Day: August 6, 2018

6^th August 2018

INDIA: 3 MEN CAUGHT ILLEGALLY TRANSPORTING MORE THAN 1,000 STAR TORTOISES

NDTV on 6^th August reported that more than 1,100 endangered Indian star tortoises, meant to be smuggled to Bangladesh, have been seized from 3 passengers on a train in India.  The Indian Star Tortoises are protected under the Convention on International Trade in Endangered Species (CITES).

https://www.ndtv.com/india-news/three-men-caught-illegally-transporting-more-than-1-000-star-tortoises-1895648

CHURCH REPRESENTATIVE ACCUSED OF TRYING TO SMUGGLE CASH IN PRIVATE JET IN HAWAII

On 4^th August, The Garden Island reported that the Hawaii representative of a Philippine-based church is accused of trying to smuggle hundreds of thousands of dollars aboard a private jet.  Felina S. Salinas has been charged with bulk cash smuggling for failing to report that she was carrying $335,000 in US currency and $9,000 in Australian dollars in February.  She is also charged for helping the church’s founder avoid arrest and prosecution.

http://www.thegardenisland.com/2018/08/04/hawaii-news/church-rep-accused-of-trying-to-smuggle-thousands-in-cash/

IRAN CENTRAL BANK DEPUTY ARRESTED IN CORRUPTION PROBE

On 5^th August, Bloomberg reported that Ahmad Araghchi, the deputy for foreign exchange affairs, had been sacked and arrested.

https://www.bloomberg.com/news/articles/2018-08-05/iran-central-bank-deputy-arrested-in-corruption-probe-irna-says?src=ilaw

CYPRUS: CLAMPDOWN ON COMPANIES LACKING SUBSTANCE

On 3^rd August, Elias Neocleous & Co LLC published an article saying that recent developments have underlined the need for businesses to have real substance in order to operate and benefit from tax residence in Cyprus.  Lack of proper substance may not only lead to the denial of benefits under double tax agreements or EU Directives, but may also mean that the company is unable to operate a bank account in Cyprus.  In June, the Central Bank advised credit institutions against opening accounts for shell or “letter box” companies.  The article also touches on the potential adverse effects from a taxation point of view of companies without “substance”, such as physical presence.  It says that the key pillars of substance are sufficiency of management and capital.

https://www.internationallawoffice.com/Newsletters/Corporate-Tax/Cyprus/Elias-Neocleous-Co-LLC/Clampdown-on-companies-lacking-substance?redir=1 [free subscription]

SHIP RECYCLING, LIABILITY FOR SCRAPPING, EUROPEAN-FLAGGED VESSELS AND THE EU WASTE EXPORT LAW

On 1^st August, Reed Smith published an article about a Dutch court case where a shipowner and 2 directors were found criminally liable for breach of the EU Waste Shipment Regulation (EWSR).  The decision was the first time that a shipowner has been held criminally liable under the EWSR for the illegal export of vessels for demolition.  The article explains that the EWSR imposes a trade ban on exports of waste for disposal to non-EU countries; exports of hazardous waste for recovery or disposal to non-OECD countries; and imports of waste from states that are not part of the EU or OECD.  It also notes that, w.e.f 31^st December, it will apply to EU-flagged vessels regardless of origin, destination and route of the shipment concerned.  Hence, from 31^st December shipowners who wish to scrap their ships in yards outside the EU without restriction will not only need to avoid sailing their vessel within EU waters at the end of its life, but also have to avoid flying an EU flag.  The article points out that, also from 31^st December, another new Regulation means that EU-flagged ships may only be recycled in facilities that are set out in what is referred to as the ‘European List’ – there are 21 shipyards included in the List at present, all located in the EU (though third country facilities can, and may be, included) and these will have exclusive access to the recycling of ships flying the flags of Member States of the EU.  The article concludes that if shipowners wish to scrap vessels in future, they will need carefully to consider the new rules and determine if there is any EU connection.

https://www.reedsmith.com/en/perspectives/2018/08/ship-recycling-liability-for-scrapping-and-european-flagged-vessels

