June 14, 2018 – raytodd.blog

OTHER THINGS YOU MAY HAVE MISSED – JUNE 14

14^th June 2018

2 CYBERSECURITY COMPANIES WITH LINKS TO ISRAEL PLACED ON US BLACKLIST

C Tech on 13^th June reported that the US Treasury placed sanctions on a number of individuals and companies, including 2 with links to Israel, that are accused of providing Russia’s intelligence agency, the FSB, with offensive cyber technology. The Israeli-linked companies, Embedi and ERPScan BV, deny having worked for Moscow and neither is licensed by Israel’s Defense Export Control Agency, the Israeli Ministry of Defense told Calcalist. The man behind the entities is said to be Ilia Medvedowski, a Russian national.

https://www.calcalistech.com/ctech/articles/0,7340,L-3740216,00.html

ITALIAN COURT SAYS GETTY’S PRIZED ANCIENT BRONZE SHOULD BE SEIZED

The Straits Times on 13^th June reported that an Italian court has ruled that a Greek statue, said to have been found in the open waters of the Adriatic by Italian fishermen, now standing in the Getty Villa, a museum in Los Angeles, should be seized as it was exported without the necessary export licence. The statue was discovered submerged in a shipwreck in 1964 by fishermen from Fano, a town on the Italian coast. The article reports that a 1939 Italian law that says Italy owns any antiquity discovered on its territory and that any ancient work to be shipped out of the country requires a government export license, but Getty maintained that the work’s discovery in the sea puts it outside Italy’s jurisdiction – and several judges in Italy have, in various rulings, agreed or disagreed with that position.

https://www.straitstimes.com/lifestyle/arts/italian-court-says-gettys-prized-ancient-bronze-should-be-seized

MALTA: DRUG SMUGGLING GANG CLEARED 17 YEARS LATER, FOR NOT HAVING LAWYER DURING INTERROGATION

Malta Today on 13^th June reported that 8 people have been acquitted of involvement in 2001 drug-smuggling conspiracy. A court has acquitted 8 people of drug smuggling, in a case dating back 17 years, laying the blame squarely at the feet of governments who refused to introduce the right to a lawyer during interrogation. They were acquitted due to lack of evidence after much of it was declared inadmissible due to subsequent legal developments. They were allegedly part of a group of 19 persons who allegedly made up a drug-trafficking ring co-ordinated from prison, where 4 were at the time serving time.

http://uploads.maltatoday.com.mt/news/court_and_police/87551/drug_smuggling_gang_acquitted_17_years_later_for_not_having_lawyer_during_interrogation#.WyH0Y_ZFx9A

2 FOREIGN SHIPS FINED FOR SMUGGLING DIESEL OFF VIETNAM COAST, FUEL SEIZED

VNE Express on 13^th June reported that 2 foreign ships – one registered in Singapore and an unnamed one with a Chinese captain – were caught smuggling diesel oil in waters off the Vietnamese coast have been fined and the fuel confiscated. 2 months ago, coast guard forces spotted the Singaporean ship, Pacific Ocean, which was carrying around 5 million litres of diesel oil without proper papers and transferring the fuel to an unnamed vessel with a Chinese captain around 45 nautical miles northeast of Vietnam’s central coast. The Pacific Ocean was also carrying 17 crew members without identity papers when it was captured. Fuel smuggling is said to be common along the coast, and between 2013 and 2015, Vietnamese forces seized about 21.3 million tons of illegal fuel.

https://e.vnexpress.net/news/news/two-foreign-ships-fined-for-smuggling-diesel-off-vietnam-coast-fuel-seized-3762998.html

EL SALVADOR EX-PRESIDENT FUNES’ HAD TRASH BAGS FULL OF MONEY

Insight Crime on 13^th June carried an article referring to” a litany of accusations against former President Mauricio Funes and his relatives along with millions of dollars transferred in trash bags”. It claims that a member of the corruption network allegedly headed by former Salvadoran President Mauricio Funes during his 2009 to 2014 term would arrive at a state bank, fill up big black trash bags with thousands of dollars in cash and then drive them to the presidential residence. Funes and his network are accused of embezzling $351 million, an amount equivalent to nearly 1.5% of the country’s GDP in 2017, or about 7% of the government’s 2017 budget. 32 arrest warrants have been issued – including for Funes, his former private and communications secretaries, administrative personnel from his administration, the head of Banco Hipotecario, Funes’ partner and her parents, as well as his ex-wife and 2 sons. 27 of the suspects are accused of money laundering, while 2 are accused of obstruction of justice.

https://www.insightcrime.org/news/analysis/el-salvador-ex-president-funes-trash-bags-money/

HMRC GUIDANCE ON IDENTIFYING WHO IS AN ENABLER OF TAX AVOIDANCE

On 6^th June, RPC issued an article saying that on 30^th April HMRC published Guidance that seeks to explain what makes an individual an enabler of tax avoidance under paragraph 7 of Schedule 16 to the Finance (No 2) Act 2017. The Guidance also explains how information which is subject to legal privilege should be dealt with.

https://www.gov.uk/guidance/tax-avoidance-enablers-who-is-classed-an-enabler

LESSONS LEARNED FROM SOCIÉTÉ GÉNÉRALE AND LEGG MASON FCPA RESOLUTION OF LIBYA BRIBERY ALLEGATIONS

On 12^th June, Jenner & Block in the US published an article about the US DoJ Foreign Corrupt Practices Act (FCPA) settlements with the two institutions arising out of a multi-year bribery scheme involving bribes to Libyan officials. It says that there are a number of lessons to be learned from the case, including that DoJ highlights severity and scope of conduct in assessing culpability and appropriate fine.

