Homeland Security Homeland Security Investigations Investigations HALF PHOTO SLIDE PAGE TITLE FOR QUOTES AND SUCH HSI SAC Newark NJ Kelly Polson & Terri Quintana Cornerstone Outreach Program
Homeland Security Investigations Homeland Security Investigations Legacy HSI investigates customs, trade and immigration crimes, smuggling of narcotics, weapons and other types of contraband, human trafficking and smuggling, financial crimes , cybercrimes, gangs investigations, critical infrastructure and export enforcement issues.
Homeland Security Investigations 256 Domestic Offices 26 SAC Offices
Homeland Security Homeland Security International Footprint Investigations Investigations
Homeland Security Investigations “Customs Officers” Investigate at Broad and away authority to investigate from the federal crime border HSI Special Agents
Homeland Security Investigations Trade Travel Finance Narcotics Smuggling / Human Smuggling / Money Laundering / Bulk Trafficking Trafficking Cash Smuggling / Financial Crimes Commercial Trade and Anti-Gang Enforcement Fraud Cyber Crimes Immigration Document / Weapons Smuggling Benefit Fraud Worksite Enforcement/ Export Enforcement Human Rights Violations Critical Infrastructure Protection Intellectual Property Rights (IPR)
Homeland Security Investigations HSI focuses on the means and methods utilized by transnational criminal organizations to earn, move and store their proceeds. Methods Kleptocracy Financial Fraud Telemarketing & Mass Fraud Human Trafficking & Human Smuggling Organized Retail Crime Contraband Smuggling/ Trafficking
Homeland Security Investigations Border Search Authority Exclusive Full Access to Access to Trade BSA’s Reports Data As the United States’ principal border enforcement investigative agency, HSI is uniquely positioned to investigate all incidents of transnational and cross-border financial crimes. HSI is the only law enforcement investigative agency that has border search authority, full access to BSA reports, and exclusive access to trade data.
Homeland Security Investigations FinCEN Participation • HSI contributes to FinCEN’s SAR Activity Review which highlights case where BSA information played an important role in the successful investigation and prosecution of criminal activity. • HSI has a continual presence at FinCEN through the utilization of an HSI Liaison, a Special Agent and a Intelligence Research Specialist.
Homeland Security Investigations In July 2003, HSI launched the Cornerstone Outreach Program to work with the private sector in order to identify and eliminate vulnerabilities in financial systems through which criminals launder their illicit proceeds. The key is building strong partnerships and alliances by sharing law enforcement trends and methods and providing training to the businesses and industries that manage the financial systems that terrorists and criminal organizations seek to exploit.
Homeland Security Investigations HSI Special Agents/Program Managers assigned to HQ, publish a newsletter titled “ The Cornerstone Report” , providing useful information on financial crimes, current trends identified by both law enforcement and the private sector, recent cases and training/outreach events. www.ice.gov/cornerstone
Homeland Security How You Can Help Investigations Homeland security is more than a government responsibility – it’s a shared mission for all Americans. As a valued stakeholder in this partnership, there are several ways you can help to ensure our nation’s security: PARTNER with your local HSI office by maintaining open lines of communication COMPLY with the Bank Secrecy Act, US PATRIOT Act and other industry reporting requirements through a comprehensive AML program REPORT suspicious activity by contacting your local HSI office by calling 1-866-DHS-2-ICE SUBSCRIBE to the “Cornerstone Report”, HSI’s newsletter devoted to financial investigations on HSI’s authorities. Visit www.ice.gov/cornerstone for more information or write to cornerstone@ice.dhs.gov
Homeland Security Investigations Bank Secrecy Act Reports Currency and Suspicious Currency FinCEN Form Foreign Bank Monetary Account Report Activity Report Transaction 8300 Instruments Report (FBAR) (SAR) Report (CTR) (CMIR) U.S. person with Filed by Currency Filed by persons Cash over financial interest financial transactions over departing or $10,000 or signatory institutions on $10,000 entering U.S. or received in a interest in foreign shipping or suspicious trade or business bank accounts receiving C/MI activity over $10,000
Homeland Security Investigations Recommendations when preparing a SAR • Begin the narrative with a summary sentence to give the reader a snapshot of what details will be discussed - Who’s Involved? - Amount of suspect $ - Dates of activity - What activity is suspected ?
