Day: December 23, 2018

23^rd December 2018

SYRIAN BREEDERS SUPPLYING UAE ILLEGAL EXOTIC PET TRADE

The National on 23^rd December reported that Syrian breeding farms are at the centre of a suspected illegal wildlife trafficking route supplying the UAE and Ukraine with hundreds of black market animals.  Many species, understood to include big cats and monkeys, are thought to have ended up in the UAE’s lucrative illegal exotic pet trade, sold via social media.  Private zoos in the Gulf are suspected as a final destination as none of the animals have appeared in official CITES logbooks.

https://www.thenational.ae/uae/syrian-breeders-supplying-uae-illegal-exotic-pet-trade-1.805534

1.6 MILLION EUROPEAN EELS CONFISCATED BY AUTHORITIES IN THAILAND

News Channel 8 in the US reported on 22^nd December that Thai authorities confiscated 6 large crates containing an estimated 1.6 million young European eels after they were smuggled into Thailand from Romania.  Authorities said the total value of the haul was estimated at $1.2 million.

https://www.wfla.com/national/16-million-critically-endangered-european-eels-confiscated-by-authorities-in-thailand/1672040499

TANZANIAN BUSINESSMAN HAS ALL MONEY LAUNDERING CHARGES DISMISSED

The Citizen in Tanzania on 23^rd December reported that all 75 charges, including economic sabotage and money laundering, against Akram Azizi had been dropped.  He had been remanded in custody since 1^st November.

https://www.thecitizen.co.tz/News/Azizi-s-money-laundering-charge-dropped/1840340-4907378-12ey744z/index.html

BIZARRE COURT ‘PANTOMIME’: NEW ACCUSATION OVER ‘DOCTORED’ EMAIL IN £200 MILLION RBS COMPENSATION BATTLE

The Daily Mail on 22^nd December reported that Gerard Walsh 61, has been accused of presenting a doctored email from The Mail on Sunday as evidence in court as he attempts to claim a share of millions of pounds owed to RBS investors.  He is fighting for £3.75 million of a £200 million compensation settlement won by investors who signed up to an action group that he set up.  The group sued RBS over allegations that its members were duped into buying the bank’s shares.  The action group had been ousted as managers of the claim by Manx Capital, an investment vehicle of tycoon Trevor Hemmings.  He was among investors who signed up to the group but became unhappy with the way the claim was managed.  The case continues next month.

https://www.thisismoney.co.uk/money/news/article-6523443/Walsh-faces-new-accusation-MoS-email-200m-bank-compensation-battle.html

THIRD COUNTRIES ALIGN THEMSELVES WITH EU SANCTIONS ON VENEZUELA

A news release on 23^rd December advised that Macedonia, Montenegro, Albania, Bosnia and Herzegovina, Iceland, Liechtenstein, Norway, Moldova and Georgia had aligned themselves with the continuation and amendment of EU sanctions on Venezuela.

https://www.consilium.europa.eu/en/press/press-releases/2018/12/21/declaration-by-the-high-representative-on-behalf-of-the-eu-on-the-alignment-of-certain-countries-with-council-decision-concerning-restrictive-measures-in-view-of-the-situation-in-venezuela/

GREEK POLICE BUST FUEL FRAUD RING

On 23^rd December, an article from the Focus news agency reported that a ring that imported chemicals from Bulgaria for the purpose of adulterating fuel was dismantled by the financial fraud squad of the Greek Police (ELAS).  4 people were charged with possessing, storing and trafficking petroleum products without a licence, as well as violating customs regulations.  It is said that the criminals used a truck transport company and meat processing business in south-west Attica as a front to smuggle the illicit chemicals from Bulgaria.

http://www.focus-fen.net/news/2018/12/23/436477/kathimerini-greek-police-bust-fuel-fraud-ring.html

SLACK: SOME ACCOUNTS MISTAKENLY DEACTIVATED DURING UPDATE

The Seattle Times on 23^rd December reported that the Slack communications service says it mistakenly deactivated accounts for some of the users of its work-focused messaging service as it implemented a system update to comply with US economic sanctions and trade embargoes.