IRELAND: TIME TO LOOK A GIFT HORSE IN THE MOUTH

On 26^th July, William Fry published an article concerned with the Criminal Justice (Corruption Offences) Act 2018, saying that it is considerably broader in scope than the legislative regime it replaces insofar as it criminalises both direct and indirect corruption in both the public and private sectors, and that the most significant provision introduced by the Act is the introduction of criminal liability for corporate bodies and senior management for offences under the Act.  The article concludes that a “one-size-fits-all” approach will not work and that companies will need to undertake their own assessment of the risk in order to determine what due diligence and training procedures are appropriate to their business.

https://www.williamfry.com/newsandinsights/publications-article/2018/07/26/time-to-look-a-gift-horse-in-the-mouth-companies-new-duties-under-the-criminal-justice-(corruption-offences)-act-2018

JERSEY: REFORM OF CIVIL FORFEITURE ORDERS

On 2^nd August, Ogier in Jersey published an article about one aspect of the follow-up to MONEYVAL’s 2015 inspection of Jersey’s AML regime and its subsequent report issued in May 2016.  This is concerned with a civil forfeiture regime being introduced to compliment the criminal confiscation regime.  The Draft Forfeiture of Assets (Civil Proceedings) Jersey Law seeks to achieve the objectives set by MONEYVAL and it replaces and extends the current Proceeds of Crime (Cash Seizure) (Jersey) Law 2008 (the Cash Seizure Law) and applies to both cash and property held in bank accounts.  The article goes on to outline the content of, and procedures under, the new Law as it might affect a bank in Jersey.

https://www.internationallawoffice.com/Newsletters/Private-Client-Offshore-Services/Jersey/Ogier/Reform-of-civil-forfeiture-orders?redir=1

RUSSIA: NEW FINES FOR LEGAL ENTITIES IF THEIR FOREIGN GUESTS BREACH VISITING RULES

Baker McKenzie on 31^st July reported on new rules coming into force on 16^th January whereby legal entities may be subject to a fine if a foreign citizen whom they have invited fails to abide by the rules for his or her stay in Russia.  Hence, it will have to ensure that the foreign citizen abides by the terms and conditions of his or her visa and that he or she departs Russia on time.

https://www.bakermckenzie.com/en/insight/publications/2018/07/new-fines-for-legal-entities

WHY COUNTRIES STILL MUST PRIORITISE ACTION TO CURB NUCLEAR TERRORISM

On 3^rd August, the Bulletin of Atomic Scientists published an article saying that, according to a new report from the Arms Control Association and the Fissile Materials Working Group – The Nuclear Security Summits: And Overview of State Actions to Curb Nuclear Terrorism 2010-2016 – countries made more than 935 distinct commitments to strengthen and improve nuclear security throughout a 6-year process.  These voluntary national commitments resulted in some of the most tangible and innovative nuclear security improvements.  3 entire geographic regions — South America, Southeast Asia, and Central and Eastern Europe — have entirely eliminated highly-enriched uranium (HEU) from their soil, and only 22 countries possess weapons-usable nuclear material, down from more than 50.  Despite these positive points, the report says that, although the probability of a terrorist group building even a crude nuclear device or sabotaging a nuclear power plant is low, the international community cannot afford to be complacent and rest on the successes of the summit process.  Global leaders must continue their efforts to mitigate the threat of nuclear terrorism even without the summits.

https://thebulletin.org/2018/08/why-countries-still-must-prioritize-action-to-curb-nuclear-terrorism/

THE FUTURE OF COAL

Chatham House has produced a report that says that most countries are cutting back on coal usage, but not all.  Donald Trump wants to buck the trend and create jobs for miners, and Asia’s appetite for the black stuff continues to grow.  The report asks if there is a future for old King Coal.

https://www.chathamhouse.org/publications/twt/future-coal

WHISTLEBLOWING – CAN AN ALLEGATION CONSTITUTE A PROTECTED DISCLOSURE?