Homeland Security Investigations Recommendations when preparing a SAR • Create 1 SAR per suspected activity relevant to the subjects involved
Homeland Security Investigations Recommendations when preparing a SAR • Note what supporting documents exist
Homeland Security Investigations Recommendations when preparing a SAR • Please don’t list all of the transactions in the summary without giving a reason. A sample set highlighting the activity will suffice.
Homeland Security Investigations Recommendations when preparing a SAR • Indicate if there are employees of the financial institution that may have more detailed knowledge of the SAR being filed
Homeland Security Investigations Recommendations when preparing a SAR • SARS related to correspondent account activity should include the details of all the accounts involved
Homeland Security Investigations Recommendations when preparing a SAR • Include the identifying information of all parties involved
Homeland Security Investigations Recommendations when preparing a SAR • If you are writing the SAR because of a look-back state that in your opening sentence. • If you are writing due to a Law Enforcement Inquiry, be sure to input that Officer’s Contact information in its respective field .(Law Enforcement Agency Contact)
Homeland Security Investigations Recommendations when preparing a SAR • Write why you think the activity is suspicious and what factors drove you to that conclusion
Homeland Security Investigations Recommendations when preparing a SAR • Note other suspicious businesses or individuals that have frequent financial contact with your customer and why you think these relationships are suspect
Homeland Security Investigations Recommendations when preparing a SAR • Explain how the money goes in AND how the money goes out, especially in Trade Based Money Laundering scenarios
Homeland Security Investigations Recommendations when preparing a SAR • Specify the suspect amount of currency going in and out of the account $400,000 $100,000 going into the going into the account account
Homeland Security Investigations Recommendations when preparing a SAR • If your bank has completed any site visits of the suspect .customer, enter the details of the findings in the summary
Homeland Security Investigations Recommendations when preparing a SAR • If the suspect customer has a safe deposit box, note that .information
Homeland Security Investigations Recommendations when preparing a SAR • If possible, when the account is closed by your bank, indicate where .the money was transferred to after the closure of the account Ending Balance: $454,680.99 Bank Check Issued to XYZ Bank for $230,484.99 Wire Transfer to ABC Bank for $224,196.00
Homeland Security Investigations Recommendations when preparing a SAR • Do the deposit locations match the geographical footprint?
Homeland Security Investigations Recommendations when preparing a SAR • When a SAR is generated from CTRs that aggregate to over .$10,000, note the locations each transactions occur in
Homeland Security Investigations Recommendations when preparing a SAR • Please list patterns of structuring: Date – Amount – Location 9/1/2012 $5,600 Pequannock, NJ 9/1/2012 $4,400 Wayne, NJ 9/8/2012 $5,500 Butler, NJ 9/8/2012 $4,500 River Vale, NJ
Homeland Security Investigations Recommendations when preparing a SAR • If this isn’t the first SAR for the customer, please indicate the: - previous reference number(s), - previous suspicious activity dates - cumulative amounts
Homeland Security Investigations Case Study
Homeland Security Homeland Security Investigations Investigations HSBC Bank • In December 2012, Homeland Security Investigations and the Department of Justice announced a $1.256 billion summary judgment with HSBC. • HSBC entered into a deferred prosecution agreement for violations of the Bank Secrecy Act (BSA), the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA). • A four-count criminal information was filed charging HSBC with willfully failing to maintain an effective anti-money laundering (AML) program, willfully failing to conduct due diligence on its foreign correspondent affiliates, violating IEEPA and TWEA.
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