29 August 2018
TOO BIG TO SANCTION? US STRUGGLES WITH PUNISHING LARGE RUSSIAN BUSINESSES
The Washington Post on 26 August carried an article saying that when the Treasury Department imposed tough sanctions on Russian oligarch Oleg Deripaska and his companies in April the sanctions also caused havoc far beyond Russia. Global aluminum prices spiked, battering US and European companies that use the metal and, after an outcry from manufacturers and foreign governments, the US Treasury softened its stance, giving companies more time to end dealings with the aluminum producer, Rusal, and suggesting it could lift sanctions on the company if Deripaska cedes control. The article says the episode is a cautionary tale as the US readies more sanctions against Russia.
EUROPEAN COMMISSION ADDS PAKISTAN TO LIST OF HIGH-RISK THIRD COUNTRIES UNDER 4th ML DIRECTIVE
On 24 August, Katten published an article saying that the EU Commission published a Delegated Regulation adopted on July 27, amending the list of high-risk third countries set out in EU Regulation 2016/1675, which supplements the Fourth Money Laundering Directive. The amending Delegated Regulation adds Pakistan to the list of high-risk third countries set out in the Annex to Regulation 2016/1675/EU.
GLOBAL SPOTLIGHT ON LABOUR TRAFFICKING IN CORPORATE SUPPLY CHAINS — KNOW YOUR OBLIGATIONS
Jones Day on 28 August published a white paper which describes the recent US legislation in this area, sets forth the possible ramifications for US companies failing to know and understand the corporate obligations, and analyses the possibility of future legislation and litigation. It concludes that the focus on corporate supply chains is not going away. Additional countries, states, and local governments will no doubt pass new laws requiring action by corporations. Companies should assess their existing compliance programmes, if any, and take appropriate action, as a matter of law, responsible governance, and good business. If no compliance programme relating to forced labour is in place, one should be developed and implemented with dispatch. If such a compliance programme is in place, it should be evaluated on a regular basis in light of relevant developments and updated with enhanced compliance measures where necessary.
US COURT LIMITS GOVERNMENT’S ABILITY TO PROSECUTE FOREIGN PERSONS AND COMPANIES FOR CONSPIRACY TO VIOLATE THE FCPA
Wilmer Hale on 28 August published a briefing about a court ruling that held that a non-resident foreign national, who is acting entirely outside the US and who is not an employee or agent of a US company, cannot be prosecuted for violating the FCPA on a theory of conspiracy or accessory liability to bribery or corruption.
THE STATE OF THE UN ARMS TRADE TREATY: ADVANCING EFFORTS ON INTERNATIONAL ASSISTANCE AND ILLICIT DIVERSION
On 29 August, SIPRI published an article that pointed out that the Arms Trade Treaty (ATT) entered into force in 2013 and aims to promote a more transparent, responsible and better regulated global arms trade. It says that, despite the positive atmosphere at a recent meeting in Japan there are significant challenges in the road ahead for the ATT. A well-noted concern is the failure of key arms exporters and suppliers to sign the Treaty – these include Russia and China – the second and fifth largest arms exporters 2013-17 – as well as 4 of the 5 largest arms importers: India, Saudi Arabia, Egypt and China. It touches upon the problems of arms diversions, and the difficulty in raising the subject in a forum where both exporters and importers of arms are present, and involve transit and transhipment issues. Nevertheless, despite the challenges it faces the ATT has the potential to develop into the instrument for promoting restraint and responsibility in the global arms trade that its proponents originally intended it to be.
12-YEAR BAN FOR BIRMINGHAM DEBT MANAGEMENT BOSS
Accountancy Daily on 29 August reported that a director of 3 Birmingham debt management companies has been banned for 12 years after an Insolvency Service investigation found he had failed to ensure companies provided regulated advice to their customers. Delroy Roberts was a director of Haydon Associates Debt Management Consultants Ltd, Sterling Financial Security Ltd and Clear View Finance Ltd.
SWISS WATCHDOG TO PROPOSE LOOSER AML RULES FOR FINTECHS
Reuters on 29 August reported that FINMA is planning to loosen AML rules for smaller financial technology firms, part of a drive to boost innovation and shore up the country’s position as a leading money management hub.
HMRC PUBLISHES SPOTLIGHT 45 ON UMBRELLA COMPANIES
Accountancy Daily on 29 August reported that in Spotlight 45, HMRC warn against the use of some agencies or umbrella companies to save tax.
The Spotlight is available at –
ISLE OF MAN UPDATES ITS ISIL/AL-QAIDA SANCTIONS LISTS
On 29 August, the Isle of Man updated its sanctions lists, adding 3 names recently added to the EU and UK ISIL/Al-Qaida sanctions lists.
