Following amendment of the Export Control Order 2008, on 30th June the Department of International Trade published an updated list of ‘controlled’ military and dual-use items that require an export licence. The Consolidated List includes the –
On 30th June, the Department of International Trade published Notice to Exporters 2019/10. It reports that the Export Control Order 2008 has been amended and the consolidated list of strategic military and dual-use items that require export authorisation has been updated accordingly. A new amending order implements EU Directive 2019/514, making changes to the list of defence-related products corresponding to changes made to the European Common Military List (CML) that was previously updated following changes agreed in the Wassenaar Arrangement (an international export control regime). It also removes Eritrea from the list of countries at Part 2 Schedule 4, which lists countries and destinations embargoed and subject to transit control for military goods, and revokes provisions that provided for offences connected to breaches of UN and EU sanctions on Eritrea.
On 27 June, CFATF published an article saying that, as a result of Trinidad and Tobago’s progress in strengthening its framework to tackle money laundering and terrorist financing since the 2015 mutual evaluation, the Caribbean Financial Action Task Force (CFATF) has re-rated the country on 18 of the 40 Recommendations. Trinidad and Tobago has been in an enhanced follow-up process. A Follow-Up Report analyses Trinidad and Tobago’s progress in addressing the technical compliance deficiencies identified in the Mutual Evaluation Report. The article lists the 18 Recommendations that have been re-rated. However, it remains in enhanced follow-up.
The FATF-style regional body, the Caribbean FATF on 12 June published news of the outcomes of its recent Plenary. It discussed the progress that Trinidad and Tobago made since the adoption of its MER in 2015, with the Plenary agreeing to re-rate Trinidad and Tobago on 18 FATF Recommendations. There were updates on the ongoing mutual evaluation status of the Turks and Caicos Islands, Bermuda, Venezuela and St. Lucia. There were agreed amendments to the 4th Round Mutual Evaluation process.
https://www.cfatf-gafic.org/home/cfatf-news/563-outcomes-of-the-cfatf-may-2019-plenary-meeting
In the light of the success of the Chernobyl TV series, Rferl published an interesting infographic on 15 June.
https://www.rferl.org/a/soviet-nuclear-power-plants/29999381.html
Still having problems, and still on the laptop…hope to be back to what passes for normal ASAP…
29 June 2019
UK oil and gas industry warned to know commodity codes or risk damage from no-deal Brexit
Oilfield Technology on 26b June reported that an oil and gas logistics expert has warned UK businesses to ensure they know the commodity codes for goods they trade with the EU now or risk damaging consequences from a no-deal Brexit. Companies currently did not need to quote commodity codes to HMRC for goods traded with the EU, as the UK was part of its customs union. However, that would change if the UK left the bloc without a withdrawal agreement, which could happen as soon as 31 October.
WHAT THE UK COURT OF APPEAL DECISION ON ARMS EXPORTS TO SAUDI ARABIA MEANS FOR OTHER COUNTRIES.
On 24 June, an article on Just Security in the US says that the Court’s decision could provide guidance for other EU Member States and the US on how to view their own weapons sales to partner nations. It argues that the Court ruled that, in essence, in making decisions on arms sales, the UK Government could no longer ignore uncomfortable facts. It points out that Criterion 2(c) of the UK Consolidated EU and National Arms Export Licensing Criteria — derived from a 2008 EU Common Position on military exports, which is binding on EU States — requires the government to refuse an export license where there is a “clear risk” that the military materiel to be exported “might be used in the commission of a serious violation of international humanitarian law”.
Meanwhile, a report from SIPRI on 28 June published a background article looks at the UK decision, its background and potential implications.