Morton Fraser on 6^th August reported on an Employment Tribunal which decided that certain allegations made by an employee were not “protected disclosures” (i.e. one that protected a whistleblower against unfair dismissal) because they were simply allegations that did not contain sufficient information to meet the definition of a protected disclosure under the Employment Rights Act.

https://www.morton-fraser.com/knowledge-hub/whistleblowing-allegation-constituteprotected-disclosure

PEACE DEAL CONCLUDED IN SOUTH SUDAN

On 6^th August, Defence Web reported that the president of South Sudan and head of the country’s main rebel group have signed a final cease fire and power-sharing agreement.  It reminds one that South Sudan became independent from Sudan in 2011, but civil war broke out 2 years later between the government and a rebel movement.  Fuelled by personal and ethnic rivalries, the conflict killed thousands, displaced an estimated quarter of South Sudan’s population of 12 million and ruined its economy that heavily relies on crude oil production.  Previous peace agreements held for only months before fighting resumed, which the president blamed on foreign influence.

http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=52670:peace-deal-concluded-in-south-sudan&catid=56:diplomacy-a-peace&Itemid=111

TURKEY RESPONDS TO US SANCTIONS WITH ITS OWN

European Sanctions Blog on 6^th August reported that the Turkish president had announced Turkey would freeze any Turkish assets of US Attorney General Jeff Sessions and Interior Secretary Ryan Zinke.  Zinke is responsible for managing the US’s natural resources and cultural heritage.

https://europeansanctions.com/

JERSEY: CUSTOMS WILL BE READY FOR BREXIT

The Jersey Evening Post on 6^th August reported that Jersey Customs will be ‘ready for whatever is thrown at them’ when the UK leaves the EU, the Home Affairs Minister has said.

https://jerseyeveningpost.com/news/2018/08/06/minister-customs-will-be-ready-for-brexit/

THORIUM POWER HAS A PROTACTINIUM PROBLEM

This article is not as nerdy as it sounds.  Published by the Bulletin of Atomic Scientists on 6^th August it is concerned with protactinium, a chemical element generated in thorium reactors, could be separated and allowed to decay to isotopically pure uranium 233 — suitable material for making nuclear weapons.  In 2005, a report from the IAEA caused the perception (challenged by others) that thorium reactors could not be used to make weapons – or were “proliferation resistant”, to use the term used in the article.  The article challenges this perception and remarks on the failure to recognise the importance of protactinium radiochemistry in thorium fuel cycles.  It points out that several nations have explored thorium power for their nuclear energy portfolios, and foremost among these is India.  Plagued by perennial uranium shortages, but possessing abundant thorium resources, India is highly motivated to develop thorium reactors that can breed uranium-233.  It seems that thorium reactors have other potential advantages and they could produce fewer long-lived radioactive isotopes than conventional nuclear reactors, simplifying the disposal of nuclear waste.  The article examines the possible scenarios for proliferation involving protactinium and thorium.

https://thebulletin.org/2018/08/thorium-power-has-a-protactinium-problem/

TRUMP ADMINISTRATION’S USE OF SANCTIONS DRAWS CONCERN

The Washington Post on 5^th August published an article about concerns that the Administration is over-using sanctions as a weapon or tool of foreign policy.  It says that most months nowadays, the US issues a similar barrage of sanctions, as the Trump administration pursues an aggressive strategy of using economic tools instead of military might against foes.  Increasingly, sanctions are being used to counter other kinds of destabilising behaviour, and not against obvious targets like North Korea.  Reliance on them has led to concerns that they are being overused as the foreign policy of first resort, hurting US credibility among allies who complain that they are being forced to bow to US policies and potentially undercutting the US dollar.  The administration blacklisted nearly 1,000 people and entities last year – 30% more than were added in President Barack Obama’s last year in office, and tripling the number blacklisted during his first year.  A representative of law firm Gibson Dunn, which has produced a report on the subject, is quoted as saying that “Being designated under sanctions is the economic equivalent of the death penalty.  It is so seductive for any administration to use sanctions, because they don’t require any prior notice, they don’t require any judicial review and they’re effective immediately.  For this particular president, with his personality, it’s extremely seductive”.   Most recently, of course, is the situation re the re-imposition of sanctions on Iran, and the conflict over them with the EU and others.

