Day: July 20, 2018

At one time in the dim and distant past, it probably seems like there was no compliance officer role, and the only thing anyone performing anything like it was to ensure your business got paid and was not ripped off itself.

Now it seems like the anti-money laundering (AML) role has been extended and added to, with a steadily growing list of matters creating potential compliance problems.  AML has become “all crimes” and takes in tax evasion offences and overlaps with terrorist financing and proliferation financing.  Then there are other matters, which may or may not have a direct financial aspect, as well as the concern that you may be fine with your own jurisdiction’s laws but might fall foul of others’.  And you still have to ensure you get paid.

As a rudimentary test, try to jot down as many of the various regimes and requirements that might apply as you can.  The following list is my attempt at doing so.

AML – drug trafficking	since 1987 in the UK under the Drug Trafficking Offences Act 1987
AML – “all crimes”	in the UK, for many crimes from 1988
AML – tax evasion	foreign and domestic.  It used to be the rule in English law that one did not recognise the need to enforce another state’s tax laws or collect tax on their behalf).  In 1998, the G7 countries called for international action to enhance the capacity of AML systems to deal effectively with tax related crimes.  In 2010, the OECD adopted a new OECD Recommendation to facilitate co-operation between tax and other law enforcement authorities to combat serious crimes and in 2012 FATF revised its recommendations to include tax crimes in the list of predicate offences[1] to money laundering.
Trade-based money laundering (TBML)	a huge and all too often overlooked problem
Trade-based financial crime	a term to take in more than just TBML[2]
Countering terrorist financing (CTF or CFT)
Cross-border cash controls	since 2007 in the EU, and including cash movements between the UK and the Crown Dependencies[3]; with a €10,000 threshold and being expanded to things other than simply cash
Export controls	tangible (i.e. goods) and intangible (e.g. software and technology), cultural items, precursor chemicals[4] etc
Import controls	as well the obvious (e.g. illegal drugs, firearms etc), there are restrictions involving endangered species (CITES), timber etc
Trade control licensing of trafficking and brokering	in some cases, with extra-territorial effect under UK law[5]
Human rights abuse overseas	under the “Ruggie” principles or “Magnitsky” laws
Bribery and corruption	foreign and domestic.  In 1994, the OECD adopted a Recommendation for countries to take effective measures to deter, prevent and combat the bribery of foreign public officials in connection with international business transactions.  In the UK, the Bribery Act 2010
Modern slavery	foreign and domestic; including bans on the import of goods made using forced labour
People smuggling and human trafficking	there are differences: smuggling of those who want to travel, and trafficking of those under coercion.  Also people can be trafficked within a country, not just across borders
Proliferation and countering proliferation financing (CPF)	to counter the spread of WMD and their delivery systems
UN sanctions	trade embargoes and economic sanctions, including asset freezes and prohibitions on making funds available; they used to involve only a handful of countries but now cover many – and also extend to terrorism and proliferation as well
EU sanctions	ditto, both backing UN measures or initiated by the EU itself; these too also now extend to terrorism and proliferation and to human rights abuses
US sanctions	they might not have any legal effect in your country, but you better not ignore what OFAC says – and don’t forget the SEC, CFTC, FinCEN and the rest, and hope your World-Check or C6 service is up to date[6]
Gambling activities	which may be lawful in the UK (if licensed), but unlawful where seeking or accepting punters in other jurisdictions
Illegal investment activity	which may be merely unauthorised or outright scams, such as Ponzi schemes, pyramid selling, insider dealing, boiler room fraud etc
Rough or blood diamonds	involving uncertificated diamonds from illegal mining and/or conflict zones[7]; certification being under the Kimberley Process
Counterfeit goods	including “illegal whites” cigarettes; and distinguishing counterfeit from parallel imports of genuine but “grey” goods, which may be permissible

AND FROM THE PERSPECTIVE OF OFFICIALS…

Another point is: can one expect a VAT official, or someone from a regulator assessing the compliance (to a variety of requirements) of a TCSP, to spot all potential irregularities or just things that do not add up when they fall outside their range of knowledge, or the purpose of their visit?  Even if they do, and even if they record it in their visit report, can one expect that it is passed on, evaluated and end up with the appropriate department, agency or officer – be it within or without the jurisdiction?