https://sites-jenner.vuturevx.com/25/1175/june-2018/lessons-learned-from-societe-generale-and-legg-mason-fcpa-resolution—attorney-advertising.asp

A MODERN SLAVERY ACT FOR AUSTRALIA

On 7^th June, Gilbert & Tobin published an article following an announcement in May that the Federal Government is to introduce a Modern Slavery Act in Australia by mid-2018. The proposed Act will require entities above a consolidated revenue threshold of $100 million to report on modern slavery risks in their global supply chains.

https://www.gtlaw.com.au/insights/modern-slavery-act-australia-updates-may-2018-announcement

The Australian Department of Home Affairs has produced a factsheet which is available at –

https://www.homeaffairs.gov.au/consultations/Documents/modern-slavery/modern-slavery-reporting-requirement.pdf

ENRC SUES SFO OVER ‘WHISTLEBLOWER FAILURES’

The Law Society Gazette on 14^th June reported that the mining company at the centre of a row over legal professional privilege and corruption allegations has called for an independent inquiry into the SFO, accusing the office of failing to investigate a whistleblower’s letter. It said the SFO has admitted that it received, but failed to properly investigate, allegations it was sent 6 years ago.

https://www.lawgazette.co.uk/law/enrc-sues-serious-fraud-office-over-whistleblower-failures/5066470.article

OPCW CONFIRMS USE OF SARIN AND CHLORINE IN LTAMENAH, SYRIA, ON 24^TH AND 25^TH MARCH 2017

On 13^th June, the Organisation for the Prohibition of Chemical Weapons confirmed that sarin was very likely used as a chemical weapon in Syria, on 24^th March 2017, and that chlorine was very likely used as a chemical weapon at Ltamenah Hospital and the surrounding area in Syria on 25^th March 2017.

https://www.opcw.org/news/article/opcw-confirms-use-of-sarin-and-chlorine-in-ltamenah-syria-on-24-and-25-march-2017/

PAKISTAN PROBES 2 FORMER PRIME MINISTERS OVER GRAFT

On 13^th June, OCCRP reported that Pakistan’s anti-graft agency has approved an investigation into 2 former prime ministers, Shahid Khaqan Abbasi and Nawaz Sharif, over allegations of violating the rules when awarding a liquid natural gas (LNG) contract.

https://www.occrp.org/en/27-ccwatch/cc-watch-briefs/8192-pakistan-probes-two-ex-prime-ministers-over-graft

AML REGULATION OF CRYPTOCURRENCY: US AND GLOBAL APPROACHES

On 12^th June, law firm Allen & Overy republished a comprehensive article originally found in The International Comparative Legal Guide to Anti-Money Laundering, a practical legal update guide.

http://www.allenovery.com/publications/en-gb/Documents/The%20International%20Comparative%20Legal%20Guide%20to%20Anti-Money%20Laundering.pdf

FRANCE “FLOODED” WITH COCAINE FROM GUIANA AS TRAFFICKERS EXPLOIT “BACK DOOR TO EUROPE”

The Telegraph on 9^th June reported that France is being “flooded” with cocaine as dozens of drug ‘mules’ arrive daily in Paris on passenger flights from Guiana, a French territory in South America. After landing in Paris, some of the drugs are then transported to the UK and other European countries, notably the Netherlands, according to French police. Police and customs officials at Orly airport say they are “overwhelmed” by the steep rise in the number of smugglers boarding domestic flights to Paris from Cayenne, French Guiana, since 2015. Guiana is part of France but suffers from poverty, lawlessness and high youth unemployment.

https://www.telegraph.co.uk/news/2018/06/09/france-flooded-cocaine-traffickers-exploit-back-door-europe/

CRIMINAL ASSETS BUREAU RAIDS MOTOR DEALERSHIP IN WEST DUBLIN AND SEIZES 10 SUV

The Irish Mirror on 13^th June reported that a suspected organised crime gang with links to the motor trade and a family-run motor dealership in west Dublin have been raided by detectives. Gardai believe that the family-based gang were behind a massive €1 million cocaine seizure in 2014 and a €4.9 million heroin and €280,000 cash bust in 2015 that turned up sub-machine guns and handguns.

https://www.irishmirror.ie/news/irish-news/crime/criminal-assets-bureau-raids-motor-12700658

CUSTOMS INTERCEPTS 200 CONTAINER VANS OF SMUGGLED RICE AT MANILA PORT

UNTV on 14^th June reported that the Bureau of Customs (BOC) reported that the agency has intercepted 200 container vans loaded with a total of 100,000 sacks of smuggled rice at the Manila International Container Port in the first week of June. The rice is said to have come from Vietnam under the consignee, Sta. Rosa Farm Products Corporation.

https://www.untvweb.com/news/boc-intercepts-200-container-vans-of-smuggled-rice-at-manila-port/

FORMER ROLLS-ROYCE ENGINEER ARRESTED AMID FEARS CHINA TRIED TO OBTAIN F-35 FIGHTER JET DETAILS

The Telegraph reported on 14^th June that man in his 70s has been arrested as part of a probe under the Official Secrets Act amid reports he was a former Rolls-Royce engineer suspected of divulging secrets about Britain’s new stealth fighter to China. He was named by the Sun as Bryn Jones, a former chief combustion technologist.

https://www.telegraph.co.uk/news/2018/06/14/former-rolls-royce-engineer-arrested-officials-secrets-act-amid/

IMPACT OF THE EUROPEAN CONVENTION ON HUMAN RIGHTS

On 14^th June, the Council of Europe announced a new resource, a new interactive website highlighting the positive impact of the European Convention on Human Rights across the continent.

https://www.coe.int/en/web/portal/-/showing-the-impact-of-the-european-convention-on-human-rights-council-of-europe-launches-new-information-resource