https://www.seattletimes.com/business/slack-some-accounts-mistakenly-deactivated-during-update

BILLIONAIRE TEXAN TYCOON’S FIRM LOANED £18 MILLION OF SCOTTISH PUBLIC’S CASH TO TAX HAVENS

The Daily Record on 23^rd December reported that a billionaire Texan tycoon is behind a private company making multimillion-pound loans with Scottish taxpayers’ cash.  It says that deals were signed off by Amber Infrastructure – which is controlled by Woody Hunt – a descendant of legendary oil baron HL Hunt – believed to have been the world’s richest man before his death in 1975.  Amber now controls a company appointed by the European Investment Bank (EIB) in 2011 to manage the Scottish Government’s Scottish Partnership for Regeneration in Urban Centres (SPRUCE) project.  Despite the scheme being entirely funded by Scottish Government money, its ministers have no control over who gets the funding.  The article says that Isle of Man-based Tarn Crag Limited received £8,350,000 in March 2017, Fore Jersey VI Mezzco Limited received £9,700,000 in March this year.  Tarn Crag Limited is a subsidiary of multimillion-pound property investment company Praxis, while Fore Jersey VI Mezzco is controlled by the London and Frankfurt-based Fore Partnership.  Praxis were loaned money to renovate Dalmore House in Glasgow’s St Vincent Street, while Fore are building a 94,000sq ft office complex in the centre of the city.

https://www.dailyrecord.co.uk/news/scottish-news/billionaire-texas-tycoons-firm-loaned-13770501

UK GOVERNMENT ANNOUNCES A BAN ON THIRD PARTY SALES OF PUPPIES AND KITTENS

On 23^rd December a blog post from DEFRA said that it was to ban third party sales of puppies and kittens, in a measure known as “Lucy’s Law”.  It says that the decision was taken following a public consultation, from which there was over 95% support for a ban.  It will help bring to an end the terrible welfare conditions found in puppy farms and solve a range of existing animal welfare issues.

https://deframedia.blog.gov.uk/2018/12/23/the-government-announces-a-ban-on-third-party-sales-of-puppies-and-kittens/

ISLE OF MAN BEGINS STRIKE OFF ACTION AGAINST AARON BANKS’ ROCK HOLDINGS

In its Christmas issue (print only), on 22^nd December, Private Eye reported that the Companies Registry in the Isle of Man had initiated strike off action against Rock Holdings, following notice from a CSP that, contrary to what a filing on 1^st November had stated, the CSP premises were not the registered office of Rock Holdings.  If no proper address is provided within 2 months, Rock Holdings would be struck off.  It is not clear to what address the notice has now been sent (if the CSP’s address is not the correct one).  However, the magazine says that it is odd that the CSP continues to be the address for another banks company, ICS Risk Solutions, which owns the Go Skippy insurance broker – according to a filing also submitted on 1^st November.  The article also refers to the NCA investigation of Banks’ funding of the Brexit Leave campaign – where £8 million was said to have come from Rock Services, a subsidiary of Rock Holdings.  The piece notes that even if Rock Holdings is dissolved, the NCA investigation is likely to continue.

Meanwhile…

ARRON BANKS IMPLICATED IN ILLEGAL SOUTH AFRICAN DIAMOND OPERATION

On 23^rd December, The South African reported that Aaron Banks has come under fire for allegedly attempting to smuggle uncut diamonds out of South Africa.  It says that the allegations come just a month after he came clean about an illicit payment to a government minister in Lesotho.  He is accused of flouting Kimberley Process regulations that are meant to stop diamond smugglers from using their discoveries to fund illegitimate regimes – and that by not telling authorities about the diamond, he also allegedly dodged a 15% levy on exports.

https://www.thesouthafrican.com/arron-banks-diamond-smuggling-brexit-south-africa

JERSEY AML/CFT NATIONAL RISK ASSESSMENT FUNDING

On 22^nd December, Jersey announced a grant of £180,000 “to support the government’s commitment to assess Jersey’s money laundering and terrorist financing risk”.  In response to a FATF requirement, the Jersey Financial Crime Strategy Group had formally announced that it would conduct a national risk assessment of the threats posed to the island by money laundering and terrorist financing.

