Presentation is loading. Please wait.

Presentation is loading. Please wait.

AUDIT TO DETECT FRAUD AND CORRUPTION: EVALUATION OF THE FIGHT AGAINST CORRUPTION AND MONEY LAUNDERING Atty. ALEXANDER B. JULIANO Director – Fraud Audit.

Similar presentations


Presentation on theme: "AUDIT TO DETECT FRAUD AND CORRUPTION: EVALUATION OF THE FIGHT AGAINST CORRUPTION AND MONEY LAUNDERING Atty. ALEXANDER B. JULIANO Director – Fraud Audit."— Presentation transcript:

1

2 AUDIT TO DETECT FRAUD AND CORRUPTION: EVALUATION OF THE FIGHT AGAINST CORRUPTION AND MONEY LAUNDERING Atty. ALEXANDER B. JULIANO Director – Fraud Audit Office Commission on Audit - Philippines The 10th ASOSAI Research Project

3 Assessment of Current Situation of Corruption and Money Laundering in the Philippines

4 Respondents

5 Salient Features of the Anti-Money Laundering Act of the Philippines Criminalizes money laundering Creates a financial intelligence unit Imposes requirements on customer identification, record keeping and reporting of covered and suspicious transactions Relaxes strict bank deposits secrecy laws Provides for bank inquiry and freeze ex parte petition/seizure/forfeiture /recovery of dirty money/property Provides for international cooperation

6 Mandate of the Ombudsman THE OMBUDSMAN AND HIS DEPUTIES, as protectors of the people shall act promptly on complaints filed in any form or manner against officers or employees of the Government, and enforce their administrative, civil and criminal liability in every case where the evidence warrants in order to promote efficient service by the Government to the people (Section 13, R.A. No. 6770; see also Section 12 Article XI of the 1987 Constitution). The Ombudsman shall give priority to complaints filed against high ranking government officials and/or those occupying supervisory positions, complaints involving grave offenses as well as complaints involving large sums of money and/or properties (Sec. 15, R.A. No. 6770)

7 SURVEY RESULTS

8 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Low / Moderate / Moderate and widespread among some public sectors / // Serious and pervasive in most or all sectors Other (Please specify)…………….. CURRENT PREVALENCE OF CORRUPTION IS MODERATE AND WIDESPREAD AMONG SOME PUBLIC SECTORS (60%)

9 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Much higher than previously Slightly higher than previously About the same as previously Slightly lower than previously //// Much lower than previously / Other (Please specify)….. THE CURRENT PREVALENCE OF CORRUPTION IS SLIGHTLY LOWER THAN PREVIOUS YEARS (80%)

10 RANKING IN TRANSPARENCY INTERNATIONALS-CORRUPTION PERCEPTION INDEX DOES NOT FAIRLY REFLECT THE REALITY OF CORRUPTION IN THE COUNTRY (80%) Yes/ No //// Other (Please specify)…………… Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao

11 SCORE OF THE GLOBAL INTEGRITY INDEX DOES NOT FAIRLY REFLECT THE REALITY OF CORRUPTION IN THE COUNTRY (60%) Yes/ / No /// Other (Please specify)…………… Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao

12 THE COUNTRYS POPULATION IS MODERATELY INTOLERANT TOWARDS CORRUPTION (60%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Tolerant towards corruption // Moderately intolerant towards corruption // / Strongly intolerant towards corruption Other (Please specify)…………..

13 THE STRENGTH OF STEPS TAKEN BY THE GOVERNMENT AGAINST CORRUPTION IS MODERATE TO STRONG (60:40) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Weak Moderate// / Strong / / Other (Please specify)…………….

14 THE PATTERN OF CORRUPTION DEALINGS IS MODERATELY PREDICTABLE (80%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Unpredictable Unpredictable but benefitting few top leaders / Moderately predictable// // Highly predictable and can be seen from certain pattern Other (Please specify)…………….

