Day: January 26, 2019

26^th January 2019

WHY WAS MAN’S LUGGAGE STUFFED WITH 5,000 LEECHES?

National Geographic on 25^th January carried an article saying an airport sniffer dog in Canada sniffed out the creatures.  Now authorities are trying to figure out what to do with them.  They were in the luggage of a Canadian man who had just returned from Russia.  Authorities are calling him an alleged illegal leech importer, rather than a smuggler, because he wasn’t necessarily purposefully hiding the contraband.  The man claimed that the leeches in his possession were for personal use and that their waste water would enrich his orchids.  With the proper paperwork, medicinal leeches can be shipped legally from one country to another.  Canada gets much of its supply from the US.  Authorities were then faced with the problem of what to do with the leeches – Canada as a whole typically acquires between 500 and 1,000 medical legal leeches a year – not 5,000 – and officials are still endeavouring to find a home for the remaining 3,950 leeches.

https://www.nationalgeographic.com/animals/2019/01/airport-luggage-stuffed-with-leeches/

AML/CFT MUTUAL EVALUATION ASSESSMENT PRELIMINARY VISIT TO BELARUS

Belta, the Belarus news agency, reported on 25^th January that experts of the Eurasian group on combating money laundering and financing of terrorism (EAG) will be on a visit to Minsk on 28^th-30^th January.  The technical mission is organised in the run-up to the meetings with the core team of evaluators which will take place in March.  The final report on the Belarusian AML/CFT system will be discussed at the EAG plenary meeting in November 2019.  The previous evaluation was carried out in 2008.
https://eng.belta.by/society/view/eag-experts-to-visit-minsk-on-28-30-january-118225-2019/

BOOKIES, BANKS AND FRAUD: THE METHODS IRISH-BASED ISIS SYMPATHISERS USE TO STEAL AND FUNNEL CASH

The Journal in Ireland on 26^th January carried an article on how it says that extremist sympathisers use a number of different ways to either generate cash through fraudulent means or transfer large amounts of money.

https://www.thejournal.ie/isis-money-laundering-4457015-Jan2019/

EVERYTHING YOU NEED TO KNOW ABOUT SMART CONTRACTS: A BEGINNER’S GUIDE

The Hackernoon website carried an article on 29^th August which says that “smart contracts” can be termed as the most utilised application of blockchain technology in the current times.  It says that they originated as a concept in 1994, with the basis that any decentralised ledger can be used as self-executable contracts, these later coming to be called Smart Contracts. These digital contracts could be converted into codes and allowed to be run on a blockchain.  It starts by explaining the basics – a smart contract is a set of computer code between 2 or more parties that run on the top of a blockchain and constitutes of a set of rules which are agreed upon by the involved parties.  Upon execution, if these set of pre-defined rules are met, the smart contract executes itself to produce the output.  It then goes on into a little more detail, and explains why they are needed, and gives examples of their use in such things as insurance contracts, securing copyrighted content and in supply chain management.

https://hackernoon.com/everything-you-need-to-know-about-smart-contracts-a-beginners-guide-c13cc138378a

CHINESE COURTS FRUSTRATE ANTI-FAKE WATCH MEASURES

On 26^th January, Swissinfo reported that the Sino-Swiss free trade agreement (FTA) is having only a limited effect on the fight against fake watches, according to a Swiss official.  Steps taken by Beijing to counter fraud are often not being enforced by courts, with judges in rural areas of China sometimes loathe to issue unpopular verdicts against local companies.  However, there is evidence that the situation is better in big Chinese cities, which are home to large local manufacturers who also face losses from counterfeit goods.

https://www.swissinfo.ch/eng/business/problem-remains_chinese-courts-frustrate-anti-fake-watch-measures/44711016