https://www.gov.je/News/2018/Pages/allocationfunding.aspx

 

FROM THE IRA TO THE ISLAMIC STATE: THE EVOLVING TERRORISM THREAT IN EUROPE

An article from the Center for Strategic and International Studies on 19^th December is concerned with a new report takes a renewed look at Europe and compiles new data on the threat to Europe.  It also examines the counter-terrorism response by European governments, especially the UK and France.  Notably, it concludes that, despite the anti-immigration rhetoric espoused by right-wing extremists, Europe has not experienced a major problem with extremism from newly-arrived refugees or asylum seekers; and most significant Islamic extremist terrorist plots and attacks in Europe have been perpetrated by citizens of European countries.  It also highlights the far right extremist threat (which, in the US, has been involved in the most number of incidents and deaths in recent decades).

https://www.csis.org/analysis/ira-islamic-state-evolving-terrorism-threat-europe

EU: PEOPLE TRAVELLING WITH CASH

With the European election due in may 2019, the EU Parliament Research Service has been publishing a series of papers looking at how the work of the EU affects ordinary people’s day to day lives.  It says that if you are travelling to or from the EU by air, road, rail or sea (n.b. this includes moving between the UK, or another Member State, and the Isle of Man and Channel Islands -and will presumably include travel between the EU and UK post-Brexit) with €10 000 or more in cash you must declare it to the customs authorities.  This obligation, it says, is not designed to make your life difficult but to prevent money laundering, the financing of terrorism and other financial crimes.  If you are travelling in a group, the €10 000 limit applies to each person individually.  Cash includes not only banknotes and coins in circulation all over the world (n.b. Isle of Man law also includes counterfeit currency) but also cheques, promissory notes, money orders and traveller’s cheques.  The EU law does not include currency out of circulation, antique coins, bullion coins and casino chips (n.b. Manx law includes casino chips and other alternatives for cash).  Gold, precious metals and precious stones are not considered cash yet, but they will be soon.

https://epthinktank.eu/2018/12/23/people-travelling-with-cash-what-europe-does-for-you/

SHADES OF BIG BROTHER?
A man drinks coffee in front of screens broadcasting Russian President Vladimir Putin’s annual press conference, at a bar in Moscow on December 20. (AFP/Vasily Maksimov).
https://www.rferl.org/a/top-shots-photos-of-t…/29662722.html

UKRAINE’S PRIVATBANK APPEALS IN LONDON COURT CASE AGAINST FORMER OWNERS

The Kyiv Post on 23^rd December reported that state-owned PrivatBank has filed an appeal against a High Court decision which had set back its attempts to regain billions of dollars that it claims its former owners – Ihor Kolomoisky and Gennadiy Bogolyubov – removed before the bank was nationalised in December 2016.

https://www.kyivpost.com/business/privatbank-appeals-in-london-court-case-against-former-owners.html

GERMANY TO BAR IRAN’S US-SANCTIONED MAHAN AIR AIRLINE

On 22^nd December, Customs Today reported that Bild, the German news magazine, says that Germany is to ban flights in and out of the country by Iran’s Mahan Air, which is under US sanctions over allegations it ferries troops and supplies into Syria in support of President Bashar al-Assad.

http://www.customstoday.com.pk/germany-to-bar-irans-us-sanctioned-mahan-air-bild/

GUERNSEY: COLLAPSED PROVIDENCE SUES AUDITORS FOR £14 MILLION

Guernsey Press on 23^rd December reported that PricewaterhouseCoopers is being sued by the collapsed firm Providence Investment Funds PCC through its administration managers.  PwC once acted as the investment company’s auditors and Providence is claiming negligence, breach of duty and breach of contract.  Guernsey-based Providence Investment Funds PCC Limited collapsed in August 2016, and is now under administration management amid claims of an alleged $150 million “fraud scheme”.

https://guernseypress.com/news/2018/12/22/collapsed-providence-sues-auditors-for-14m/