IRANIAN FISHERMEN RELEASED BY SOMALI PIRATES

Defence Web on 14^th June reported that Somali pirates have released four Iranian fishermen captured 3 years ago in international waters. The fishermen were apparently released after an operation carried out with the Quds Force of the Islamic Revolution Guards Corps (IRGC) and the Iranian Foreign Ministry.

http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=52053:iranian-fishermen-released-by-somali-pirates&catid=108:maritime-security&Itemid=233

ECJ CONFIRMS THAT THE FUND-FREEZING MEASURES IMPOSED ON RAMI MAKHLOUF, COUSIN OF PRESIDENT BASHAR AL-ASSAD, SHOULD BE MAINTAINED

A news release from the Court of Justice of the EU on 14^th June reported that since 2011 the EU has included Mr Rami Makhlouf on the list of persons covered by the restrictive measures adopted against Syria. He has therefore been refused entry to or transit through the territory of the Member States of the EU, while his funds and economic resources have been frozen. He brought an action before the General Court for annulment of the decision to maintain his listing for the period from 29^th May 2016 to 31^st May 2017. The General Court dismissed his action and confirmed that the restrictive measures imposed on him for that period were to be maintained, but he brought an appeal before the Court of Justice, asking that the General Court’s judgment be set aside. That appeal has now been rejected.

https://curia.europa.eu/jcms/upload/docs/application/pdf/2018-06/cp180085en.pdf

IS ANOTHER BOKO HARAM OR AL-SHABAAB ERUPTING IN MOZAMBIQUE?

Defence Web on 14^th June posed this question in an article following a sudden upsurge in brutal violence in northern Mozambique. Those allegedly responsible for the attacks apparently call themselves Ahlu Sunnah Wa-Jamâ (often abbreviated to al-Sunnah) and local people call them al-Shabaab – though the group does not seem to be affiliated to its Somali namesake. The article asks – has full-blown violent Islamist extremism arrived in Mozambique, and indeed in southern Africa? Or are these just poor, marginalised locals presenting ordinary crimes as something else? Or are they perhaps the Mozambican National Resistance (Renamo) in disguise? Or, even more cynically, are mercenaries deliberately stoking violence to win a lucrative contract to protect the natural gas industry? The article says that members are trained both locally – sometimes by disaffected police officers and security guards – and externally in Tanzania and the Great Lakes Region by militia chiefs hired by al-Shabaab in Tanzania, Kenya and Somalia. It says that there are fears that without proper intervention, al-Sunnah could go the way of Boko Haram.

http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=52051:iss-is-another-boko-haram-or-al-shabaab-erupting-in-mozambique&catid=3:Civil%20Security&Itemid=113

IATA ACKNOWLEDGES IT HAS A ROLE IN COMBATTING HUMAN TRAFFICKING

On 14^th June, Defence Web carried an article saying that the International Air Transport Association (IATA) acknowledges that the global air transport system can be criminally exploited for the illegal trafficking of people. Although the responsibility for identifying, apprehending and prosecuting those perpetrating human trafficking rests with governments and national law enforcement agencies, the airline industry recognises it can play an important role in helping to prevent this crime. A resolution denouncing human trafficking was passed at the last IATA annual general meeting. The resolution also reaffirmed airlines’ commitment to a number of actions to fight human trafficking. These include sharing of best practices, staff training and reporting. It reports that IATA is also working with airports and other stakeholders in the air transport sector to raise awareness on human trafficking and share guidance material, including the ‘recognise and report’ practice.

http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=52050:iata-acknowledges-it-has-a-role-in-combatting-human-trafficking&catid=87:border-security&Itemid=188

US AIR CARGO ADVANCE SCREENING PROGRAMME GOES INTO EFFECT

Homeland Security Today on 13^th June reported that US Customs and Border Protection (CBP) and the Transportation Security Administration announced that the Air Cargo Advance Screening (ACAS) programme came into effect on 12^th June requiring the submission of advanced air cargo information on shipments arriving in the US from a foreign location. Previously this was a voluntary process in which many airlines already participated globally, the programme requirements are now mandatory for airlines flying to the US. Participating carriers submit a subset of required pre-arrival air cargo data to CBP at the earliest point practicable and prior to loading the cargo onto aircraft destined to or transiting through the US. Contrary to some media reports, it says that there is no current specific terrorist threat to cargo bound to the US, but that terrorists continue to target the aviation sector.

https://www.hstoday.us/federal-pages/dhs/cbp/air-cargo-advance-screening-program-goes-into-effect/

CBP provides guidance, FAQ and a factsheet at –

https://www.cbp.gov/border-security/ports-entry/cargo-security/acas

ITALIAN GAMBLING CRACKDOWN: STARTS WITH ADVERTISING

On 14^th June, Calvin Ayre reported that the new Italian government appears serious about plans to rein in the country’s gambling industry. This crackdown is likely to include a more than one-third reduction in the number of amusement with prizes (AWP) machines and video lottery terminals (VLT) in retail venues, plus “strong limitations on forms of gambling with repeated bets” and an “absolute ban on [gambling] advertising and sponsorships”. It has introduced proposed legislation that would prohibit “any form, direct or indirect, of advertising propaganda, of commercial communication, sponsorship or promotion of brands or products of games with cash prizes, offered in collection networks, both physical and online”.

https://calvinayre.com/2018/06/14/business/italy-gambling-crackdown-advertising/

US WANTS KENYA TO CRACK DOWN ON ILLEGAL INVESTMENTS BY SOUTH SUDAN’S ELITE

https://qz.com/1305500/us-targets-illicit-south-sudan-money-of-salva-kiir-riek-machar-in-kenya/?src=ilaw