SEC CHARGES CASH ADVANCE COMPANY AND FORMER CEO WITH FRAUD
Market Watch on 29 August reported that the SEC has charged 1 Global Capital LLC and its former CEO, Carl Ruderman, with violations of the anti-fraud, securities registration, and broker-dealer registration provisions of the federal securities laws for allegedly defrauding at least 3,400 retail investors by selling more than $287 million since 2014 in unregistered securities.
CORRUPTION TRIAL OF SENIOR KENYAN JUDGE SUSPENDED
News 24 in South Africa on 29 August reported that the corruption trial of Kenya’s deputy chief justice, Philomena Mwilu, the country’s second-highest judge, was suspended amid a barrage of legal petitions at various courts.
UK: ONLINE GAMBLING PROMOTIONS – ADVICE FOR GAMBLERS AND OPERATORS
On 29 August, the Competition and Markets Authority issued news releases containing –
advice for gambling customers around unfair terms in online gambling promotions. https://www.gov.uk/government/publications/online-gambling-promotions-advice-for-gamblers
Advice for online gambling operators about using fair terms and practices.
IRELAND: PSYCHIC-TURNED-FINANCIER SENT FOR TRIAL ON FRAUD OFFENCES
On 29 August, the Irish Examiner reported that Astrologer and tarot reader, Simon Gold, 53, has appeared in court having been refused bail earlier. Gold was charged with money laundering by allegedly possessing €800,000 in proceeds of criminal conduct at a bank in Dublin in 2012.
CASE FILE OF FORMER LIVERPOOL BOSS HANDED ON TO CPS
Public Sector Executive on 29 August reported that a case file of evidence compiled by Lancashire Police on 4 men, including former Liverpool City Council boss Ged Fitzgerald and 3 other executives, has been handed to the CPS. Fitzgerald resigned from his role as chief executive in May while police carried out an investigation titled ‘Operation Sheridan,’ which related to alleged financial irregularities at Lancashire Council’s joint venture with BT called One Connect.
JERSEY CUSTOMS AND IMMIGRATION REFUSE ENTRY TO A MAN DEPORTED FROM THE UK
A news release from Jersey on 29 August reported that a 35-year old Turkish national who had been deported from the UK in 2015 for serious drugs offences was detained trying to use Jersey as a transit point to get back to the UK. He was refused entry into Jersey on the basis that he is subject to a current deportation order and returned to France.
BRITISH COLUMBIA FILES LAWSUITS AGAINST 40 OPIOID MANUFACTURERS AND DISTRIBUTORS
Jurist reported on 29 August that the province has filed cases in the province’s Supreme Court targeting 40 pharmaceutical manufacturers, including maker of OxyContin Purdue Pharma. The lawsuit aims to recover opioid-related costs incurred by the government’s healthcare system in the midst of the opioid epidemic.
SWITZERLAND SENTENCES FORMER OIL TRADER EMPLOYEE FOR BRIBING AFRICAN OFFICIALS
OCCRP on 29 August reported that a former employee of oil trader Gunvor was handed in Switzerland an 18-month suspended jail sentence for bribing public officials in Congo and the Ivory Coast to secure oil deals.
TONGA CUSTOMS STUCK WITH BANNED REFRIGERANT FROM 2013
Matanga Tonga Online on 28 August reported that Some 30 cylinders of a banned refrigerant R22 Hyrochlorofluorocarbon HCFC that were seized by Tongan Customs in September 2013 are still under the care of the Customs Department. Tonga does not have an approved ozone depleting substances waste disposal facility and so since 2013 the 30 cylinders have remained under the care of Customs. The supplier of the 30 gas cylinders was identified as a Chinese company.
ICELAND: MONEY LAUNDERING CHARGES AGAINST PANAMA PAPERS CITY COUNCIL MEMBER
Baker McKenzie on 29 August reported that former Reykjavík City Council member for the Independence Party, Júlíus Vífill Ingvarsson, is charged with money laundering. He resigned as city council member in 2016 in the wake of the Panama Papers.
NEW CRIMINAL GROUP RUNS FUEL SMUGGLING AT COLOMBIA-VENEZUELA BORDER
Insight Crime on 29 August reported on a powerful criminal group known as the Contraband Cartel (Cartel del Contrabando). Fuel smuggling is said to generate up to $3 million in a single day along the entire Colombia-Venezuela border. The Contraband Cartel has controlled the area’s fuel smuggling business for roughly the past 4 years.
ISRAEL’S SUPREME COURT SENTENCES TYCOON TO 3 YEARS IN PRISON
KYC 360 on 30 August reported that Israel’s Supreme Court has sentenced one of the country’s most prominent businessmen, IDB Holding Corporation controlling shareholder Nochi Dankner, to 3 years in prison for securities fraud.