LONDON COURT REFUSES TO EXTRADITE RUSSIAN CITING TORTURE CONCERNS

Rferl on 23^rd December reported that the High Court has ruled against extraditing Russian businessman Aleksei Shmatko to Russia, saying that if Shmatko were sent to Penza, he would likely be held in conditions that violated his rights under Article 3 of the ECHR.  Shmatko is wanted in Penza on fraud charges in a case he said was opened because he refused to give a senior Federal Security Service (FSB) officer a share of his business.  He left Russia in 2011.

https://www.rferl.org/a/london-court-refuses-to-extradite-russian-citing-torture-concerns/29672229.html

The National in the UAE on 23^rd December reported that Turkey is to open a joint probe into a shipment with Libya on arms smuggled from the country which were seized at a port near Tripoli.  The cargo contained 3,000 Turkish-made pistols, as well as some other pistols, hunting rifles and ammunition and a cargo of 2.5 million Turkish-made bullets were seized at the western port of Khoms, Benghazi’s Benina airport customs services said.  The UN mission in Libya has condemned the shipment of arms to Libya as “extremely disconcerting”.  Libya has been under a UN arms embargo since 2011.

https://www.thenational.ae/world/mena/turkey-to-open-joint-investigation-with-libya-on-smuggled-arms-1.805615

22^nd December 2018

PHILIPPINES: SHIPPERS OF STRATEGIC GOODS REQUIRED TO REGISTER BEGINNING FIRST QUARTER OF 2019

The Business Mirror on 22^nd December reported that the Strategic Trade Management Office (STMO) has released guidelines for the registration of traders, transport companies, and other service providers that import, export and move strategic goods – military, dual-use and nationally controlled goods.  Registration will be required beginning the first quarter of 2019.  Strategic goods are products considered to be of such military importance—due to security reasons or international agreements—that their export is either subject to specific conditions or prohibited.

https://businessmirror.com.ph/shippers-of-strategic-goods-required-to-register-beginning-first-quarter-of-2019/

ONE-THIRD OF UK ARMS SALES GO TO STATES ON HUMAN RIGHTS WATCHLIST, SAY ANALYSTS

The Guardian on 21^st December reported that nearly a third of arms exports authorised by Britain over the past decade were to nations identified by the government as among the worst for human rights, new figures reveal.  Military arms deals worth an estimated £39 billion were approved between 2008 and 2017, £12billion of which went to states included on a FCO list of 30 countries, according to analysis by Action on Armed Violence, and the only country on the list to which the UK did not approve arms export deals was North Korea.

https://www.theguardian.com/global-development/2018/dec/21/one-third-of-uk-arms-sales-go-to-states-on-human-rights-watchlist-say-analysts

INDIAN MAN SMUGGLING SHAHTOOSH SHAWLS CAUGHT IN SWITZERLAND

Swissinfo on 21^st December reported that an Indian man in illegal possession of Shahtoosh shawls made from the wool of wild Tibetan antelopes was apprehended by border guards in Basel.  They seized 5 shawls during a routine check on a train in Basel heading to Italy. The 53-year-old Indian citizen had 122 shawls in his suitcase, including 5 made from the wool of the Tibetan antelope.  International trade in the species is strictly prohibited and the animal has the same protected status as tigers or rhinos.  Tibetan antelope wool is considered to be the most precious, warmest and softest in the world.

https://www.swissinfo.ch/eng/tibetan-antelope_indian-smuggling-shahtoosh-shawls-caught-in-switzerland/44636172

TAX TREATIES CREATE $4.2 TRILLION CASH FLOW THROUGH NETHERLANDS, MORE THAN 5 TIMES THE VALUE OF THE “REAL” ECONOMY, IN A MAZE OF CORPORATE SHELLS

ACFCS carried a link to a Reuters article on 22^nd December saying that a network of favourable tax treaties and an industry devoted to minimising tax bills has made the Netherlands the conduit for an annual flow of capital 5 times the size of its own economy, new research revealed.  It says that a network of nearly 150 bilateral tax treaties around the globe has made the Netherlands has been a key hub for corporate entities shifting profits to lower tax jurisdictions for years.