Quebec lobbying firm may have broken Sudan sanctions with deal ‘striving’ to supply equipment for military
On 28 June, the Globe & Mail in Canada reported that a Montreal lobbying firm working for a “notorious” Sudanese military leader to procure equipment for that country’s armed forces could fall foul of Canadian sanctions, as well as new arms brokering controls that come into effect in September, experts say. Dickens & Madson (Canada) Inc is headed by Ari Ben-Menashe, a former Israeli intelligence officer whose firm has previously served as a paid lobbyist for Robert Mugabe and powerful Libyan militia leader Khalifa Haftar. The newspaper says that the firm’s contract with Sudan was signed with General Dagalo, the deputy leader of Sudan’s military council.
https://www.theglobeandmail.com/politics/article-quebec-company-may-have-broken-sudan-sanctions/
OFFICIALS IN FLORIDA SEIZE THOUSANDS OF WEAPONS IN MASSIVE INTERNATIONAL SMUGGLING SCHEME
On 28 June, various outlets reported that 2 people had been charged in Florida with orchestrating a massive arms smuggling scheme involving thousands of weapons and parts to send to South America. Authorities seized 5,300 firearms and components, including many powerful AR15 rifles. More than 2 dozen people have been arrested in Argentina, Brazil and the US. In addition to the rifles and parts, authorities seized 156 handguns, 30,000 rounds of ammunition, 167 explosive grenades, 15 silencers and $100,000 in cash.
Taiwan: Peer review shows lowest risk of money laundering
In its 30 June edition, the Taipei Times reported that, following an assessment by members of the Asia/Pacific Group on Money Laundering (APG), the group has promoted Taiwan from “enhanced follow-up” to “regular follow-up,” indicating the lowest risk of money laundering, the group said in a report. Taiwan made it onto the “regular follow-up” list after achieving “substantial” marks on 7 of 11 factors used to measure a nation’s effectiveness in fighting money laundering. A final report on the third-round peer review is to be presented for membership approval at the APG annual meeting in Canberra on August. Taiwan was placed on the “regular follow-up” list in 2007 and was demoted to the “enhanced follow-up” list by the APG in 2011, before being placed on the “transitional follow-up list” in 2014. It was removed from the transitional list in July 2017, pending the results of the current evaluation.
http://www.taipeitimes.com/News/front/archives/2019/06/30/2003717843
Canadian firm named in pig-drug scandal may be victim of fraud
The Montreal Gazette on 28 June reported that Frigo Royal, previously named as the company that had sent contaminated pork to China may have been itself a victim of a fraud. It says that Canada was first notified by China on June 14 that a pork shipment contained traces of ractopamine, a feed additive banned in the Asian nation. At the time, the Canadian Pork Council said the meat came from Frigo Royal. The Canadian Food Inspection Agency later discovered the export certificate was fake, leading to a blanket ban on all Canadian meat by China and questions about the pork’s origin. Canada is hoping to resume meat exports to China even as the official investigation continues into the forged documents that triggered the ban.
Russia & China agree to significantly boost trade in ruble and yuan at the expense of the US dollar
Customs Today on 29 June reported that Moscow and Beijing have inked an intergovernmental agreement to switch to national currencies in bilateral trade and boost cross-currency settlements up to 50% as they ramp up efforts to move away from the US dollar. The 2 countries will have to develop ruble and yuan financial instruments to boost cross-currency trade and mitigate risks of exchange rate fluctuations.
When Do Directors Owe Their Duties to a Company’s Creditors Rather Than Its Shareholders?
Conyers has published a briefing about a recent Court of Appeal case in which an otherwise lawful dividend may still be found to be a transaction defrauding creditors. In addition, the Court of Appeal ruled that, whilst the duty to act in the interests of creditors is engaged at a point when the company’s circumstances fall short of actual, established insolvency, there however needs to be more than “a real, as opposed to remote, risk of insolvency” for the duty to be engaged.
World Drug Report 2019: 35 million people worldwide suffer from drug use disorders while only 1 in 7 people receive treatment
On 26 June, the UN Office for Drugs and Crime reported the publication of the report which says that improved research and more precise data have revealed that the adverse health consequences of drug use are more severe and widespread than previously thought. It says that Fentanyl and its analogues remain the key problem of the synthetic opioid crisis in North America, but West and Central and North Africa are experiencing a crisis of another synthetic opioid, tramadol. Global seizures of tramadol jumped from less than 10 kg in 2010 to almost 9 tons in 2013 and reached a record high of 125 tons in 2017. The Report shows that an area where the international community has had a degree of success is in addressing new psychoactive substances (NPS), evidenced by a decline in the number of NPS identified and reported for the first time to UNODC.
