27th April 2018
US TREASURY SANCTIONS CHINESE FENTANYL TRAFFICKER JIAN ZHANG
On 27th April, the US Treasury announced that it had added the above to its Foreign Narcotics Kingpin Designation list. In addition, OFAC designated 4 additional Chinese nationals acting on behalf of Jian Zhang and Zaron Bio-Tech (Asia) Limited, an entity registered in Hong Kong that is owned or controlled by Jian Zhang.
https://home.treasury.gov/news/press-releases/sm0372
SHIPPERS UNVEIL NEW INITIATIVE TO STRENGTHEN SUPPLY CHAIN IN WAR AGAINST FAKES
Loadstar on 27th April reported that some of the world’s largest shippers have expanded their fight against the trade in counterfeit goods. They have called on maritime logistics suppliers, container carriers and the freight forwarders that coordinate shipments, to introduce policies to ensure they only carry legitimate trade. The International Chamber of Commerce’s Business Action to Stop Counterfeiting and Piracy (BASCAP) group introduced a KYC best practices agreement the TOC Container Supply Chain event in Singapore, urging maritime operators to verify the legitimacy of their customers and take steps to identify high-risk shipments.
DUTCH GOVERNMENT PUBLISHES NEW DEFINITION UBO
On 13th April, NautaDutilh published an article saying that on 6th April the Dutch Minister of Finance published an updated draft decree which contains the new definition of ultimate beneficial owners (UBO) of companies and other entities. The article goes on to explain the new definitions. They are expected to become effective by the summer of 2018, perhaps as early as 1st June. The Dutch UBO register will be implemented separately by means of an amendment to the Dutch Trade Register Act 2007, probably not before 2019.
INDIAN GOVERNMENT PROMOTES IMPLEMENTATION OF INTERNAL COMPLIANCE PROGRAMMES FOR EXPORT CONTROLS
Baker McKenzie on 25th April published an article saying that the Indian Director General of Foreign Trade has called upon industry to introduce internal compliance programmes (ICP) for export controls. His comments came at the launch of the Federation of Indian Chambers of Commerce and Industry (FICCI) ICP module for Indian industry, proposed as an industry template.
IMPLICATIONS OF CAATSA FOR INDIA’S DEFENCE RELATIONS WITH RUSSIA AND AMERICA
On 26th April, the India-based Institute for Defence Studies and Analysis produced an article saying that recent reports have highlighted that India’s planned defence procurement from Russia could potentially come under US sanctions under a newly enacted law, Countering America’s Adversaries through Sanctions Act (CAATSA). This Brief examines CAATSA and its likely implications for India’s defence and security co-operation with 2 of its main arms suppliers, Russia and the US.
COURT ORDERS SEIZURE OF ASSETS OF FUGITIVE BOLLYWOOD ACTRESS
Gulf News on 27th April reported that an Indian court has ordered the confiscation of assets belonging to absconding Bollywood star Mamta Kulkarni, in connection with a drug smuggling case involving the former actress and her husband Vicky Goswami. She is believed to be in Canada. The court’s order is a fallout of one of the biggest operations in April 2016, when Mumbai’s Thane police busted a gang smuggling narcotic drugs.
STOLEN SUCCULENTS: CALIFORNIA HIPSTER PLANTS AT CENTRE OF SMUGGLING CRISIS
The Guardian on 27th April reported that demand in China and Korea has led to thousands of dudleya being stolen from California as officials lament ‘plant poaching’. In China, they are prized for their chubby limbs and cute shapes. In Korea, they are a treasured hobby for housewives.
VAT: MISSING TRADER FRAUD (MTIC) GUIDANCE
On 27th April, HMRC published updated guidance on how to spot VAT missing trader fraud and how to protect yourself or your business from organised criminals.
https://www.gov.uk/government/publications/vat-missing-trader-fraud
COMPANIES (DISCLOSURE OF ADDRESS) (AMENDMENT) REGULATIONS 2018
These UK regulations (SI 2018/528) amend the Companies (Disclosure of Address) Regulations 2009 (SI 2009/214) to remove restrictions on making information about individuals’ residential addresses unavailable to the public by the Registrar of Companies.
http://www.legislation.gov.uk/uksi/2018/528/contents/made
ZAMBIA REQUIRES MINING COMPANIES TO COUGH UP RECORDS
The Lusaka Times on 27th April reported that in a move that will hopefully reduce corporate tax evasion in Zambia’s mining sector, multinational companies must now document all their “related party transactions” to show they aren’t using them to reduce their tax bill.
UK ADVICE FIRM INVESTIGATED OVER ALLEGED FRAUD
The Financial Reporter on 27th April reported that the City of London Police has launched a criminal investigation into Kingsbridge Asset Management and its associated companies over alleged fraudulent activity. It provided specialist financial advice to high net worth clients between 1992 and 2010. It is alleged that management and staff including financial advisers conspired together to defraud a large number of company clients, resulting in significant financial losses. The company ceased trading in 2010, but it is believed there may be hundreds of people affected by this alleged activity and may be victims of fraud.
