Day: March 23, 2019

23^RD March 2019

UK AND MEDICINICAL CANNABIS

The Pharmaceutical Journal in the UK has published several articles concerned with cannabis –

Why patients are still being denied legalised medical cannabis – on 20^th March, saying that hospital trust bureaucracy and doctors’ ignorance are to blame for the lack of prescriptions for medical cannabis being issued on the NHS, despite its reclassification for medical use in November 2018.

https://www.pharmaceutical-journal.com/20206256.article

Medical Cannabis Clinicians’ Society publishes guidance for prescribers – on 21^st March, saying that new guidance has identified conditions for which it says there is strong or weak evidence of efficacy of medical cannabis treatment.

https://www.pharmaceutical-journal.com/20206324.article

Pharma industry should fund trials for medical cannabis, chief medical officer tells MPs – on 21^st March, the CMO saying that randomised controlled trials are the only way to get medical cannabis products licensed, and the process should start as soon as possible.

https://www.pharmaceutical-journal.com/20206322.article

However, a further article – on non-medicinal cannabis – on 20^th March:

Daily use of high-potency cannabis increases risk of psychosis by 4 times, study finds – saying that the odds of psychotic disorder among daily high-potency cannabis users was 4 times higher than for never users, study finds.

https://www.pharmaceutical-journal.com/20206308.article

QUANTUM COMPUTERS POSE A SECURITY THREAT THAT WE’RE STILL TOTALLY UNPREPARED FOR

On 17^th March, says that the world relies on encryption to protect everything from credit card transactions to databases holding health records and other sensitive information.  However, a new report from the US National Academies of Sciences, Engineering, and Medicine says we need to speed up preparations for the time when super-powerful quantum computers can crack conventional cryptographic defences.

https://www.hstoday.us/subject-matter-areas/cybersecurity/quantum-computers-pose-a-security-threat-that-were-still-totally-unprepared-for/

https://www.technologyreview.com/s/612509/quantum-computers-encryption-threat/

The report is available (for a charge) at –

https://www.nap.edu/catalog/25196/quantum-computing-progress-and-prospects

PROSECUTORS WANT ASSAD UNCLE TRIED OVER FRENCH PROPERTY EMPIRE
Al-Monitor on 21^st March reported that French prosecutors have called for the uncle of Syrian President Bashar al-Assad to stand trial on charges of pilfering Syrian state coffers to amass a €90 million property portfolio in France, including a stud farm and a chateau.  Rifaat al-Assad, dubbed the “Butcher of Hama” for allegedly commanding the troops behind the bloody suppression of an uprising in central Syria in 1982, has been under investigation in France since 2014.
https://www.al-monitor.com/pulse/afp/2019/03/france-syria-trial-fraud-assad.html#ixzz5iz2RDbL9

$32.7 BILLION LOST IN TELECOM FRAUD ANNUALLY

On 22^nd March, OCCRP reported on a recent report published by Europol claiming that telecommunications or telecom fraud is a fast-growing field of criminal activity and a low-risk alternative to traditional methods of financial crime, costing today’s world some $32.7 billion annually, according to the joint report published by Europol’s European Cybercrime Centre and Trend Micro, a Taiwanese cyber security and defence company.  Telecoms fraud is the abuse of telecom products (primarily telephones and mobile phones) or services with the aim of illegally siphoning away money from either a telecom service provider or its customers.  Perpetrators of such fraud attempt to gain access to SIM cards or other billing portals to enter the customer or carrier account, “where debt can be incurred in favour of the attacker,” the report details.

https://www.occrp.org/en/daily/9436-report-us-32-7-billion-lost-in-telecom-fraud-annually

REPORT SUSPICIOUS BEHAVIOUR AT SMALL UK AIRFIELDS AND AIRPORTS: PROJECT PEGASUS

On 22^nd March, the Home Office issued an updated news release containing Home Office communications guidance on Project Pegasus, a joint law enforcement operation tackling threats to the general aviation industry in the UK.  It explains how you can report suspicious and unusual behaviour at small UK airfields and airports.

https://www.gov.uk/government/publications/report-suspicious-behaviour-at-small-airfields-project-pegasus#history