In Syria, Russia found the chance to showcase its swagger–and its robot weapons
An article in the Bulletin of the Atomic Scientists on 28 June said that one of the goals of Russian intervention was to make money. Specifically, by selling some of the military hardware Russia was showcasing in Syria. It turns out that weaponry includes next-generation robotic systems, some which can operate autonomously. Russian arms makers showed off some of these military technologies in June at a major arms convention in Moscow. However, even if Russian arms makers and the government are touting experience in Syria as a selling point for robotic weaponry, the country’s arms exports may actually be falling, the article says.
Eversheds Sutherland response to UK Jurisdiction Taskforce consultation on cryptoassets, distributed ledger technology and smart contracts
On 28 June, the law firm published its evidence submitted to Parliament regarding the promotion of blockchain and cryptoasset technologies in the United Kingdom. In May, the UK Jurisdiction Taskforce published a consultation paper to identify key issues of legal uncertainty regarding cryptoassets, DLT and smart contracts with the aim of providing clarity in this area of law through the means of a legal statement. The consultation ran to 21 June. The UKJT is one of the 6 task forces of the LawTech Delivery Panel. Its objective is to demonstrate that English law and the jurisdiction of England and Wales together provide a state-of-the-art foundation for the development of DLT, smart contracts and associated technologies. The consultation sought input from stakeholders on the principal issues of perceived legal uncertainty about the status of cryptoassets and smart contracts under English private law, to inform what should be addressed in the legal statement.
Luxembourg isn’t a tax haven anymore
On 27 June, an article from law firm Eversheds Sutherland contained a statement by the Director of the Centre for Tax Policy and Administration of the OECD that Luxembourg fully respects the rules and is not dragging its feet, described as a welcome acknowledgement of the efforts of Luxembourg to ensure that it no longer bears the characteristics of a tax haven.
Dentons’ Taking Security Guide
On 28 June, Dentons published its Taking Security Guide which offers a clear, practical Q&A style overview of the requirements and regulations on taking security in more than 30 countries across the globe. This Guide is intended to be an overview only and it does not serve as exhaustive advice on taking security in the jurisdictions covered.
ISLE OF MAN: ACTS FOR PROMULGATION AT TYNWALD DAY 2019
The Tynwald Library in the Isle of Man has published a list of the recent Acts to be promulgated at the open air sitting of Tynwald on the national day of 5 July. Each Act of Tynwald must be promulgated on Tynwald Hill within 18 months of enactment or it ceases to have effect.
http://www.tynwald.org.im/about/tynday/TD2019/Pages/2019Acts.aspx
On 28 June, Dentons published its Taking Security Guide which offers a clear, practical Q&A style overview of the requirements and regulations on taking security in more than 30 countries across the globe. This Guide is intended to be an overview only and it does not serve as exhaustive advice on taking security in the jurisdictions covered.
In its 30 June edition, the Taipei Times reported that, following an assessment by members of the Asia/Pacific Group on Money Laundering (APG), the group has promoted Taiwan from “enhanced follow-up” to “regular follow-up,” indicating the lowest risk of money laundering, the group said in a report. Taiwan made it onto the “regular follow-up” list after achieving “substantial” marks on 7 of 11 factors used to measure a nation’s effectiveness in fighting money laundering. A final report on the third-round peer review is to be presented for membership approval at the APG annual meeting in Canberra on August. Taiwan was placed on the “regular follow-up” list in 2007 and was demoted to the “enhanced follow-up” list by the APG in 2011, before being placed on the “transitional follow-up list” in 2014. It was removed from the transitional list in July 2017, pending the results of the current evaluation.
http://www.taipeitimes.com/News/front/archives/2019/06/30/2003717843
Still away, but home soon!
28 June 2019
Amount of Nuclear Material under IAEA Safeguards Continues to Increase
On 25 June, the International Atomic Energy Agency announced the publication of its Safeguards Statement for 2018. The IAEA seeks to verify that States around the world use nuclear material solely for peaceful purposes. It does this by applying technical measures, known as safeguards. Each year, the IAEA reports to its Board of Governors on its findings and conclusions through the Safeguards Implementation Report. This forms the basis of the Safeguards Statement. The year also saw an increase of the number of nuclear facilities and locations outside facilities at which safeguards inspectors conduct verification activities, reaching a total of 1,314 worldwide. Since 2010, the amount of nuclear material under safeguards has increased by 24%.