PROMINENT FRENCH ATTORNEY CHARGED WITH TERRORISM FUNDING

In his blog on 26^th January, Kenneth Rijock reported that a well-known Parisian criminal defence attorney was taken into custody by the DGSI, the domestic intelligence agency of France, on terrorist financing allegations, for allegedly sending €20,000 to jihadists in the Middle East, which was intended to facilitate the exfiltration of a radical Islamic State leader from Iraq.

http://rijock.blogspot.com/

US SANCTIONS FORCE CHANGES FOR RUSSIAN MC-21 AIRLINER PROGRAMME

On 24^th January, AIN Online reported that tightening US sanctions on Russia have interrupted the supply of foreign raw materials supply to the United Aircraft Corp. (UAC), forcing the company to introduce yet another series of changes to the MC-21 airliner programme.

https://www.ainonline.com/aviation-news/air-transport/2019-01-24/us-sanctions-force-mc-21-course-correction

US SANCTIONS RELIEF REQUIRES ‘SIGNIFICANT’ STEP FROM N. KOREA, SAYS JOHN BOLTON

On 26^th January, Yonhap reported that North Korea needs to take a “significant” step toward abandoning its nuclear weapons in order to get sanctions relief from the US, National Security Adviser John Bolton has said in an interview with the Washington Post.

https://en.yna.co.kr/view/AEN20190126000900315?section=nk/nk

On 28^th December, C4DS published a report from the Alliance for Securing Democracy & C4ADS.  It says that in the spring of 2016, as the Russian-domiciled First Czech Russian Bank (FCRB) approached insolvency, staff worked feverishly to erase ledgers, destroy documents, and conceal evidence of the bank’s activity over the previous 9 years.  These documents, had they survived, would have revealed the details of a litany of questionable activities -including financial support for Iran; involvement in the “Russian Laundromat”; support for organised crime figures; and Russian state-sanctioned interference in the Western political system in the form of a €9.4 million loan to the National Front in France.

https://raytoddblog.files.wordpress.com/2019/01/a73a6-illicitinfluencepartonefirstczechrussianbank.pdf

The Hackernoon website carried an article on 29^th August which says that “smart contracts” can be termed as the most utilised application of blockchain technology in the current times.  It says that they originated as a concept in 1994, with the basis that any decentralised ledger can be used as self-executable contracts, these later coming to be called Smart Contracts. These digital contracts could be converted into codes and allowed to be run on a blockchain.  It starts by explaining the basics – a smart contract is a set of computer code between 2 or more parties that run on the top of a blockchain and constitutes of a set of rules which are agreed upon by the involved parties.  Upon execution, if these set of pre-defined rules are met, the smart contract executes itself to produce the output.  It then goes on into a little more detail, and explains why they are needed, and gives examples of their use in such things as insurance contracts, securing copyrighted content and in supply chain management.

https://hackernoon.com/everything-you-need-to-know-about-smart-contracts-a-beginners-guide-c13cc138378a

25^th January 2019

 PAKISTAN CENTRAL BANK INTRODUCES FRAMEWORK TO COUNTER TRADE-BASED MONEY LAUNDERING AND TERRORIST FINANCING

On 25^th January, Pakistan Today reported that the central bank also told banks to enhance the oversight role of the board of directors and senior management in the areas of ML/TF/PF risks associated with trade transactions, as it introduced a draft framework on risk management of trade-based money laundering and terrorist financing to enable transparency and efficiency across trading finance.  It highlighted the main methods by which such people transfer value through legitimate trade transactions – under-invoicing, over-invoicing, short/over shipment, obfuscation of type of goods/services etc; and said that banks should follow a procedure for identification and monitoring of trade transactions with related party and screening procedure of customers for trade transactions.

https://profit.pakistantoday.com.pk/2019/01/25/sbp-introduces-framework-to-counter-trade-based-money-laundering-and-terrorist-financing/

https://www.thenews.com.pk/print/423034-state-bank-issues-draft-framework-to-combat-trade-based-money-laundering