IATA ACKNOWLEDGES IT HAS A ROLE IN COMBATTING HUMAN TRAFFICKING

http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=52050:iata-acknowledges-it-has-a-role-in-combatting-human-trafficking&catid=87:border-security&Itemid=188

AML REGULATION OF CRYPTOCURRENCY: US AND GLOBAL APPROACHES

On 12^th June, law firm Allen & Overy republished a comprehensive article originally found in The International Comparative Legal Guide to Anti-Money Laundering, a practical legal update guide.

http://www.allenovery.com/publications/en-gb/Documents/The%20International%20Comparative%20Legal%20Guide%20to%20Anti-Money%20Laundering.pdf

SWEEPSTAKES, LOTTERY AND PRIZE SCAMS

In the US, the Better Business Bureau (BBB), a consumer protection network, has produced a study of how “winners” lose millions through an evolving fraud involving sweepstakes, lotteries and prize draw scams. It notes that nearly 500,000 people have reported this fraud to enforcement agencies in the US and Canada over the last 3 years, and reported losses in 2017 alone totalled $117 million. It says that BBB found these frauds concentrate disproportionately on older people, who suffer the largest losses by far. A vast worldwide industry of sweepstakes mailings specifically targets older victims. The study aims to highlight red flags and actions to take to prevent this type of fraud – for example, no legitimate lottery or sweepstakes will ever request money for taxes, fees or any other purpose. Amongst the facts it shares is that it is illegal for those in the US to enter foreign lotteries. It also highlights why calls from Jamaica and Costa Rica, and social media contact from Nigeria are often used. The study mentions what is being done in the US to combat the problem, and also provides a number of tips and recommendations.

https://www.bbb.org/globalassets/local-bbbs/st-louis-mo-142/st_louis_mo_142/studies/sweepstakes-lottery-and-prize-scams-study-final.pdf

EU 5th MONEY LAUNDERING DIRECTIVE

A number of updates and reminders have been published regarding the EU 5^th ML Directive.

Irish law firm, Dillon Eustace on 13^th June explained that the Directive was drafted partly as a response to the terrorist attacks that shook Europe in 2015 and 2016 in Paris and Brussels, along with the Panama Papers leak which revealed the chink in the armour of the EU fight against terrorist financing, and intends to increase transparency in financial transactions by introducing some radical reforms, which the article lists, including centralised beneficial ownership registers; art dealers, tax advisors, letting agents and crypto currency exchanges will be required to verify the identity of clients and to perform CDD/KYC; and the transaction threshold for requiring customer identification when using general purpose anonymous prepaid cards is to be reduced from €250 to €150. It says that the Directive will be published shortly in the EU Official Journal and has an estimated deadline for transposition before the end of 2019.

http://www.dilloneustace.com/publications/5th-money-laundering-directive-update

Arendt and Medernach in Luxembourg also issued an update on 12^th June. This noted enhanced powers for supervisory authorities and FIU; extension of AML controls to virtual currency and fiat current exchange service providers; a requirement to establish centralised automated systems to allow for identification of holders of bank and payment accounts and safety deposit boxes with access for FIU

http://www.arendt.com/emails/nf/2018.06.06%20-%20Luxembourg%20Newsflash%20-%20AML5%20-%20Key%20aspects%20and%20changes.pdf

Bright Line Law also issued a briefing on 25^th May, looking forward to the new Directive.

https://www.brightlinelaw.co.uk/news/looking-ahead-to-5mld.html

The draft Directive may be found at –

http://data.consilium.europa.eu/doc/document/PE-72-2017-INIT/en/pdf

NEW US AML BILL NEGLECTS BENEFICIAL OWNERSHIP

Global Financial Insight on 13^th June reported that the House of Representatives Committee on Financial Services is considering the Counter Terrorism and Illicit Finance Act, which has been stripped of provisions that would require collection of beneficial ownership information at the time of company formation – despite a November 2017 version of the same Bill having included a section to address this critical issue. The change is despite the section having the support of the US banking industry, according to American Banker.

http://www.gfintegrity.org/press-release/new-anti-money-laundering-bill-neglects-beneficial-ownership/

https://www.americanbanker.com/opinion/house-aml-bill-is-a-missed-opportunity

OTHER THINGS YOU MAY HAVE MISSED – JUNE 13

13^th June 2018

NORTH KOREA MUST COME CLEAN ABOUT ITS DIRTY MONEY

The Diplomat on 12^th June carried an article saying that, in the light of the Trump-Kim summit, for any process to succeed, Kim must commit to coming clean about North Korea’s systemic and ongoing “dirty money habits” that have sustained its illicit nuclear programme and that Pyongyang must fully disclose the illicit financial networks it has used to raise money and procure materials for its weapons programmes. It says that North Korea has operated sophisticated overseas networks of shell companies and has scores of trusted agents to illegally finance and obtain the goods and technology through these fronts for its clandestine WMD programme. It argues that, as well as helping any denuclearisation process, disclosures about the financial networks would provide a wealth of information to international financial regulators and law enforcement agencies and would uncover significant hidden networks, providing valuable information about the weak spots in the global financial crime regulatory regime. Even if the information is not up-to-date, data indicating how North Korea set up illicit financing networks in the past would be of great forensic value to investigators.

https://thediplomat.com/2018/06/north-korea-must-come-clean-about-its-dirty-money/

CZECH POLICE CHARGE 60 IN DRUG SMUGGLING RING LED BY VIETNAMESE

eVN Express on 13^th June reported that Czech police said that they had charged 60 people with drug trafficking after busting a ring suspected of smuggling more than 700 kg of cocaine and heroin to Australia via the US and Thailand. They claim that the gang was led by 3 Vietnamese organisers, 1 active in the Czech Republic and the other 2 in other countries and mostly used impoverished or indebted Czech nationals as couriers.

