What is the 4 difference between money laundering and terrorism financing?

For money laundering to occur, the funds involved must be the proceeds of criminal conduct. For terrorist financing to occur, the source of funds is irrelevant, i.e. the funds can be from a legitimate or illegitimate source.

What are the three stages of terror financing?

Similar to money laundering, there are generally three stages in terrorism financing: raising, moving and using funds. Despite the different stages, the ways in which terrorism financing is done is similar and, in some cases, may be identical to the methods used to launder money.

What are typologies in money laundering?

What Is a Typology? A typology within cryptoassets is a classification that’s ascribed to a certain type of behaviour within the cryptoasset markets. Common typologies are those related to money laundering, each one representing a different level of risk within a transaction.

What is the difference between money laundering and terrorism?

In money laundering, the source of the funds will be some sort of criminal activity. In terrorist financing, the source of the funds is largely irrelevant – the greater concern is where the money goes and who it supports. The sources of terrorist funds can vary greatly, including illegal and legitimate means.

What is the major difference between terrorism and money laundering?

The main purpose of money laundering is to take advantage of criminal activities. Money laundering is the result of almost all profitable crimes. Financing terrorism, on the other hand, refers to an illegal action in the future; the purpose of terrorism financing is not to collect, profit, or accumulate in the future.

What are the red flags in AML?

Red flag 5: The client or third party contributes a considerable amount of cash as collateral provided by the borrower without making a logical statement. Red flag 6: The source of the funds is suspicious such as funds sent from a high-risk customer. Red flag 7: The customer has multiple back accounts/foreign accounts.

What are the links between money laundering and terrorism?

What are red flags in AML?

refuses to provide information, data, and the necessary documents. provide fake documents. uses an email address that cannot be found on the Internet. a partner associated or known or known to a person involved in or suspected of terrorist or terrorist financing activities.

What is difference between ML and TF?

ML is the concealment of illegal sources of funds, including smuggling, trafficking and fraud. TF is the collection of funds, both legal and illegal, and their channeling for the purposes of spreading terror.

What are the three key criteria in AML risk rating?

Key Categories of BSA/AML Risk for Community Banks. Inherent BSA/AML risk falls into three main categories: (1) products and services, (2) customers and entities, and (3) geographic location.

What is PEP declaration?

POLITICALLY EXPOSED PERSON (PEP) DECLARATION Like all estate agents (and many other industries), we are required to ascertain from all buyers and sellers whether they or any member of their immediate family is classed as a Politically Exposed Person (PEP).

What is the difference between money laundering and anti-money laundering?

Criminals use money laundering to make illicit funds appear to have a legitimate origin. AML regulations require financial institutions to develop sophisticated customer due diligence plans to assess money laundering risks and detect suspicious transactions.

What is AMLA law?

The Anti-Money Laundering Act of 2001 (AMLA) is the Philippines’ primary anti-money laundering law. AMLA enables authorities to investigate money laundering and other financial crimes in order to protect financial institutions and deter criminals from using the Philippines as a money-laundering destination.

Who are considered PEP in the Philippines?

“Politically Exposed Person” (PEP) refers to an individual who is or has been entrusted with prominent public position in (a) the Philippines with substantial authority over policy, operations or the use or allocation of government-owned resources; (b) a foreign State; or (c) an international organization. 2.

What is PEP in OFAC?

The Financial Action Task Force (FATF) describes politically exposed persons (PEP) as follows: Any individual who has been placed in a prominent public position by a domestic or foreign country. Examples include Heads of state, senior politicians, military officials, and other important political party officials.

Who are covered by amla?

Covered Persons Supervised or Regulated by the Bangko Sentral ng Pilipinas (BSP)

  • Banks;
  • Offshore banking units;
  • Quasi-banks;
  • Trust entities;
  • Non-stock savings and loan associations;
  • Pawnshops;
  • Foreign exchange dealers;
  • Money changers;

What is RA No 10168?

10168] AN ACT DEFINING THE CRIME OF FINANCING OF TERRORISM, PROVIDING PENALTIES THEREFOR AND FOR OTHER PURPOSES. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1.