and supervisory authorities. The Marshall Islands signeda tax treaty with Australia, and is in the process of signing tax andother types of treaties with other nations. On September 29, 2011, itbecame a party to the UN Convention against Transnational OrganizedCrime and the UN Convention against Corruption Convention against Corruption could refer to:The United Nations Convention against Corruption of the United Nations, in force since 14December 2005. The Inter-American Convention against Corruption of the Organization ofAmerican States, in force since 6 March 1997..

Mauritania


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The Islamic Republic An Islamic republic, in its modern context, has come to mean severaldifferent things, some contradictory to others. Theoretically, to many religious leaders, it is a stateunder a particular theocratic form of government advocated by some Muslim religious leaders inthe Middle of Mauritania has a largely informal andunder-developed economy. Its economic system suffers from a combinationof weak government oversight, lax financial auditing standards, a largeinformal trade sector, porous borders, lack of enforcement, andcorruption in government and the private sector. In recent years,Mauritania has become a transshipment point A location where material is transferred betweenvehicles. for cocaine from SouthAmerica intended for the European market. General smuggling, traffickingin vehicles stolen mostly in Europe, parallel networks, and theprovision of logistical support for organized international drugtraffickers are all serious problems. Following the election ofPresident Mohamed Ould Abdel Aziz in July 2009, and in response toincreasing terrorist and illicit trafficking activities along its longand porous borders with Algeria and Mali, the Government of Mauritania(GOM) began an aggressive campaign against both corruption and theterrorist network of al-Qaida in the Islamic Maghreb.

For additional information focusing on terrorism financing, pleaserefer to the Department of State's Country Reports on Terrorism,which can be found here: http://www.state.gov/j/ct/rls/crt

DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY TRANSACTIONS RELATEDTO INTERNATIONAL NARCOTICS TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUN

OF US CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN THE U.S.; OR THATOTHERWISE SIGNIFICANTLY AFFECT THE U.S.: NO


"All serious crimes" approach or "list"approach to predicate crimes: All serious crimes


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Enhanced due diligence procedures for PEPs: Foreign: NO Domestic:YES

KYC covered entities: Banks and money exchangers and remitters


Number of STRs received and time frame: Five 2005--2011


STR covered entities: Banks and money exchanges/remittance offices


Prosecutions: Four

Convictions: Two, and two awaiting judgment





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Mauritania is a member of the Middle East and North AfricaFinancial Action Task Force (MENAFATF MENAFATF Middle East-North Africa Financial ActionTask Force ). Its most recent mutualevaluation report can be found here: www.menafatf.org


While Mauritania has been successful in creating a legal andinstitutional framework to fight financial crimes, there remain manychallenges to its successful implementation of that framework,especially given Mauritania's cash-based and informal economy. Alllegal entities, corporations, partnerships, and individuals are coveredunder Mauritanian laws to prevent laundering and terrorist financing andare subject to both criminal and civil penalties, depending upon thecrime committed.

The Financial Information Analysis Commission (CANIF),

Mauritania's financial intelligence unit, would like to expand thelegal structure to include real estate holding companies and thecomplete money/value transfer sector. Monitoring the informal financialmarkets remains a challenge. Only 4% of Mauritanian adults have accessto a bank account, and the money/value transfer sector remainsvulnerable to exploitation. Mauritanian authorities are aware of theseissues and are working to formalize financial transactions to the extentpossible and to devise mechanisms to prevent the exploitation of the

remittance sector and other non-bank financial sectors. In 2011, twoorders were signed: Order N 640 promulgates an anti-moneylaundering/counter-terrorism financing ruling covering non-financialcompanies, real estate agents, and lawyers; and Order N 641 does thesame for non-governmental organizations.

President Aziz empowered the Office of the Inspector General Office of the Inspector General (orOIG) is a common sub-agency within cabinet-level agencies of the United States federalgovernment and serves as auditing and investigative arm of the agency's programs focused onidentifying waste, fraud and abuse. of the


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State and the CANIF to lead efforts to identify, prevent, and reducecorrupt practices corrupt practices, in politics, fraud connected with elections. The term also refersto various offenses by public officials, including bribery, the sale of offices, granting of publiccontracts to favored firms or individuals, and granting of land or franchises in and financial crimes,including financial crimeslinked to narcotics and terrorist finance networks. CANIF falls underthe jurisdiction of the Central Bank of Mauritania and includesrepresentatives of the Mauritanian Ministries of Finance and Justice, aswell as the customs authority, national police, and Gendarmerie gendarmerie n.1. A body of French gendarmes. 2. Slang A group of police officers.

[French, from Old French, calvary, from gent d'armes, gendarme, workingtogether to identify, investigate, prevent, and prosecute financialcrimes. In January 2011, CANIF released its first-ever annual report onfinancial crime in Mauritania. Given that CANIF is a young organization,there is still a great deal of work to be done to formalize itsoperating procedures and build capacity.