FRANCE’S NEW INVESTMENT CONTROL IN THE CYBERSECURITY AND TECHNOLOGY SECTORS

The National Law Review on 24^th January reported that France, relatively open to overseas investors, has extended its control over foreign investment into certain ‘sensitive’ industries, particularly the IT, cybersecurity, communication, and technology sector.  The article provides some details of the controls.

https://www.natlawreview.com/article/france-s-new-investment-control-cybersecurity-and-technology-sectors

 NEW YORK: 6 INDIVIDUALS CHARGED WITH CONSPIRING TO TRAFFIC MORE THAN $30 MILLION OF CONTRABAND CIGARETTES

STL News reported on 24^th January that they were charged with conspiring to traffic contraband cigarettes and trafficking contraband cigarettes and defrauding city, state, and federal governments of millions of dollars in tax revenue.  It is said that for 6 years these defendants smuggled untaxed cigarettes into the US.

https://www.stl.news/new-york-news-six-individuals-charged-with-conspiring-to-traffic-more-than-30-million-of-contraband-cigarettes/250343/

KENYA: THE LUCRATIVE BUSINESSES WHERE CITY CROOKS LAUNDER THEIR MONEY

Nairobi News on 25^th January carried an article saying that second-hand car dealers, real estate developers and law firms have emerged as new conduits for laundering dirty cash into the economy, the country’s AML “czar” and banks have said.  The Financial Reporting Centre (FRC) and Kenya Bankers Association (KBA) have called for a review of the law to require non-financial firms to start reporting suspicious dealings and transactions.  They say that shrewd traders are increasingly moving away from financial systems such as banks when laundering proceeds of crime and corruption after most loopholes were sealed through tighter rules.

https://nairobinews.nation.co.ke/news/revealed-lucrative-businesses-where-city-crooks-launder-their-money/

FINLAND’S FOREIGN MINISTRY FALLS FOR €400,000 EMAIL SCAM OVER AID MONEY

YLE on 24^th January reported that scammers are suspected of duping the Finnish Foreign Ministry into handing over some €400,000 in development funds last February, according to the National Bureau of Investigation.  Police said that the swindlers sent an email purporting to come from an employee of the UN Development Programme, UNDP, prompting the Foreign Ministry to pay out the funds.

https://yle.fi/uutiset/osasto/news/finlands_foreign_ministry_falls_for_400k_email_scam/10613355

EX-UKRAINIAN LEADER YANUKOVICH SENTENCED TO 13 YEARS IN JAIL IN ABSENTIA

Politico reported on 24^th January that a judge ruled that the pro-Moscow Yanukovich’s conduct had paved the way for Russia’s annexation of Crimea and the bloody conflict in eastern Ukraine.  Yanukovich fled Ukraine for Russia in 2014 after street protests against his rule. His lawyers said they would appeal the decision.

https://www.politico.eu/article/ex-ukrainian-leader-president-viktor-yanukovich-sentenced-to-13-years-in-jail/

UK: TAKEAWAY BOSS GETS SECOND DISQUALIFICATION AFTER BREACHING FIRST BAN

A news release from the Insolvency Service on 17^th January reported that the boss of an Asian-style takeaway in Cardiff has picked up second disqualification after being caught running the business when he had already been banned.

https://www.gov.uk/government/news/takeaway-boss-gets-second-disqualification-after-breaching-first-ban

X-FACTOR ACCOUNTANT JAILED FOR £599,000 FRAUD

Accountancy Daily on 25^th January reported that an ACCA-qualified accountant who defrauded a former X Factor winner of £599,000 in order to fund a gambling habit has been jailed for 4 years.