OVERSEAS COMPANIES: RESTRICTING DISCLOSURE OF UK ADDRESS
On 27th April, UK Companies House issued a news release advising updated guidance on how to restrict access to your address on the public register.
https://www.gov.uk/government/publications/restricting-disclosure-of-your-address
BOTH SIDES CLAIM VICTORY IN UK SURVEILLANCE LAW CHALLENGE
The Law Society Gazette on 27th April reported that in the latest crowd-funded challenge to the government’s powers to monitor electronic communications has left both sides claiming victory. Lord Justice Singh and Mr Justice Holgate ordered the government to amend a provision of the Investigatory Powers Act 2016 granting powers to require telecoms operators to store records of communications, including tracking information and web browsing. Campaign group Liberty hailed the judgment has a ‘landmark victory for privacy rights’. However in its response the Home Office said the government had already conceded that ‘aspects’ of Part 4 were inconsistent with EU law, ‘and has committed to bring forward amendments to remedy these inconsistencies’.
EU VAT CO-OPERATION PROPOSALS TO BE AMENDED
Tax News on 27th April reported that The European Parliament’s Committee on Economic and Monetary Affairs has requested a number of changes to the EU Commission’s proposals for enhanced administrative cooperation in VAT matters, according to a document released on April 23rd.
https://www.tax-news.com/news/EU_VAT_Cooperation_Proposals_To_Be_Amended____76742.html
FURTHER RESTRICTIONS ON NEONICOTINOIDS AGREED
DEFRA reported on 27th April that further restrictions on neonicotinoid pesticides said to affect bees have been approved following a vote in the European Commission. The UK voted in favour of the proposals that will see a ban on outdoor use of 3 neonicotinoids – Clothianidin, Imidacloprid and Thiamethoxam. Currently, their use is banned for oilseed rape, spring cereals and sprays for winter cereals, but they can be used to treat sugar beet, various horticultural crops and as seed treatments for winter cereals.
https://www.gov.uk/government/news/further-restrictions-on-neonicotinoids-agreed
HM TREASURY RENEWS TERRORISM SANCTIONS LISTING
On 27th April, HM Treasury issued a news release saying that it had renewed the designation of Mohammed Fawaz KHALED.
DANGERS AND SOLUTIONS FOR US COMPANIES TRADING WITH FOREIGN COUNTRIES
The AP&S Law Blog on 27th April produced an article advising on compliance of US companies with the Foreign Corrupt Practices Act of 1977 (FCPA). The FCPA was enacted for the purpose of making it unlawful for persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.
https://www.jdsupra.com/legalnews/dangers-and-solutions-for-u-s-companies-97017/
JORDANIAN INSURER SUES AIG IN UK OVER SYRIAN BANK THEFT
Law 360 on 27th April reported that the European arm of American International Group Inc, AIG Europe Ltd, is being sued for approximately $584,000 in a London court over reinsurance that Jordan Insurance Company based in Amman says it is owed over losses resulting when money was stolen from a bank in Syria.
https://www.law360.com/articles/1038026
ATM RAIDERS JAILED IN JOINT CROSS-BORDER INVESTIGATION IN EU
On 27th April, Europol reported that in early 2018 Germany and the Netherlands set up a Joint Investigation Team (JIT) in co-operation with Europol and Eurojust. The aim of this JIT is to tackle ATM-related organised crime. On 17th April, only a few weeks after the JIT was set up, the investigators already had the chance to score their first big success.
https://www.europol.europa.eu/newsroom/news/atm-raiders-jailed-in-joint-cross-border-investigation
THE PLIGHT OF PANGOLINS
In the latest TRACE podcast, Professor Katharine Abernethy discusses the dramatic and illegal overhunting and subsequent smuggling of pangolins, the most trafficked animal in the world, to supply the Asian market with their scales believed—without evidence—to cure cancer.
https://www.traceinternational.org/bribe_swindle_or_steal
US TREASURY ISSUES BELARUS GENERAL LICENSE 2E
On 27th April, the US Treasury advised that it had issued a licence authorising until 30th October certain transactions otherwise blocked by Executive Order.
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20180427_33.aspx
G7 MINISTERS ENDORSE INTERPOL GLOBAL TASK FORCE ON HUMAN TRAFFICKING
Homeland Security Today on 25th April reported that G7 Security Ministers have backed the INTERPOL Global Task Force on Human Trafficking to combat this multi-billion-dollar form of modern-day slavery. The ministerial support was outlined in the commitments paper issued at the end of a meeting in Toronto attended by the INTERPOL Secretary General. It also said that running projects supported by Canada, Germany and the USA, the INTERPOL Global Task Force on Human Trafficking has significant experience in co-ordinating operations targeting forced labour of children and other forms of human trafficking around the world.
raytodd.blog 