15 CORRUPTION OCCURS EQUALLY IN THE PUBLIC AND PRIVATE SECTORS Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Mostly in public entities / Mostly in private entities / Equally In public and private entities // / Other (Please specify)…………….

16 PREVALENCE OF GRAND CORRUPTION RANKS NO. 1, PETTY CORRUPTION NO. 2 AND CORRUPTION AT ENTERPRISE LEVEL NO. 3 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Petty corruption Corruption at enterprise level Grand corruption Other (Please specify)……………. ranking was made on collective consideration of enumeration

17 THE PREVALENCE OF PETTY CORRUPTION IN THE COUNTRY IS MODERATE TO HIGH (60:40) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Non-existent Low Moderate / // High // Other (Please specify)…………….

18 PEOPLE MOST LIKELY TO BE INVOLVED IN PETTY CORRUPTION ARE RANK AND FILE EMPLOYEES Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao High-level management Medium Management / Supervisors / Rank and file employees / // // Public / Other (Please specify)…………….

19 MAIN PATTERNS OF PETTY CORRUPTION IN THE COUNTRY Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Directly requesting kickbacks/tokens in exchange for performing a job Petty corruption occurs usually where there is face- to-face interaction between the public employee and the public and/or where documents are to be submitted for processing, signature or approval Street corruption by enforcement officers Direct and indirect solicitation of grease money Front liner service providers are more exposed or prone to small scale corrupt practices

20 THE PREVALENCE OF GRAND CORRUPTION IN THE COUNTRY IS MODERATE (80%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Non-existent Low / Moderate // / / High Other (Please specify)…………….

21 PERSONALITIES MOST LIKELY TO BE INVOLVED IN GRAND CORRUPTION ARE 1)ELECTED OFFICIALS AND THEIR FAVORITES 2) POWERFUL GOVERNMENT OFFICIALS 3) SPECIFIC BUSINESS INTEREST AND POLITICAL GROUPS Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Elected officials and their personal favourites /// / Powerful government officials / // Business entrepreneurs Specific business interests and/or political groups / Other (Please specify)…………….

22 THE MOST COMMON TYPES OF CORRUPTION IN THE COUNTRY ARE 1)ABUSE OF POSITION/POWER 2) BRIBERY 3) 4) KICKBACK AND 5) EMBEZZLEMENT Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Abuse of position/power Bribery Criminal breach of trust Extortion Embezzlement Forgery95968 Influence peddling86257 Kickback37344 Nepotism59489 Other (Please specify)……………

23 The approximate average monetary value where such corruption has an identifiable monetary value 1 = Less than USD50,000 2 = Between USD50,000 – USD100,000 3 = Between USD100,000 – USD500,000 4 = Between USD500,000 – USD1,000,000 5 = More than USD1,000,000 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Type of corruption rank No.1 :51251 Type of corruption rank No.2 :51132 Type of corruption rank No.3 :5222

24 Agriculture Customs Education Energy10 99 Environment Health Legislature Judiciary Law Enforcement/police Local government/Municipalities Public service delivery State-owned enterprise Taxation Other (Please specify) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao THE SECTORS MOST VULNERABLE TO CORRUPTION ARE 1)CUSTOMS 2) TAXATION 3) LOCAL GOVERNMENT UNITS 4) LAW ENFORCEMENT/POLICE, AND 5)PUBLIC SERVICE DELIVERY

25 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Procurement contracts Electoral irregularities Revenue (Taxes) collection Public fund disbursement procedures Licensing Other (Please specify)……………. CORRUPTION HAS THE GREATEST PROBABILITY OF OCCURRING IN 1)PUBLIC FUND DISBURSEMENT 2) PROCUREMENT CONTRACTS, TAXATION, REVENUE COLLECTION, 3) ELECTORAL SYSTEM AND 4)LICENSING