US PROSECUTORS LAY 3 MORE CRIMINAL CHARGES AGAINST EX-AUTONOMY CHIEF EXEC MIKE LYNCH

The Register on 23^rd March reported that the charges accuse him of securities and wire fraud regarding Hewlett-Packard’s acquisition of his company.  Lynch, once dubbed Britain’s answer to Bill Gates, sold his company, a software company he founded, to the US tech company in 2011 for $11 billion.  A year later, HP was forced to write down $8.8 billion, claiming that Lynch had “outright misrepresented” its value.  It is also suing Lynch and Autonomy financial chief, Sushovan Hussain, in the UK, demanding $5 billion in damages.  In the US, prosecutors are putting together a criminal case against Lynch and Autonomy accountant, Stephen Chamberlain, again over the acquisition.

https://www.theregister.co.uk/2019/03/23/mike_lynch_new_charges/

KOSOVO PLANS TO BAN GAMBLING AFTER 2 MURDERS AT LOCAL GAMBLING VENUES

Calvin Ayre on 22^nd March reported that an extraordinary session of Kosovo’s parliament approved a measure to suspend operations at all gambling venues ahead of a permanent ban on their operations.

https://calvinayre.com/2019/03/22/business/kosovo-gambling-ban-following-staff-murders/

INTERPOL REVIEWS ITS RULES FOR THE INTERNATIONAL EXCHANGE OF CRIMINAL DATA

On 22^nd March, a news release from Interpol says that it has launched a review of its Rules on the Processing of Data (RPD) to ensure they continue to meet the needs of international police cooperation in a digital world.  The RPD are the only existing legal instrument with a global scope regulating the international exchange of criminal data. The RPD enable 194 countries to share data via INTERPOL’s Information System in line with international standards, including the rights to privacy and data protection.  The purpose of the review is said to be to ensure the RPD meet countries’ needs and keep pace with developments − such as big data technologies, open-source intelligence, the increasing inter-connectivity of systems, and the use of data for crime prevention purposes such as screening of travellers − while ensuring individuals’ rights and privacy are respected.

https://www.interpol.int/News-and-Events/News/2019/INTERPOL-reviews-its-rules-for-the-international-exchange-of-criminal-data

BRITISH COLUMBIA CIVIL FORFEITURE OFFICE SUING TARGET OF MASSIVE MONEY LAUNDERING INVESTIGATION

The Globe & Mail on 22^nd March reported that the Civil Forfeiture Office is targeting more than $5 million in cash and property tied to a man at the heart of a massive money laundering investigation that began unravelling late last year.  It is seeking $4.86 million in cash and various other items, as well as a $764,000 condo in the Vancouver suburb of Richmond, that it says are owned by Paul King Jin, the man authorities alleged ran a large underground gambling ring that took advantage of the lax money laundering controls at Lower Mainland casinos.

https://beta.theglobeandmail.com/canada/article-bc-civil-forfeiture-office-suing-target-of-massive-money-laundering/

SOUTH AFRICA: 9 SMALL BUSINESS DEVELOPMENT OFFICIALS SUSPENDED OVER CORRUPTION CLAIMS

IOL on 22^nd March reported that several officials of the Department of Small Business Development have been suspended with immediate effect after serious allegations of corruption within the unit responsible for incentive scheme administration.

https://www.iol.co.za/news/politics/nine-small-business-development-officials-suspended-over-corruption-claims-20033313

IRELAND: CASE COULD BE TAKEN AGAINST IRELAND OVER SPECIAL TAX TREATMENT GIVEN TO VULTURE FUNDS

The Journal reported on 23^rd March that the Master of the High Court has said a case on State aid rule breaches could be brought by the European Commission in relation to the special tax treatment given to the vulture funds in Ireland.  In a presentation to politicians in the European Parliament this week, outlining that there are similarities to be drawn from the Apple case that ruled in 2016 that Ireland had given Apple illegal tax relief.  The focus of his presentation was on the possible abuse in Ireland of Section 110 Special Purpose Vehicle (SPV) legislation, whereby companies are setting up and registering as charities and that was generally structured in such a way so that it was effectively tax-neutral.

https://www.thejournal.ie/edmund-honohon-vulture-funds-4553565-Mar2019/

IMMUNO BIOTECH STAFF HANDED SUSPENDED PRISON SENTENCES OVER GcMAF AFFAIR

On 23^rd March, Guernsey Press reported that 2 former employees of the company were handed suspended prison sentences, following former Immuno Biotech owner David Noakes being sentenced to 15 months in prison in the UK for money laundering and manufacturing, supplying and selling an unlicensed medicine – GcMAF.  A former company office manager pleaded guilty to o money laundering, and the financial controller for the company was sentenced for acquiring or using proceeds of crime, as well as money laundering.