There is an obvious need for awareness training on a wide front – the visiting official may be the only contact with the business for a considerable period and/or the only official with sufficient access to people and information to spot something amiss.  Then their organisation must recognise the need to record and evaluate any information, which may be well outside the scope of that organisation’s role(s), and to be able to pass it on to the appropriate body.  There needs to be a legal and structural framework for this to happen, as well as a willingness to do so.  There also needs to be reassurance for officials involved that what they do does not breach confidentiality or data protection provisions – with a clear code of practice, backed by legislation if necessary, providing clarification for the officials, and backing for them if challenged by any business affected, providing comfort to the official and the organisation if the code is followed.  Furthermore, the training and guidance to the staff would have to make it clear that it is a purpose of the individual and the organisation to report and pass on information, intelligence and suspicions.

 

Ray Todd

20^th July 2018

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[1]  Predicate offences are those crimes underlying money laundering or terrorist finance activity. For example, drug-related offences were the original money laundering predicate offences, with the proceeds of the drugs offence being laundered.

[2] See https://www.gov.im/media/1348726/notice-1000-man-trade-based-money-laundering-july-18.pdf

[3]  The Channel Islands and the Isle of Man.

[4]  Chemicals used, or capable of use, in the production of illegal drugs or explosives.

[5]  And Isle of Man law.  See https://www.gov.im/media/814275/notice-279t-man-trade-control-licensing-2-jul-18.pdf

[6]  See Shearman & Sterling’s July 11^th update for a recent update on US sanctions: https://www.shearman.com/-/media/Files/Perspectives/2018/07/Sanctions-Round-Up-Second-Quarter-2018-LT-071118.pdf?la=en&hash=18647DCE93AFDCFCA0D0EA34B85E1534E44BE3EA

[7]  See https://www.gov.im/media/80563/sanctions-notice-27-kimberley-process-certification-scheme-imports-and-exports-of-rough-diamonds-27-10-16.pdf

20^th July 2018

“Waiting for my pension” protest in Russia

AUTHORITIES IN UKRAINE TO INSPECT FORESTRY ENTERPRISES OVER ROUNDWOOD SMUGGLING ALLEGATIONS
The Ukraine government has instructed the State Audit Service, the State Fiscal Service (SFS), the National Police, and the State Service of Ukraine for Geodesy, Cartography and Cadastre to inspect the state forestry enterprises regarding allegations of roundwood smuggling from Ukraine.  Despite a moratorium on deforestation, Ukrainian wood is being exported in  defiance of national legislation and timber exports to the EU has grown 75% in 4 years and exceeded €1 billion 2017.
https://economics.unian.info/10194210-authorities-in-ukraine-to-inspect-forestry-enterprises-over-roundwood-smuggling-allegations.html

HONG KONG’S SHADY PAST OF ANTIBIOTIC SMUGGLING – THE POST-WAR PENICILLIN RACKET

In its “Old Hong Kong” section, the South China Morning Post on 19^th July invoked echoes of Harry Lime in post-war Vienna by reporting on how black-marketeers made tidy fortunes by selling adulterated pharmaceuticals to China in the 1950s.

https://www.scmp.com/magazines/post-magazine/short-reads/article/2155938/harry-limes-hong-kong-citys-shady-past

MONEY LAUNDERING IS HARMING UK’S STANDING IN INTERNATIONAL BUSINESS, SAYS YOUGOV POLL

The Mail Online on 19^th July reported (with a 3-minute video) a poll of business leaders in Britain that claims to show that they believe money laundering is harming the UK’s standing in the international business community – and want the government to toughen its stance.  Commissioned by campaign group Robust, the poll of business decision makers in Britain’s business identified that 76% of those surveyed believe money laundering would have a damaging effect on the UK’s business reputation, with 32% responding that it would be ‘very damaging’.