26 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Acquiring assets Bank deposits Investing in real estate Leisure, social activities Stock investment Other (Please specify)……………. Gambling/vices MONIES AND ASSETS GAINED FROM CORRUPTION MOST OFTEN USED FOR 1)ACQUIRING ASSETS 2)BANK DEPOSITS 3) REAL ESTATE INVESTMENT 4) LEISURE/GAMBLING 5) STOCK INVESTMENT

27 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Absence, weaknesses or failure in regulatory and legal systems to combat corruption Complicated and cumbersome administrative procedures Culture, customs and habits of giving bribes to get things done Low salary levels Lack of financial rules and procedures To become rich as quick as possible Rapid population and economic growth Unclear rules and loopholes for manipulation Other (Please specify) THE ROOT CAUSE OF CORRUPTION IN THE COUNTRY ARE 1)ABSENCE/WEAKNESS/FAILURE OF REGULATORY AND LEGAL SYSTEM TO COMBAT CORRUPTION 2) CULTURE, CUSTOM AND HABITS AND 4) LOW SALARY

28 THE PATRONAGE-CLIENT SYSTEM IS THE MAIN CAUSE OF GRAND CORRUPTION AND PETTY CORRUPTION (60%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Strongly disagree / / Disagree Neither agree nor disagree Agree / Strongly agree/ /

29 WEAK ACCOUNTING PRACTICES, INCLUDING LACK OF TIMELY FINANCIAL MANAGEMENT ARE CONDITIONS FAVORABLE FOR CORRUPTION (80%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Strongly disagree / Disagree Neither agree nor disagree Agree / Strongly agree// /

30 MONITORING THE SITUATION OF CORRUPTION IN THE COUNTRY IS A HIGH PRIORITY (60%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Not a priority Low priority Medium priority / High Priority// / Essential /

31 COMPLAINTS OF CORRUPTION OR FRAUD FROM THE PUBLIC IS A HIGH PRIORITY (100%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Not a priority Low priority Medium priority High Priority// /// Essential

32 EMPHASIZING THE ROLE OF WHISTLE BLOWER IN REPORTING CORRUPTION IS VERY IMPORTANT (60%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Not at all important Low importance Slightly important Neutral Moderately important / Very important/ // Extremely important /

33 WHISTLE BLOWING IS AN EFFECTIVE AVENUE TO LODGE COMPLAINTS OF CORRUPTION (80%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Not effective / Effective// / Very effective / Other (Please specify)

34 THE DAMAGE THAT CORRUPTION CAUSES TO THE GOVERNMENTS BUDGET IS VERY SERIOUS (60%) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Not at all serious Somewhat serious / Serious Very serious /// Extremely serious/

35 THE DAMAGE THAT CORRUPTION CAUSES TO THE PRIVATE SECTOR IS SERIOUS Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Not at all serious Somewhat serious / Serious // Very serious / Extremely serious/

36 THE DAMAGE THAT CORRUPTION CAUSES TO CITIZENS IS VERY SERIOUS Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Not at all serious Somewhat serious / Serious / Very serious // Extremely serious/

37 CORRUPTION DURING BUDGET FORMULATION IS PRIMARILY GRAND OR POLITICAL CORRUPTION AND IS INFLUENCED BY THE DISTRIBUTION OF BUDGETARY POWERS BETWEEN THE EXECUTIVE AND THE LEGISLATURE Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Strongly disagree / Disagree Neither agree nor disagree // Agree Strongly agree//

38 Unchecked and excessive executive discretion in the budget process tends to create opportunities for political corruption. Politician or senior level bureaucrats are able to provide subsidies or favorable tax treatments to favored citizen groups or allocate budget resources to projects areas based on political connection. Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Strongly disagree Disagree Neither agree nor disagree Agree / / / Strongly agree/

