On 31 May, the EU Sanctions blog reported that the Foreign Commonwealth and development Office had published its Common High Priority List. The list is divided into 4 Tiers, with Tiers 1 and 2 containing particularly sensitive items:
Tier 1: Integrated circuits (also referred to as microelectronics).
Tier 2: Electronics items related to wireless communication, satellite-based radio navigation, and passive electronic components.
Tier 3: Discrete electronic components, electronics cabling and connectors, digital cameras and related optical components.
Tier 4: Manufacturing, production and quality testing equipment of electric components and circuits.
On 31 May, the page from the Foreign Commonwealth and Development Office containing links to guidance on Russian sanctions has been updated with added links to additional documents: Russia Sanctions – Common High Priority Items List and NTE 2023/08; and Russia sanctions – Trade sanctions circumvention.
On 31 May, FATF published the MER for Qatar, which was undertaken by FATF-style regional body, MENA-FATF. It says that Qatar has made substantive improvements to its system to combat money laundering and terrorism financing and its technical compliance with FATF requirements is very strong. However, Qatar needs to make some major improvements, in its criminal justice response to terrorist financing.
EU Regulation 2023/1046/EU adds 2 names to the sanctions lists – the leader of the Party of Regions of Moldova and head of the interregional public organisation Congress of Moldovan Diasporas; and the vice-president of the Russian Federation of Wrestling.
On 30 May, FATF published the sixth follow-up report from FATF-style regional body APG. The country has been re-rated on 2 FATF Recommendations – Recommendation 39 originally rated Partially Compliant is upgraded to Compliant; and Recommendation 15 which was amended after Fiji’s Mutual Evaluation was adopted, has been re-rated to Partially Compliant. Fiji has 34 Recommendations rated C/LC, and the country remains in enhanced follow-up.
EU Regulation 2023/1045/EU adds 5 persons to the list of natural and legal persons, entities and bodies set out in Annex I to Regulation (EU) 2023/888.
On 30 May, Offshore Alert reported that that former BVI Ports Authority Managing Director Oleanvine Maynard intends to plead guilty, leaving former BVI Premier Andrew Fahie as the only defendant still fighting the charges in the same case.
An article from Wikborg Rein on 31 May reported that, in a summary judgment relating to a dispute arising out of the charterers’ failure to make hire payments under bareboat charterparties, the Commercial Court in England provides guidance on the impact of sanctions on the parties’ obligations to make payment.
With a year to go before the next Presidential elections, a poll claims that the race appears to be between a “former president who still does not know if he will be able to play in the election” (Martinelli) and the pre-candidate Romulo Roux for the Democratic Change party.
As mentioned in the newsletter below, the Supreme Court in Panama has given the go-ahead for the trial of 32 defendants implicated in the “Panama Papers” affair, dating from 2016…
The media here reports that police have broken up 2 more clandestine parkings clandestino. These are parties held in parking lots without permission, where there is sale of alcohol, excessive noise, and sometimes, even minors. These most recent ones appear to be typical, with over 100 people involved.
On 30 May, OFAC announced that it had designated 2 Syrian money service businesses that have secretly helped the Syrian regime under Bashar al-Assad and its Hizballah and Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) allies maintain access to the international financial system in violation of international sanctions. OFAC is also designating 3 brothers who own and operate Al-Fadel Exchange. These designations underscore the serious threat posed by actors in the financial system who actively enable violent regimes to circumvent sanctions.
On 30May, OFAC announced that it had sanctioned 17 individuals and entities involved in the international proliferation of equipment used to produce illicit drugs. These targets are directly or indirectly involved in the sale of pill press machines, die moulds, and other equipment used to impress counterfeit trade markings of legitimate pharmaceuticals onto illicitly produced pills, often laced with fentanyl, frequently destined for US markets.
The Egmont Group of FIU has released a public version of this report on the outcome of a project to assess the extent to which open-source intelligence (OSINT) affects or influences operational and strategic analysis. The project also aimed to identify the best practices through which FIU identify reliable data sources and develop a list of the most consulted sources of information. 92% of the study participants affirmed using OSINT for operational and strategic purposes. For operational purposes, OSINT is used mainly to get supporting information about the subjects of intelligence analysis and their transactions. OSINT is also used to identify subjects’ networks, profile the subjects, identify adverse information about subjects, trace assets, and act as a trigger for new cases. For strategic analysis, OSINT mainly identifies money laundering/Terrorist Financing trends and typologies. It is also used to identify factors influencing the effectiveness of AML/CFT regimes.
On 30 May, the Royal Gazette reported that Bermuda’s national money laundering threat rating has been raised to high in the latest report by the National Anti-Money Laundering Committee. The terrorist financing risk to Bermuda was again assessed to be low. The report said there was no domestic or foreign-sourced intelligence to suggest that terrorist financing had occurred in Bermuda in any sector.