https://e.vnexpress.net/news/news/czech-police-charge-60-in-drug-smuggling-ring-led-by-vietnamese-3762853.html

CHINESE COAST GUARD ARREST 48 FOR SMUGGLING DIESEL FUEL BY SEA

Xinhua on 12^th June reported that the Chinese coast guard detained 48 people for smuggling diesel fuel and seized seven ships as well as 3,650 tonnes of fuel, authorities in east China’s Jiangsu Province said. It says that the ships sailed from coastal Zhejiang and Fujian provinces to the open sea to pick up the fuel.

http://www.xinhuanet.com/english/2018-06/12/c_137249123.htm

CHINA SEIZES 955,800 TONNES OF FOREIGN GARBAGE IN JANUARY-MAY 2018

ECNS in China reported on 12^th June that China has handled 248 cases of illegal trash imports (out of a total of 1,613 smuggling cases of all types) in the first 5 months of the year, seizing 955,800 tonnes of foreign garbage, the General Administration of Customs (GAC) said.

http://www.ecns.cn/news/society/2018-06-12/detail-ifyuyvzv3229593.shtml

INDIA: SMUGGLERS TAKE ADVANTAGE OF DOMESTIC LEG OF INTERNATIONAL FLIGHT TO SNEAK IN GOLD BARS FROM DUBAI

The Hindu on 12^th June reported that Custom officials had busted a gold smuggling racket involving an international traveller leaving the consignment in the seat, which will be picked up by a domestic traveller.

http://www.thehindu.com/news/cities/bangalore/gold-smuggler-buys-ticket-to-thiruvananthapuram-flies-to-hyderabad/article24146975.ece

IRAN STEPS BACK FROM INTRODUCING ANTI-TERRORISM FINANCE RULES AS FRESH U.S. SANCTIONS LOOM

Forbes on 12^th June reported that MPs have voted to suspend for 2 months discussion of a Bill that would have seen Iran sign up to the UN International Convention for the Suppression of Financing of Terrorism. The vote means that Iran will remain on the list of “high risk” jurisdictions compiled by FATF and has been since 2008. The only other country on the blacklist list is North Korea.

https://www.forbes.com/sites/dominicdudley/2018/06/12/iran-anti-terrorism-finance-rules/#152ac4b3f93d

LITHUANIA POSTS INITIAL COIN OFFERING (ICO) GUIDELINES

Crowdfund Insider and others on 12^th June reported that Lithuania has published a set of guidelines seeking to provide greater clarity for cryptocurrencies and initial coin offerings (ICO) and how/why AML/CFT law applies.

https://www.crowdfundinsider.com/2018/06/134856-lithuania-posts-initial-coin-offering-guidelines/

The Guidelines themselves may be found at –

https://cdn.crowdfundinsider.com/wp-content/uploads/2018/06/ICO-Guidelines-Lithuania.pdf

UK ANTI-SLAVERY COMMISSIONER CRITICISES BUSINESS RESPONSE TO MODERN SLAVERY

On 4^th June, Herbert Smith Freehills published an article saying that the Commissioner the response by some businesses to the Modern Slavery Act’s reporting obligation, suggesting that “patchy” compliance demonstrates a failure by some businesses to take human rights abuses seriously. The Commissioner’s role is to drive better practice and the reinforce the importance of good reporting as a means of demonstrating good practice. The Commissioner’s statement comes after the Business and Human Rights Resource Centre (the “BHRRC“) published its second review of FTSE100 Modern Slavery Statements. A business should take considered and context-appropriate steps to identify and respond to the risks of modern slavery in its business and supply chain. The effectiveness of those steps should be measured and the results reflected in improved practice. All of these steps should then be set out each year in the business’ annual Modern Slavery Statement.

https://www.herbertsmithfreehills.com/latest-thinking/uk-anti-slavery-commissioner-criticises-business-response-to-modern-slavery

https://www.herbertsmithfreehills.com/latest-thinking/responding-to-modern-slavery-–-new-uk-benchmarking-report

EUROPEAN COMMISSION WARNS IMPORTERS AND EXPORTERS OF GOODS WITH POSSIBLE UK ORIGIN

On 12^th June, Kelley Drye & Warren LLP published an article saying that on 4^th June, the Commission advised economic operators to prepare for the consequences of the UK leaving the EU on their imports and exports. Following its withdrawal, UK inputs, including materials and certain processing operations, will no longer be considered EU origin for purposes of enjoying preferential treatment.

https://www.ustrademonitor.com/2018/06/brexit-update-european-commission-warns-importers-and-exporters-of-goods-with-possible-uk-origin/#page=1

RANSOMWARE

On 8^th June, Bryan Cave Leighton Paisner published an article explaining what ransomware means, and providing some tips to businesses affected by what appears to be a ransomware attack.

https://www.bryancave.com/en/thought-leadership/ransomware.html

THIRD COUNTRIES ALIGN THEMSELVES WITH EU SANCTIONS ON SYRIA AND NORTH KOREA

On 12^th June, the EU Council announced that the former Yugoslav Republic of Macedonia, Montenegro, Serbia, Albania, Iceland, Liechtenstein, Norway, Moldova and Georgia had agreed to align their sanctions regimes in line with those of the EU.

http://www.consilium.europa.eu/en/press/press-releases/2018/06/12/declaration-by-the-high-representative-on-behalf-of-the-european-union-on-the-alignment-of-certain-third-countries-concerning-restrictive-measures-against-syria/

http://www.consilium.europa.eu/en/press/press-releases/2018/06/12/declaration-by-the-high-representative-on-behalf-of-the-eu-on-the-alignment-of-certain-countries-with-council-decision-concerning-restrictive-measures-against-the-democratic-people-s-republic-of-korea/