https://www.washingtonpost.com/world/national-security/trump-administrations-use-of-sanctions-draws-concern/2018/08/05/36ec7dde-9402-11e8-a679-b09212fb69c2_story.html?utm_term=.cb02e811dd1d

INSIDE THE EXPLOSIVE CASE AGAINST ARMENIA’S EX-PRESIDENT

An article from the Carnegie Moscow Center in the US on 6^th August which is introduced by saying that the case against ex-president Robert Kocharyan has become the most explosive episode in Armenian politics since this past spring’s Velvet Revolution.  It has unnerved Moscow, as well as Kocharyan’s allies in Yerevan, with the former fearing that Armenia is pivoting to the West and the latter accusing the Nikol Pashinyan government of political persecution.  But the case against Kocharyan is neither geopolitical nor the beginning of a campaign of terror — it is all about the March 1^st affair, Armenia’s Bloody Sunday – when security forces cracked down on street protests over the disputed outcome of the previous month’s presidential election, and the ensuing violence claimed 10 lives — 8 civilians and 2 police officers — and hundreds were injured.

https://carnegie.ru/commentary/76985

On 6^th August, OFAC issued a news release announcing the above as the first phase of re-imposed US sanctions on Iran take effect – August 6^th marks the final day of a 90-day wind-down period, and certain wind-down general licenses (GL) previously issued by OFAC expire at 11:59 p.m. EDT on August 6^th.  For remaining re-imposed sanctions, the 180-day wind-down period ends at 11:59 p.m. eastern standard time (EST) on November 4^th and the remaining sanctions that had been lifted or waived pursuant to the JCPOA come back into full effect on November 5^th – information about which sanctions will be re-imposed is provided in the FAQ.

The new OFAC statement on Iran is at –

https://www.treasury.gov/resource-center/sanctions/Programs/Pages/iran.aspx

FAQ are available at –

https://www.treasury.gov/resource-center/sanctions/Programs/Documents/jcpoa_winddown_faqs.pdf

Amended general FAQ about the re-imposition are at –

https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_iran.aspx#eo_reimposing

https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20180806.aspx

On 6^th August, the EU reported that, as the first batch of re-imposed US sanctions on Iran takes effect, the EU’s updated Blocking Statute enters into force on 7^th August to mitigate their impact on the interests of EU companies doing legitimate business in Iran.  It forbids EU residents and companies from complying with the listed extra-territorial legislation (now including the US re-imposition of sanctions) unless they are exceptionally authorised to do so by the EU Commission; allows EU operators to recover damages arising from such legislation from the persons or entities causing them; and nullifies the effect in the EU of any foreign court rulings based on it.  EU operators should inform the European Commission – within 30 days since they obtain the information – of any events arising from listed extra-territorial legislation that would affect their economic or financial interests.  According to the Blocking Statute, EU operators can recover “any damages, including legal costs, caused by the application of the laws specified in its Annex or by actions based thereon or resulting therefrom”.

http://europa.eu/rapid/press-release_IP-18-4805_en.htm

The EU also published a Q&A on the Blocking Statute –

http://europa.eu/rapid/press-release_MEMO-18-4786_en.htm

JOINT STATEMENT BY EU, UK, FRANCE & GERMANY ON THE RE-IMPOSITION OF US SANCTIONS ON IRAN

On 6^th August, a statement was issued by the 3 countries’ foreign ministries and the EU saying that they deeply regret the re-imposition of sanctions by the US, due to the latter’s withdrawal from JCPOA, and that the the EU updated Blocking Statute enters into force on 7^th August to protect EU companies doing legitimate business with Iran from the impact of US extra-territorial sanctions.  The remaining parties to the JCPOA have committed to work on, inter alia, the preservation and maintenance of effective financial channels with Iran, and the continuation of Iran’s export of oil and gas.  On these, as on other topics, our work continues, including with third countries interested in supporting the JCPOA and maintaining economic relations with Iran.  These efforts will be intensified and reviewed at Ministerial level in the coming weeks.

https://www.gov.uk/government/news/joint-statement-on-the-re-imposition-of-us-sanctions-on-iran