IAEA Conference on the Management of Spent Fuel from Nuclear Power Reactors
On 24 June, the International Atomic Energy Agency announced the start of this conference where over 300 professionals, regulators and policy makers in the field of spent fuel management are meeting in Vienna. It explains that management of spent fuel is a complex undertaking, involving storage, transportation, possibly recycling, and disposal. Countries operating nuclear power programmes either reprocess and recycle their spent fuel, or they condition it for disposal in deep underground repositories.
Pharmacists ask Home Office for guidance on THC levels in cannabidiol oil
On 28 June, the Pharmaceutical Journal reported that confusion around the legal threshold for tetrahydrocannabidol (THC) in cannabidiol oil has led the Royal Pharmaceutical Society to request “clear guidance” on the matter. It has written to the home secretary calling for “clear guidance” on the permissable level of psychoactive tetrahydrocannabidol (THC) in cannabidiol (CBD) oils. A recent report found that almost half of the commercially-available CBD oil it tested contained detectable amounts of THC, making them “technically illegal within the UK” – 45% of products tested had “measurable levels of THC”, with a mean content 0.04%. CBD is not psychoactive and so is not a controlled substance. It may be sold through retail outlets as long as no medical claims are made for a product.
The report can be found at –
https://www.pharmaceutical-journal.com/20206419.article
OFAC Sanctions Nicolas Maduro’s Son for Serving in Venezuela’s Government
On 28 June, the US Treasury announced that it has targeted Nicolas “Nicolasito” Ernesto Maduro Guerra (Maduro Guerra) for being a current or former official of the Government of Venezuela.
https://home.treasury.gov/news/press-releases/sm719
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20190628.aspx
Advisory on Widespread Public Corruption in Venezuela
On 3 May, OFAC issued an updated Advisory to alert financial institutions of continuing widespread public corruption in Venezuela under the regime of Nicolas Maduro, which the U.S. Government considers illegitimate. It also alerts financial institutions to additional methods utilized by corrupt Venezuelan senior political figures (and their associates, family members, and front persons) to move and hide corruption proceeds.
Financier Bill Browder Plays the Long Game to Expose Russian Money Laundering
On 28 June, the Wall Street Journal carried an interview with Browder, who has asked prosecutors across Europe to open criminal investigations into suspicious transactions linked to the death of Sergei Magnitsky, who died in 2009 while in Russian custody after he was detained on charges related to the tax fraud he uncovered. In several cases, however, prosecutors have rejected his requests. Browder described his focus on criminal investigations as a first step in his long-term plan to push for legal action against bank executives whose companies have laundered money linked to the Magnitsky cases.
Not Every FCPA Declination Must Be Public
The Wall Street Journal reported on 28 June that the US DoJ does not always publicise its decision to drop the prosecution of a company that may have violated the Foreign Corrupt Practices Act. In circumstances where the conduct and its financial impact are minor, the decision not to prosecute may be kept under wraps. See the speech containing this information at –
US Charges Former and Current Venezuelan Electricity Officials
The Wall Street Journal has reported that the US DoJ is to prosecute Luis Alfredo Motta Dominguez, a former minister of electric power, and Eustiquio Jose Lugo Gomez, a former government procurement official, with laundering the proceeds of a bribery scheme involving Venezuela’s state-owned electricity company, Corporación Eléctrica Nacional SA, or Corpoelec. They have also been listed by OFAC.
European Commission study on taxes in the field of aviation and their impact
An article from CMS Law reports that the European Commission ordered a study of taxes imposed in the EU and selected non-EU countries. The study contains an inventory of taxes in the air transport sector and an assessment of their economic and environmental impacts. The report concluded that, in general, new taxes or an increase in existing taxes would have a negative impact on the air transport sector in terms of direct employment or direct value-added, but at the level of each Member State the impact on overall employment, fiscal revenue and GDP would be negligible. New or increased taxes would lead to a reduction in passengers and flights and therefore limit the negative impacts on the environment. However, it says, these straightforward conclusions must be tempered by the differences between the national taxation regimes and the various priorities given to the sector by Member States.
