Day: February 3, 2019

3^rd February 2019

 CIGARETTE-SMUGGLING DOESN’T PAY: RECORD $34 MILLION FINE FOR SINGAPOREAN

The Independent in Singapore reported on 3^rd February that, in the highest penalty imposed, a Singapore cigarette smuggler, Ng Ghim Hong, 33, was fined a record S$34 million and jailed.  He was part of a Singapore-Malaysia syndicate when he was caught red-handed at a warehouse with “an unprecedented quantity” of duty-unpaid cigarettes.

http://theindependent.sg/cigarette-smuggling-doesnt-pay-record-34m-fine-for-singaporean/

5 SLOVAKIAN NATIONALS ARRESTED IN SRI LANKA FOR SMUGGLING ENDANGERED SPECIES GENE SAMPLES

Newsfirst in Sri Lanka reported on 2^nd February that 5 Slovakian nationals who attempted to smuggle gene samples of endangered species, plants and insects from the Sinharaja Forest were arrested by Wildlife officers.

https://www.newsfirst.lk/2019/02/02/5-slovakian-nationals-arrested-for-smuggling-gene-samples/

http://kathmandupost.ekantipur.com/news/2019-02-03/as-dirty-cash-flow-review-nears-nepal-scrambles-to-make-and-amend-50-laws.html

AS DIRTY CASH FLOW REVIEW NEARS, NEPAL SCRAMBLES TO MAKE AND AMEND 50 LAWS

The Kathmandu Post on 3^rd February reported that a recent expose showed that as many as 55 Nepalis and Non-resident Nepalis had invested in offshore companies and two-thirds of foreign direct investment in Nepal came from the tax haven countries and territories – just ahead of the third Mutual Evaluation by Asia Pacific Group on Money Laundering (APG), the regional FATF-style body, in 2020.  A government report says Nepal still needs to make as many as 50 laws compatible with the global standards on AML/CFT, and states that Nepal has a number of deficiencies in the areas of legislation, regulatory mechanisms and enforcement to tackle.

http://kathmandupost.ekantipur.com/news/2019-02-03/as-dirty-cash-flow-review-nears-nepal-scrambles-to-make-and-amend-50-laws.html

AML INFORMATION-SHARING IN A TECHNOLOGY-ENABLED AND PRIVACY-CONSCIOUS WORLD

On 2^nd February, White & Case published an article highlighting the several barriers to financial companies sharing of information to combat money laundering in the US.  It says that policymakers and regulators should ensure that the AML framework is clear and flexible to allow space for new technologies to flourish while protecting customer privacy and other core policy goals.  The barriers and difficulties include – SAR confidentiality, privacy requirements applicable to the US financial sector, European data protection and privacy (GDPR).  It looks at technology-enabled solutions for more effective information-sharing, including DLT and AI.

https://www.whitecase.com/sites/whitecase/files/files/download/publications/aml-information-sharing-in-a-technology-enabled-world.pdf

SRI LANKA’S FORMER AMBASSADOR TO US PLEADS NOT GUILTY TO CHARGES OF MONEY LAUNDERING AND EMBEZZLEMENT

Colombo Page on 3^rd February reported that Jaliya Chitran Wickramasuriya, a relative of former Sri Lankan President Mahinda Rajapaksa, pleaded not guilty to charges of money laundering and embezzlement, in connection with the embezzlement of $320,000 funds of the Sri Lankan government intended for the purchase of a new embassy building in Washington.

http://www.colombopage.com/archive_19A/Feb03_1549176957CH.php

EUROPEAN COMMISSION WOULD INCLUDE PANAMA IN HIGH-RISK LIST FOR MONEY LAUNDERING

On 30^th January, La Prensa in Panama reported that the EU would be would be including Panama in a new list of high-risk countries with deficiencies in its AML/CFT regime.

https://www.prensa.com/economia/Comision-Europea-incluiria-Panama-activos_0_5226227350.html

On 31^st January, La Prensa reported that the President had signed a law under which intentionally defrauding taxes from $300,000 in a fiscal year will be punished by 2 to 4 years in prison.  Laundering such proceeds would also face the same penalty.  However, the penalties are lower than for other money-laundering crimes, which have sentences of between 5 and 12 years.

https://www.prensa.com/economia/Presidente-sanciona-penaliza-evasion-fiscal_0_5226977283.html

A display of uranium enrichment centrifuges, a part of the exhibition devoted to the 40th anniversary of the Islamic revolution in Iran

Seatrade Maritime News on 3^rd February reported that Panama has agreed to remove from its Ship Registry some 60 Iranian vessels – reflagged to Panama’s Ship Registry in 2016 following the lifting of OFAC sanctions – to avoid being placed on a US Treasury blacklist. The ships involved are mostly tankers. It also says that Panama has instructed Panamanian consuls not to receive any payment for taxes and fees from the vessels coming from or from companies from Iran.