https://guernseypress.com/news/2019/03/23/immuno-biotech-staff-were-brainwashed-claims-defence/

RUSSIAN LAWMAKERS GIVE GREEN LIGHT TO ALTERNATIVE SWIFT SYSTEM

On 22^nd March, Banking Tech reported that Russia has backed the global use of its own alternative to financial messaging network SWIFT to avoid the risk of Western sanctions.  It is said that Russia has held talks about joint use of Russia’s financial messaging system – an alternative to the Belgium-based Swift system – with China, India, Iran and Turkey.

https://www.bankingtech.com/2019/03/russian-lawmakers-give-green-light-to-alternative-swift-system/

THE BIGGEST BRIBE CASES IN RUSSIA

On 20^th March, Rferl published an infographic, saying that Russian State Duma deputy Vadim Belousov has been detained on suspicion of accepting a $49 million bribe. The infographic shows how this compares to other cases that have been tried in the courts.

https://www.rferl.org/a/29832637.html

BULGARIAN JUSTICE MINISTER RESIGNS AMID REAL ESTATE SCANDAL

Rferl on 23^rd March reported that Bulgarian Justice Minister Tsetska Tsacheva has resigned following media reports that she and 3 other ruling centre-right GERB party politicians have purchased luxury apartments at below market prices.  Her resignation comes a day after the Anti-Corruption Commission launched a probe into the properties purchased last year from the same developer.

https://www.rferl.org/a/bulgarian-justice-minister-tsacheva-resigns-scandal-real-estate/29838355.html

The Krebbs on Security blog on 22^nd March reported that Eric Eoin Marques was arrested in Ireland in 2013 on a US warrant and has been held in custody ever since.  Now Ireland’s Supreme Court cleared the way for Marques to be extradited to the US.  He allegedly ran sites on the Dark Web as Freedom Hosting.  Sites could only be accessed using the Tor Browser Bundle, which is built on the Firefox Web browser.

https://krebsonsecurity.com/2019/03/alleged-child-porn-lord-faces-us-extradition/

Insight Crime on 23^rd March reported that Jhon Viáfara was arrested on suspicion of seeking to export cocaine to the US – the latest in a string of cases of Colombian soccer players being involved in drug trafficking after retiring from the sport.  Viáfara started his career at Deportivo Pasto in 1998 before going on to have an international career, playing for Portsmouth and Southampton in the UK and Real Sociedad in Spain. He played 43 times for the Colombian team.

https://www.insightcrime.org/news/brief/clear-penalty-colombian-soccer-star/

On 22^nd March, CCN reported that the mystery surrounding the disappearance of $190 million in crypto from Canadian exchange Quadriga deepened as it was revealed the surviving founder is a reported ex-con who served 18 months in a federal US prison for identity theft, bank fraud and credit card fraud; deported from the US to Canada, and legally changed his name twice, 6 years before he co-founded Quadriga.  When Gerald Cotton died this plunged Quadriga into chaos, as he was reportedly the only person holding the private keys to access the exchange’s $190 million in customer assets.

https://www.ccn.com/the-criminal-past-of-quadriga-co-founder-has-been-revealed?src=ilaw

On 22^nd March, OFAC announced that it had designated Banco de Desarrollo Economico y Social de Venezuela (BANDES), and any entity in which BANDES owns, directly or indirectly, a 50% or greater interest.

It issued 4 new Venezuela-related General Licenses in connection with the designation of BANDES.

It also amended General License 4: Authorizing New Debt Transactions and Transactions involving Certain Banks Related to the Exportation or Re-exportation of Agricultural Commodities, Medicine, Medical Devices, or Replacement Parts and Components.

2 new FAQ have been issued in connection with the above actions.

https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20190322_33.aspx

https://home.treasury.gov/news/press-releases/sm636

 

22^nd March 2019

 US JUDGE EXTENDS BAN ON PUBLICATION OF 3D PRINTED GUN BLUEPRINTS

The Osburn Oracle on 21^st March reported that a US federal judge extended a ban on publishing blueprints for 3D printed guns online, issuing an injunction against Texas-based Defense Distributed.  19 states and Washington, DC are seeking to block it from making technical plans for an array of guns available globally on the internet.

https://osburnoracle.com/us-judge-extends-ban-on-publication-of-3d-printed-gun-blueprints/26675/