https://www.acfcs.org/news/431758/Financial-Crime-Wave–Prosecutor-drops-names-in-Danske-Bank-probe-AML-data-quality-and-more.htm

LAW FIRM ACKNOWLEDGES ROLE IN SALE OF JET TO DICTATOR’S SON

On 17^th December, the Guardian reported that leading law firm Clifford Chance had issued a statement following a story in Private Eye that that it advised on a deal for the son of Equatorial Guinea’s dictator to purchase a $38 million private jet.  The newspaper says that Clifford Chance said it had not acted for Teodorín Obiang in the deal to acquire the jet in 2006, but that it had advised a third party on the sale.  It also said it advised Obiang personally when US law enforcement accused him of corruption and attempted to seize his assets in 2011, but it would not accept him as a client today.

https://amp.theguardian.com/law/2018/dec/17/law-firm-acknowledges-role-in-jet-sale-to-dictators-son

IRELAND: CENTRAL BANK CONSULTATION ON NEW DRAFT AML/CFT GUIDELINES FOR THE FINANCIAL SECTOR

Law firm A & L Goodbody reported that regulated businesses are invited to give feedback on the draft Guidelines by 5^th April.  The Guidelines set out the expectations of the Central Bank regarding the factors that firms should take into account when identifying, assessing and managing ML/TF risks.

https://www.algoodbody.com/insights-publications/central-bank-consultation-on-new-draft-aml-ctf-guidelines-for-the-financial

TRINIDAD AND TOBAGO SENATE PASSES ‘FUNNY MONEY’ BILL

On 22^nd December, the Trinidad & Tobago Newsday reported that the Senate has passed a Bill to amend several laws that aim to curb money laundering.

https://newsday.co.tt/2018/12/22/senate-passes-funny-money-bill/

BRITISH COLUMBIA TRYING TO SEIZE CASH AND HOME OF ACCUSED IN MONEY LAUNDERING CASE AFTER CRIMINAL CASE FAILS

The Globe & Mail reported on 22^nd December that the Civil Forfeiture Office is attempting to seize a $2.5 million Vancouver home and $2 million in cash from a pair – Caixuan Qin and spouse Jian Ju Zhu – accused of running a massive casino money laundering business after the criminal case against them collapsed last month.

https://www.theglobeandmail.com/canada/british-columbia/article-bc-trying-to-seize-cash-and-home-of-accused-in-money-laundering-case/

EL SALVADOR’S POLITICIANS DENY ATTORNEY GENERAL SECOND TERM

Swissinfo on 22^nd December reported that El Salvador’s legislative assembly denied Attorney General Douglas Melendez a second term, after he pursued tough anti-corruption investigations and put a former president in prison.  Melendez also jailed his predecessor, a judge and a top businessman, among others, and faced death threats for his work.

https://www.swissinfo.ch/eng/reuters/el-salvador-s-politicians-deny-attorney-general-second-term/44637046

RETREATING ISIS ARMY SMUGGLED A FORTUNE IN CASH AND GOLD OUT OF IRAQ AND SYRIA

The Washington Post on 21^st December reported that, more than a year after the collapse of its self-declared caliphate, the Islamic State is sitting on a mountain of stolen cash and gold that its leaders stashed away to finance terrorist operations and ensure the organisation’s survival years into the future, intelligence officials and terrorism experts say.  As the Islamist militants retreated they took with them a haul estimated by independent experts to total about $400 million — nearly all of it looted from banks or acquired through criminal enterprises.  While some of this treasure was buried or hidden away, the group’s leaders have laundered tens of millions of dollars by investing in legitimate businesses throughout the Middle East over the past year, the officials said – including real estate companies, hotels and automobile dealerships and, in one case, terrorist money was used to buy shares in a carwash business.

https://www.washingtonpost.com/world/national-security/retreating-isis-army-smuggled-a-fortune-in-cash-and-gold-out-of-iraq-and-syria/2018/12/21/95087ffc-054b-11e9-9122-82e98f91ee6f_story.html?noredirect=on&utm_term=.2f6b194bea96

To (maybe) help one understand the complications of the effect(s) of US sanctions on Deripaska’s RUSAL, the infographic above is reproduced from a May 2018 article from The Atlantic Council, which is also worth a read.