Mauritius

Mauritius has developed a reputation as a well-regulated andcredible international financial center. According to according toprep.1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions. 3. theMauritius' Independent Commission Against Corruption Several places have organisations calledthe Independent Commission Against Corruption: Independent Commission Against Corruption ofHong Kong, established 1974 Independent Commission Against Corruption (New South Wales),established 1988 (ICAC ICAC Independent Commission Against CorruptionICAC Internet Crimes Against ChildrenICAC International Cotton Advisory CommitteeICAC International Conference on Autonomic Computing


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ICAC Instituto de Contabilidad y Auditora de Cuentas (Spain) ),laundered funds are primarily the proceeds from drug trafficking--mainlyheroin, and increasingly, subutex. Other predicate crimes for moneylaundering include larceny, conspiracy, forgery, swindling, andcorruption. While criminal proceeds are derived from both domestic andforeign criminal activities, criminal proceeds laundered in Mauritiusare generally not controlled by drug trafficking organizations ororganized criminal groups. There is no significant black market forsmuggled smuggle v. smuggled, smuggling, smuggles v.tr.1. To import or export without paying lawful customs charges or duties. 2. To bring in or take out illicitly or by stealth. goods in Mauritius, although there is occasionalsmuggling ofstolen automobiles and cigarettes. According to ICAC, money launderingoccurs in the banking system, the offshore financial center, and thenon-bank financial system.

The Mauritius Global Business Sector is a major route for foreign

investments into the Asian subcontinent subcontinent n.1. A large landmass, such as India, that is part of a continent but is considered eithergeographically or politically as an independent entity. 2. and is by far the largest sourceof foreign direct investment and portfolio investment in India. As ofSeptember 2011, there were 27,670 Global Business Companies (GBCs) in

Mauritius, including 806 licensed global funds. The offshore sector alsoincludes management companies licensed by the Financial ServiceCommission (FSC FSC See: Foreign Sales Corporation ) to provide professional services (job) professional services - Adepartment of a supplier providing consultancy and programming manpower for the supplier'sproducts. to GBCs. Shellcompanies and bearer shares are not allowed in Mauritius nor are nomineeor anonymous directors or trustees.


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The Mauritius Freeport, a free-trade zone (FTZ FTZ Foreign-Trade ZoneFTZ Free-Trade ZoneFTZ Fernmeldetechnisches Zentralamt (German telephone standard organization)FTZ Forschungs- und Technologiezentrum der Deutschen TelekomFTZ Finite Transmission ZeroFTZ Flush to Zero ), was established topromote the country as a regional FTZ center for Eastern and SouthernAfrica and the Indian Ocean rim. There are currently about 275 companieswhich are active in Mauritius Freeport, with a turnover estimated at$667 million.



"All serious crimes" approach or "list"

approach to predicate crimes: All serious crimes




KYC covered entities: Banks, insurance companies, securitiesdealers, money changers, foreign exchange dealers, accountants,attorneys, barristers, notaries, chartered secretaries, gaming centers, jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or tofollow superstitious custom or fashion.


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The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. dealers,land promoters, property developers, estate agents


Number of STRs received and time frame: 18 from January 2011 toOctober 2011


STR covered entities: Banks, insurance companies, securitiesdealers, money changers, foreign exchange dealers, accountants,attorneys, barristers, notaries, chartered secretaries, gaming centers, jewelry dealers, land promoters, property developers, estate agents


Prosecutions: 24 from January 2011 to October 2011

Convictions: 13 from January 2011 to October 2011


With U.S.: MLAT: NO Other mechanism: NO


Mauritius is a member of the Eastern and Southern Africa Anti-MoneyLaundering Group (ESAAMLG), a Financial Action Task Force (FATF)-styleregional body. Its most recent mutual evaluation can be found here:


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http://www.esaamlg.org/reports/view_me.php?id=173


Limited training and capacity of the judiciary and the ICACcompromises Mauritius' ability to successfully implement its AMLregime. Stronger support of judges is needed to carry cases through tosuccessful prosecution.

Legislation to correct deficiencies and amend the AML framework hasbeen pending since 2006, but most of the amendments have not been tabledin the National Assembly. Although coordination is possible via the 2003Mutual Assistance in Criminal and Related Matters Act, internationalcooperation, particularly sharing of information, is a lengthy anduncertain process. Timely access to financial documents domesticallyalso is a problem. While Mauritius has a legal framework enabling it tofreeze terrorist-related assets without delay, its ability to do so issubject to compliance with judicial proceedings judicial proceedings n. any action by a judge re:trials, hearings, petitions, or other matters formally before the court. (See: judicial).

