Day: July 1, 2019

On 1^st July, FATF published a statement as China takes the Presidency of the FATF in the year of its 30^th Anniversary.  The work programme includes best practices to improve the transparency of beneficial ownership; the mutual evaluations of Russia, Turkey, UAE, Korea, Japan and South Africa; and the first 5^th year follow-up assessments of effectiveness for Norway, Spain, Australia, Belgium and Malaysia.  It also says that FATF may consider the opportunity for work on money laundering from illegal wildlife trafficking, which is estimated to be the 4^th most profitable criminal trafficking enterprise, generating revenues of between $7 billion and $23 billion a year, with links to modern slavery, narcotics and the arms trade.  FATF work in this area could build on recent work by the FSRB (regional bodies) and current international initiatives.  It will also conduct a strategic review of its core work.  The review will focus on the mutual evaluation and follow-up processes, and will consider experience from the evaluations done to date, and it will inform agreement by the FATF Plenary on the future of this work after the current round.  It says it will also develop the methodology for countries to be assessed against the standard for virtual assets, and it will start assessing FATF members for effective compliance with it.

http://www.fatf-gafi.org/media/fatf/content/images/Objectives-FATF-XXXI(2019-2020).pdf

On 1^st July, the House of Commons Select Committee on the Social and Economic Impact of the Gambling Industry called for the submission from interested parties, asking such questions as – how effective is the Gambling Act 2005 in achieving its aims of preventing gambling from being a crime or disorder, ensuring that gambling is conducted in a fair and open way, and protecting children and other vulnerable person from being harmed or exploited by gambling?; does the Act need updating?; should gambling operators have a legal duty of care to their customers?; and what are the social and economic costs of gambling?  Submissions are required by 6^th September.

https://www.parliament.uk/business/committees/committees-a-z/lords-select/gambling-committee/news-parliament-2017/gambling-call-for-evidence/

A Notice from HM Treasury on 1^st July, following decisions of the UN and EU, confirmed the removal of 17 entities under Iraq sanctions from the UK Consolidated List.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/813604/Notice_Iraq_2019_1103.pdf

On 1^st July, the NCBFAA reported that following the seizure of 17.5 tons of cocaine worth more than $1 billion from the MSC Gayane containership in the Port of Philadelphia., US Customs and Border Protection has suspended MSC’s CTPAT status; and MSC vessels may be subjected to additional screening which could delay the release of cargo.

http://www.ncbfaa.org/Scripts/4Disapi.dll/4DCGI/cms/review.html?Action=CMS_Document&DocID=22468&Time=-336338224&SessionID=68017712h266acx3mp9t5t8j83peyd887b579s9xf5cjbbv7r8x432dyv9t662xm&MenuKey=about

On 1^st July, NL Times reported that the ministers of finance and security have submitted proposals to parliament to ban cash payments of over €3,000, and to withdraw €500 banknotes.  The government is also said to be considering creating a “black list” where banks can register clients that they suspect are involved in money laundering.

https://nltimes.nl/2019/07/01/dutch-govt-ban-cash-payments-eu3000-fight-money-laundering

On 27^th June, Baker McKenzie reported that the US Commerce Department’s Bureau of Industry and Security (BIS) has added 5 Chinese entities to the Entity List: Wuxi Jiangnan Institute of Computing Technology, Sugon, and its affiliates, Higon, Chengdu Haiguang Integrated Circuit, and Chengdu Haiguang Microelectronics Technology.  Being on the Entity List means that no supplier — US or non-US, wherever located  — may export, reexport, or transfer (in country) any commodity, software, or technology subject to the Export Administration Regulations to the 5 Chinese entities unless authorised by a BIS licence.

http://sanctionsnews.bakermckenzie.com/us-government-adds-five-chinese-entities-associated-with-supercomputer-development-to-entity-list/#page=1

The Times of Israel on 1^st July reported that Edward Cohen allegedly used Jewish charities to launder the proceeds of tax evasion on illegal sales of medicines including diet pills and Viagra across Europe.   He was convicted in absentia of providing false information to the Charity Commission and money laundering.  His son, David Cohen, 38, was also convicted of related charges – and he was granted bail.

https://www.timesofisrael.com/uk-fugitive-convicted-in-10-million-jewish-charities-laundering-scam/

Regulation Asia on 1^st July reported that Hong Kong is said to have been found to be particularly effective in the areas of risk identification, law enforcement, asset recovery, counter-terrorist financing and international co-operation by FATF.  The mutual evaluation report of Hong Kong was examined at the FATF Plenary on 20^th June.  However, the report, due to be published in September, says that Hong Kong still needs to prioritise efforts to prosecute money laundering linked to foreign predicates, increase its risk understanding, boost AML/CFT implementation by smaller institutions, and strengthen supervisory measures for some sectors.

https://www.regulationasia.com/hong-kong-welcomes-fatf-compliant-result/