OTHER THINGS YOU MAY HAVE MISSED – JULY 7

7th July 2019

PAKISTAN: SMUGGLING AND UNDER-INVOICING BIGGEST THREATS TO INDUSTRIES

On 7th July, the Express Tribune reported that Federal Board of Revenue (FBR) Chairman Shabbar Zaidi had described smuggling, under-invoicing and Afghan Transit Trade the biggest threats to domestic industries.  He also lamented the tax evading culture in Pakistan, claiming that out of 341,000 industrial connections, only 43,000 users are paying income tax and less than 19,000 are registered for sales tax.

https://tribune.com.pk/story/2007873/2-smuggling-invoicing-biggest-threats-industries/

INDIA: KINGPIN BEHIND TRADE-BASED MONEY LAUNDERING ARRESTED

The New Indian Express on 7th July reported that the Enforcement Directorate (ED) has arrested Muhammed Riyaz, proprietor of Astral Exim and Co, and the alleged mastermind behind trade-based money laundering case involving shell entities, using 57 shell entities current account opened at the Syndicate Bank.

http://www.newindianexpress.com/states/tamil-nadu/2019/jul/07/kingpin-behind-trade-based-money-laundering-arrested-2000483.html

MARITIME ANTI-CORRUPTION NETWORK LAUNCHES CAMPAIGN IN INDIAN PORTS

The Maritime Executive on 7th July reported that, with the support of the Government, the Maritime Anti-Corruption Network (MACN), a global business network of over 110 companies working together to tackle corruption in the maritime industry, announces the launch of a groundbreaking Port Integrity Campaign in India.  It aims to reduce and (in the long term) eliminate integrity issues and bottlenecks to trade during operations in Indian ports.  The pilot will take place in Mumbai ports until October – with integrity training for port officials and the establishment of clear escalation and reporting processes.

https://maritime-executive.com/corporate/maritime-anti-corruption-network-launches-campaign-in-indian-ports

CRIME AND CORRUPTION STIFLING BUSINESS ECOSYSTEM IN JAMAICA

An article in the Jamaica Observer on 7th July reports comments of the President of the Private Sector Organisation of Jamaica (PSOJ).  He said that that many SME are not officially registered with identification to pay taxes or gain access to the formal banking system.

http://www.jamaicaobserver.com/sunday-finance/crime-and-corruption-stifling-business-ecosystem-in-jamaica-psoj-president-difficulty-in-accessing-capital-hindering-smes_169162

GUATEMALA LEGISLATORS SUSPECT PRESIDENT OF FRAUD

Telesur on 7th July reported that legislators and the national auditor have raised doubts over the acquisition of 2 aircraft from Argentina, with a possible bypassing of a Contracting Law.

https://www.telesurenglish.net/news/Guatemalan-Legislators-Suspects-Guatemalan-President-of-Fraud–20190707-0001.html

SOUTH AFRICA: MAJOR COUNTERFEIT GOODS BUST AT PORT

On 5th July, Defence Web reported that Eastern Cape police received information on a container possibly containing fake goods. The container, according to police, was destined for East London via the port of Ngqura.  When opened it was found to contain more than 7,000 pairs of sunglasses, 960 Tommy Hilfiger belts, 360 Swiss Gear backpacks, 400 Gucci sling bags, 1,400 plus branded watches and 52,000 branded “Smooth pens”.  The haul was worth $3.2 million and everything is thought to be counterfeit and was handed to SARS Customs and Excise for safekeeping and further examination.

https://www.defenceweb.co.za/featured/major-counterfeit-goods-bust-at-ngqura-port/

EX-PARTY CHIEF DETAINED IN ALGERIA CORRUPTION PROBE

Al-Arabiya on 7th July reported a further detention in the ongoing corruption probe in Algeria.  The former head of ousted Algerian president Abdelaziz Bouteflika’s party, Djamel Ould Abbes, was placed in provisional detention on allegations including “squandering public money”, state TV said.

http://english.alarabiya.net/en/News/north-africa/2019/07/07/Bouteflika-s-ex-party-chief-detained-in-Algeria-corruption-probe-.html

37A23AA0-9575-483D-97E4-A1F68B0B7BA8_w1238_r0

https://www.rferl.org/a/30035193.html

 

This blog is primarily for my own use, to keep informed and up to date.  However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

MALTA: SATABANK FINED A RECORD €3 MILLION OVER MONEY LAUNDERING BREACHES

The Times of Malta on 7th July reported that Satabank has been given a record €3 million fine for widespread breaches of money laundering laws.  This follows the news that the MFSA and  FIAU last year found extremely weak structures in place to prevent its clients from using it to launder potential proceeds of criminal activity – freezing all its funds and appointing EY to administer its assets.  Police and financial regulators have since been combing through suspicious transactions with potential links to fuel smuggling, drug trafficking and trade with sanctioned countries.

https://timesofmalta.com/articles/view/satabank-fined-a-record-3-million-over-money-laundering-breaches.720001

 

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

GABON’S TIMBER INDUSTRY REELING AFTER CORRUPTION SCANDAL

The Digital Journal on 7th July carried an article on “kevazingogate” – saying that tropical timber is piling up at Gabon’s main port as the country’s logging industry reels from a corruption scandal that brought down the vice president.  The timber industry accounts for 17,000 jobs and 60% of non-oil related GDP.  The trouble began in February, when customs officials discovered huge quantities of kevazingo, a precious and banned hardwood, in 2 Chinese-owned depots at Owendo.  Nearly 5,000 cubic metres were seized, worth around $8 million, some of it disguised in containers bearing the stamp of the forestry ministry.  The plot thickened in April, when many of the confiscated containers mysteriously disappeared from the port.  The forestry minister has been replaced by British-born Lee White — an environmental campaigner who has lived for years in Gabon, battling to conserve its forests and wildlife.
http://www.digitaljournal.com/news/world/gabon-s-timber-industry-reeling-after-corruption-scandal/article/553489#ixzz5syHAoNLO

 

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

NEW EU RULES ON AML GROUP-WIDE POLICIES EFFECTIVE FROM 3rd SEPTEMBER

A briefing from Baker McKenzie focuses on new requirements that apply specifically to credit and financial institutions, including e-money institutions, payment institutions, investment firms, AIFM and UCIT management companies.  It says that the new standards specify “additional measures” in respect of relevant institutions’ branches and majority-owned subsidiaries operating outside the EEA.  Where local law does not allow implementation of group-wide policies and procedures to effectively handle the risk of money laundering and terrorist financing, they will need to take “additional measures” proportionate to the level of risk and in the worst case stop carrying on business.  The European Commission is looking to achieve a more consistent EU approach with this initiative.  When the 5th Money Laundering Directive that takes effect in January 2020, Member States and supervisory authorities, when assessing if non-EEA countries hinder proper implementation of group-wide policies, must expressly take account of any legal constraints, including: secrecy, data protection and other constraints limiting the exchange of information, which would likely add to the need for additional measures those jurisdictions that are non-cooperative in respect of tax and beneficial ownership.

https://www.bakermckenzie.com/en/insight/publications/2019/06/new-eu-rules-on-aml

EU Regulation 2019/758/EU of 31st January is available at –

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019R0758&from=EN

 

This blog is primarily for my own use, to keep informed and up to date.  However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y