The 2011 Asset Recovery Act, passed in the National Assembly inApril 2011, will take effect on February 1, 2012. The new law isintended to enable the forfeiture The involuntary relinquishment of money or property withoutcompensation as a consequence of a breach or nonperformance of some legal obligation or thecommission of a crime. The loss of a corporate charter or franchise as a result of illegality,malfeasance, or Nonfeasance. of proceeds of crimes to compensate

victims, whether the State or an individual. It contains provisions ofboth conviction-based and non-conviction based forfeiture. The Directorof Public Prosecutions Director of Public Prosecutions n fiscal m/f general del Estado Director of Public Prosecutions direct (Brit) n Generalstaatsanwalt m is designated toexercise enforcement powersincluded in the law. Additionally, the law provides for the RecoveredAssets Fund, where forfeited assets would be placed.

Mexico


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Mexico is a major drug-producing and drug-transit country. Proceedsfrom the illicit drug illicit drug Street drug, see there trade leaving the United States are theprincipalsource of funds laundered through the Mexican financial system. Othersignificant sources of laundered proceeds include corruption,kidnapping, and trafficking in firearms This is an extensive list of small arms pistol,machine gun, grenade launcher, anti-tank rifle that includes variants. : Top - 09 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA-91 (Russia - Compact Assault Rifle - 5. and persons. Sophisticated andwell-organized drug trafficking organizations based in Mexico takeadvantage of the extensive U.S.-Mexico border, the large flow oflegitimate remittances, and the high volume of legal commerce to concealtransfers to Mexico. The smuggling of bulk shipments of U.S. currencyinto Mexico and the repatriation Repatriation The process of converting a foreign currency into the currency of one's own country.

Notes:If you are American, converting British Pounds back to U.S. dollars is an example of repatriation.of the funds into the United States viacouriers, armored vehicles, and wire transfers remain favored methodsfor laundering drug proceeds. The combination of a sophisticatedfinancial sector and a large cash-based informal sector complicates theproblem. According to U.S. authorities, drug trafficking organizationssend between $19 and $39 billion annually to Mexico from the United

States, although the Government of Mexico (GOM) disputes this figure.Mexico has seized over $500 million in bulk currency shipments since2002.

For additional information focusing on terrorism financing, pleaserefer to the Department of State's Country Reports on Terrorism,which can be found here: http://www.state.gov/j/ct/rls/crt/



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TO INTERNATIONAL NARCOTICS TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNOF US CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN THE U.S.; OR THATOTHERWISE SIGNIFICANTLY AFFECT THE U.S.: YES


"All serious crimes" approach or "list"approach to predicate crimes: All crimes

Legal persons covered: criminally: NO civilly: YES



KYC covered entities: Banks, mutual savings companies, insurancecompanies, securities brokers, retirement and investment funds Noun 1. investment funds - moneythat is invested with an expectation of profitinvestment assets - anything of material value or usefulness that is owned by a person or company,financial leasing and factoring funds, casas de cambio, centroscambiarios (unlicensed foreign exchange centers), savings and loans

institutions, money remitters, SOFOMES (multiple purpose corporateentity), SOFOLES SOFOLES Sociedades Financieras de Objeto Limitado (Mexico) (limitedpurpose corporate entity), and general depositwarehouses


Number of STRs received and time frame: 36,040--January throughSeptember 2011


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Number of CTRs received and time frame: 4.1 million--Januarythrough September 2011

STR covered entities: Banks, mutual savings companies, insurancecompanies, securities brokers, retirement and investment funds,financial leasing and factoring funds, casas de cambio, centroscambiarios (unlicensed foreign exchange centers), savings and loansinstitutions, money remitters, SOFOMES (multiple purpose corporateentity), SOFOLES (limited purpose corporate entity), and general depositwarehouses


Prosecutions: 54 from January to October 2011

Convictions: 13 from January to July 2011


With U.S.: MLAT: YES Other mechanism: YES


Mexico is a member of the Financial Action Task Force (FATF) andthe Financial Action Task Force on Money Laundering The Financial Action Task Force on MoneyLaundering (FATF), also known by the French name Groupe d'action financire sur le blanchimentde capitaux (GAFI), is an inter-governmental body founded in 1989 by the G7. in South America(GAFISUD), a FATF-style regional body. Its most recent mutual evaluationcan be found here: http://www.fatfgafi.org/document/ 20/0,3343,en_32250379_32236963_41911956_1_1_1_1,00.html