The States of Guernsey on 6^th August published a news release saying that a consultation asks businesses for their views on proposals to introduce legislation that will require companies tax-resident in Guernsey, undertaking specific income generating activities, to demonstrate they have sufficient substance in the island, following the screening of a large number of non-EU jurisdictions undertaken by the European Commission Code of Conduct Group in 2017 to assess standards of tax transparency, fair taxation and compliance with measures to prevent base erosion and profit shifting (BEPS).  The consultation runs to 31^st August.

https://www.gov.gg/article/166654/Consultation-on-the-introduction-of-substance-requirements-for-companies-tax-resident-in-Guernsey

Customs Today on 6^th August carried a report saying that Russia engaged in more extensive oil exports to North Korea than had been previously reported, by setting up an illicit trade network that is likely still being used today to evade UN sanctions, according to ASAN Institute for Policy Studies, a South Korean research organisation.  The report claimed that one North Korean state enterprise purchased 622,878 tons of Russian oil worth $238 million between 2015 and 2017.  The report comes amid allegations that Russia potentially violated international sanctions by granting thousands of new work permits to North Korean laborers, but it had denied this.

http://www.customstoday.com.pk/russia-set-up-clandestine-network-for-n-korea-oil-shipments/

The report: The Rise of Phantom Traders, is available at –

http://en.asaninst.org/contents/the-rise-of-phantom-traders-russian-oil-exports-to-north-korea/

It says that North Korea’s use of foreign enablers has allowed them to continue to evade sanctions and acquire the oil that they need to keep the economy afloat.  A Russian oil producer and exporter, Independent Petroleum Company (IPC), has allowed millions of dollars’ worth of oil to flow into North Korea both over land and over sea from Vladivostok and other nearby ports.  It also implicates Taipei-based Pro-Gain Group Corporation (PGGC), which is owned by a Taiwanese national, and that PGGC also owned a Panamanian-flagged ship that exhibited suspicious behaviour and is managed by Victory International Ship Management (Dalian) Co Ltd, whose owner is a Chinese citizen. Zhou Shengli.  It also concludes that it is relatively simple for companies to falsify records that conceal the intended destination or purchaser of resources that the North Korean regime needs to survive and to continue to develop its nuclear and ballistic missile programmes.

On 6^th August, ETH Zurich published a report proposing that UN peacekeeping operations could make a significantly greater contribution to the monitoring of illicit arms flows.  It reviews the mandates of such operations; their relations with UN panels of experts on embargo monitoring; and their approaches to monitoring.  It also presents case studies of the operations in Côte d’Ivoire and Mali, which have extensive experience in this field.  Its key findings are that –

• UN peacekeeping operations often remain unaware of their potential contribution to identifying and combatting illicit arms flows;
• A key factor in this regard may be a lack of awareness of the requirements of UN Security Council resolutions and other relevant obligations;
• Limited engagement in the monitoring of illicit arms flows can result in opportunities to identify and combat such flows going unused; and
• Technical staff, either recruited by UN peacekeeping missions or if they are given access to materiel recovered by these missions, may greatly enhance capacities for the monitoring of illicit arms flows.

http://www.css.ethz.ch/en/services/digital-library/articles/article.html/d416eec1-c9d4-4788-8e36-3ca974564c27

On 5^th August, Chosunilbo in South Korea reported that another ship had reportedly been spotted in a port in South Korea, the Shining Rich which flies a Belizean flag.  The small vessel is one of 5 included on a list of investigation targets said to be used by the customs authorities, suspected of breaches of UN sanctions, together with Rich Glory, Sky Angel and An Quan Zhou 66.

http://english.chosun.com/site/data/html_dir/2018/08/06/2018080600716.html

5^th August 2018

ST LUCIA: AG’S CHAMBERS AND WORLD BANK HOST NATIONAL RISK ASSESSMENT WORKSHOPS

The Voice on 5^th August reported that the St Lucia Attorney General’s Chambers recently hosted a National Risk Assessment with experts from the World Bank held over 3 days with representatives of the public and private sectors.  CFATF officials also gave a presentation on the NRA process.  The NRA report will be presented to the CFATF 6 months before its evaluation visit.

