I have included several cases of historic significance and several which have been decided in It is important that you read and understand these

Transcription

1 Money Laundering, Asset Forfeiture and International Financial Crimes Course # 6936, Section #6983 Professor s contact information: Professor N., Jr. Office Location: 287C (Holland Hall) Phone: Secretary baldwinfn@law.ufl.edu Office Hours: Monday 9:00-12:00 Please turn off cell phones during class. The information below has also been incorporated into the class material handout. Required and recommended textbooks and other course materials Class material will be handed out in class. Course Objectives You have enrolled in a seminar for the fall semester of The focus of the seminar is financial crime. Although financial crime has a very long history, the development of a body of literature focusing on international crime is in its infancy. The legislation, the departments designated to deal with international financial crime, the understanding of the roles and objectives are in developmental stages. Although there is no doubt that the crime is international, there is no single code or agreement. I. I have listed the topics that I hope to address during the seminar. II. In addition, I have included sections of articles that are relevant to the topic. It is essential that you read the materials. The subject is in continuing flux. I encourage you to also read newspapers and magazines and view the television and radio news for materials that are relevant, or somehow related, to international financial crime. Please clip or bring notes to share with the class. III. I have included several cases of historic significance and several which have been decided in It is important that you read and understand these 1

2 cases and their implications for a sense of both the present and the future in financial crime. Topical outline of subjects to be covered (Tentative) The syllabus is not a not a trip tik. This is not a virtual seminar. You cannot expect to read along with the professor. This document is an attempt to stimulate questions, to provide you with definitions of terms and concepts, with background information and ideas that may be helpful and assist you in the discussions as you attend and participate in the seminar. This syllabus is a review of complex and expanding global roles that attorneys, financial institutions and compliance officers are taking or will need to take in the future. In recent research into the world of forensic finance, Dr. Shima Keene, University of London, concludes that al-qaeda s threats of mass atrocities will continue to threaten the western world for the foreseeable future. If the threats are global, cruel, and long term, the need to increase our understanding of the values, beliefs, and goals of the institution that is al-qaeda have been increased dramatically. Al-Qaeda is joined by organized crime and organizational crime in the quest for financial stability, be it legal or illicit. Organized crime and organization crime share many of the same footprints. The United States has stepped up counter terrorism and anti-money laundering efforts. Many believe that little has been achieved in real terms. Terrorism is a complex, multi casual problem with many interrelated components. To counter the complexity and multi casual problem of terrorism and its continued threats, a multi-disciplinary, international approach is essential. Those who have volunteered or are appointed to serve as defense units or counter terrorists face a significant, often passionate, offense. The present day counter terrorists face the realities of a contemporary environment which provides the terrorists and the criminals with opportunities (in terms of modus operandi as well as vulnerability) to exploit. To counter the threat, requires an in-depth multidisciplinary understanding of multilateral efforts and of significantly different promises and/or codes of behavior, including guerilla behaviors. Knowledge of psychology, history, political science, economics, communication sciences, criminology, religion, and technology contribute to the understanding of the terrorist phenomenon. The defense units encounter numerous challenges. The democratic character and values become a challenge. Democratic countries are most likely more 2

3 vulnerable than other governments and political systems. Freedom of speech, freedom of association, freedom of movement, and the belief in human and individual rights contribute to limitations for surveillance and detention. These concepts may even encourage and facilitate terrorist s actions on their soil. Even where intercept material is available, the difficulty is using this material as evidence can be problematic. A further challenge is to prove mens rea whether the financier to be used for terrorist purposes or whether he or she was manipulated in some way to provide the finances. In the latter case, the terrorist financier may adopt the status of a victim of fraud. This is particularly difficult to prove in jurisdictions where standards of financial transparency have not been adopted. Attempting to counter the finances of terrorism has benefits. First, financial intelligence forms a vital part of the overall intelligence effort to identify not only the terrorist, but the wider terrorist network. In many cases the network will consist of criminals in general, which will support non terrorist investigations relating to counter proliferation or counter narcotic operations. Second, depending on and where the information was obtained, a financial audit trail is able to serve as vital evidence in court. Obstacles relating to so called secret evidence and data protection can be overcome and can assist the court in understanding the financial evidence. Additional more sophisticated and holistic counter financial methods must be developed and implemented. The existing asymmetric financial and economic environment currently favors the terrorist, insurgent, and associated criminal organizations. Financial networks are appropriate and applicable to hard targets; they are however, fluid in nature. Strategies that are appropriate and applicable to hard targets associated with traditional methods are inappropriate. The challenge is to minimize collateral damage, to ensure that finances reach the intended target with minimum disruption, and at the same time are unavailable and denied to the enemy. The use of traditional counter approaches may actually contribute to the problem. Counter finance responses take many forms. Legislation and the enforcement of that legislation is one response. The criminalization of funds associated with terrorism must be seen as a fundamental step in the right direction. The current legislation relating to terrorist finances has significant limitations. The criminal justice system as a whole must be investigated and understood. There is an existing gap between criminal law and criminal justice within the U.S. and U.K. It s necessary to understand the challenges faced at all levels of the justice system. The challenges partly explain the lack of success in the counter terrorist 3

4 schemes. The concept of terrorism and the financing of terrorism is a global environment in judicial terms and the associate cultural values that shape criminal law is each jurisdiction. Jurisdictions have differing perceptions as to their respective legitimate interests. Some jurisdictions choose to increase the levels of their banking secrecy provisions, other pursue increased transparency in their financial systems. The political, social, and economic implications of this symmetry are apparent, as is the need for compromise on appropriate level of transparency in financial systems. Statutory legislation alone may not be sufficient. In many cases the key may be the combined efforts of both the supporting regulatory standards of behavior within the political and business environments. Evaluation Final paper is 90% of your grade and 10% is attendance and class participation. Class attendance policy You will be expected to attend and participate constructively in the discussion and analysis of the subject matter. The attendance policy is set forth in ABA Rule 305 and I will adhere to it this course. Research paper: Your research term paper outline of 4 typed pages is due Friday, 2 October I have in my office, for your information, a list of suggested topics. The final paper is due December 4, Statement related to accommodations for students with disabilities Students requesting classroom accommodation must first register with the Office of Disability Resources. The UF Office of Disability Resources will provide documentation to the student who must then provide this documentation to the Law School Office of Student Affairs when requesting accommodation. 4

5 Student Course Evaluations Students are expected to provide feedback on the quality of instruction in this course based on 10 criteria. These evaluations are conducted online at Evaluations are typically open during the last two or three weeks of the semester, but students will be given specific times when they are open. Summary results of these assessments are available to students at Information on UF Law grading policies: Grade Points Grade Point Grade Point A (Excellent) 4.0 C D A C (Satisfactory) 2.00 E (Failure) 0.0 B C B (Good) 3.00 D B D (Poor) 1.00 The law school grading policy is available at: 5