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The GOM has taken some important steps to reduce the use of cash inthe economy and prevent the laundering of illicit drugs proceeds in U.S.dollars (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes:The currency market, also known as the Foreign Exchange market, is the largest financial marketin the world, with a daily average volume of over US $1 trillion. ); however, the package of billssubmitted in August 2010 tofurther enhance anti-money laundering regulations remains in limbo limbo In Roman Catholicism, a region between heaven and hell, the dwelling place of souls notcondemned to punishment but deprived of the joy of existence with God in heaven. The conceptprobably developed in the Middle Ages. inthe Mexican Congress. In June 2010, the Finance Ministry implementedregulations imposing limits on USD transactions in Mexico. The caps,which later were eased for border areas, are applicable to cash

transactions from dollars to pesos, including deposits, credit payments,and service fees. In addition to limiting transaction amounts forindividuals, all USD transactions are prohibited by the regulation forcorporate entities and trusts (including account and non-account holdingentities), except for those which are accountholders located in borderor tourist areas, for which transactions are limited. The impact of therestrictions has been dramatic, with USD cash repatriation to the U.S.from the Mexican formal financial sector dropping by 50%, or $7 billion.

The new destination for the USD cash no longer entering the Mexicanfinancial system remains an open question. Recent data does not supportthe hypothesis that the flows would be redirected to Central America Central America, narrow,southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South Americaat Colombia. It separates the Caribbean from the Pacific. and/or the Caribbean. U.S. and Mexicanauthorities have agreed tocontinue studying the flow of U.S. currency.

In 2010, the GOM announced the National Strategy for the Preventionand Elimination of Money Laundering and Financing for Terrorism. On


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April 14, 2011, the Federal Executive sent to Congress a Bill of Decreeby which the Federal Criminal Code and the Federal Criminal ProceduresCode are to be amended. The bill includes a modification to the FederalCriminal Code in order to expressly establish that a legal person isliable for any money laundering/terrorist financing crimes, amongothers, committed by any of its legal representatives acting on itsbehalf. The bill is currently under review by the Senate. The governmentalso submitted a federal law for the Prevention and Identification ofTransactions with Criminal Proceeds, which was approved by the Senate onApril 28, 2011, and is currently under review by the Congress. The billincludes, among other important aspects, restrictions on the use of cashin certain transactions (i.e., real estate, jewelry, precious stones andmetals, games and lotteries, accounting and legal services legal services n. the work performed bya lawyer for a client. ).

On August 3, 2011, amendments were issued to the General Law ofAuxiliary Credit Organizations and Activities to establish the NationalBanking and Securities Commission (CNBV CNBV Comisin Nacional Bancaria y de Valores(Mxico) ) as the supervisory authorityfor AML/CFT with regard to centros cambiarios, money remitters andnon-regulated SOFOMES. This authority will be transferred from the Tax

Administration System (SAT) to CNBV. The change was made in recognitionthat the broad experience of CNBV on AML/CFT issues and its risk-basedapproach to supervision will allow for better oversight of theseentities. The amendment provides for a transition period of 240 days.The existing centros cambiarios and money remitters that registeredprior to August 4, 2011, or that requested their registration prior toNovember 1, 2011, may continue with their operations if SAT approvestheir registration. If the registration is denied, they must suspend

their operations. Any new centros cambiarios or money remitters whichdid not request registration prior to November 1, 2011 are prohibitedfrom initiating operations until receipt of confirmation of registrationby SAT. After March 30, 2012, all requests for registration shall bereviewed by CNBV. The general rule establishes that centros cambiarosmay only provide the services of buying, selling or exchanging currency,within certain company formation restrictions and with priorauthorization prior authorization,n See predetermination. prior authorization Health insurance A cost containment measure that provides full payment of


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health benefits only if the hospitalization or medical treatment has been from the Ministry ofFinance and Public Credit Ministry of Finance and Public Credit (Spanish: Ministerio de Hacienday Crdito Pblico) is the Colombian ministry under the President of Colombia in charge ofdesigning, coordinating, regulating and executing the economic policies for Colombia in order toimprove economic. Anexception to the need for prior authorization is established for centroscambiarios that provide the aforementioned services and do not exceedthe threshold of $10,000 per client per day.

In 2011, the GOM also issued a number of AML/CFT regulationscovering financial entities; specifically: General Provisions applicableto Auxiliary Credit Organizations (issued on 5/31/11); GeneralProvisions applicable to SOFOLES (issued on 3/17/11); and GeneralProvisions applicable to SOFOMES (issued on 3/17/11). These regulationsstrengthen reporting requirements and expand the range of entitiescovered under AML/CFT provisions. The regulations represent concretesteps forward, though until the final passage by the Senate of the 2010package of anti-money laundering bills Mexico's regulatoryframework will remain incomplete.

Mexico should amend its terrorist financing legislation to fullycomport See COM port. with the UN Convention for the Suppression of the Financing ofTerrorism; and enact legislation and procedures to freeze without delayterrorist assets of those designated by the UN 1267 Sanctions Committee.