http://thevoiceslu.com/2018/08/ags-chambers-and-world-bank-host-national-risk-assessment-workshops/

DUBAI TO HONG KONG: FOLLOW THE MONEY LAUNDERING

On 5^th August, the South China Morning Post carried a feature following the C4DS report on money laundering in Dubai and links from there to Hong Kong.  Hong Kong’s real estate sector was identified as being among a group (including Dubai, New York, Los Angeles and London) that saw “large amounts of illicit money flowing through their systems, constituting a global security threat”.  3 sanctioned individuals with links to China who were suspected of money laundering and offshoring their assets in Dubai and their networks are thought to have links to North Korea, Iran’s missile programme and the Hezbollah.  It provides examples of local properties and companies linked to Lebanese sanctions by the US for links to Hezbollah, and other links to the Iranian missile programme.

https://www.scmp.com/week-asia/geopolitics/article/2158227/dubai-hong-kong-follow-money-laundering

IRELAND: REVENUE COLLECTS OVER €1 MILLION IN EXTRA TAXES FROM CASINOS WITH UNLICENSED GAMING MACHINES

The Journal on 5^th August reported that the number of licensed machines jumped from 6,088 in 2016, generating €1.8 million in tax to 9,612 in 2017, generating €2.7 million following the launch last year of a national compliance project by Revenue targeting the gaming and amusement machine sector.

http://www.thejournal.ie/gaming-machines-4159051-Aug2018/

EU REPORT DETAILS INTERNATIONAL WEB OF HEZBOLLAH TERROR FUNDING

The Jerusalem Post on 5^th August carried a report based on the Europol European Union Terrorism Situation and Trend Report 2018.  The newspaper says it has reviewed the 70-page EU report and found it did not provide any more specifics on Hezbollah’s activities in Europe. It says that Hezbollah has played a key role in aiding Syrian dictator Bashar Assad in the Syrian civil war that has resulted in the deaths of more than 500,000 people, but that the EU only designated Hezbollah’s so-called military wing a terrorist entity in 2013.  It says that some 950 Hezbollah operatives are in Germany, according to numerous German intelligence reports and the Hezbollah members raise funds and recruit new members.

https://www.jpost.com/Arab-Israeli-Conflict/EU-report-details-international-web-of-Hezbollah-funding-564141

WEST AFRICA: MASTER OF DISGUISE BRINGS DOWN HIGH LEVEL CRIMINALS

The East African on 4^th August carried a feature saying that the acclaimed multi award-winning Ghanaian undercover investigative journalist Anas Aremeyaw Anas uses prosthetic masks, wigs, and hidden-cameras as he exposes corruption, organised crime and human-rights abuses in Africa.  It says that he has dressed up as a rock to film cocoa smugglers along Ghana’s western border, has tackled prostitution and the sex trade, corruption in the Ghanaian judiciary, child adoption, abuse and trafficking, illegal gold mining, and trafficking in albino body parts, among other issues.  “Betraying the Game” is Anas’s most controversial film to date. Anas and his team used hidden cameras to show more than 100 football officials — most of them West African referees — receiving money to influence the outcome of football matches.  Some of Anas’s exposes have received critical acclaim over the years.  His other award-winning documentaries include “Inside Ghana’s Madhouse” (2010), in which Anas feigned madness to infiltrate Ghana’s largest psychiatric hospital and exposed human-rights abuses of patients.  Anas also travelled to Thailand to infiltrate its prisons disguised as a Catholic priest.  Anas posed as a rich businessman to expose officials within Ghana’s passport office who provided passports to non-citizens for a fee. He made hundreds of passports using fake identities.  This led to the introduction of biometric passports for Ghanaians.

http://www.theeastafrican.co.ke/magazine/Master-of-disguise-brings-down-high-level-criminals/434746-4696458-1acgdz/index.html