Reporting requirements under German Anti-money laundering law
An article from Park Wirtschaftstrafrecht examines the requirements to submit SAR in Germany, and the consequences of non-reporting.
https://www.lexology.com/library/document.ashx?g=b49fd832-7fc6-4ae2-9bf5-5e53797888f9
Modern slavery: UK directors can be personally liable for employee exploitation
An article from Allen & Overy on 25 June said that the High Court has held a company’s officers personally, jointly and severally liable to its employees as victims of modern slavery. The officers had deliberately and systematically utilised coercive, threatening and punitive financial measures to exploit the company’s employees and force them to live and work in abysmal conditions. This breached the officers’ duties to act in the company’s best interests and induced it to breach its contractual and statutory obligations to the claimant employees. The article says that the decision illustrates that company officers may be held personally liable for modern slavery and also clarifies the law on a director’s liability for inducing a company’s breach of contract.
Origin Fraud – when “Made in Vietnam” is not made in Vietnam
An article from K&L Gates on 27 June says that, in the face of actual or potential US tariffs, companies in China have been busy trying to diversify their manufacturing operations or realign their supply chains for goods destined for the United States. It says that Vietnam remains a favoured production location for companies looking outside of China. Unfortunately, some companies have tried to take a “short cut”, importing China-origin goods into Vietnam and relabeling them as “Made in Vietnam”, so as to avoid additional US import duties. It says that other countries, such as Malaysia, Cambodia, and Lao People’s Democratic Republic, have also been identified as possible conduit countries for fraudulent origin labelling. It is said that Vietnam Customs is aware of this problem and has increased its enforcement actions. It says that mislabeling the country of origin is illegal in the country of import as well as the country of export; and goods of this nature transiting or transshipping through third countries may also contravene the customs laws of those countries.
http://www.klgates.com/origin-fraud–when-made-in-vietnam-is-not-made-in-vietnam-06-25-2019/
US adds 5 recently developed or developing technologies to the Export Administration Regulations’ Commerce Control List (CCL) that are essential to US national security
An article from Arent Fox on 28 June said that in May the Department of Commerce, Bureau of Industry and Security (BIS) had amended 4 export control classification numbers (ECCN) and added a new one. The 5 additions implemented changes made to the Wassenaar Arrangement List of Dual-use Goods and Technologies and are said to be essential to US national security.. The article reviews the new additions.
https://www.lexology.com/library/detail.aspx?g=0e74a872-1c36-4b83-a379-79a54ebcaccc
Malta to Launch New Agency to Fight Financial Crime
On 28 June, KYC 360 reported that Maltese Finance Minister Edward Scicluna has disclosed plans to create a new governmental agency tasked with increasing money laundering prosecutions in the country. The structure of the proposed investigatory body has yet to be determined.
https://www.riskscreen.com/kyc360/news/malta-to-launch-new-agency-to-fight-financial-crime/
China Quietly Defies US Sanctions on Iran
On 28 June, KYC 360 reported claims by the FT that satellite imagery and other data show that the government of China has continued to purchase Iranian crude oil. The FT says that the government of China received its first delivery of Iranian oil when a Suezmax tanker docked in Jianzhou Bay. Another Iranian supertanker is expected to deliver as much as 2-million barrels of oil to the Chinese province of Tianjin before the end of the month, according to the report.
https://www.riskscreen.com/kyc360/news/china-quietly-defies-us-sanctions-on-iran-ft/
Montenegro – widely condemned law does not deserve a second chance
Transparency International on 26 June reported on what is calls unconstitutional amendments to the Law on Classified Information in Montenegro, which would undermine the country’s freedom of information laws and anti-corruption efforts. The draft law was already withdrawn once by the government in March this year, after a coalition of 25 Montenegrin NGO opposed it. The proposed law would allow the government to declare information classified if its disclosure would affect the ability of a government body to function. It would also remove controls over the manner in which state bodies declare information classified. It also reports that the European Commission said that Montenegro should reverse the growing trend of public institutions declaring information classified as a matter of priority, as it prevents effective oversight by civil society.