On 30 May, OFSI published a post saying that the measure limits the ability of persons designated for the purpose of this measure, and persons connected with Russia, from accessing the UK’s trust services. Since March 2023, over 1,820 persons have been designated for the purposes of trust services sanctions. The post looks at when the sanctions apply, who they apply to and the key exceptions.
On 30 May, iGB reported that the gaming group Crown Resorts’ Melbourne and Perth casinos have agreed a proposed A$450 million penalty for its breaches of AML laws. While the parties agreed that the penalty is appropriate, Austrac emphasised that it is a matter for the court to determine the appropriate penalty.
Despite having had a recent “drought” (though the heavy rain of the past few days makes one forget the water level problems), heavy rain in 2022 is said to have affected yam production in the Darién province, with the anthracnose fungus causing 70% of production in the Canglón region alone being lost during this harvest period.
In the “New Business” corruption case currently underway, the expert witness that endured 6 hours of questioning last week was back in the witness box today.
On 23 May, the US Cybersecurity & Infrastructure Security Agency issued this Guide, a one-stop resource to help organisations reduce the risk of ransomware incidents through best practices to detect, prevent, respond, and recover, including step-by-step approaches to address potential attacks.
On 28 May, OCCRP carried an article saying that a report from the NGO Traffic highlighted the Sulu-Celebes Seas that encompass the land and sea areas of the Philippines, Indonesia, and Malaysia as the SE Asian hotspot for regional wildlife trafficking. Located at the heart of the world’s marine biodiversity, the region has seen rampant poaching, trafficking, and trading of turtles, giant clams, sharks, rays, and pangolins.
As I sit here a real, monsoon-like rainstorm is going on – complete with rainfall so hard one has to shout over the noise, and with earth-shaking thunder and, I think, some lightning too. How is the drought going, I wonder?
Meanwhile, on the fourth day of the trial in the New Business corruption trial, an expert witness who described the corporate and financial scheme that was used to collect $43.9 million spent 6 hours in the witness box facing cross-examination – and he is not finished yet…
On the Covid-19 front, and bearing in mind the slightly increased case numbers here, the Ministry of Public Health reported the first case of the new variant of the SARS-CoV-2 subvariant XBB.116 in Ecuador. This was first detected in January in India. Other Latin America countries, such as Guatemala, Chile and Brazil, have also reported cases. it is said that the symptoms of this new variant are similar to those previously associated with Covid-19: fever, severe headache, sore throat, cough, body pain and, in children, symptoms related to conjunctivitis.
Managed to get a copy of this book today. Published in August 2022, it is unavailable on Amazon, but found out one could get a copy from the the Faculty of Humanities of the University of Panama (UP) for $20. However, the university does not appear to believe in signposts or maps, and is a bit of a jumble of buildings and departments. Asking for directions only sent us in various different directions before ending up next to the entrance we had entered through. Even then, to pay for the book (no cash or card or Yappy were acceptable), one had to go outside to make the online bank transfer, as the phone signal inside the building was so poor… Nevertheless, after just half the afternoon I had the book I wanted, just need to try to translate it.
So far in the 2022-2023 cruise season, the National Migration Service (SNM) has served 402,857 cruise passengers, who arrived on 67 ships.
In the courts, the prosecution witnesses in the New Business case involving ex-President Martinelli have been given evidence.
Meanwhile, it is reported that US Department of Defense have donated no fewer than 63 Jeeps to Panama Ministry of Security for counterterrorism, counternarcotics, organised crime, maritime and border operations.
Finally, it was reported today that 56.7% of voters here belong to political parties. The registered electorate in Panama is 3,020,472. It is reported that the Democratic Revolutionary Party (PRD) has the most registrations with 728,272 . In second place if the Democratic Change (CD) with 303,434, and then the Panameñista Party with 249,059. The Realizing Goals (RM) – for whom Martinelli would be the candidate – has 230,252 registrations.
Incidentally, my brother-in-law was a spokesman for the PRD back in 2008/2009, when I was visiting the country during the election. I cannot tell you how odd it was to wake up to see him on a panel on breakfast TV being interviewed by a 6-feet Muppet-like puppet called Casemiro who, for some unknown reason, then conducted such events!
On 26 May, an Occasional Paper from RUSI queries the nature and extent of crime-enabled terrorist financing (CETF) in Europe, including the importance of this financing stream in relation to others. In doing so, the Paper also evaluates the present policy and law enforcement response to CETF, and endeavours to assess whether it is properly calibrated to the degree and character of the threat.
Missed 2 more earthquakes yesterday, apparently, one quite big and relatively close by – on the border with Colombia but 30 km out at sea.
