DETECTIVE INSPECTOR DOUG REEMAN POCA – LAW ENFORCEMENT PERSPECTIVE 11 th April 2006

1. DETECTIVE INSPECTOR DOUG REEMAN POCA – LAW ENFORCEMENT PERSPECTIVE 11th April 2006

2. PROCEEDS OF CRIME ACT 2002 POLICE POWERS – THEIR IMPACT ON THE MLRO

3. Economic Crime Department Fraud Squad Serious Fraud Office Financial Investigation Unit Cheque & Credit Card Unit Dedicated Cheque & Plastic Crime Unit

5. SUSPICIOUS ACTIVITY REPORTING • CONFIDENTIALITY v DISCLOSURE • CONSENT REGIME • INVESTIGATION POWERS • TYPOLOGIES • RISKS

6. SERIOUS ORGANISED CRIME AGENCYUK FIU • DEDICATED CONSENT TEAMS • WORKING IN CLOSE PARTNERSHIP WITH LAW ENFORCEMENT TEAMS • MONEYWEB - INTELLIGENCE LED • PARTNERSHIPS – TRAINING & WORKSHOPS • SECTOR LIAISON • CHANGES - APRIL 2006 (Work in progress)

7. Disclosure – criminal and civil proceedings • Fairness • Test - Undermine case or assist the defence • Each case is examined on its own merits • Identity of reporting source v defendant’s right to a fair trial • Confidentiality - Procedure - Home Office Circular – 53/2005

8. CONSENT REGIME

9. COMPUTER SAYS NO

11. SQUIRRELL LTD and Nat West and HM Customs & Excise • N2J and ACE TELECOM v Cater Allen • Operational problems • Communication • Agreement • Transparency

12. SQUIRRELL LTD v NAT WEST • Suspected – no evidence • ‘Nat West - not an investigative criminal authority – no expertise or obligation to investigate’ • Nat West - position unimpeachable • HMRC – Intervened • Questions unanswered – suspicion test

13. N2J and ACE TELECOM v Cater Allen • Claimant sought disclosure • Cater Allen relied on contractual arrangements • HMRC refusal – natural consequence of Cater Allen’s suspicion • External check and balances introduced in relation to nature of suspicion • ‘Powerful public policy reasons to permit investigation’

14. Pre-advised transactions – Sec 327 • Arrangements – Sec 328 • Timing • Engagement & Transparency • Disclosures - Post-event management & monitoring • Record of investigation and decision making process • Review • What are you seeking consent to do?

15. SENIOR MLRO – DEPUTY – TEAMWORK - FIREWALLS • SOCA – UK FIU • LEA – FINANCIAL INVESTIGATION UNIT • FINANCIAL INVESTIGATOR • FINANCIAL INTELLIGENCE OFFICER

16. APPROPRIATE CONSENTCASE STUDY • Nominated Officer - Consent – Section 336 • Strict liability offence • Early liaison – legal & law enforcement • Don’t panic • Timing – important • Clear and targeted reporting • Tipping off – careful consideration

17. INVESTIGATION POWERS

18. POCA 2002 • MONEY LAUNDERING INVESTIGATION • CONFISCATION INVESTIGATION • CIVIL RECOVERY (ARA) • POLICE & CRIMINAL EVIDENCE ACT 1984 • DRUG TRAFFICKING ACT 1994 • TERRORISM ACT 2000 & ATCSA 2001 • HMRC POWERS • SERIOUS ORGANISED CRIME & POLICE ACT 2005 • SFO – SECTION 2 POWERS • DTI

19. Customer Information Order • Production Order • Account Monitoring Order • Search & Seizure warrant • Disclosure Orders (SFO, ARA, SOCA) • PACE ORDER • Restraint Order

20. LEGAL ORDERS • POLICY & STANDARD OPERATING PROCEDURES - PUBLISH • Liaison – pre and post application • Timescales - agree • Legality – material • Witness statements & Exhibits – Who? • Managing orders – Who? • Witnesses – production or factual • Evidence – quality of material

21. IDENTITY FRAUD & IDENTITY TAKEOVER • PASSPORTS • BIRTH CERTIFICATES • DRIVING LICENCES • UTILITY BILLS • BANK AND CREDIT CARD STATEMENTS • FALSE REFERENCES

22. INTERNAL DANGERS • INSIDE AGENTS • VULNERABLE STAFF - LOW WAGE EARNERS • TARGET PROFILE - 18 to 25 years - male or female • ORGANISED • OPPORTUNIST • PAYMENT SYSTEMS • BY-PASS KYC & KYB

23. CASH BUSINESS – RISK AREAS • RESTAURANTS AND TAKEAWAYS • PUBLIC HOUSE/NIGHT CLUB • BEAUTY PARLOURS – SUN TANNING & NAIL BARS • SUPERMARKETS • MONEY LENDERS • CHEQUE CHANGERS • MONEY SERVICE BUREAU • ALTERNATIVE REMITTANCE SYSTEMS

24. CASH SEIZURE POWERS • £5,000.00 • CIVIL PROCEDURE • PARALLEL INVESTIGATION • HUGELY SUCCESSFUL

27. ROBERTO CALVI

28. DETECTIVE INSPECTOR DOUG REEMAN 020 7601 2846 doug.reeman@city-of-london.pnn.police.uk