1. United Nations Counter-Terrorism Committee Executive Directorate (CTED) Thematic Discussion of the Counter-Terrorism Committee on Cash Couriers New York, 20 December 2010

2. 2 Why cash and BNI? Terrorism requires funding Raising funds for terrorist acts Raising funds for terrorist acts Moving funds for terrorist acts Moving funds for terrorist acts Why cash and BNI? –Avoid controls –Easy to carry -> especially BNI

3. 3 International Legal framework Resolution 1373 (2001) requires States to: Para 1 a … prevent and suppress the financing of terrorist acts.. Para 1 a … prevent and suppress the financing of terrorist acts.. Para 2 g …prevent the movement of terrorist or terrorist groups by effective border controls… Para 2 g …prevent the movement of terrorist or terrorist groups by effective border controls… Resolution 1526 (2004) urges States to: …establish internal reporting requirements and procedures on the trans-border movement of currency based on applicable thresholds… …establish internal reporting requirements and procedures on the trans-border movement of currency based on applicable thresholds… Resolution 1617 (2005) urged all Member States to: …implement the Financial Action Task Force forty Recommendations on money laundering and nine Special Recommendations on terrorism financing… …implement the Financial Action Task Force forty Recommendations on money laundering and nine Special Recommendations on terrorism financing…

4. 4 International Legal framework, contd United Nations 1999 International Convention for the Suppression of the Financing of terrorism requires States Parties to the Convention to: … consider introducing feasible measures to detect or monitor the physical cross-border transportation of cash and BNI, subject to strict safeguards to ensure proper use of information and without impeding the freedom of capital movements… … consider introducing feasible measures to detect or monitor the physical cross-border transportation of cash and BNI, subject to strict safeguards to ensure proper use of information and without impeding the freedom of capital movements… Global Counter-Terrorism Strategy Pillar II, Paragraph 13 …improve border and customs controls in order to prevent and detect… Pillar II, Paragraph 13 …improve border and customs controls in order to prevent and detect…FATF Special Recommendation IX, interpretative note and best practices paper Special Recommendation IX, interpretative note and best practices paperWCO Recommendation on the Need to Develop and Strengthen the Role of Customs Administrations in Tackling Money Laundering and in Recovering the Proceeds of Crime (2005) Recommendation on the Need to Develop and Strengthen the Role of Customs Administrations in Tackling Money Laundering and in Recovering the Proceeds of Crime (2005) Enforcement Guidelines on Countering Money Laundering and terrorist Financing (2008) Enforcement Guidelines on Countering Money Laundering and terrorist Financing (2008)

5. 5 Legal, institutional and border control measures Declaration / disclosure system at the borders Declaration / disclosure system at the borders Authorities: ask for further information from the carrier; stop or restrain; impose sanctions or confiscate Authorities: ask for further information from the carrier; stop or restrain; impose sanctions or confiscate Administration, detection and prevention: signage; forms; data collection; analysis/targeting units; inspection capacity; trained staff; API; cooperation/coordination; info exchange Administration, detection and prevention: signage; forms; data collection; analysis/targeting units; inspection capacity; trained staff; API; cooperation/coordination; info exchange Operational border controls, including intelligence and information analysis, red flag indicators, inspection (X-ray, canine, scanning/probing equipment), (timely) information exchange with FIU and other agencies, national and international cooperation Operational border controls, including intelligence and information analysis, red flag indicators, inspection (X-ray, canine, scanning/probing equipment), (timely) information exchange with FIU and other agencies, national and international cooperation Customs services are the border implementing authorities Customs services are the border implementing authorities

6. 6

7. 7 Challenges in implementation Inconsistent implementation of the legal regime; Inconsistent implementation of the legal regime; Inadequate knowledge of applicable laws and authorities Inadequate knowledge of applicable laws and authorities No or insufficient dedicated functions or units to record and analyse information related to cash couriers No or insufficient dedicated functions or units to record and analyse information related to cash couriers Insufficient risk indicators, targeting criteria and information analysis at the front line Insufficient risk indicators, targeting criteria and information analysis at the front line Insufficient information sharing and cooperation among customs, law enforcement, immigration and FIU on national, regional and international levels Insufficient information sharing and cooperation among customs, law enforcement, immigration and FIU on national, regional and international levels Lack of adequate human and financial resources Lack of adequate human and financial resources Lack of detection equipment or inadequate use Lack of detection equipment or inadequate use No outbound controls No outbound controls No determination of origin or destination of cash to support follow up verification / investigation No determination of origin or destination of cash to support follow up verification / investigation

8. 8 CTED activities on Cash Couriers CTED is working with partners to develop appropriate approaches to promote FATFs Cash Courier Best Practices and WCOs Guidelines: Contributing to the development of training curricula Contributing to the development of training curricula Emphasizing the relevance of the cross-border movement of cash and BNI to TF and required controls in dialogue with States Emphasizing the relevance of the cross-border movement of cash and BNI to TF and required controls in dialogue with States Organizing regional workshops and facilitating other TA based on analysis of State needs Organizing regional workshops and facilitating other TA based on analysis of State needs Translation of FATFs Best Practices paper on Cash Couriers into UN official languages Translation of FATFs Best Practices paper on Cash Couriers into UN official languages Upload of related information to the CTC web page to raise awareness Upload of related information to the CTC web page to raise awareness

9. 9 Actions The Committee will endeavour to: Increase its efforts to raise awareness of Member States of the challenges and required measures to control the illicit cross-border movement of cash and other BNI through increased dialogue, regional meetings and other mechanisms Increase its efforts to raise awareness of Member States of the challenges and required measures to control the illicit cross-border movement of cash and other BNI through increased dialogue, regional meetings and other mechanisms Promote FATFs Best Practices paper on detecting and preventing the illicit cross-border transportation of cash and bearer negotiable instruments, and the WCOs Enforcement Guidelines on Countering Money Laundering and Terrorist Financing Promote FATFs Best Practices paper on detecting and preventing the illicit cross-border transportation of cash and bearer negotiable instruments, and the WCOs Enforcement Guidelines on Countering Money Laundering and Terrorist Financing Promote the adoption of national legislative provisions to give effect to border controls on the movement of cash across borders Promote the adoption of national legislative provisions to give effect to border controls on the movement of cash across borders

10. 10 Actions, contd Encourage States to strengthen efforts to enhance border security measures at points of entry/exit by implementing effective controls, including training and procuring the necessary inspection equipment Encourage States to strengthen efforts to enhance border security measures at points of entry/exit by implementing effective controls, including training and procuring the necessary inspection equipment Encourage States to enhance inter-agency cooperation, coordination and information exchange at the national, regional and international levels Encourage States to enhance inter-agency cooperation, coordination and information exchange at the national, regional and international levels

11. 11 Questions? Thank you