https://www.accountancydaily.co/x-factor-accountant-jailed-ps599k-fraud

CHINA’S FOREIGN FIGHTER PROBLEM

War on the Rocks on 25^th January carried an article saying that China has a foreign fighter problem. Like many other states, it is dealing with the complex security and legal implications of its residents leaving the country to join jihadist groups.  In Beijing’s case, the problem is not limited to Chinese nationals who have joined jihadist organisations in Syria.  Most Chinese foreign fighters have joined the al-Qaeda network, because of historic ties developed in Afghanistan and Pakistan between the East Turkestan Islamic Movement/Turkestan Islamic Party and Osama bin Laden’s organisation.  Numbers are lower for the Islamic State.

https://warontherocks.com/2019/01/chinas-foreign-fighters-problem/

http://www.css.ethz.ch/content/specialinterest/gess/cis/center-for-securities-studies/en/services/digital-library/articles/article.html/d3aa5f60-e908-41e8-9e7b-1591cfe87841

UK COMPANIES FINED FOR ILLEGAL EXPORTS

The UK Notice to Exporters 2019/02 says that unlicensed exports of dual use goods and breaches of export controls have cost UK companies thousands of pounds.  Over the last 7 months, HMRC has issued compound penalties ranging between £1,000 and £4,000 to 3 separate UK Exporters.  These related to unlicensed exports of dual use goods and export control breaches.

https://www.gov.uk/government/publications/notice-to-exporters-201902-uk-companies-fined-for-illegal-exports/notice-to-exporters-201902-uk-companies-fined-for-illegal-exports

2 BULGARIAN FOOTBALL PLAYERS CHARGED WITH MATCH-FIXING

Novinite on 25^th January reported that Bulgarian prosecutors have charged 2 second division players with match-fixing as part of an investigation into alleged corruption in Bulgarian football.  They allegedly manipulated unspecified Bansko games in Bulgaria’s second division during the 2016-2017 season.

https://www.novinite.com/articles/194755/Two+Bulgarian+Football+Players+Charged+with+Match-fixing

LITHUANIA STEPS UP AML EFFORT AFTER BALTIC SCANDALS

On 25^th January, Reuters reported that, according to its central bank Governor Lithuania has taken extra measures to prevent money laundering after bank scandals in Latvia and Estonia which have harmed its reputation.  He said that the central bank has established new departments for money laundering prevention and for electronic money supervision at the start of January, and invested in technical measures to identify money laundering risk.

https://uk.reuters.com/article/uk-lithuania-moneylaundering/lithuania-steps-up-anti-money-laundering-effort-after-baltic-scandals-idUKKCN1PJ1PA

SWEDISH COUPLE’S LARGE FINE FOR RUNNING ILLEGAL GAMBLING OPERATION IN SINGAPORE

On 25^th January, Calvin Ayre reported that a husband and wife team accused of running an illegal gambling operation will have to pay over US$826,000 in restitution for leading a non-licensed betting service that involved the 4-D lottery.  Heng Ee Howe, 60, had been involved in the illegal activity for as long as 15 years along with his wife Tin Suh Chyong, 55.  The alleged activity took place 2010-15.  Heng collected illegal 4-D bets on behalf of other individuals. He would then consolidate the bets and send them to gambling runners in Malaysia.

https://calvinayre.com/2019/01/25/business/singapore-couple-pay-huge-fines-illegal-gambling-operation/

REVIEW PROPOSES ENHANCEMENTS TO UK MODERN SLAVERY ACT REPORTING

Out-Law on 25^th January published an article saying that more clarity is needed over which organisations are required to comply with modern slavery reporting requirements, while the reports themselves need a consistent structure and far stronger enforcement, an independent review has recommended.

https://www.out-law.com/en/articles/2019/january/review-proposes-enhancements-to-modern-slavery-act-reporting/

COLOMBIA COCAINE BOOM LIKELY BEHIND RISING EUROPEAN PORT SEIZURES

Insight Crime on 25^th January carried an article saying that cocaine seizures at 2 of Europe’s biggest and busiest ports – Rotterdam and Antwerp – jumped by more than a quarter over the last year, underscoring the impact that the increase in global cocaine production — primarily in Colombia — is likely having outside of Latin America.

https://www.insightcrime.org/news/analysis/colombia-cocaine-boom-rising-seizures-europe-ports/

WHICH CRIMINAL STRUCTURES HAVE GAINED THE MOST STRENGTH IN LATIN AMERICA IN 2018?