EUROPEAN ANTIQUES MARKET THREATENED BY NEW REGULATION

On 21^st March, Collyer Bristow published an article saying that the European Parliament plenary session adopted its position at 1^st reading of a draft EU Regulation on the import of cultural goods from outside the EU.  The Regulation is currently expected to come into full effect sometime between 2024 and 2026.  The idea behind the Regulation is to combat the trafficking of cultural goods to finance terrorism.  Anyone wishing to import an item will need to apply to the country of import for the grant an import licence.  Member States can only grant an import licence if they are certain that the exportation of the item from its country of origin was legal, and it will be for the applicant to prove that the exportation was legal.  The article says that there is likely to be a substantial impact on the EU antiques market.  Although the Regulation does make provisions for temporary licences in relation to antiques fairs, the trader will need to apply for a further licence before they can release the object to the buyer; and a buyer will be unlikely to risk buying an object when the legality of its origin cannot be guaranteed.  Currently, there are no licensing requirements for the importation of items of cultural interest to the UK (although there are laws dealing with such items illegally removed from their country of origin).

https://www.collyerbristow.com/media-centre/content/item/2306-european-antiques-market-threatened-by-new-regulation

HUMAN EMBRYO SMUGGLING IN INDIA

On 22^nd March, the FIT website reported that a recent case involving a Malaysian man bringing live human embryo into India has highlighted the vagueness of laws in India over assisted reproductive technology (ART).  Officials say the embryo was on its way to a clinic in Mumbai.  India has banned such imports, except for research purposes, and not for surrogacy – which is believed to be the reason for this import.

https://fit.thequint.com/fit/human-embryo-smuggling-case-in-india

BULGARIA: INTERNATIONAL INVESTMENT BANK DENIES RUSSIAN SECRET SERVICE TIES

On 21^st March, the Budapest Business Journal reported that the management board of the International Investment Bank (IIB), which recently announced it will move its headquarters from Moscow to Budapest, has released a statement denying what it says are “unfounded” media accusations of close ties to the Russian secret service and state.  IIB has 9 members: Russia, Bulgaria, Hungary, the Czech Republic, Romania, Slovakia, Cuba, Mongolia, and Vietnam.  The bank’s top 3 shareholders by paid-in capital are Russia, Bulgaria, and Hungary.  However, a commentary from the European Council on Foreign Relations notes that the IIB is registered among the official state organs and governing bodies of the Russian Federation.

https://bbj.hu/finance/international-investment-bank-denies-russian-secret-service-ties_163162

(ANOTHER) BRAZILIAN EX-PRESIDENT ARRESTED IN SWEEPING ANTI-CORRUPTION PROBE

NPR on 21^st March reported that former Brazilian President Michel Temer – who left office less than 3 months ago – was arrested in Sao Paulo as part of a sweeping anti-corruption investigation.  He is the second former president to be arrested in the ongoing “Operation Car Wash”.  Former President Luiz Inacio Lula da Silva was convicted of corruption and money laundering in 2017.

https://www.npr.org/2019/03/21/705572237/ex-brazilian-president-arrested-in-sweeping-anti-corruption-probe

MALTA HAS MADE NO SIGNIFICANT PROGRESS IN THE FIGHT AGAINST CORRUPTION’ – EUROPEAN COMMISSION

On 21^st March, the Times of Malta reported that the European Commission has said that Malta has not made any significant progress in the fight against corruption.  During a presentation about the Malta 2019 country report, European Commission Deputy Secretary General Céline Gauer said more work needed to be done for the strengthening of governance frameworks and the enforcement of AML measures.  She did note that there had been significant improvements in the staffing levels of supervisory authorities in the financial sector, and that Malta had made limited progress in general when it came to implementing the 2018 country-specific recommendations.

https://www.timesofmalta.com/articles/view/20190321/local/no-significant-progress-in-the-fight-against-corruption-european.705128

DENMARK: WOMAN CHARGED WITH LAUNDERING OVER 100 MILLION KRONER

On 21^st March, the CPH Post reported that the Danish state prosecutor for economic and international crime (SØIK), has just announce that a 45-year-old woman has been remanded in custody charged with laundering around 105 million kroner.  It says that changes in the law that came into effect in July 2018 laid the foundation for the charges, and the woman holds the somewhat dubious honour of being the first person to be charged under the new legal regime.  As well as money laundering, the woman has been charged with attempting to sell stolen goods for over 100 million kroner.  2 other men involved in the case have been released after being charged.