Micronesia, Federated States of Micronesia, Federated States of, independent nation (2005 est.pop. 108,000), c.271 sq mi (702 sq km), an island group in the W Pacific Ocean. It comprises four

states: Kosrae, Pohnpei (formerly Ponape), Chuuk (formerly Truk), and Yap.

The Federated Connected and treated as one. See federated database and federated directories.States of Micronesia (FSM See finite state machine. 1. (mathematics, algorithm, theory) FSM - Finite State Machine.2. (networking) FSM - FDDI Switching Module. (3Com implements this device on its LAN switches). ) is not a regional oroffshore financial center. It has no free trade zones. Its geographicisolation, small and relatively poor population, and limited


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infrastructure make it a low risk for money laundering and terroristfinancing as well as smuggled goods. Money laundering activity primarilyoriginates from public corruption, including bribery bribery Crime of giving a benefit (e.g., money) in order to influence the judgment or conduct of a person ina position of trust (e.g., an official or witness). Accepting a bribe also constitutes a crime. andmisuse ofpublic funds See Fund, 3. See also: Public. Corruption extends to directing public contracts andemployment to unqualified companies or persons; there are no estimateson the amount of money involved. Since both the executive andlegislative branches want to avoid scrutiny, they have not allocatedfunds for a more robust anti-money laundering/counter-terrorist financeprogram. Prosecutions are rare.

Both the legislative and executive branches of the government havedeclined to allocate funds for FSM to join any information sharing See data conferencing.organization, which has stymied prosecution of cases with internationallinks. Should legislation authorizing the building of a casino inPohnpei or the building of a casino and tourist complex in Yap be

authorized and implemented, concerns for money laundering would rise.

Local law enforcement suspect some smuggled items, mostlycigarettes, make their way onshore.






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Enhanced due diligence procedures for PEPs: Foreign: NO Domestic:NO

KYC covered entities: Financial institutions, cash dealers,insurers, bingo parlors, trustees, and money transaction services


Number of STRs received and time frame: Not available


STR covered entities: All banks and financial institutions


Prosecutions: None

Convictions: None


With U.S.: MLAT: NO Other mechanism: NO


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With other governments/jurisdictions: NO

The Federated States of Micronesia is not a member of a FinancialAction Task Force (FATF)-style regional body.


The Financial Intelligence Unit (FIU) of the National Policereceives suspicious transaction reports through the Department ofJustice (DOJ (Department Of Justice) The legal arm of the U.S. government that represents thepublic interest of the United States. It is headed by the Attorney General. ). The FIU consists of asingle police officer. It has nooperational or budgetary independence, and relies entirely on the DOJfor funding and the National Police for staff. The officer has bothcriminal investigative and regulatory responsibilities. Inadequatepolice training and lack of resources significantly diminish theinvestigative abilities of both police and FIU staff. There have been noarrests, prosecutions or convictions for money laundering since the FSM

criminalized the offense in 2001. The FSM should give the FIUoperational and budgetary independence, and build its overall capacity.

The FSM ratified ratify tr.v. ratified, ratifying, ratifiesTo approve and give formal sanction to; confirm. See Synonyms at approve. the UN Conventionfor the Suppression of the

Financing of Terrorism in 2001. However, the country has yet to maketerrorist financing, or the commission of terrorist acts, specificcrimes. The FSM should make the criminalization of terrorist acts andterrorist financing a priority, and establish an effectiveimplementation mechanism.

Money laundering statutes provide for the seizure of"tainted taint v. tainted, tainting, taints


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v.tr.1. To affect with or as if with a disease. 2. To affect with decay or putrefaction; spoil. See Synonyms at contaminate. 3. " property, as well as any benefits derived from thecommission of a money laundering offense. However, no property has everbeen seized or confiscated confiscate tr.v. confiscated, confiscating, confiscates1. To seize (private property) for the public treasury. 2. To seize by or as if by authority. See Synonyms at appropriate. adj. under the money laundering statute. There isno civil forfeiture. The FSM should support the investigation of moneylaundering cases and the seizure and confiscation confiscation In law, the act of seizing property without compensation and submitting it to the public treasury.Illegal items such as narcotics or firearms, or profits from the sale of illegal items, may beconfiscated by the police. Additionally, government action (e.g. of assets whereappropriate.

Local institutions and personnel lack the training and capacity tofully enforce the law and its attendant regulations. Although legallyobligated, only one of the two banks in FSM currently reports STRs.

The FSM should become a party to the UN Convention againstCorruption.