http://www.seatrade-maritime.com/news/americas/panama-registry-to-expel-60-iranian-vessels-to-avoid-us-sanctions.html

2^nd February 2019

UK MINISTERS SEEK TO TIGHTEN ART EXPORT RULES
I News on 2^nd February reported that its research had established that “national treasures” worth nearly £500 million have been granted licences for export in the past decade after public institutions (or private individuals willing to buy an item and put it on display) were unable to raise the funds to keep them in the UK.  This being almost 5 times the value of items saved for the nation.  It says that some 60% of the works declared to be of exceptional cultural and historic value end up being exported.  Now a minister has published a consultation proposal to tighten the law on national treasures by requiring export-seeking owners give a legally-binding undertaking to give up the object of their desire when a matching offer is made by a UK institution.

https://inews.co.uk/news/long-reads/national-treasures-sent-abroad-last-decade-art-export-rules/

RUSSIAN CONNECTION CITED IN HIGH-DOLLAR SAN ANTONIO MONEY LAUNDERING CASE

My SA on 1^st February reported that a San Antonio car dealer who sold luxury vehicles laundered more than half a million dollars as part of an undercover sting, and told agents he had the ability to launder millions more inside and outside the US, according to court documents.  The accused told old undercover agents he had Russian connections to clean large amounts of cash.

https://www.mysanantonio.com/news/local/article/Russian-connection-cited-in-high-dollar-San-13582394.php

BANKS BATTLE VIJAY MALLYA OVER SUPERYACHTS, CARS, ARTWORK
The Economic Times on 2^nd February reported that Indian tycoon and former boss of the Force India F1 team, Vijay Mallya, faces losing his “palatial” London home, with UBS Group AG saying it wanted to foreclose and banks are eyeing two superyachts and a collection of valuable cars that they believe he may own.  A judge in London has also said he should be extradited to India.  A group of Indian banks – which are trying to collect more than a $1.3 billion in debt from Mallya — want documents that would shed light on the “true ownership” of assets including yachts, cars and paintings, which he says are held by trusts.  One, Force India is owned by a Maltese company and the other, Indian Empress, was owned by an Isle of Man company until its sale.
https://economictimes.indiatimes.com/news/politics-and-nation/banks-battle-vijay-mallya-over-superyachts-cars-artwork/articleshow/67803343.cms

UN SECURITY COUNCIL TO REVIEW CENTRAL AFRICAN REPUBLIC ARMS EMBARGO BY END OF SEPTEMBER

Defence Web on 1^st February reported that the UN Security Council has agreed to review arms embargo measures on CAR by the end of September if the country makes progress in areas including reform of its security sector and management of its weapons.  It has been under an arms embargo since 2013 so weapons shipments to the government must be approved by a sanctions committee.

https://www.defenceweb.co.za/joint/u-n-security-council-to-review-central-african-arms-embargo-by-end-sept/

ALBANIA POLICE ARREST 32 IN COUNTERFEIT TRAVEL VISA SCHEME

The Daily Mail on 2^nd February reported that Albanian police have cracked down a suspected visa ring issuing fake documents to help people illegally go to Western European countries, UK, the US and Canada.  Police say migrants paid £10,000 to go to Britain and up €20,000 to get to the US or Canada.

https://www.dailymail.co.uk/wires/ap/article-6661269/Albania-police-arrest-32-counterfeit-travel-visa-scheme.html

NIGERIA FILES GRAFT CHARGES AGAINST PRESIDENT BUHARI’S FORMER AIDES

Baker McKenzie on 2^nd February reported that Nigeria has filed corruption charges against 2 former senior government officials and close aides of President Muhammadu Buhari who were sacked for alleged graft, the country’s anti-corruption agency said.

http://www.riskandcompliancehub.com/nigeria-files-graft-charges-against-buharis-former-aides/

IRAN CLAIMS SUCCESSFUL TEST OF NEW CRUISE MISSILE

On 2^nd February, Rferl reported that state media in Iran have reported the successful test of a new cruise missile with a range of 1,350 km, and said to be manufactured entirely in Iran without foreign assistance.

https://www.rferl.org/a/iran-claims-successful-test-of-new-cruise-missile/29747693.html

CAPE VERDE SEIZES 10 TONS OF COCAINE, ARRESTS RUSSIAN SAILORS

Rferl on 2^nd February reported that police in Cape Verde say they have seized nearly 10 tons of cocaine and arrested 11 Russian sailors aboard a vessel docked in the capital, and  said the seizure represented the largest single drug haul in the island country’s history.

https://www.rferl.org/a/russia-sailors-arrested-alleged-cocaine-seizure-cape-verde-africa/29747197.html