http://www.dailymail.co.uk/money/article-5967769/Brit-trade-leaders-say-money-laundering-harming-UKs-standing-international-business-community.html

‘CLASH OF CLANS’ AND OTHER MOBILE GAMES BEING USED FOR MONEY LAUNDERING

Variety on 19^th July reported that popular mobile games are being used to launder stolen credit card money by tech-savvy thieves, according to a report from German cyber security company Kromtech, which found that over 20,000 stolen credit cards were used in the games.  Kromtech traced the stolen data being used in “Clash of Clans” back to hacked MongoDB databases, one of which stored information of more than a hundred thousand credit cards.  Kromtech is advising developers to secure the process by which users can make new accounts, to guard against those who might make an automated tool to generate mass accounts.

https://variety.com/2018/gaming/news/clash-of-clans-mobile-games-money-laundering-1202878109/

CRIME INFORMATION CELL TO BOOST EU’S OPERATION SOPHIA IN THE MEDITERRANEAN

Defence Web on 19^th July reported that EUNavFor’s Mediterranean Operation Sophia task force has a new crime information cell – enabling better co-operation and effectiveness in dealing with crimes in the area of operations.  5 specialists from EU agencies – Europol, Frontex, the European Border and Coast Guard Agency – as well as the Sophia task force embarked on the current flagship, the Italian Navy vessel San Giusto.  The cell will facilitate collection and transmission of information on human smuggling and trafficking, implementation of the UN arms embargo on Libya and illegal trafficking of oil exports from Libya in accordance with UN sanctions, as well as criminal activity relevant to the security of the operation itself.  The core mission of the operation is to undertake systematic efforts to identify, capture and dispose of vessels and enabling assets used or suspected of being used by migrant smugglers or traffickers, in order to contribute to wider EU efforts to disrupt the business model of human smuggling and trafficking networks in the Southern Central Mediterranean and prevent the further loss of life at sea.  It is named after Sophia, a baby born in 2015 on board the German frigate Schleswig-Holstein during operations.,

http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=52464:crime-info-cell-to-boost-op-sophia-operational-effectiveness&catid=108:maritime-security&Itemid=233

PROSECUTORS INVESTIGATE CORRUPTION IN ROMANIAN GOVERNMENT’S MORTGAGE PROGRAMME

Romania Insider on 20^th July reported that possible corruption offenses relate to the state-backed First House mortgage lending programme – launched in 2009 to support people who wanted to buy their first house by granting them state guarantees.  Policemen raided the headquarters of the Credit Guarantee Fund and the offices and homes of some of the fund’s employees.  Public servants apparently asked people who asked for state guarantees to get mortgage loans in the First House programme to pay between €200 and €500 to have their requests approved sooner.

https://www.romania-insider.com/prosecutors-corruption-first-house/?src=ilaw

VENEZUELAN AUTHORITIES ORDER ARREST OF BUSINESS OWNERS FOR IMPORT FRAUD

Bernama.com on 20^th July reported that the Venezuelan Prosecutor General ordered the arrest of 8 business owners – Ordaz Refrigeration and Frisa Foods companies, part of the Garcia Armas Group – allegedly involved in the embezzlement of $49 million by using fake import orders.  The official exchange rate is 120,000 bolivares per dollar, while on the black market the dollar is exchanged as much as 20 times higher the official rate.

http://www.bernama.com/en/world/news.php?src=ilaw&id=1482048

NEW ZEALAND: RECOUPING LIQUIDATION COSTS THROUGH LITIGATION AGAINST DIRECTORS

On 20^th July, the Faculty of Law at the University of Oxford published a paper saying that in the last few years there had sprung up in New Zealand a series of first instance cases where judges had acceded to pleas by liquidators that the damages for which company directors could be found liable as a result of having, without fraud, breached their directors’ duties could extend to the costs of running the ensuing liquidation.  The Court of Appeal has now knocked back these cases as it could see that this new development was becoming a gravy train for liquidators.