African oligarchs and their global networks of corruption
An article from the African Investigative Publishing Collective and ZAM on 26 June says that what all countries that have been investigated have in common is that corruption is not a simple crime committed by individual rotten apples, but by oligarchs with international connections. The article says that a transnational investigation has been all about middlemen – international businesspeople, bankers, accountants, lawyers and sometimes even diplomats, who are “connected to the very top”. An investigation over 9 months in different African countries show that African oligarchs from Mozambique and Mali to Liberia and Kenya are assisted by such international and local business connectors in joint efforts to make money from natural resource wealth and state budgets.
Morocco’s surging trade in fossils
ENACT Africa on 7 June published an article asking how do Morocco’s rare fossils end up in auctions and collections as far afield as Paris or Mexico City? The Atlas mountain range contains large quantities of fossils. Traditionally, local populations have exploited these resources, selling ancient fossils to tourists and collectors. Since the 2000s, however, this activity has transformed into a structured and lucrative business, though the export of ‘objects of anthological or archaeological interest’ is prohibited by law.
https://enactafrica.org/research/trend-reports/moroccos-surging-trade-in-fossils
ISLE OF MAN SETS OUT POSITION ON PUBLIC REGISTER OF BENEFICIAL OWNERSHIP OF COMPANIES
On 28 June, the Isle of Man published a document that sets out the Government’s position in relation to a recent announcement regarding public beneficial ownership registers. The document is said to provide helpful background information and clarifies the commitments made.
EU REMOVES 17 ENTITIES FROM IRAQ SANCTIONS LISTS
EU Regulation 2019/1103/EU has followed the lead of the UN and removed 17 entities from its Iraq sanctions lists.
India: IMA “Ponzi scam” – the unravelling of an investment fraud
The Hindu in its 29 June edition said that when the Bengaluru-based IMA Group of Companies wound up its operations, it not only left thousands of investors in the lurch but also raised questions on political patronage to Ponzi schemes that are being run in the name of Islamic banking. It is about the IMA Group of Companies and its founder and managing director, Mohammed Mansoor Khan. It says that Mansoor was involved in the real estate, jewellery, healthcare and education sectors and fashioned his company as a ‘halal trading firm’, allegedly with the blessings of local political and religious leaders. His modus operandi was similar to that of a Ponzi scam where customers were lured by high dividends.
https://www.thehindu.com/news/national/the-unravelling-of-an-investment-fraud/article28213945.ece
New York man charged by US authorities boasted of generating returns of 362% in fewer than 5 years by day-trading Standard & Poor’s 500 futures contracts
CNBC on 28 June reported that Paul Rinfret has been charged with defrauding investors out of more than $19 million and spending much of it on luxuries. The DoJ charged Paul Rinfret with securities fraud and wire fraud, while the SEC filed civil charges against the 70-year-old.
IMF urges Latvia to push on with fight against money laundering
Reuters on 28 June reported that the IMF has urged Latvia to maintain momentum in its fight against money-laundering as the Baltic nation tries to restore its reputation after recent scandals involving the financial sector. The country’s third largest bank ABLV was shut down last year. Stung by international criticism, the government has launched an effort to clean up the financial sector ahead of an upcoming review by Moneyval. Earlier this month, the Latvian parliament boosted powers of its banking regulator in combating money laundering and terrorism financing.
Unenforced judgments costing companies millions
On 28 June, the Law Society Gazette reported that, in a survey of more than 500 financiers in the UK, US and Canada, 78% of respondents said their companies are owed at least $10 million by judgment debtors, while half said their companies are owed $20 million or more. The research also found that legal costs are deterring businesses from entering disputes in the first place. Over 60% of respondents said their companies had avoided court action because of legal expenses.
https://www.lawgazette.co.uk/news/unenforced-judgments-costing-companies-millions/5070790.article
UK information watchdog raids Liverpool offices over data sales to PI firms
The Law Society Gazette on 28 June reported that the ICO had searched 2 Liverpool addresses as part of a probe into personal data sold to solicitors. the business targeted was suspected of carrying out high volumes of data-farming activity, known as blagging or vishing. It is alleged that motor accident victim data has been illegally obtained since 2017, with the details sold to solicitors for personal injury claims.