The latest Covid statistics have been released, for the week ending 20 May, and they show slowly increasing figures. 753 new cases (664 the week before), with active cases up quite a jump to 682, with 1 patient in ICU and 42 in other wards (this figure down from 48 the previous week). 1 more fatality has been recorded, and the test results show a hit rate of 8.9% – this figure having been gradually rising since mid-April.
On 25 May, OFAC announced that it had designated Maslov, the head of Russian Private Military Company ‘Wagner’ (aka Wagner Group) paramilitary units and its principal administrator based in Mali.
On 23 May, Ropes & Gray LLP said that OFSI had published guidance aimed to help “high value dealers” and art market participants (AMP) identify and mitigate sanctions risks. It is no surprise that the UK is a major hub for trade in high-value goods including art, antiques, “supercars,” precious metals and gemstones, and fine wine and whisky.
Missed yet more “excitement” this morning, as a bank robbery just down the road in which 5 men stole around $12,000. All banks here (as well as many shops, malls etc) have armed security guards. Unfortunately, not only was this bank’s guard overpowered, the robbers also stole his firearm. this is the second bank attack on the same main road in recent months… Such crimes are a bit risky, I’d have thought, as no doubt silent alarms are triggered, and heavily armed police on motorcycles (nicknamed “ninjas”) patrol – so you be easily be confronted by scarey cops with machine guns and pump action shotguns.
In other news, a somewhat lower risk crime, saw 2 former senior officials of the National Charity Lottery linked to an investigation into the alleged robbery of $95,000 from the vault.
As the Presidential primaries get under way, one of the proposals that has resurfaced is the construction of a high-speed Panama-David train service. In 2019, a feasibility study carried out by a Chinese company estimated that the work required an investment of $4.1 billion. While, in theory, a good alternative to the current slow bus service, or long car journeys, a question mark may arise on environmental grounds from the construction process – though the resulting reduction in road traffic could be a bonus.
On 23 May, the Jersey FSC published this update which provides a summary of actions taken since the 2021 NRA. It concludes that the risk of Jersey being used as a conduit for terrorist financing remains medium-low.
On 23 May, ICIJ reported that the interagency group will coordinate with other governments to combat trafficking in wood linked to environmental crimes and human rights abuses. It will identify, investigate and prosecute illegal trafficking in timber linked to environmental and other crimes. TIMBER (Timber Interdiction Membership Board and Enforcement Resource), brings together several government departments — Justice, Agriculture, Interior and Homeland Security — and the US Council on Transnational Organized Crime’s Strategic Division.
On 24 May, OFAC advised that it had designated 26 individuals and entities connected with the terrorist group al-Shabaab, including 15 financial facilitators and operatives, 4 charcoal smugglers, and 7 of their associated companies. This action targets key regional leaders, affiliates, and members of the terrorist group in Somalia who are involved in a wide range of activities in support of al-Shabaab, including financial facilitation, business activities, collection of funds on behalf of the terrorist group, proliferation of Improvised Explosive Devices (IED), and illegal charcoal smuggling from Somalia, all of which have exacerbated local conflicts and suffering.
On 24 May, OFSI posted on its blog an article saying that it had has received unprecedented numbers of licence applications to permit prohibited transactions or activities owing to more sweeping and far-reaching sanctions imposed relating to Russia and Belarus. Many of these applications involve UK persons who are owed money by Russian and Belarusian Designated Persons (DP) under contracts agreed before the designation of those DP and can only receive such payments once they receive an OFSI licence. OFSI has now issued a General Licence covering such prior obligations, and the post explains the requirements, including reporting requirements.
Well, ex-President Martinelli’s involvement in the New Business alleged corruption trial, which began today, appears to have finally made the press outside of Panama – or at least France 24, saw nothing in UK media.
Meanwhile, the Ministry of Environment has launched a public consultation on Coiba National Park, on the Pacific coast of the Gulf of Chiriquí, known for its biodiversity. A former high-security prison, think Alcatraz and Devil’s Island, where my wife’s uncle, a naval officer, was incarcerated by Noriega, probably avoiding being “disappeared” thanks to the US invasion in 1989. Apparently, UNESCO have warned the Government that more needs to be done to protect the island.
The media here has reported claims by the former Comptroller of the Republic about alleged bribery attempts linked to construction of the Centennial Bridge over the Canal in the early 2000s. The minister involved died in 2017.
Despite the recent heavy rainstorms, the Canal has again reduced the draught restrictions because of the drought. It is said that rainfall was less than 50% of normal from February to April near the Canal and the lakes that feed it. Rainfall levels have been in line with 2019, which saw the lowest levels in 2 decades.