https://www.law.ox.ac.uk/business-law-blog/blog/2018/07/recouping-liquidation-costs-through-litigation-against-directors?src=ilaw

UK CLEARS PROPOSED ACQUISITION OF NORTHERN AEROSPACE LIMITED BY GARDNER AEROSPACE HOLDINGS LIMITED

On 20^th July, the Department for Business, Energy and Industrial Strategy announced that the Secretary of State for Business, Energy and Industrial Strategy had decided to clear the proposed acquisition of Northern Aerospace Limited by Gardner Aerospace Holdings Limited (which has Chinese ownership) unconditionally on the basis that there are no national security grounds for referring the merger for an investigation.  The Secretary of State is said to be content that any deal between the parties will not compromise national security (despite concerns initially raised by the MoD).

https://www.gov.uk/government/publications/proposed-acquisition-of-northern-aerospace-limited-by-gardner-aerospace-holdings-limited-decision-notice

UK HAULAGE PERMITS AND TRAILERS REGISTRATION ACT BOLSTERS EU EXIT PREPARATIONS

On 19^th July, the Department for Transport announced Royal Assent for the Haulage Permits and Trailer Registration Act will it says ensure that the UK has the powers it needs to support British hauliers to continue operating internationally after exiting the EU.  The Act allows for the establishment of a framework for the regulation and enforcement of existing permit arrangements with non-EU countries which may be used, if necessary, to manage permits arrangement with EU, ensuring hauliers can obtain the necessary paperwork to provide services after the UK leaves the EU; and the establishment of a trailer registration scheme allowing UK trailers users to meet the registration standards outlined in the 1968 Vienna Convention – this will ensure UK operators driving on the continent can comply with the requirements of those EU countries which require the registration of all trailers travelling on their roads.

https://www.gov.uk/government/news/haulage-and-trailers-act-bolsters-eu-exit-preparations

http://www.legislation.gov.uk/ukpga/2018/19/contents/enacted

INTERPOL DATABASE: ENHANCING THE FIGHT AGAINST THE ILLICIT TRAFFIC OF CULTURAL PROPERTY

On 19^th July, Interpol issued a news release saying that INTERPOL’s Stolen Works of Art database has been addressing this traditional underreporting since 1995 and now has taken a step which will lead to enhanced information exchange.  In co-operation with the Italian Carabinieri’s Headquarters for the Protection of Cultural Heritage, INTERPOL has launched an enhanced version of its Stolen Works of Art database, called P.SY.C.HE. (Protection System for Cultural Heritage).  The new version of the database allows for faster dissemination of information on stolen works of art worldwide.  The enhanced database will continue to be available to auction houses, art dealers, the general public, museums, journalists and academia.  The database is at –

https://www.interpol.int/en/Crime-areas/Works-of-art/Database

CYBER SECURITY THROUGH THE EYES OF A TRAVELLER

On 20^th July, Control Risks published a short article saying that travellers present unsuspecting targets for cybercriminals, state-backed espionage groups.  It says that Control Risks’ research and experience shows that travellers to a wide range of countries face a growing threat from cybercriminal activity, both from sophisticated as well as less capable groups.  It says that travellers also face a heightened risk of data breaches from their devices as governments increase security measures at sensitive border crossings.  This can include confiscating devices for inspection, then installing malicious software such as spyware to gather information.  Travellers should take precautionary measures before, during and after travel, especially to high-risk locations.  The article lists what organisations be doing to prepare themselves to respond effectively.

https://www.controlrisks.com/our-thinking/insights/cyber-security-through-the-eyes-of-a-traveller

ARRESTS SUGGEST CROOKED COPS ARE AIDING PCC GANG’S EXPANSION IN PARAGUAY

Insight Crime on 19^th July carried an article saying that the arrest of an alleged Brazilian crime boss, a purported collaborator and a policeman working as a bodyguard in Paraguay’s capital city illustrates how police corruption and sophisticated tactics may be facilitating the expansion of Brazil’s most powerful crime group.