http://cphpost.dk/news/woman-charged-with-laundering-over-100-million-kroner.html

TRUST COMPANY DIRECTORS LINKED TO BRIBERY OF ST MAARTEN POLITICIAN

The Daily Herald in St Maarten reported on 21^st March a case involving crimes that were allegedly committed in Dutch St. Maarten, French St. Martin, the Netherlands, Spain, St. Kitts and Nevis, Anguilla, the Isle of Man and Panama between January 1997 and August 23, 2018.  The defendants are STC Administration and Management Service NV and Foundation Escrow STC’s directors who are charged in connection with activities linked to a consultant from the Netherlands who is suspected of money laundering, bribery of government officials and failure to file taxes – and who was arrested in the Netherlands in connection with the investigation into corruption, money-laundering and the payment and acceptance of bribes in the construction sector in St. Maarten.  The trust office directors allegedly committed these crimes at STC Administration and its legal predecessor, Standard Trust Company NV, between January 2008, and August 2017.  Among the transactions were those made in July and August 2011 which concerned 2 payments from Caribbean Advice and Consultancy (CAC) Ltd in the Isle of Man to Caribbean Real Estate/Re/Max in Anguilla for the purchase of property, allegedly on behalf of St. Maarten politician Theodore Heyliger.

https://www.thedailyherald.sx/islands/86205-trust-company-directors-linked-to-bribery-of-theodore-heyliger

CITIGROUP TO SELL VENEZUELAN GOLD

KYC 360 on 22^nd March reported that Citigroup Inc plans to sell several tons of gold placed as collateral by Venezuela’s central bank on a $1.6 billion loan after the deadline for repurchasing them expired, sources said, a setback for President Nicolas Maduro’s efforts to hold onto the country’s fast-shrinking reserves.

https://www.riskscreen.com/kyc360/news/citigroup-to-sell-venezuelan-gold-in-setback-to-president-maduro-sources/

FIFA GIVES LIFE BAN TO ECUADOR OFFICIAL FOR BRIBERY

On 22^nd March, KYC 360 reported that the FIFA ethics committee has given a life ban to Luis Chiriboga, a former Ecuador soccer federation president who took bribes linked to the Copa America and Copa Libertadores.

https://www.riskscreen.com/kyc360/news/fifa-gives-life-ban-to-ecuador-official-for-bribery/

TRANSPORT GOODS OUT OF THE UK BY ROAD IF THE UK LEAVES THE EU WITHOUT A DEAL: CHECKLIST FOR HAULIERS

On 21^st March, HMRC published a news release containing a checklist of documents that haulage drivers must carry to pass through customs if the UK leaves the EU without a deal.

https://www.gov.uk/guidance/transport-goods-out-of-the-uk-by-road-if-the-uk-leaves-the-eu-without-a-deal-checklist-for-hauliers

DoJ EASES STANCE ON USE OF “DISAPPEARING” MESSAGE PLATFORMS IN CORPORATE ENFORCEMENT POLICY STATEMENT

On 21^st March, Greenberg Traurig issued an Alert saying that the DoJ has eliminated a policy that some interpreted as requiring companies to internally ban common disappearing message platforms.  It says that, historically, many banks have prohibited the use of disappearing message platforms, but the change to DoJ policy now permits companies to use such platforms to the extent the companies comply with certain conditions.

https://www.gtlaw.com/en/insights/2019/3/doj-eases-stance-on-use-of-disappearing-message-platforms-in-corporate-enforcement-policy

MEXICO TO TEST E-MANIFEST FOR BONDED FACILITY ARRIVALS BY AIR

Baker McKenzie on 18^th March reported that the Mexico’s Tax Administration (SAT), which oversees the Customs Service, said that from March 11^th it will test the electronic transmission of air cargo manifests via VUCEM (the single window) for goods entering bonded facilities.

http://www.internationaltradecomplianceupdate.com/2019/03/18/mexico-to-test-e-manifest-for-bonded-facility-arrivals-by-air/#page=1

THE 2010 BEIJING CONVENTION AND PROTOCOL: NEW TOOLS TO ADDRESS NEW THREATS TO CIVIL AVIATION SECURITY – LITTLE ADOPTED TO DATE