NEW START-UP UK VISA ROUTE ANNOUNCED FOR ENTREPRENEURS

On 13^th June, the Home Office announced a new route, announced during London Tech Week, will widen the applicant pool of talented entrepreneurs and make the visa process faster and smoother for entrepreneurs coming to the UK. It will replace a visa route which was exclusively for graduates, opening it up to a wider pool of talented business founders. It will require applicants to have acquired an endorsement from a university or approved business sponsor, including accelerators.

https://www.gov.uk/government/news/new-start-up-visa-route-announced-by-the-home-secretary

INTERNATIONAL ARREST WARRANT FOR FOOTBALL BOSS ZDRAVKO MAMIC

Total Croatia News on 13^th June reported that a court in Croatia has ordered that a European Arrest Warrant, national and international arrest warrants be issued for the former Dinamo football club boss, said to have left for Bosnia-Herzogovina, for fraud.

https://www.total-croatia-news.com/sport/29049-international-arrest-warrant-to-be-issued-for-football-boss-zdravko-mamic?src=ilaw

OFFICIALS’ ASSETS FROZEN IN THAI WELFARE FUNDS CASE

The Bangkok Post on 13^th June reported that the Anti-Money Laundering Office has impounded the assets of a former permanent secretary and 2 former high-ranking officials accused of demanding “change” from state welfare funds for the underprivileged. The suspects were employed at the Social Development and Human Security Ministry and are said to have “behaved dishonestly” in the handling funds allocated for payment to poor people.

https://www.bangkokpost.com/news/general/1484193/?src=ilaw

MISSING DIAMOND REVENUE: MUGABE OFF THE HOOK UNTIL PARLIAMENT RECONSTITUTES AFTER ELECTIONS

On 13^th June, News 24 in South Africa reported that former Zimbabwean president Robert Mugabe, who twice failed to turn up in parliament to give evidence on corruption in the diamond mining industry, is off the hook until parliament reconstitutes after general elections in July. A committee wants an explanation of his 2016 claim that Zimbabwe lost US $15 billion in revenue due to corruption and foreign exploitation in the diamond sector.

https://www.news24.com/Africa/Zimbabwe/missing-15bn-diamond-revenue-mugabe-off-the-hook-for-now-until-parliament-reconstitute-20180613?src=ilaw

BROTHERS WHO RAN 7-YEAR HEALTH FRAUD SCAM FACE SENTENCING IN US

ABC News on 13^th June reported that 2 brothers who ran a bribes-for-referrals health fraud scam that brought in more than $100 million over several years are to face sentencing, in a case that already has produced more than 50 guilty pleas or convictions. David and Scott Nicoll were arrested in 2013 and pleaded guilty to conspiracy and money laundering through their New Jersey company, Biodiagnostic Laboratory Services.

https://abcnews.go.com/Health/wireStory/brothers-ran-year-health-fraud-scam-face-sentencing-55853281?src=ilaw

US TREASURY SANCTIONS ON CAMBODIAN PM’S BODYGUARD CHIEF FOR RIGHTS ABUSES

Radio Free Asia on 12^th June reported that the US has imposed financial sanctions on General Hing Bun Hieng, the head of Cambodia Prime Minister Hun Sen’s bodyguard unit, for its role in “multiple attacks on unarmed Cambodians over the span of many years”.

https://www.rfa.org/english/news/cambodia/sanctions-bodyguard-06122018175731.html?src=ilaw

BRITISH OVERSEAS TERRITORIES IN TALKS TO KEEP TAX HAVEN SECRECY

The Guardian on 13^th June reported that leaders of British Overseas Territories are to hold 2 days of showdown talks with ministers in an attempt to reverse the UK decision to impose mandatory public beneficial ownership registers.

https://www.theguardian.com/world/2018/jun/13/british-overseas-territories-in-talks-to-keep-tax-haven-secrecy

NEW GUERNSEY DIGITAL ID CARD AIMS TO REDUCE IDENTITY THEFT

ITV News on 13^th June reported that a new digital ID card is being launched in Guernsey to make it safer for young people to verify their identity online. The CitizenCard scheme has been in place for a number of years and has now teamed up with the Yoti app which will let people prove their age and identity to businesses, verify the details of people online, and log in to websites without having to remember passwords.

http://www.itv.com/news/channel/2018-06-13/new-guernsey-digital-id-card-aims-to-reduce-identity-theft/

COMPANY SECRETARY WHO SWINDLED AIRBUS OUT OF ALMOST £132,000 JAILED FOR 2½ YEARS

On 12^th June, The Standard reported that Carena Jane Land, 54, pleaded guilty to fraud by an abuse of her position at the Airbus plant at Broughton between 2012 and 2016, relating to expenses for teams of engineers sent to carry out aircraft repairs.

http://www.chesterstandard.co.uk/news/16285087.Company_secretary_who_swindled_Airbus_out_of_almost___132_000_jailed_for_two_and_a_half_years/

CONSIDERING THE BENEFITS OF A BENEFIT LIMITED LIABILITY COMPANY (BLLC)

On 12^th June, Workman Nydegger published an article saying that Utah became one of a handful of states to offer a new type of vehicle, the benefit limited liability companies (BLLC). It explains that a BLLC has a stated purpose of creating general or specific public benefit and, in the corporate context, this allows a board of directors greater freedom to make decisions that benefit the public good even if those decisions do not directly benefit the bottom line. The article deals with how to establish a BLLC and if one should consider doing so.

