Alert October 13, 2009

OECD Issues Handbook on Detecting Money Laundering

The Organization for Economic Cooperation and Development (“OECD”) issued a handbook (the “Handbook”) that provides guidance designed to help tax examiners and tax auditors detect and deter money laundering.  The Handbook is entitled The Money Laundering Awareness Handbook for Tax Examiners and Their Auditors

The Handbook provides extensive guidance on factors that a tax examiner or tax auditor should consider to help him or her identify possible cases of money laundering.  The Handbook discusses these indicators of potential money laundering activity: (1) by individuals, (2) in connection with real estate transactions, (3) in connection with cash transactions, (4) in transactions related to international trade, (5) in connection with loans, and (6) by professional service providers.  The OECD stresses in the Handbook that international cooperation and exchanges of information among tax administrators is essential to fighting money laundering most effectively.