In its Aviation Newsletter for February, Clyde & Co includes an article saying that since the Tokyo Convention of 1963 the international community has worked to allow for criminal acts affecting civil aviation security to be criminally punished everywhere in the world and to allow for those responsible to be prosecuted.  It then says that a additional step has been accomplished towards the unification and strengthening of civil aviation security with the entry into force in July 2018 of the Beijing Convention and Protocol – the Convention on the Suppression of Unlawful Acts relating to Civil Aviation and of the Protocol Supplementary to the Convention for the Suppression of Unlawful Seizure of Aircraft.  These followed the 9/11 attacks, when it was found that the existing legal framework of international instruments relating to terrorism and in particular to the potential use of aircraft as weapons needed to be improved and updated in order to take into consideration the new threat to aviation security and to allow a more effective means of prevention.  The Beijing Convention expands the list of criminal offences already contained in the previous international treaties and expands their scope, and it provides that these (listed in the article) shall be criminal offences, punishable by severe penalties.  The Convention also the criminalises the attempt to commit an offence, allows for accomplice liability and conspiracy, and is not limited to persons on board of the aircraft, but includes as authors persons on the ground who participated in the commission of the offence as well as legal entities.  The Protocol expands the scope of the hijacking offence, which is no longer limited to hijackings that occur in flight but, now includes pre- or post-flight.  It also adds the same ancillary offences, such as attempt to commit, accomplice liability etc.  Both extend the circumstances to the list of those already contained in the Montreal Convention in which a State Party may establish its jurisdiction over an offence.  Both still contain the same principle as in previous treaties: prosecute or extradite, and none of the offences defined can be considered as a political offence.  However, to date, the Beijing Convention has been ratified by only 16 States and the Beijing Protocol by only 15 States.  The article says that if the Convention and Protocol fails to attract more contracting States, the Beijing legal regime will remain theoretical.  It points out that while France has ratified both Beijing treaties, the US, the UK, the Russian Federation and many others have not.

https://www.clydeco.com/uploads/Files/Newsletters/Aviation_6_monthly_newsletter/Aviation_Newsletter_(February_2019)_-_Final.PDF

ADMITTING TAX FRAUD TO HMRC USING THE CONTRACTUAL DISCLOSURE FACILITY

On 22^nd March, a news release from HMRC containing updated information that explains that if HMRC suspects you of committing tax fraud, and will offer you a contract though the Contractual Disclosure Facility (CDF).  It also explains what to do if you want to own up voluntarily to committing fraud.  CDF is only suitable for people who want to admit to tax fraud.  It is not for people who want to tell HMRC about errors, mistakes or avoidance schemes where there is not fraud.  The CDF is for individuals only, this disclosure facility is not suitable for companies.

https://www.gov.uk/guidance/admitting-tax-fraud-the-contractual-disclosure-facility-cdf#history

US ACCUSES 2 RUSSIAN PORTS OF VIOLATING SANCTIONS AGAINST NORTH KOREA

UA Wire in Ukraine on 22^nd March reported that OFAC suspects 2 Russian ports in Vladivostok and Nakhodka of violating the UN sanctions regime against North Korea.  According to the US Treasury, vessels that participated in the transshipment of oil and coal to North Korean tankers visited Vladivostok and Nakhodka ports; and, in addition to the Russian ports, this scheme also involved 4 ports in China, 4 in Taiwan, 3 in South Korea and a port in Malaysia.  In addition, more than 60 vessels appeared in the lists of violators of the sanctions regime against North Korea and, on March 21^st, 18 more ships from different countries were added to the list.

http://uawire.org/the-us-accuses-two-russian-ports-of-violating-sanctions-against-north-korea

UK FOOD CRIME UNIT PLEDGES TOUGHER ACTION ON FOOD FRAUD

The BBC on 22^nd March reported that the National Food Crime Unit’s new chief, Darren Davies, wants to see firms that fraudulently use cheaper substitutes criminally prosecuted.  It says that food fraud rarely makes the news – the last major one was the 2013 horsemeat scandal, though olive oil and coffee are also identified as prone to substitution.  Fish, grains, honey, coffee, tea, spices, wine, certain fruit juices, milk and meat are the mostly commonly subject to fraud, according to a list drawn up by the EU.  While the risk to health is the most serious issue, there are also significant financial costs associated with food fraud.  Research carried out last year by NFU Mutual suggested that it costs the UK food and drink industry up to £12 billion a year.