Finally, I note that my old employer, the Isle of Man Government, is advertising for the “new” full-time post of “Sanctions Officer”, just one of several jobs I seem to have done simultaneously for several years…. A grade lower than mine admittedly, perhaps demonstrating that sanctions administration and compliance has been recognised as a full-time job.
On 23 May.OFAC advised that it had sanctioned 4 entities and 1 individual involved in obfuscated revenue generation and malicious cyber activities that support the North Korean (DPRK) Government. The DPRK conducts malicious cyber activities and deploys information technology (IT) workers who fraudulently obtain employment to generate revenue, including in virtual currency, to support the Kim regime and its priorities, such as its unlawful WMD and ballistic missile programs. Those designated include Pyongyang University of Automation, one of the DPRK’s premier cyber instruction institutions, the Chinyong Information Technology Cooperation Company, and one of the latter’s representatives, based in Vladivostok, Kim Sang Man.
On 17 May, the FATF-style regional body CFATF announced that the Central Bank in the Bahamas had released an AML compliance report prepared by Evaluasi, a specialist firm comprising some of the world’s leading AML researchers. The Central Bank commissioned Evaluasi to conduct an assurance study or “shadow shopping” exercise on a large majority (more than 75%) of Bahamian internationally active public banks and trust companies. It is said that this is thought to be the first time any financial regulator has conducted a shadow shopping exercise on an entire class of supervised institutions to check AML compliance.
On 23 May, Financial News London reported that the International Organisation of securities Commissions, the global standard-setter for securities regulators, has set out its view of the major problems plaguing the digital asset industry, with 18 recommendations, in a consultation issued on 23 May.
In the news today is a report that the Panama Pacifico International Airport is consolidated as the terminal to serve low-cost airlines, with over 30,000 passengers passing through in April. This is the former Howard Air Base, and we have found that the only problem is that there does not appear to be a public transport link from the city – it is around 21 km from where we live on the other side of the city…
The “New Business” court case opens tomorrow, involving former President Ricardo Martinelli (also a candidate for the Presidency in the primaries, and leader in the polls). there are 4 other defendants. The former President has managed to delay the trial since November, arguing for the recusal of the trial judge and a medical disability. He has also be attempting to claim immunity from his legal troubles due to his being involved in the election process. The New Business case dates back to March 2017, after an investigation identified the purchase of the shares of Editora Panamá América through a complex scheme.
On 22 May, HM Treasury announced a new General Licence. Anybody intending to use the General Licence should consult the copy of the licence for full details of the definitions, permissions, and usage requirements. The Licence covers prior contractual obligation of a designated person.
On 22 May, the Export Control Joint Unit issued Notice to Exporters 2023/08. It is said that the aim of the Notice is to prevent the undermining of trade sanctions, export controls, and other restrictive measures designed and implemented in response to Russia’s invasion of Ukraine. Awareness of the risk and obligations in relation to sanctioned goods is an important first step for trade.
On 19 May, OCCRP published a report saying that Western sanctions are meant to prevent Russia from supplying its military from abroad, but sensitive electronics are still getting through. Reporters traced several of these supply chains through Kazakhstan — and found that they run through companies newly established by Russians.
EU Regulation 2023/986/EU added 5 names to the EU Iranian sanctions list following the widespread and disproportionate use of force by the Iranian security forces against non-violent protestors.
No sooner was it reported this morning that the Cabinet was considering a state of emergency due to the drought that the country is experiencing due to a lack of rain than truly torrential rain came along midday today.
Meanwhile, the National Migration Service (SNM) reported that the authorities have in custody and under protection, a child under the age of 5 who was abandoned in the Darién jungle. The child was found by an Ecuadorian family, who helped him and brought him to the receiving community of Bajo Chiquito.
This report from theSwedish Institute of International Affairs says that the world is witnessing an escalating great power rivalry surrounding critical technologies – such as quantum computing, semiconductors, and artificial intelligence. This report analyses how critical technology is protected in the Trans-Atlantic region and assesses the resulting effects. The focus is placed on the US and the EU, examining 3 key geoeconomic instruments: export controls, investment screening, and domestic subsidies, all aimed at securing their critical technological base.
On 20 May, an OpEd piece from Eurasia Review said that the regime is being sustained by nearly a billion dollars’ worth of arms — plus raw materials to manufacture weapons — originating primarily from China and Russia, 2 permanent members of the UN Security Council, along with Singapore, Thailand and India. A UN report says that those providing these weapons are able to avoid sanctions by using front companies and creating new ones while counting on lax enforcement.
On 19 May, KPMG reported that the Bureau of Industry and Security (BIS) of the Department of Commerce had released for publication in the Federal Register a final rule implementing additional sanctions under the Export Administration Regulations (EAR) against Russia and Belarus.
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