Moldova

Moldova is not considered a regional financial center. TheGovernment of Moldova (GOM) monitors money flows throughout the country,but does not exercise control over its breakaway region of Transnistria.Transnistrian authorities do not adhere to adhere toverb 1. follow, keep, maintain, respect, observe, be true, fulfil, obey, heed, keep to, abide by, beloyal, mind, be constant, be faithful


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2. GOM financial controls andaccepted anti-money laundering norms, and maintain a banking systemindependent of and not licensed by the National Bank of Moldova.Criminal proceeds laundered in Moldova derive substantially from taxevasion The process whereby a person, through commission of Fraud, unlawfully pays less taxthan the law mandates. Tax evasion is a criminal offense under federal and state statutes. A person who is convicted issubject to a prison sentence, a fine, or both., contraband smuggling, and corruption. Moneylaundering hasoccurred in the banking system and in exchange houses, along withoffshore financial centers in Transnistria. Fifteen banks constitute theMoldovan financial system. Neither offshore banks nor shell companiesare permitted to operate in Moldova. Internet gaming sites do exist,although no statistics are available on the number of sites inoperation. Internet gaming comes under the same set of regulations asdomestic casinos. Enforcement of the regulations is sporadic.

Moldova contains six free trade zones (FTZs), some of which areinfrequently used. Reportedly, goods from abroad are sometimes imported

into the FTZ and then resold and exported to other countries withdocumentation indicating Moldovan origin. Companies operating in FTZsare subject to inspections, controls, and investigations by inspectorsfrom the Customs Service and the Center for Combating Economic Crime andCorruption.






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KYC covered entities: Banks, currency exchange offices, investmentfunds, investment management companies, deposit companies, fiduciarycompanies, securities dealers, stock exchange companies, brokers,insurance and reinsurance The contract made between an insurance company and a third party toprotect the insurance company from losses. The contract provides for the third party to pay for theloss sustained by the insurance company when the company makes a payment on the originalcontract. companies, company formation agents andownership registries, gaming and lottery organizers and institutions(including Internet casinos), real estate agents, dealers of preciousmetals or gems, auditors, accountants and financial consultants,investment or fiduciary service providers, lawyers, notaries, and

organizations which provide postal and telephone mandate exchange ortransfer of resource services


Number of STRs received and time frame: 215,214 from January to

October 2011

Number of CTRs received and time frame: 16,480 from January toOctober 2011

STR covered entities: Banks, currency exchange offices, investmentfunds, investment management companies, deposit companies, fiduciarycompanies, securities dealers, stock exchange companies, brokers,insurance and reinsurance companies, company formation agents and


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ownership registries, gaming and lottery organizers and institutions(including Internet casinos), real estate agents, dealers of preciousmetals or gems, auditors, accountants and financial consultants,investment or fiduciary service providers, lawyers, notaries, andorganizations that provide postal and telephone mandate exchange ortransfer of resource services


Prosecutions: Seven from January to October 2011

Convictions: Eight from January to October 2011




Moldova is a member of the Committee of Experts on the Evaluationof Anti-Money Laundering Measures and the Financing of Terrorism(MONEYVAL), a Financial Action Task Force (FATF)-style regional body.Its most recent mutual evaluation can be found here:

http://www.coe.int/t/dghl/monitoring/moneyval/Countries/Moldova en.asp


Moldova has made some progress in instituting a legal framework forcombating money laundering that is consistent with internationalstandards. However, in November 2010, the Constitutional Court struckdown some of the most relevant provisions of the anti-money launderinglaw. Specifically, the Court invalidated invalidate


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tr.v. invalidated, invalidating, invalidatesTo make invalid; nullify.

inval the provisions of the lawenabling the Financial Intelligence Unit (FIU) to collect STRs andtemporarily freeze accounts suspected of involvement in illegalactivity. The GOM reacted by issuing a decision re-establishing therequirement for financial institutions to report STRs to the FIU. Inaddition, on April 7, 2011, Moldova's parliament enacted amendmentsto the anti-money laundering law which defines the STR reportingobligations according to international standards, sets an equivalent$10,000 threshold for reporting cash transactions, provides additionalautonomy for the FIU, and regulates the FIU's ability to freezeaccounts involved in suspicious transactions. The enactment of theanti-money laundering amendments has had a positive impact on theFIU's institutional development. In addition, the FIU increased itsoperational capacity by securing electronic access to more governmentaldatabases.

Moldova should continue to review and amend the criminal procedure

code to institute non-conviction based confiscation and to permitspecial investigative techniques to be applied to a wider range ofoffenses associated with money laundering and terrorist financing.Additionally, the GOM should criminalize tipping off.