https://www.insightcrime.org/news/analysis/arrests-suggest-crooked-cops-aiding-pcc-expansion-paraguay/

TRANSHIPMENT PORTS

On 9^th July, Ports Strategy reported that a new report from transport information and consultancy services firm Dynamar has revealed that 24 million teu is handled by just 20 dominant transhipment ports (i.e. a port that handles over 50% transhipment traffic) across the world each year.  North Europe has just 2 of these types of facilities, both in Germany, whilst the Mediterranean has the greatest number amount of dominant transhipment ports — 9, with Malta’s Port of Marsaxlokk having amongst the largest transhipment share 95%.

The report is available, if you have $870 to spare…

http://www.portstrategy.com/news101/port-operations/port-performance/unique-analysis-of-transhipment-ports

FIGHTING ILLEGAL FISHING: TUVALU REFORMS FISHERIES MANAGEMENT FOLLOWING EU ACTION

On 20^th July, the EU announced that following an official warning (or “yellow card”) from the EU in 2014, the authorities of Tuvalu in the Pacific have worked with the EU to reform their fisheries management system and adopt all necessary means to prevent, deter and eliminate illegal fishing. A ‘yellow card’ is a warning by the EU to take action or else face a potential trade ban in fisheries products.  The global value of illegal, unreported and unregulated (IUU) fishing is estimated at €10 billion per year.  Between 11 and 26 million tonnes of fish are caught illegally every year, corresponding to at least 15% of world catches.

MUGABE-ERA MINISTER JAILED FOR CORRUPTION IN ZIMBABWE

Reuters on 20^th July reported that Samuel Undenge, an energy minister under Mugabe’s was accused of issuing a $12,650 contract without due tender to a company that did no work, was found guilty of corruption and sentenced to 4 years in jail in the first conviction of a Mugabe-era official since Mugabe stood down.

https://uk.reuters.com/article/uk-zimbabwe-politics/mugabe-era-minister-jailed-for-corruption-in-zimbabwe-idUKKBN1KA25X?src=ilaw

CONTROLLER OF THE DEPARTMENT OF IMPORT & EXPORT CONTROL IN SRI LANKA ARRESTED

On 20^th July, the Colombo page reported that the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) had M.G. Gamini for accepting a bribe.  He was said to asked for a bribe from a businessman to import 2 vehicles from overseas.

http://www.colombopage.com/archive_18B/Jul20_1532101133CH.php?src=ilaw

CANADIAN ‘NDRANGHETA LINK MAN SENTENCED IN ITALY TO 30 YEARS

On 20 July, OCCRP reported that an Italian national, Antonio Coluccio (who was arrested in 2014 in a mafia-related anti-corruption sweep) with ties to Canadian chapters of the ‘Ndrangheta mafia has been found guilty of corruption and sentenced to 30 years in prison in Italy.  Canadian immigration authorities alleged he was connected to the Commisso clan of the ‘Ndrangheta and was deported to Italy in 2008.  His 2 brothers were previously imprisoned on mafia-related charges, and his father murdered several years ago in a mafia-feud.

https://www.occrp.org/en/daily/8354-canadian-ndrangheta-link-sentenced-in-italy-to-30-years?src=ilaw

DESPITE SANCTIONS, MULTIPLE NEW CONSTRUCTION PROJECTS EMERGING IN PYONGYANG

NK News on 20^th July reported that photos and satellite imagery reveal several developments underway.

https://www.nknews.org/2018/07/despite-sanctions-multiple-new-construction-projects-emerging-in-pyongyang/?src=ilaw

EU SAID TO HAVE AGREED TO IMPOSE SANCTIONS ON THOSE INVOLVED IN CRIMEA BRIDGE

The website of the Ukraine President on 18^th July announced that the ambassadors of the EU Member States have approved a decision to impose individual sanctions against 6 people involved in the illegal construction of the Kerch Strait bridge.  The EU itself has made no announcement.