National Audit Office report on Serious and Organised Crime
In the UK, the NAO has published a report saying that the challenges in tackling serious and organised crime are formidable. There are more than 4,500 identified UK organised crime groups operating in changing and often unpredictable ways. The government estimated that the annual social and economic cost of serious and organised crime was £37 billion in 2015-16. The government published its serious and organised crime strategy in 2013 and revised it in 2018. The NAO examined the government’s strategic response to serious and organised crime, and the extent that the enablers to successful implementation of the 2018 strategy have been put in place. We examined the work of the Home Office and the NCA, who together oversee and co-ordinate the government’s response. The report does not look in detail at how other government bodies are set up to contribute. It says that serious and organised crime is evolving at a rapid rate, as criminal networks identify new vulnerabilities and adapt their activity in response to law enforcement action and the opportunities offered by new technology. It says that there remain some significant and avoidable shortcomings that may prevent government and its partners from meeting its aim to “rid our society of the harms of serious and organised crime”.
https://www.nao.org.uk/report/serious-and-organised-crime/
WILLIAM HILL CANCELS SWISS BETS AND RETURNS CANCELLED BETS
On 28 June, Calvin Ayre reported that UK-based William Hill has told clients in Switzerland that all ante-post wagers will be voided and they will no longer accept bets from the country as of mid-day on June 28. The reasons provided for canceling the wagers was due to “regulatory reasons”, but the company does not state specifically what regulations forced the decision.
The Curious Case of Dr. K and Mr Chrysostomides
On 28 June, OCCRP published an article about Kypros Chrysostomides, one of Cyprus’s most elite lawyers. But to Paul Manafort, he was known as “Dr. K.,” the fix-it man, who set up more than a dozen shell companies in Cyprus for Manafort and Manafort’s former associate Rick Gates. Through those companies, the American lobbyists received payments for political consultancy work in Ukraine.
https://www.occrp.org/en/investigations/the-curious-case-of-dr-k-and-mr-chrysostomides
Switzerland to Tighten its AML Rules
An article from OCCRP on 28 June reported that Switzerland plans to tighten its AML regulations and bring them in line with international standards. The Parliament will review the proposals later this year, and if passed they will come into effect in 2021.
Nearly $140,000 Worth Of Tyres From China Seized By Customs Officers In Philadelphia
CBS in Philadelphia on 28 June reported that a total of 3,942 tyres were seized in Philadelphia earlier in June. Valued at nearly $140,000, they violated federal motor vehicle safety standards and regulations. Described as trailer or mobile home tires, they were headed to a business in Pennsylvania.
https://philadelphia.cbslocal.com/2019/06/26/nearly-4000-tires-seized-customs-officers/
UK Supreme Court clarifies the rules for establishing anchor defendant
On 28 June, Ince & Co published an article about a recent decision allowing proceedings against a UK-based “anchor defendant”, so also securing jurisdiction in England against the overseas defendant. In the case, 1,826 Zambian citizens living in close proximity to a mine, alleged that discharge from the mine polluted the local waterways, caused personal injury, and damaged property, leading to loss of income. The claim was brought in both negligence and for breach of Zambian environmental law. The article says that the Supreme Court’s decision is out of the ordinary in that it bucks the trend of refusing jurisdiction in cases where anchor defendants are sued in respect of claims against overseas subsidiaries. In doing so, the Supreme Court has emphasised four key factors, which the article details.
US FEDERAL COURT DISMISSES UKRAINIAN OLIGARCH’S APPEAL AND HE IS EXTRADITED FROM AUSTRIA
On 28 June, Buckley carried an article about the case of Ukrainian billionaire Dmitry Firtash. The decision of the court allowed several criminal charges –– including one count of aiding and abetting an FCPA violation –– to proceed. Shortly after, the Austrian supreme court allowed his extradition to the US.
