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Goldsworth Anti-Money Laundering: International Law and Practice Anti-Money Laundering: International Law and Practice Editors WouterH.Muller ChristianH.Ka¨lin JohnG.Goldsworth Henley&Partners Henley&Partners Trusts&Trustees Forewordby ProfessorKaderAsmal PresidentFATF2005–2006 AuthorsoftheGeneralChapters ComplianceandAML–Standards, InitiativesoftheEuropeanCommission educationandtraining FrancoFrattini WilliamB.Howarth EUCommission,Brussels InternationalComplianceAssociation TheFinancialActionTaskForce Birmingham AlainDamais Anti-MoneyLaunderingRegulation FATF–GAFI,Paris andTrusts MartynFrost,TEP TheEgmontGroup SocietyofTrustandEstate WouterH.Muller,TEP Practitioners,London Henley&Partners,Zurich TheUnitedNationsSecurityCouncilandthe TheWolfsbergProcess efforttocombatmoneylaundering MarkPieth andthefinancingofterrorism UniversityofBasel,FacultyofLaw,Basel JoelSollier UNSCCounter-TerrorismCommittee,NewYork UNAnti-MoneyLaundering Initiatives RickMcDonell UnitedNationsOfficeonDrugsandCrime,Vienna AuthorsofCountryChapters USA Uruguay JohnW.Moscow FabianRivero/AdyBeitler RosnerMoscow&Napierala,LLP,NewYork EstudioBergstein,Montevideo Canada Chile NancyCarroll/BarbaraMcIsaac Cristo´balEyzaguirreB./FelipeDalgalarrando/ McCarthyTe´traultLLP,Toronto PatricioMiddleton ClaroYCia,SantiagodeChile Panama RicardoM.Alba/EloyAlfarodeAlba BermudaandBritishVirginIslands Tapia,Linares&Alfaro,PanamaCity CraigW.MacIntyre,TEP ConyersDill&Pearman,Hamilton Argentina Sebastia´nA.Soler Bahamas Marval,O’Farrell&Mairal,BuenosAires CherylE.Bazard/TanyaC.McCartney BahamasAssociationofCompliance Brazil Officers,Nassau ElianaM.Filipozzi/RobertE.WilliamsNoronha Advogados,London/Sa˜oPaulo CaymanIslands Spain MartinLivingston JavierGarc´ıaSanz/GuillermoSanPedro Maples&Calder,Georgetown Ur´ıaMene´ndez,Madrid Barbados Italy CarolynHanson AlbertoGiampieri/PaoloIemma InternationalComplianceAssociation Gianni,Origoni,Grippo&Partners,Rome ChristChurch Greece NetherlandsAntillesandAruba D.Karamagiolis AedeGerbranda Tsibanoulis&Partners,Athens SmeetsThesselingvanBokhorst,Amsterdam Belgium St.KittsandNevis Franc¸oiseLefe`vre/OlivierPraet ShawnaLake/IdrisClarke Linklaters,Brussels GovernmentofSt.Kitts&Nevis,Basseterre Netherlands Switzerland EnidePerez/MaxVermeij JudithSchmidt StibbeN.V.,Amsterdam MoneyLaunderingControlAuthority,Bern Luxembourg Liechtenstein PitReckinger JohannesGasser/MarkusSchwingshackl Elvinger,Hoss&Prussen,Luxembourg Advokaturbu¨roDr.Dr.Batliner RussianFederation &Dr.Gasser,Vaduz ValeryTutykhin Austria JohnTiner&Partners,Moscow ThomasShirmer/MarkusUitz Ukraine BinderGro¨sswang,Rechtsanwa¨lte,Wien DmytroKorbut UnitedKingdom AndreasNeocleous&Co.,Kiev PeterBurrell/KateMeakin UnitedArabEmirates HerbertSmithLLP,London GrahamLovett/CharlesBarwick Jersey CliffordChanceLLP,Dubai AndrewleBrun Singapore JerseyFinancialServicesCommission,St.Helier CheeFangTheng,TEP Guernsey KhattarWong,Singapore MarkG.Ferbrache,TEP Japan FerbracheRichardson,Advocates,St.Saviours TakashiNakazaki Cyprus Anderson,Mori,Tomotsune,Tokyo DavidStokes China AndreasNeocleous&Co.,Limassol DonnaLi IsleofMan AllBrightLawOffices/ NickVerardi/MarcConway XiaoRongGu DickinsonCruickshank,Douglas InstituteofLawofShanghai Shanghai Ireland JohnHandoll HongKong WilliamFrySolicitors,Dublin StevenSieker,TEP/L.TravisBenjamin,TEP Baker&McKenzie,HongKong Germany OlafOtting Australia GleissLutz,FrankfurtamMain AndrewWhite UniversityofMelbourne,Melbourne France PhilippeBlaquier-Cirelli/Pierre-YvesCouturier NewZealand Avocatsa`laCourJeantetAssocie´s,Paris DavidCraig/SimonDavid BellGully,BarristersandSolicitors,Wellington Monaco DonaldManasse,TEP/SophieMarquet SouthAfrica DonaldManasseLawOffices,MonteCarlo PieterK.Smit FinancialIntelligenceCentre,Pretoria CONTENTS Acknowledgements...........................................................................................xi Alliancepartners.............................................................................................xii Aboutthisbook ..............................................................................................xv Abouttheeditors ........................................................................................... xvi Foreword..................................................................................................... xix ProfessorKaderAsmal,PresidentFATF2005–2006 Anti-MoneyLaundering–Ashorthistory.................................................................. 