http://www.president.gov.ua/en/news/dyakuyu-za-pidtrimku-ukrayini-u-protidiyi-rosijskomu-agresor-48810

ROTHSCHILD BANK REPRIMANDED FOR AML FAILINGS OVER 1MDB

Law 360 on 20^th July reported that the Swiss Financial Market Supervisory Authority said it has reprimanded, but is closing its probe into, Rothschild Bank AG and one of its subsidiaries despite finding serious violations of AML rules in connection with 1MDB.  Money diverted from a 1MDB bond issue was used to buy the motor yacht Equanimity, according to the US government, which wants to seize the vessel.

https://www.law360.com/articles/1065460

http://www.mondovisione.com/media-and-resources/news/finma-concludes-final-1mdb-proceedings/

JERSEY FUNDS SETTING UP OF CHARITY REGISTER

On 20^th July, This is Jersey reported that nearly £150,000 is to be transferred from States contingency funds to help Jersey set up a register of charities that will publish information about third-sector organisations in the Island.

https://jerseyeveningpost.com/news/2018/07/20/150k-to-set-up-charities-register/

US PAYDAY LOAN SCAMMER SENTENCED TO 10 YEARS AND $49 MILLION FINE

OCCRP on 20^th July reported that Richard Moseley, who swindled customers using a group of payday lending businesses out of more than 600,000 Americans out of a total of $200 million over the last decade has been sentenced.  He claimed that his business was located overseas in Nevis, an Island in the Caribbean, and New Zealand, where regulations did not apply, but Hydra Lenders was, in fact, located in Kansas City, Missouri.

https://www.occrp.org/en/27-ccwatch/cc-watch-briefs/8355-us-payday-loan-scammer-sentenced

PIRACY AND MARITIME ROBBERY TRACKER REPORTS 15% DECREASE IN ASIA INCIDENTS

Homeland Security Today on 20^th July reported that the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP) Information Sharing Centre (ISC) has released its half-yearly report covering January to June 2018.  The report highlighted a 15% decrease in incidents in the first half of the year compared to the same period in 2017.  40 incidents were reported, with 29 of those attacks carried out and 11 attempted.  However, concern was noted due to the slight increase of incidents in the Singapore Strait (and at ports and anchorages in Vietnam.

https://www.hstoday.us/subject-matter-areas/maritime-security/piracy-and-maritime-robbery-tracker-reports-15-percent-decrease-in-asia-incidents/

NK News on 20^th July reported that a Singapore national at the centre of an NK Pro investigation last year has been charged with 161 counts relating to UN North Korea luxury goods sanctions.  Several companies directed by Ng ‘Leo’ Kheng Wah, 55, are said to have played a role in exporting goods including high-end liquors, designer watches, perfumes, and musical instruments for sale at boutique luxury shops in Pyongyang.  He is the director of several Singaporean firms, including OCN (S) Pte Ltd and T Specialist International, revealed by NK Pro last year to have supplied a wide range of luxury goods to Pyongyang’s Bugsae Shop and Pothonggang Ryugyong Store.

https://www.nknews.org/2018/07/singaporean-at-heart-of-nk-pro-investigation-charged-with-sanctions-violations/?c=1532061195510

Out-Law on 20^th July published an article saying that FM Capital Partners (FMCP), which manages assets on behalf of the Libya Africa Investment Portfolio (LAP) sovereign wealth fund, has won a substantial case against its former chief executive, Frederic Marino and his associate, banker, Yoshiki Ohmura, for bribery and breaches of fiduciary duty.  FMCP alleged that Marino and Ohmura funnelled substantial amounts of money away from the business between 2009 and 2014, by way of a series of large investments of LAP assets in certain financial products offered by Ohmura’s employer; trades with third parties allegedly controlled by Marino and Ohmura; and secret commissions.  The article says that the lengthy judgment is a useful one, as it sets out in detail the legal tests for various common civil fraud claims.  FMCP, of which Marino was co-founder, runs a series of funds worth around $550 million on behalf of the LAP. It is majority-owned by LAP, and at all relevant times LAP was its only client.