Monaco

The Principality of Monaco is the second-smallest country inEurope. It is linked closely to France and is tied to the economicapparatus of the European Union (EU) through its customs union customs union Trade agreement by which a group of countries charges a common set of tariffs to the rest of theworld while allowing free trade among themselves. It is a partial form of economic integration,intermediate between free-trade zones, which allow mutual free trade withFrance and its use of the euro as its official currency. Monaco is knownfor its security and political stability. Monaco's state budget isbased primarily on taxes, duties, and excises which account for 75% of


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the total income; casino revenues constitute less than 3% of the statebudget. Private banking and fund management dominate the financialsector. Monaco's 36 banks and three financial institutions holdmore than 300,000 accounts and manage total assets of about 750 billioneuros (approximately $102.8 billion). Nonresidents total 46% of thefinancial institutions' total number of clients, representing 60%of the total assets and deposits, respectively almost 84,000 clients and45 billion euros (approximately $57.6 billion). Money laundering chargesrelate mainly to offenses committed abroad. Reportedly, the Principalitydoes not face ordinary forms of organized crime, nor is there asignificant market for smuggled goods.







KYC covered entities: Banks, financial institutions, casinos,trustees and company service providers



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Number of STRs received and time frame: 637 in 2010


STR covered entities: Banks; insurance companies; stockbrokers;corporate service providers; portfolio managers; some trustees;institutions within the offshore sector; casinos; money remitters; realestate brokers; consultants or advisors in business, legal or taxmatters; dealers in precious stones, precious stones, precious: see gem. materials, antiquitiesAntiquities, nearly always used in the plural in this sense, is a term for objects from Antiquity,especially the civilizations of the Mediterranean: the Classical antiquity of Greece and Rome,Ancient Egypt and the other Ancient Near Eastern cultures.,fine art and other valuable assets; lawyers; notaries; accountants


Prosecutions: 21 in 2010

Convictions: 14 in 2010




Monaco is a member of the Committee of Experts on the Evaluation ofAnti-Money Laundering Measures and the Financing of Terrorism(MONEYVAL), a Financial Action Task force (FATF)-style regional body.Its most recent mutual evaluation can be found here:


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http://www.coe.int/t/dghl/monitoring/moneyval/Countries/Monaco en.asp


The Government of Monaco (GOM) should enhance the authority of itsfinancial intelligence unit (FIU) to forward reports and share financialintelligence with law enforcement and foreign FIUs even when the reportor information obtained does not relate specifically to drugtrafficking, organized crime, or terrorist financing.

The GOM should become a party to the UN Convention againstCorruption.

Mongolia

Mongolia is not a regional financial center. There are fewfinancial and economic crimes, although numbers have increased in the

last five years. Mongolia is vulnerable to low-grade transnational crime Transnational crime is aterm used by some elements of law enforcement and academia. The word "transnational" describes crimes that are not only international, that is, crimes that crossborders between countries, but crimes that by their nature have border crossings as an due to thegrowth in tourism, investment, and remittances from abroad,but the overall rate of these crimes has not increased. The increase inreports of suspicious transactions is more likely a product of the

increasing effectiveness and experience of the Bank of Mongolia'sFinancial Information Unit (FIU).

Mongolia's limited capacity to monitor its extensive borderswith Russia and China is a liability in the fight against smuggling andnarcotics trafficking, but drug use and trafficking remain limited andunsophisticated. There is a black market for smuggled goods, whichappears largely tied to tax avoidance The process whereby an individual plans his or her financesso as to apply all exemptions and deductions provided by tax laws to reduce taxable income.


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Through tax avoidance, an individual takes advantage of all legal opportunities to minimize his orher state or federal rather than drug trafficking.There are no indications that international narcotics traffickersexploit the banking system, and no instances of terrorist financing havebeen reported.




Legal persons covered: criminally: NO civilly: YES



KYC covered entities: Banks, non-bank financial institutions,savings and credit cooperatives, insurance companies, securitiesdealers, foreign exchange units, pawnshops and casinos (though casinosare currently prohibited in Mongolia)


Number of STRs received and time frame: 56 from January 1--November1, 2011


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along with arrangements for asset sharing. The GOM should also providesafe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is sopoorly regulated that the target itself is less attractive. protection for individuals and entities filingSTRs andcooperating with authorized investigations, while also criminalizing"tipping off subjects of this reporting.

Although the Parliament passed a law on December 24, 2009, whichimproved AML/CFT efforts, it failed to bring Mongolia into compliancewith international standards, and it is not clear that the GOM has thecapacity fully to enforce this law. Deficiencies include inadequatecriminalization of money laundering and terrorist financing, lack ofadequate procedures to identify and freeze terrorist assets, and theabsence of a fully operation and effectively functioning financialintelligence unit, among others.

The GOM should work to improve its legal framework by passingamendments to bring its system fully in line with internationalstandards and dedicate dedicate tr.v. dedicated, dedicating, dedicates1. To set apart for a deity or for religious purposes; consecrate. 2. the necessary resources to enforce theprovisions. While highly professional, the FIU appears under-staffed,

and coordination with other law enforcement organizations reportedlyremains deficient. The increasing financial flows in advance of anexpected mining-driven boom create a distinct challenge to the MongolianFIU. Although five cases were opened during the year, the lack of asingle successful prosecution to date illustrates the enforcementproblem.