1 WouterH.Muller(editor),Zurich INTERNATIONALISSUES......................................................................................13 ComplianceandAML–Standards,educationandtraining.............................................15 WilliamB.Howarth,presidentICA,Birmingham(UK) Anti-MoneyLaunderingRegulationandTrusts...........................................................23 MartynFrost,STEPDeputyChairman,Oldham(UK) INTERNATIONALORGANIZATIONSANDINITIATIVES .....................................................35 TheUnitedNationsSecurityCouncilandtheefforttocombatmoneylaunderingandthe financingofterrorism ...............................................................................37 JoelSollier,UNSCCounter-TerrorismCommittee,NewYork UNAnti-MoneyLaunderingInitiatives.....................................................................49 RickMcDonell,UNODC,Vienna InitiativesoftheEuropeanCommission...................................................................57 FrancoFrattini,EUCommission,Brussels(Belgium) TheFinancialActionTaskForce ............................................................................69 AlainDamais,ExecutiveSecretaryFATF,Paris(France) TheEgmontGroup ...........................................................................................83 WouterH.Muller(editor),Zurich TheWolfsbergProcess.......................................................................................93 MarkPieth,UniversityofBasel COUNTRIES...................................................................................................105 TheAmericas...................................................................................................107 USA............................................................................................................109 JohnW.Moscow,RosnerMoscow&NapieralaLLP,NewYork Canada........................................................................................................127 NancyJ.Carroll&BarbaraA.McIsaac,McCarthyTe´trault,Toronto/Ottawa(Ontario) Panama.......................................................................................................141 RicardoM.Alba&EloyAlfarodeAlba,Tapia,Linares&Alfaro,PanamaCity VII Argentina.....................................................................................................157 Sebastia´nA.Soler,Marval,O’Farrell&Mairal,BuenosAires Brazil..........................................................................................................167 ElianaMariaFilippozzi,NoronhaAdvogados,London RobertEllisWilliams,NoronhaAdvogados,Sa˜oPaulo Uruguay ......................................................................................................181 Fabia´nRivero,EstudioBergstein,Montevideo AdyBeitler,Montevideo Chile...........................................................................................................195 Cristo´balEyzaguirre,FelipeDalgalarrando&PatricioMiddletonClaroyCia.,SantiagodeChile Bahamas,BermudaandCaribbean.............................................................................211 Bermuda......................................................................................................213 CraigW.MacIntyre,ConyersDill&Pearman,Hamilton Bahamas......................................................................................................233 CherylE.Bazard&TanyaC.McCartney,BahamasAssociationofComplianceOfficers,Nassau CaymanIslands..............................................................................................249 MartinLivingston,Maples&Calder,GrandCayman BritishVirginIslands........................................................................................261 CraigW.MacIntyre,ConyersDill&Pearman Barbados .....................................................................................................275 CarolynHanson,ICAandBarbadosAssociationofComplianceProfessionalsChristChurch, Barbados NetherlandsAntillesandAruba...........................................................................295 AedeGerbranda,SmeetsThesselingvanBokhorst,Curac¸ao/Amsterdam St.KittsandNevis...........................................................................................307 ShawnaLake&IdrisFidelaClarke,MinistryofFinance,Basseterre,St.Kitts Europe.........................................................................................................319 Switzerland ..................................................................................................321 JudithSchmidt,SwissMoneyLaunderingControlAuthority,Berne Liechtenstein.................................................................................................341 JohannesGasser&MarkusSchwingshackl,Advokaturbu¨roDr.Dr.Batliner&Dr.Gasser,Vaduz Austria........................................................................................................355 ThomasSchirmer&MarkusUitz,BinderGro¨sswangRechtsanwa¨lte,Vienna UnitedKingdom.............................................................................................369 PeterBurrell&KateMeakin,HerbertSmithLLP,London Jersey.........................................................................................................381 AndrewleBrun,JerseyFinancialServicesCommission,St.Helier,Jersey Guernsey .....................................................................................................399 MarkG.Ferbrache,FerbracheRichardson,St.Saviours,Guernsey VIII