https://www.atlanticcouncil.org/blogs/econographics/us-sanctions-global-impact

MALAYSIA SEEKS $7.5 BILLION IN REPARATIONS FROM GOLDMAN SACHS

Money Control on 22^nd December reported that this claim after Malaysian prosecutors filed charges against Goldman Sachs in connection with its role as underwriter and arranger of 3 bond sales that raised $6.5 billion for 1MDB.

https://www.moneycontrol.com/news/world/malaysia-seeks-7-5-billion-in-reparations-from-goldman-sachs-report-3318011.html

US DoJ RECOVERS OVER $2.8 BILLION FROM FALSE CLAIMS ACT CASES IN FISCAL YEAR 2018

On 21^st December, a news release from the DoJ advised that it had obtained more than $2.8 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending September 30^th.  It says that the Act was originally passed in response to rampant fraud perpetrated against the US military during the Civil War, when crooked contractors defrauded the Union Army by selling it sick mules, lame horses, sawdust instead of gunpowder, and rotted ships with fresh paint.  Of the total, $2.5 billion involved the health care industry, including drug and medical device manufacturers, managed care providers, hospitals, pharmacies, hospice organisations, laboratories, and physicians – the 9^th consecutive year that civil health care fraud settlements and judgments have exceeded $2 billion.  The recoveries reflect only federal losses but, in many of these cases, the Department was instrumental in recovering additional millions of dollars for state Medicaid programs.  The release then provides more detail on health car fraud, procurement fraud and then the other, relatively minor recoveries.

https://www.justice.gov/opa/pr/justice-department-recovers-over-28-billion-false-claims-act-cases-fiscal-year-2018

LAST CONSPIRATOR IN £35 MILLION LAND SCAM RUN FROM CANARY WHARF IS FINALLY JAILED AFTER 5 YEARS ON THE RUN

On 21^st December, the Docklands & East London Advertiser reported that James Maynard had been jailed for 7½ years, and has also been banned from being a company director for 15 years.  He is said to be the last of a gang of 5 to be sentenced after fleeing the country before the original trial in 2013.  The gang conspired to defraud investors between January 2005 and August 2010, through companies such as Countrywide Land Holdings and Regional Land.  They duped 400 investors into buying plots of land claiming they would shoot up in value once planning permission for development had been secured, and even claimed the land would be used for the 2012 Olympics.  In reality, the plots were worthless, part of the greenbelt or in conservation areas.

https://www.eastlondonadvertiser.co.uk/news/crime-court/james-maynard-jailed-for-35m-canary-wharf-land-scam-1-5828516

BELGIAN AUTHORITIES UPDATE “BLOCKCHAIN BLACKLIST” WITH 14 NEW EXCHANGES

Cryptoglobe on 22^nd December reported that the Belgian Financial Services and Markets Authority (FSMA) has updated its ongoing list of businesses reported to operate cryptocurrency scams.  With this most recent addition of 14 websites the “blockchain blacklist” has now expanded to 113 websites to avoid.  The article lists the 14 new names, and provides a link to the main list.

https://www.cryptoglobe.com/latest/2018/12/belgian-authorities-update-blockchain-blacklist-with-14-new-exchanges/

ALIPAY AND UNIONPAY DENY LINKS TO NORTH KOREAN CASINO

On 22^nd December, Calvin Ayre reported that a casino in North Korea’s capital Pyongyang – Casino Pyongyang at the Yanggakdo Hotel – has no ties to Chinese online payment platforms, at least, not according to the platforms.

https://calvinayre.com/2018/12/22/casino/alipay-unionpay-deny-links-north-korean-casino/

INTERPOL RED NOTICE FOR FORMER NIGERIAN MINISTER OF PETROLEUM DIEZANI ALLISON-MADUEKE

Kenneth Rijock in his blog on 22^nd December reported that an Interpol Red Notice had been issued for the PEP thought to have stolen more of Nigeria’s oil wealth than any other government official.

http://rijock.blogspot.com/2018/12/interpol-red-notice-issued-against.html