AZERBAIJAN: A RIVER OF ILLEGAL DRUGS RUNS THROUGH IT

Rferl on 4^th August carried a report saying that while officials in the energy-rich Caucasus country of nearly 10 million deny that Azerbaijan is experiencing a drug crisis, residents of Astara and its northern neighbour, the Lankaran district, tell another story.  Astara borders Iran and the Caspian Sea and makes up Azerbaijan’s southernmost corner.  Drugs are said to mainly come from Iran.  A 2016 US report is cited saying that said that Azerbaijan was increasingly a top transit country in the illegal international drugs trade, as it lies in the middle of one of the major routes from Afghanistan – producer of 90% of the world’s opium supply – and Iran to Europe.

https://www.rferl.org/a/azerbaijan-river-of-illegal-drugs/29412584.html

JAPANESE GAMING TYCOON KAZUO OKADA ARRESTED IN HONG KONG

GMA News Online quotes Hong Kong media as saying that Japanese billionaire and gaming magnate Kazuo Okada was arrested in Hong Kong by the Independent Commission Against Corruption (ICAC) over supposed conspiracy to defraud Okada Holdings.

http://www.gmanetwork.com/news/money/companies/663064/japanese-gaming-tycoon-kazuo-okada-arrested-in-hong-kong-hk-media/story/?src=ilaw

MALTA: ‘UNIQUE CHALLENGE OF PILATUS CASE COULD HAVE BEEN HANDLED BETTER’ – FIAU

The Malta Independent on 5^th August reported that the Financial Intelligence Analysis Unit has acknowledged that its supervision of Pilatus Bank presented “a particularly unique challenge”, with the unit conceding that it could have done a better job with its supervision of the bank in 2016, after the European Banking Authority’s (EBA) investigation, found “general and systematic shortcomings” in the FIAU’s application of AML law with regard to the bank.

http://www.independent.com.mt/articles/2018-08-05/local-news/Unique-challenge-of-Pilatus-case-could-have-been-handled-better-FIAU-6736194450?src=ilaw

SUPERYACHT HANDOVER `ILLEGITIMATE,’ 1MDB SCANDAL FIGURE SAYS

Bloomberg on 5^th August reported that Low Taek Jho, described by U.S. investigators as central to the 1Malaysia Development Bhd scandal, says a decision by Indonesia to hand over a $250 million yacht to Malaysia violates U.S. and Indonesia laws.

https://www.bloomberg.com/news/articles/2018-08-05/super-yacht-handover-illegitimate-1mdb-scandal-figure-says?src=ilaw

BELGIAN BUSINESSES SENT €129 BILLION TO TAX HAVENS IN 2016

The Brussels Times on 5^th August reported a 57% increase compared to the €82 billion declared the year before.  Businesses that send €100,000 or more to tax havens have to inform the tax department, with the exception of banks and Stock market companies.  Authorities have drawn up a list of 30 tax havens, but it does not include Panama, Delaware, Singapore, Hong Kong or Luxemburg.  The UAE, which includes Dubai and Abu Dhabi, is the most popular tax haven with Belgians (€43.8 billion).

http://www.brusselstimes.com/business/12155/belgian-businesses-sent-129-billion-euros-to-tax-havens-in-2016?src=ilaw

BULGARIAN MAFIA BOSS ARRESTED IN ISTANBUL

Hurriyet Daily in Turkey on 5^th August reported that Dimitar Zhelyazkov, a Bulgarian mafia boss, his 6 men and his girlfriend were apprehended by the Turkish police in Istanbul.  He was also sought by the Interpol.  Bulgarian authorities had obtained information that the crime boss fled Bulgaria and appealed to Interpol.

http://www.hurriyetdailynews.com/bulgarian-mafia-boss-arrested-in-istanbul-135452

IRAN RECEIVES MORE AIRLINERS AHEAD OF RENEWED US SANCTIONS

Rferl on 5^th August reported that Iran has received 5 new ATR 72 commercial aircraft just before the US starts reimplementing sanctions that had been lifted under the nuclear accord with world powers.  The aircraft are made by ATR, a firm jointly owned by Airbus and Italy’s Leonardo, and based in the French city of Toulouse.

https://www.rferl.org/a/iran-receives-more-airplanes-ahead-of-renewed-u-s-sanctions/29413512.html