Montenegro


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Since its independence in 2006, Montenegro has struggled to improveits capacity to prevent and address money laundering, along with otheraspects of organized crime and corruption. Legislative reforms have putin place a legal infrastructure, however, little action has been takento proactively investigate and prosecute suspected cases of moneylaundering, raising concerns about the ability and will of theGovernment of Montenegro The Government of the Republic of Montenegro (Serbian: , Vlada Republike Crne Gore(GOM) to effectively combat this component ofcrime.

Criminal organizations, including sophisticated internationalnarcotics trafficking enterprises, have a presence in Montenegro, andthe country is also part of transit routes used to smuggle smuggle v. smuggled, smuggling, smuggles v.tr.1. To import or export without paying lawful customs charges or duties.

2. To bring in or take out illicitly or by stealth. narcotics andother contraband. Within Montenegro there exists a significant blackmarket for smuggled items such as stolen cars, narcotics, cigarettes,and counterfeit products. Many of these items are trafficked byorganized criminal groups. This criminal activity, and the moneylaundering and corruption connected to it, is a cause of concern forboth the GOM and the international community. Evidence exists that theproceeds of narcotics trafficking and other illegal activities are being

laundered through businesses engaged in food service and gambling, alongwith construction and real estate transactions. Factors that increaseMontenegro's vulnerability to and facilitate money laundering arethe high use of cash for purchases and Montenegro's use of the eurowithout being within the Euro Zone.

Investigations by Montenegrin government agencies into organizedcrime operations and suspicious financial transactions show money movingfrom and through foreign off-shore financial institutions, includinginstitutions located in the British Virgin Islands British Virgin Islands


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A British colony in the eastern Caribbean east of Puerto Rico and the U.S. Virgin Islands. RoadTown, on Tortola Island, is the capital. Population: 21,700. Noun 1., Cyprus, theSeychelles, Panama, and Switzerland. Funds transferred from theseinstitutions are being used to purchase real estate and luxury consumergoods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumergoods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) havea significant life span, often defined as three years or more, and, and to invest in businesses.

Proceeds of criminal enterprises fuel corruption which impacts lawenforcement organizations and the judiciary in Montenegro. The origin offunds used to acquire companies or businesses during privatization privatization: seenationalization.privatization Transfer of government services or assets to the private sector. State-owned assets may be soldto private owners, or statutory restrictions on competition between privately and publicly owned is

often unclear and the transactions lack transparency. In spite of theexistence of a legislative framework and several anti-corruption bodies,the overall coordination and implementation of anti-corruption effortsremain insufficient.

DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY TRANSACTIONS RELATEDTO INTERNATIONAL NARCOTICS TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUN

OF US CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN THE U.S.; OR THATOTHERWISE SIGNIFICANTLY AFFECT THE U.S.: NO


"All serious crimes" approach or "list"approach to predicate crimes: List approach


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KYC covered entities: Banks, savings banks, savings and loan savings and loan n. a banking andlending institution, chartered either by a state or the Federal government. Savings and loans onlymake loans secured by real property from deposits, upon which they pay interest slightly higherthan that paid by most banks. institutions, loan brokers, and other financial institutions;organizations performing payment, payment or credit card transactions,and post offices; stock brokers and investment and pension fundmanagers; insurance brokers and companies dealing with life assurance;organizers of lotteries and special games of chance; exchange offices;pawnshops; audit companies, independent auditors and tax adviceservices; institutions for issuing electronic money; humanitarian,nongovernmental and other non-profit organizations; and those engagedin: sale and purchase of claims; factoring, safekeeping and guaranty As a verb, to agree to be

responsible for the payment of another's debt or the performance of another's duty, liability, orobligation if that person does not perform as he or she is legally obligated to do; to assume theresponsibility of a guarantor; to warrant. ;property management; financial leasing; travel organization; real estatetrade; motor vehicle, vessel and aircraft trade; credit agencies; andauctioneers and traders of works of art, precious metals and stones, andother high value goods


Number of STRs received and time frame: 60 from January 1 toSeptember 30, 2011

Number of CTRs received and time frame: 38,563 from January 1 toSeptember 30, 2011


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STR covered entities: Banks, savings banks, savings and loaninstitutions, loan brokers, and other financial institutions;organizations performing payment, payment or credit card transactions,and post offices; stock brokers and investment and pension fundmanagers; insurance brokers and companies dealing with life assurance;organizers of lotteries and special games of chance; exchange offices;pawnshops; audit companies, independent auditors and tax adviceservices; institutions for issuing electronic money; humanitarian,nongovernmental and other non-profit organizations; and those engagedin: sale and purchase of claims; factoring, safekeeping and guaranty;property management; financial leasing; travel organization; real estatetrade; motor vehicle, vessel and aircraft trade

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