https://www.jdsupra.com/legalnews/considering-the-benefits-of-a-benefit-30316/

P3 Utah supplies a set of FAQ on BLLC at –

https://www.p3utah.org/get-informed/benefit-llc-faqs.html

MOLDOVA NEEDS TO SHAKE MONEY-LAUNDERING REPUTATION, CENTRAL BANK CHIEF SAYS

Baker McKenzie on 12^th June reported that the head of Moldova’s central bank said major foreign banks were increasingly wary of working in the ex-Soviet nation after a spate of money-laundering scandals in recent years, despite progress overhauling the country’s banking system. It mentions that the country was nearly bankrupted in 2015 after $1 billion was stolen from 3 of its largest banks, and from 2011 to 2014, some $22.3 billion of Russian money was allegedly laundered through the Moldovan financial system.

http://www.riskandcompliancehub.com/moldova-needs-to-shake-money-laundering-reputation-central-bank-chief-says/

UK CYBER SECURITY EXPORTS WORKING GROUP

On 12^th June, Tech UK reported that the Department for International Trade (DIT) and techUK hosted the first meeting of the ‘Cyber Security Exports Working Group’. The minutes of the meeting are reproduced. It was said that the human rights guidance designed to help manage the risks of exporting cyber capabilities and which was published in 2014 is to be updated over the next 6 months. The Department noted that a new cyber security page was due to launch soon on the government’s export promotion website.

http://www.techuk.org/insights/news/item/13309-cyber-security-exports-working-group

ROMANIAN NATIONALS ARRESTED IN US FOR FRAUD AS PART OF NATION-WIDE ORGANISED CRIME RING

The Journal Sentinel on 12^th June reported that 2 men had been arrested in Wisconsin for “multiple counts of forgery of financial transaction cards” and said to be involved in what was described as a nation-wide Romanian organised crime ring. Both are Romanian nationals and hold California ID cards.

https://www.jsonline.com/story/news/2018/06/12/romanian-nationals-arrested-fond-du-lac-skimming-cash-outs/696024002/

FAILED BY FORENSICS?

A BBC Radio “File on 4” documentary investigates mounting concern about forensic science in England and Wales – hearing the cases of 2 men who almost went to prison for rape because the police failed to properly investigate crucial evidence on mobile phones, “digital forensics”. The programme hears that a criminal investigation is underway into one company providing forensic evidence, another has gone bust and a third has had to be financially bailed out. Meanwhile some police forces carry out their own forensic work but some do so without the official accreditation that forensic companies are expected to obtain. And the regulator says she can’t do anything about it as the Government won’t give her the powers she needs.

https://www.bbc.co.uk/programmes/b0b5t824

RBSI WINS APPEAL IN GIBRALTAR MARRACHE CASE

The Gibraltar Chronicle on 13^th June reported that rhe Royal Bank of Scotland International (RBSI) was cleared of any liability in the loss of money defrauded by brothers Benjamin, Isaac and Solomon Marrache from an Irish client of their law firm, Marrache & Co, prior to its collapse. It was held by the Court of Appeal in London that a judge had been wrong to suggest bank employee Howard Shaw “dishonestly assisted” the Marraches to defraud their client.

http://chronicle.gi/2018/06/rbsi-wins-appeal-in-marrache-lawsuit-overturning-earlier-judgement/

PODCAST: WHERE GDPR AND DUE DILIGENCE COLLIDE

In the latest TRACE podcast, Illya, privacy counsel with TRACE, discusses the direct conflict between the GDPR and robust anti-bribery due diligence and TRACE’s efforts to press for revisions to laws for a carve-out for due diligence.

https://www.traceinternational.org/bribe_swindle_or_steal

COUNTERING THE ILLICIT ARMS TRADE: NEW PROPOSAL FOR AN INTEGRATED EU APPROACH

On 13^th June, the EU adopted a Joint Communication proposing elements for a comprehensive EU Strategy against illicit firearms and small arms and light weapons (SALW). A broad range of governmental agencies, including police, customs, border guards, armed forces, export control and judicial authorities are required to act in a more integrated manner to tackle such transnational threats. The Joint Communication aims to guide collective EU action inside the EU and abroad, to prevent and curb the illicit acquisition of firearms by terrorists, criminals and other unauthorised actors, as well as to promote accountability and responsibility with regard to the legal arms trade. The elements proposed for the new Strategy takes into account the evolving security context and relevant elements, such as the growing threat of terrorism inside the EU, technological and legislative developments. It entails a set of actions to be taken at national, regional and international level and would replace the one that was adopted by the European Council in 2005.

https://eeas.europa.eu/headquarters/headquarters-homepage/46396/joint-communication-elements-towards-eu-strategy-against-illicit-firearms-small-arms-light_en

EU: TAX REVENUES AS A PERCENTAGE OF GDP GREW SLIGHTLY IN 2016

On 13^th June, the EU reported a study from the Commission that showed that tax revenues rose in 19 Member States in 2016 as a percentage of GDP in 2016. The findings are in the 2018 edition of the Taxation Trends report, a yearly snapshot of tax systems in the EU, Iceland and Norway that provides extensive and comparable data on the different tax structures and rates of Member States. his report offers a breakdown of comparative tax levels in the EU and of tax revenues raised from consumption, labour and capital. It also contains data on energy, environmental and property taxation, plus rates for personal and corporate income taxes.

https://ec.europa.eu/taxation_customs/business/economic-analysis-taxation/taxation-trends-eu-union_en

TRAVEL WARNING ISSUED FOLLOWING MOZAMBIQUE ATTACKS

Defence Web reported on 13^th June that the UK advised citizens against travelling to north-eastern Mozambique after a series of attacks by groups with links to Islamic militants. At least 17 people were killed – 10 beheaded -since May in Palma, near the Tanzanian border.

http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=52033:travel-warning-issued-following-mozambique-attacks&catid=49:National%20Security&Itemid=115