Insight Crime on 10^th January published a good article focused on 3 groups that have engaged in aggressive expansion, both territorial and economic, and are set to dominate the region’s criminal landscape – the Jalisco Cartel New Generation (Cartel Jalisco Nueva Generación – CJNG) in Mexico; the National Liberation Army (Ejército de Liberación Nacional – ELN) in Colombia; and the First Capital Command (Primeiro Comando da Capital – PCC) in Brazil.

https://www.insightcrime.org/news/analysis/gamechangers-2018-the-criminal-winners-of-2018-in-latam/

ENGLISH COUNCIL SECURES ORDER REQUIRING EX-DIRECTORS OF FOOTBALL CLUB TO REPAY £2+ MILLION

On 25^th January, Local Government Lawyer reported that Northampton Borough Council has secured a High Court ruling requiring former directors of Northampton Town Football Club to repay more than £2 million.  The local authority had loaned more than £10 million to the club to help with a stadium redevelopment but the scheme was never completed.

http://www.localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=37944%3A2019-01-25-12-17-34&catid=56&Itemid=24

INSIDE GHANA’S ILLEGAL ARMS TRADE

The BBC World Service carried a feature on 25^th January, as a video report on the production of homemade guns, which is big business in West Africa.  They can be bought for as little as £7 and blacksmiths in Ghana are estimated to produce up to 200,000 of these guns a year.  Sulley Lansah met one of the people who make the illegal firearms and those affected by them.

https://www.bbc.co.uk/news/av/world-africa-46979165/inside-ghana-s-illegal-arms-trade

TURKMENISTAN: A DICTATOR, MILLIONS OF EUROS, AND ITALY’S EXPORT OF WEAPONS

Bellingcat on 25^th January carried a post saying that Turkmenistan is among the world’s most repressive countries, and is largely closed off to the outside world.  When it comes to press freedom, only North Korea and Eritrea are rated worse.  Yet the country is nonetheless a major buyer of EU arms, with Italy supplying by far the biggest part.  The article takes a closer look at Italian arms deliveries to Turkmenistan — and traces a selection of arms despite the general lack transparency.

https://www.bellingcat.com/news/uk-and-europe/2019/01/25/turkmenistan-italianarms-a-dictator-millions-of-euros-and-italys-bureaucracy/

REUTERS REPORTS RUSSIAN MILITARY CONTRACTORS OPERATING IN VENEZUELA

Rferl on 25^th January reported that Reuters is reporting that private military contractors working on behalf of Russia are in Venezuela to help embattled socialist President Nicolas Maduro strengthen security amid opposition protests and a competing claim to leadership.  Sources are saying the contractors are associated with the so-called Wagner group of mostly former Russian service personnel who have been involved in clandestine operations in foreign countries.  Private Russian military contractors have been reported in other countries, including Syria, Ukraine, and in African nations.

https://www.rferl.org/a/reuters-reports-russian-military-contractors-operating-in-venezuela/29731838.html

BERLIN POLICE RAID ILLEGAL ARMS DEALERS

Deutsche Welle on 25^th January reported that German police have carried out a series of raids on 26 properties in the states of Berlin and Brandenburg in an attempt to bust an international ring of gunrunners.  A simultaneous raid was also carried out in Amsterdam.

https://www.dw.com/en/berlin-police-raid-illegal-arms-dealers/a-47218253

SANCTIONS INFORMATION

For information on OFAC sanctions programmes see –

https://www.treasury.gov/RESOURCE-CENTER/SANCTIONS/Programs/Pages/Programs.aspx

For a collection of guidance from the EU, UN and the UK on sanctions see –

https://europeansanctions.com/eu-guidelines/