https://www.bbc.co.uk/news/business-47664677

VIETNAM JAILS FORMER VIETSOVPETRO OIL JOINT VENTURE OFFICIALS IN GRAFT CRACKDOWN

Reuters on 22^nd March reported that a court in Vietnam has jailed 2 former officials of a Vietnam-Russia oil joint venture, after convicting them of abusing their power to appropriate property.  Vietnam has launched investigations into hundreds of public officials and jail several executives at state-owned enterprises.

https://www.reuters.com/article/us-vietnam-security-trial/vietnam-jails-former-vietsovpetro-officials-in-graft-crackdown-idUSKCN1R30W9

SCRAP METAL COMPANY TOPS UK TAX DEFAULTER LIST OWING £16.4 MILLION

Accountancy Daily on 22^nd March reported on the recently released tax defaulters list from HMRC.  HMRC’s latest list of major tax defaulters is topped by a scrap metal company, JKL Ltd, owing £16.4 million on £22.9 million unpaid tax, followed by a restaurant owing £626,461, with a raft of takeaways and construction services also featuring.

https://www.accountancydaily.co/scrap-metal-company-tops-tax-defaulter-list-owing-ps164m

IRELAND’S GAMBLING MARKET TO GET A NEW REGULATORY WATCHDOG EVENTUALLY

On 22^nd March, Calvin Ayre reported that Ireland’s gambling market will get a new regulatory watchdog, although the new body won’t be in place until late-2020 at the earliest.  Ireland’s government has voted in favour of establishing a new gambling regulatory authority, which will be tasked with overseeing all gambling activity in the Republic, including online betting, via the issuing of licences and the imposing of penalties on operators who fail to toe the line.

https://calvinayre.com/2019/03/21/business/ireland-new-gambling-regulatory-body/

https://www.out-law.com/en/articles/2019/March/irish-gambling-laws-face-overhaul/

PHILIPPINES: USED CLOTHING (UKAY-UKAY) SMUGGLING

On 22^nd March, Manila Bulletin reported that around 60 bundles of used clothing or ukay-ukay were discovered in a ship that docked at the Port of Cagayan de Oro, the Philippine Coast Guard said.  The law bans the importation of textile articles commonly known as used clothing.

https://news.mb.com.ph/2019/03/22/ukay-ukay-found-in-a-ship-docked-at-cdo-port/

UK: BRIBERY ACT SHINES WHILST AML SUPERVISION STRUGGLES

Another interesting ang timely article from Corker Bining on 22^nd March saying that reports on the Bribery Act 2010 and the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) have given contrasting assessments of the performance of two keystones in the fight against financial crime and corruption.  On the Bribery Act, it notes that only minor issues were flagged on the law and related guidance, with suggestions that SME should be given more assistance on ‘adequate procedures’ to prevent bribery and with conducting business in foreign jurisdictions, although stopping short of suggesting that low-level ‘facilitation payments’ commonly encountered overseas should be exempt from criminal liability.  However, investigators were criticised, with a recommendation that the City of London Police’s anti-bribery training programme be expanded to forces across the country and that the SFO and DPP publish reports on speeding up bribery investigations and improving communication with suspects.  The Parliamentary Committee stopped short of endorsing a broader ‘failure to prevent’ offence.  The OPBAS report on themes arising from its 2018 AML supervisory assessments painted a less enthusiastic picture.

https://www.corkerbinning.com/bribery-act-shines-whilst-aml-supervision-struggles/

NORWAY FSA FOUND INSUFFICIENT AML ASSESSMENTS AT BANKS

Reuters on 22^nd March reported that several banks operating in Norway made insufficient AML risk assessments last year, the country’s Financial Supervisory Authority (FSA) said in its annual report.

https://www.reuters.com/article/europe-moneylaundering-norway/norway-fsa-found-insufficient-anti-money-laundering-assessments-at-banks-idUSL8N21942L?rpc=401&

WHY MONEY LAUNDERING MATTERS FOR ESTATE AGENTS

An article in The Negotiator on 22^nd March looks at the social and economic damage that serious and organised crime inflicts on the UK and why this makes it so important that estate agents engage in the battle to prevent money laundering.  It says that for estate agents who are battling to reach sales targets and rushing about to attend viewings, helping the nation combat crime could seem like a remote prospect – but says that they do have a part to play.  It includes a short case study where the scam was given legitimacy because the solicitor and estate agent involved were persuaded that the fraudster was the real owner of the property and were engaged to help ‘sell’ the property.

https://thenegotiator.co.uk/why-money-laundering-matters/