https://www.out-law.com/en/articles/2018/july/bribery-case-against-former-chief-executive/

A paper from UK Finance (a trade association representing 300 of the leading firms providing finance, banking and payments-related services in or from the UK) on 11^th July seeks to provide an overview for discussion with EU Member States and the European Commission on practical aspects related to the implementation of the updated EU Blocking Regulation.  The paper deals with challenges of complying with divergent and conflicting cross-border sanctions obligations as they relate to the updated Blocking Regulation; the key areas of concern for natural and legal persons of complying with the Blocking Regulation; and priority aspects that should be included within forthcoming EU guidance which will accompany the introduction of the updated Blocking Regulation.   The paper considers a number of potential situations in an annex and poses a number of questions (and proposed answers) about how the Blocking Regulation will work.  It concludes that the existing Blocking Regulation has rarely been enforced and has not been considered to offer “any real protection” against US secondary sanctions.

https://www.ukfinance.org.uk/wp-content/uploads/2018/07/UK-Finance-paper-EU-Blocking-Regulation-11-July-2018-FINAL.pdf

On 20^th July, EU Regulation 2018/1025/EU removed the Iraqi Life Insurance Company and the National Insurance Company from its Iraq sanctions list.  This follows the UN Sanctions Committee decision of 13^th July to remove them from UN lists.

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.184.01.0001.01.ENG&toc=OJ:L:2018:184:TOC

On its website, Danske Bank, which is at the heart of a money laundering scandal affecting its Estonian branch, seeks to provide information about the investigations, frequently asked questions and a timeline of events.  It also says that once the investigations are completed in September 2018 it will publish the conclusions and make them available on the site; and if partial conclusions can be drawn before that, it will update the site accordingly.

https://danskebank.com/about-us/corporate-governance/investigations-on-money-laundering

This report from the Economist Intelligence Unit measures the enabling environment for illicit trade that economies create through both action and inaction across four categories.  The 2018 index has been expanded to cover 84 countries across the world.  This tool allows users to explore the results for all of the economies included in the index.  It comprises an interactive world map and various charts that illustrate supply and demand ratings, transparency ratings (including free trade zone governance, international reporting capabilities) and customs environment (including percentage of physical examinations, automation and existence of AEO programmes).  The top 5 rating countries are Finland, UK, US, New Zealand and Australia; and the bottom 5 are Libya, Iraq, Myanmar/Burma, Laos and Venezuela.

http://illicittradeindex.eiu.com/#

An accompanying 43-page White Paper considers the results illustrated in the Index –

http://illicittradeindex.eiu.com/documents/EIU%20Global%20Illicit%20Trade%20Environment%20Index%202018%20-%20Overall%20Results%20White%20Paper%20June%206%20FINAL.pdf

KYC 360 reported on 20^th July that the FCA indicated its Anti-Money Laundering Report 2017/18 (published alongside its Annual Report and Accounts 2017/18) that its ‘increase in the number of investigations’ was linked to its new approach of opening investigations earlier and more quickly in cases where it suspects serious misconduct.  The article says that the FCA has previously been accused of not doing enough to tackle London’s money laundering crisis, which has seen it branded as the world’s money laundering capital.

The report is available at –

https://www.fca.org.uk/publication/corporate/annual-report-2017-18-anti-money-laundering.pdf

On 18^th July, an article from law firm Ogier focuses on the implementation of EU sanctions in Jersey.  Jersey is not part of the EU; however, EU sanctions are brought into force in Jersey by way of domestic legislation and has implemented all major EU sanctions.  It says that sanctions compliance is a prominent item on the regulatory agenda in Jersey. During the course of the last 12 months significant amount of guidance has been provided as to how it is expected businesses on the island should conduct themselves in respect of their responsibilities in relation to sanctions compliance. This is of no surprise when considered against the backdrop of the recent Moneyval report issued in respect of Jersey.

https://www.ogier.com/publications/jersey-likes-eu-sanctions-too