US: CEO and director of investment firm convicted of conspiracy to bribe Haitian officials
On 28 June, Buckley reported that the CEO of investment firm Haiti Invest LLC and one of its directors had been convicted. The plan was to bribe Haitian officials “at all levels of government” in order to obtain governmental approval of a proposed $84 million project to develop a port in north-western Haiti. To conceal the bribes, the defendants allegedly said that they would funnel the agents’ funds through a US-based non-profit organisation that one of them controlled, which purported to sponsor social programmes for Haitian residents.
Isle of Man “Fit and Proper” Assessments – updated documents from 1 July
On 28 June, the FSA in the Isle of Man published updated its fitness and propriety guidance documents, saying that this was relevant to all persons that are licensed, authorised or registered under the Financial Services Act 2008, Insurance Act 2008, Retirement Benefits Schemes Act 2000 or that have responsibility for collective investment schemes under the Collective Investment Schemes Act 2008.
Canadian sanctions amended in relation to Nicaragua Ukraine Venezuela and Yemen
Dentons on 28 June published an article saying that, in co-ordination with the United States and the United Nations, and in light of recent developments in Nicaragua, Venezuela, Yemen and Ukraine, Canada recently amended its sanctions related to these countries. The article details the changes made. It also reminds Canadian exporters that Canada imposes sanctions on a number of other countries, including the Central African Republic, Democratic Republic of the Congo, Eritrea, Iran, Iraq, Lebanon, Libya, Mali, Myanmar, North Korea, Russia, Somalia, South Sudan, Sudan, Syria and Zimbabwe.
UN REMOVES A FURTHER 13 ENTITIES FROM ITS IRAQ SANCTIONS LIST
On 28 June, the UN advised that 13 further entities had been removed from the lisy of those subject to sanctions concerning Iraq.
https://www.un.org/press/en/2019/sc13868.doc.htm
Europol seized 15 million eels from criminal smuggling gangs last year
Illicit Trade on 28 June reported that 15 million endangered eels were seized from traffickers by Europol last year, the EU’s law enforcement agency has revealed, and that it had arrested 153 eel smugglers over the past 12 months, which was up 50% on the previous year. Most of the arrests were made in Spain, France and Portugal. It is estimated that eels worth an estimated €3 billion are smuggled every year.
German chemical company Brenntag defends its Syria deliveries
On 26 June, the BBC reported that German chemical wholesaler, Brenntag, has denied circumventing EU export rules on restricted chemicals, some of which were delivered to Syria in 2014. A Swiss subsidiary of Brenntag supplied isopropanol and diethylamine to Syria. They can be used in pharmaceuticals, but can also be used to make the nerve agents Sarin and VX. Brenntag says the deliveries also complied with Swiss law.
https://www.bbc.co.uk/news/world-europe-48773571
Ukraine: SBU powerful channel of illicit firearms trafficking
On 25 June, the Security Service of Ukraine reported that it had blocked the unlawful activities of the organised crime group, which established a mechanism for the illicit manufacture and sale of firearms and ammunition in the country. The offenders smuggled from Western European countries parts for firearms through the checkpoints of one of the western regions of Ukraine. Then in the specially equipped workshops the combat weapons were manufactured from the parts. Law enforcement officers seized sub-machine gun, 11 Glock, CZ, Walther, Heckler & Koch pistols, over a thousand of rounds and parts kits sets for manufacturing of pistols.
https://ssu.gov.ua/en/news/1/category/21/view/6205#.espMKTG1.dpbs
Rules of Origin Key to Success of African Continental Free Trade Area
An article from UNCTAD, the UN Conference on Trade and Development, says that rules of origin – the criteria needed to determine the nationality of a product – could make or break the African Continental Free Trade Area (AfCFTA) that entered into force in May, A new report notes that rules of origin could be a game changer for the continent as long as they are simple, transparent, business friendly and predictable. Currently intra-African trade is a mere 15%, compared to around 47% in America, 61% in Asia and 67% in Europe, according to UNCTAD data for 2015 to 2017, but the AfCFTA could radically change that.
https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2128
The report: “Economic Development in Africa Report 2019: Made in Africa – Rules of Origin for Enhanced Intra-African Trade”, is available at –
https://unctad.org/en/PublicationsLibrary/aldcafrica2019_en.pdf?user=46
On 28 June, the UN advised that 13 further entities had been removed from the lisy of those subject to sanctions concerning Iraq.
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