39 PUBLIC FINANCIAL MANAGEMENT SYSTEM WEAKNESS DURING BUDGET FORMULATION CAN INCREASE THE RISK OF ADMINISTRATIVE CORRUPTION DURING BUDGET EXECUTION. Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Strongly disagree Disagree Neither agree nor disagree Agree /// Strongly agree/

40 MOST SIGNIFICANT INCIDENCES OF CORRUPTION (BOTH PETTY AND GRAND CORRUPTION) IN THE PAST 5 YEARS ( ) Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao i. …………smuggling of oil violation of RA 3019 (Anti-Graft and Corrupt Practices Act) NBN-ZTE dealZTE ii. ……….. use of government funds for personal use malversation Military procurement (conversion of funds) Gen. Ligot case iii. ………bribery in high places inlcuding the Office of the President bribery Police procurementPAGCOR iv..………failure to render account v..…..……plunder

41 THE USUAL STYLES OF FRAUD AND CORRUPTION Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao none1) Influence peddling to approve PPP projects through unsolicited proposals under BOT scheme 2) Conveyance of public funds through bogus foundations/NGO's In public works, costs or prices are increased in order not to sacrifice quality and quantity both the excess amounts are divided accordingly. In Tax credit certificates scam, the value of the bus (among others) is doubled in order to increase the tax credit/claim from the government. Accordingly, increasing the percentage of share.

42 REMARKS ON THE PREVALENCE AND NATURE OF CORRUPTION IN COUNTRY Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao noneIt is serious though improving. Corruption among legislature is grandeous and assured for instance if you are a congressman and you received million a year (as pork barel) multiplied by three years (term) equals 20 Million. With an assured kickback ranging from 10% to 20%, the congressman received P21 Million to P42 Million as the case maybe.

43 Assessment Of Current Situation Of Money Laundering

44 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Extremely serious Very serious / Serious/// / Not serious Not at all serious Other (Please specify)……………. MONEY LAUNDERING IN THE COUNTRY IS SERIOUS (80%)

45 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Strongly agree Partially agree //// Disagree Partially disagree Strongly disagree/ Other (Please specify)……………. RESPONDENTS PARTIALLY AGREE THAT MONEY LAUNDERING TENDS TO INCREASE IN RECENT YEARS (80%)

46 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Strongly agree/ / Partially agree / // Disagree Partially disagree Strongly disagree Other (Please specify)……………. OVER THE YEARS, MONEY LAUNDERING TENDS TO BE MORE SOPHISTICATED (60:40)

47 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Corruptive practices through money laundering mostly found in public entities / Corruptive practices through money laundering mostly observed in private sectors / Both in public and private entities // / Other (Please specify)……………. THE MAIN PATTERN OF MONEY LAUNDERING IS OBSERVED BOTH IN PUBLIC AND PRIVATE ENTITIES (60%)

48 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Real estate2424 Finance, banking13111 Trade3232 Construction4143 Other (Please specify)……………. drugs THE FIELDS WHICH HAVE THE HIGHEST RISK OF MONEY LAUNDERING ARE 1)FINANCE/BANKING 2)TRADE 3)REAL ESTATE 4)CONSTRUCTION

49 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Business42525 Cash transaction51341 Casino36493 Money exchange83272 Project74634 Real estate25757 Stock market67866 Through internet99988 Through financial institutions18119 Other (Please specify)…………… THE MOST COMMON METHOD OF MONEY LAUNDERING ARE 1) CASH TRANSACTION 2) BUSINESS 3) FINANCIAL INSTITUTIONS

50 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao International economic integrating / / Bank and financial institutions do not have suitable supervision/control system to anti money laundering / / Use of cash and illegal money transfer is dominant /// Legal system for anti money laundering is not enough / /// Other (Please specify)……………. THE LEGAL SYSTEM FOR MONEY LAUNDERING IS NOT ENOUGH AND USE OF CASH AND ILLEGAL MONEY TRANSFER IS DOMINANT