AWARD-WINNING SMART DRONES TO TAKE ON ILLEGAL FISHING

Defence Web on 13^th June reported that drones guided by artificial intelligence to catch boats netting fish where they shouldn’t were among the winners of a marine protection award and could soon be deployed to fight illegal fishing, organisers said. The award-winning project aims to help authorities hunt down illegal fishing boats using drones fitted with cameras that can monitor large swathes of water autonomously. The National Geographic Society awarded the project, co-developed by Morocco-based company ATLAN Space, and 2 other innovations $150,000 each to implement their plans as it marked World Oceans Day.

http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=52032:award-winning-smart-drones-to-take-on-illegal-fishing&catid=125:unmanned-aerial-vehicles&Itemid=306

CODES OF PRACTICE AND GUIDANCE FOR MAKING AN APPLICATION UNDER THE REGULATION OF INVESTIGATORY POWERS ACT 2000

On 13^th June, the UK Home Office reissued a webpage that brings together all documents relating to the RIPA codes. Included are revised codes of practice under Parts 2 and 3 of the Act following a consultation that ran from 16^th November to 28^th December 2017

https://www.gov.uk/government/collections/ripa-codes

MAN ‘SET UP WEB DESIGN FIRM AS FRONT FOR MILLION POUND FRAUD, DRUGS AND MONEY LAUNDERING SCHEME’

The Press & Journal in Scotland on 13^th June reported that a man is to stand trial accused of setting up a web-design firm as a front for a million-pound fraud, drug dealing and international money laundering operation. Dale Pearson is said to have scammed a £250,000 mortgage before “concealing, disguising, converting and transferring” cash and bitcoins amounting to £789,046.64 over the course of 6 years, and to have transferred money out of the country to banks and businesses in Pakistan, China, Dubai and Hong Kong as part of the alleged scheme.

https://www.pressandjournal.co.uk/fp/news/scotland/1497069/man-set-up-web-design-firm-as-front-for-million-pound-fraud-drugs-and-money-laundering-scheme/

15-YEAR DIRECTOR BAN OVER MULTI-MILLION POUND VAT FRAUD

Accountancy Daily on 13^th June reported that a director involved in a multimillion VAT fraud has been given a maximum 15-year disqualification following an investigation by the Insolvency Service in the UK into a ‘missing trader’ (MTIC) transaction chain. Ulhaque Ahtamad was the sole director of Masstech Ltd, a carbon emissions allowance and metals trader based in Gerrards Cross.

https://www.accountancydaily.co/15-year-director-ban-over-multimillion-pound-vat-fraud

DRUGS BOSS FROM UK WHO TRAFFICKED DRUGS TO IRELAND CONVICTED AFTER ARREST IN LITHUANIA

On 13^th June, a news release from the NCA reported that a man from Solihull has been convicted of being the head of an organised crime group involved in the importation and supply of drugs on an industrial scale. James Mulvey, 42, was apprehended in Lithuania on a European Arrest Warrant in March 2017 following a 2-year investigation by the NCA. NCA investigators worked with the West Midlands Regional Asset Recovery team, HMRC, and law enforcement in over 9 countries to collate and analyse extensive financial and telephone evidence which proved Mulvey was the mastermind behind a large-scale drugs conspiracy in 2006 and 2007. He used bogus haulage businesses ran by members of his network to import cocaine and cannabis from Holland to Ireland via the UK.

http://www.nationalcrimeagency.gov.uk/news/1387-criminal-boss-behind-multi-million-drug-smuggling-network-convicted

THE GOOD, THE BAD AND THE UGLY: REVISED CANADIAN AML/CFT REGULATIONS

On 13^th June, Blake Cassels & Graydon produced a comprehensive article on revisions introduced to Canadian AML regulations and published on 9^th June. Highlights include the regulations of virtual currencies, businesses providing foreign money services and pre-paid products. In addition, the life insurance sector is to become subject to the same requirements as other financial entities in respect of any loan or pre-paid products that they offer. There is a 90-day comment period for these regulations, expiring on September 9^th.

https://www.jdsupra.com/legalnews/the-good-the-bad-and-the-ugly-revised-46850/

FORMER IMMIGRATION OFFICIAL AS THE ‘MAIN PLUNDERER’ WHO EXTORTED $939,750 FROM PHILIPPINE CASINO AND ONLINE GAMBLING OPERATOR

Calvin Ayre on 13^th June reported that the Philippine Ombudsman has named a former Immigration official as the ‘main plunderer’ who extorted the money from Jack Lam. Philippine immigration officials took advantage of a situation to allegedly ask for bribes in exchange for the release of the arrested Chinese nationals after Interpol targeted a number of Chinese-facing operators who were reportedly involved in online gambling, fraud and extortion activities in 2016.

https://calvinayre.com/2018/06/13/business/ex-immigration-official-named-main-plunderer-jack-lam-bribery-case/

SHAM MARRIAGE NETWORK DISMANTLED IN DENMARK AND GERMANY

Europol reported on 13^th June that Europol’s European Migrant Smuggling Centre and Eurojust assisted the German and Danish national authorities in detecting and dismantling an organised crime group that used sham marriages with EU citizens to grant permanent residence permits to illegal migrants from Asia – which has been active since 2015, is known to have smuggled approximately 1,200 migrants into the EU, charging up to €13,000 per person for its services. Its members are suspected of having committed the crimes of migrant smuggling, document forgery, incitement and assistance to bigamy, as well as bribery. The joint operation was the result of an 18-month co-ordinated investigation in the framework of a joint investigation team (JIT). The JIT, established with the support of Eurojust, provided the necessary mutual legal assistance and helped to simplify the co-operation between the national authorities considerably.

https://www.europol.europa.eu/newsroom/news/sham-marriage-network-dismantled-in-denmark-and-germany