51 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Embezzlement/ // Corruption/ / Production, buying and selling of illegal goods / / Terrorism/ / Drugs/// / Other (Please specify)……………. DRUGS AND EMBEZZLEMENT ARE OFFENCES CLOSELY ASSOCIATED WITH MONEY LAUNDERING THE TOP THREE OFFENCES: THE TOP THREE OFFENCES: Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao 1.Drugs CorruptionEmbezzlementDrugs 2.Corruption EmbezzlementCorruptionTerrorism 3.Embezzlement DrugsTerrorismCorruption

52 How would you rate the approximate average amount of monetary involved for the top three offences. (Please choose from the answers below) 1 = Less than USD10M 2 = Between USD10M - USD50M 3 = Between USD50M - USD100M 4 = More than USD100M Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Offence rank No.1 :12121 Offence rank No.2 :21122 Offence rank No.3 :31123

53 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Avoiding prosecution/ / / Becoming legitimate/ // Evading taxes/ / Hiding illegally accumulated wealth /// Increase profit/ / Other (Please specify)……………. THE MAIN REASON CRIMINALS LAUNDER MONEY INCLUDE THOSE ENUMERATED BELOW

54 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Increased crime and corruption/ / Weakened financial institutions / / Compromised economy and private sector / // Negative impact on foreign investment / / Reduced government tax revenue and weakened government control over the economy /// Damaged privatization efforts/ / Other (Please specify)……………. all of the above THE CONSEQUENCES OF MONEY LAUNDERING ARE THOSE ENUMERATED BELOW

55 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao No consequences Not too serious / Serious / Very serious // Extremely serious/ THE ECONOMIC AND SOCIAL CONSEQUENCES THAT MONEY LAUNDERING HAS CAUSED IS VERY SERIOUS

56 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao No impact Not too serious / Serious / / Very serious/ / Extremely serious MONEY LAUNDERING HAS VERY SERIOUS NEGATIVE IMPACT ON NATIONAL SECURITY, INTERNATIONAL REPUTATION AND WEAKENS THE ECONOMY AS WELL AS ECONOMIC REFORM

57 THE MOST SIGNIFICANT INCIDENCES OF CORRUPTION THAT TOOK PLACE FROM 2007 TO 2012 Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao i. …………smuggling AFP/PNP coruption cases (eg. Garcia Case) NBN-ZTE dealZTE ii. ………..use of gov't funds for personal use NBN_ZTE Deal (against former Pres. Arroyo) Military Procurement Gen. Ligot case iii. ………bribery in high places PCSO Plunder Case (against former Pres. Arroyo) Police Procurement PAGCOR

58 THE USUAL STYLES OF MONEY LAUNDERING IN THE COUNTRY Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Money laundering also involves using, processing, concealing or disguising money or property to make it look that it came from legitimate sources Buying the winning jackpot lotto ticket Others asked relatives to look for OFW who sends money to their relative in the country. The relative received the dollar (etc) and text the name and amount/address and the launderer will deliver the money to the addressee in person or deposit in the account

59 A GENERAL ASSESSMENT OF MONEY LAUNDERING IN THE COUNTRY Anti-Money Laundering Council Field Investigation Office I & II Preliminary Investigation, Administrative Adjudication & Monitoring Office Public Assistance & Corruption Prevention Office Deputy Ombudsman for Mindanao Criminals are increasingly becoming more savvy in concealing the proceeds of illegal activities. Various Media are now being used including technology maybe crimeWeak enforcement of the Law; very limited predicate offences Money laundering is more common among drug lords/gambling lords/terrorists/smugglers and legislators/politicians


Download ppt "AUDIT TO DETECT FRAUD AND CORRUPTION: EVALUATION OF THE FIGHT AGAINST CORRUPTION AND MONEY LAUNDERING Atty. ALEXANDER B. JULIANO Director – Fraud Audit."

Similar presentations


Ads by Google