OTHER THINGS YOU MAY HAVE MISSED – JULY 27

27th July 2019

 FEDEX ACCUSED BY CHINESE ON HUAWEI SHIPMENTS FAILURE

On 26th July, Loadstar reported that FedEx has defended itself against allegations by the Chinese government that it deliberately diverted packages destined for Huawei’s domestic offices, with the Chinese State Post Bureau refuting FedEx’s claims that “mishandling” caused a failure to deliver Huawei-marked packages.  This followed follow an incident in June when Fedex returned a Huawei-marked package to its sender, with the company angering China in its attempts to avoid being prosecuted under new US regulations – the US Department of Commerce had included Huawei and its affiliates in the “list of entities” subject to export control by the US.

https://theloadstar.com/fedex-defends-chinese-allegations-over-mishandling-of-huawei-packages/

https://communalnews.com/2019/07/26/fedex-accused-by-chinese-law-on-huawei-shipments-failure/

GUATEMALA AVOIDS TRUMP THREAT OF SANCTIONS WITH NEW TWO-YEAR MIGRATION DEAL

The Globe & Mail on 26th July reported that a so-called “safe third country” (if Guatemala can be described as such, by any stretch of the imagination, at least for the migrants involved) agreement would require migrants, including Salvadorans and Hondurans, who cross into Guatemala on their way to the US to apply for protections in Guatemala instead of at the US border.  The 2 countries had been negotiating such an agreement for months, and Trump had threatened to place tariffs or other consequences on Guatemala if there was no deal.

https://www.theglobeandmail.com/world/us-politics/article-after-trump-threat-guatemala-signs-immigration-asylum-deal-to-limit/

https://www.telesurenglish.net/news/US-Guatemala-Sign-Migration-Asylum-Agreement-20190726-0012.html

INDIA: GOVERNMENT HAS DEREGISTERED 400,000 SHELL COMPANIES

The Times of India on 27th July reported the claim as a Bill was approved seeking to tighten corporate social responsibility norms, with companies not spending the mandatory 2% of profit on corporate social responsibility being required to deposit the equivalent amount in a special account.

https://timesofindia.indiatimes.com/business/india-business/govt-has-deregistered-4-lakh-shell-companies-nirmala-sitharaman-tells-lok-sabha/articleshow/70404385.cms

US PROSECUTORS INDICT BTC-E CRYPTO EXCHANGE AND SEEK MILLIONS IN PENALTIES

The Coin Telegraph on 27th July reported that US prosecutors have filed a complaint against now-defunct crypto exchange BTC-e and its suspected operator, Alexander Vinnik – saying that it did not attempt to register with FinCEN, implement AML practices, or report suspicious activity generally.  Vinnik is a Russian national who is currently imprisoned in Greece.

https://cointelegraph.com/news/us-prosecutors-indict-btc-e-crypto-exchange-seek-millions-in-penalties

ROMANIA SAYS IT BLOCKED A RUSSIAN ARMS SHIPMENT TO SERBIA

Rferl on 26th July reported that Romania has announced it has blocked a Russian military shipment to Serbia earlier this month because of international sanctions against Moscow for its actions in Ukraine.  It is said to have prevented the delivery of some 60 Russian second-hand tanks and armoured vehicles that were to be shipped from Russia via the Danube River to Serbia.

https://www.rferl.org/a/romania-says-blocks-russian-arms-shipment-to-serbia/30077540.html

THE SECRET HISTORY OF THE US INTELLIGENCE COMMUNITY’S BATTLE WITH IRAN’S REVOLUTIONARY GUARD

On 26th July, Yahoo News published a long article about the behind-the-scenes battle, revealed in a March 2018 indictment which alleged Iranians had, in a “massive, coordinated” hacking campaign, targeted hundreds of universities across the globe, including 144 based in the US, as well as private US and European companies, US federal agencies and state governments, and the UN.  From at least 2013, these Iran Revolutionary Guard Corps-sponsored hackers tried to infiltrate about 50,000 academic email accounts in the US.  Hackers allegedly stole $3.4 billion in intellectual property and academic data from US-based universities alone.  In April, the Trump Administration designated the Revolutionary Guard as a foreign terrorist organisation — an unprecedented move against an arm of a government.  The article then relates the history of the IRGC, from its formation following the 1979 revolution, and the intelligence activities – especially, but not exclusively, in obtaining technology related to the country’s nuclear programme.

https://www.yahoo.com/news/shadow-force-the-secret-history-of-the-us-intelligence-communitys-battle-with-irans-revolutionary-guard-090000959.html

SRI LANKA SAYS SOME ILLEGAL UK WASTE OFFLOADED TO INDIA AND DUBAI

Customs Today on 27th July reported that a Sri Lankan investigation into nearly 3,000 tonnes of illegally imported hazardous waste from the UK is said to have shown that some of it was sent on to India and Dubai – with the importer having reshipped about 180 tonnes of raw garbage to India and Dubai in 2017 and 2018.  The customs department is said to have found that a local company imported 241 containers from Britain, out of which 15 had been sent to India and 2 to Dubai, and insists that the British authorities should not have allowed the export without first clearing with Sri Lankan authorities if they were willing to accept the untreated waste.  The waste is said to have been mislabelled and imported as used mattresses, but contained bio and clinical waste in contravention of international laws on the transport of waste material.

http://www.customstoday.com.pk/sri-lanka-says-illegal-uk-waste-offloaded-to-india-dubai/

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https://www.rferl.org/a/gdp-in-eastern-europe-then-and-now/30077276.html

SMALL NEW JERSEY BANK HANDLED $20 MILLION FOR COMPANY TIED TO VENEZUELAN LAUNDERING SCHEME

On 24th July, ACAMS reported how a small community bank in Newark, City National Bank, and an obscure mutual fund registered in the Cayman Islands, Global Securities Trade Finance, were linked.  The bank, which lists only $155 million in assets and $150 million in liabilities, had a record of dubious accounts and handling questionable transactions – not just involving the fund – and is said to have positively targeted and/or accepted high-risk customers.  It is also claimed that a compliance officer, and another employee who tried to file an SAR, were dismissed.  In a civil case it was alleged that the bank’s CEO specifically instructed his staff to target highly susceptible money service business clients.  Eventually, in February 2018, the federal regulator issued a cease-and-desist order barring City National from opening any new corporate or personal accounts “that the bank designates as medium-risk or higher”, then assessed the bank as “significantly undercapitalised” in November 2018.  Federal prosecutors by that point had already subpoenaed all records associated with the group of money service businesses and portfolio of wealthy foreign clients served by City National.

https://www.moneylaundering.com/news/exclusive-new-jersey-bank-handled-20-million-for-firm-tied-to-venezuelan-laundering-scheme/

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SUMMARY OF THE EGMONT INFORMATION EXCHANGE WORKING GROUP (IEWG) COUNTER TERRORIST FINANCING REPORT ON LONE ACTORS AND SMALL CELLS

On 12th July, the Egmont Group of FIU published a document which provides a public summary of a report is intended for FIU that are members of the Egmont Group of Financial Intelligence Units, their respective law-enforcement counterparts, and their respective national security services.  The purpose of the report is to respond to the threat of lone actor and small cell terrorist attacks on public safety by examining case studies and identifying trends, methods, and indicators related to terrorism and terrorism financing activities of lone actors and small cells.

https://egmontgroup.org/sites/default/files/filedepot/external/20190712%20-%20IEWG%20-%20Lone%20Actors%20and%20Small%20Cells%20-%20Public%20Sumary.pdf

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

EGMONT GROUP BULLETIN – BUSINESS EMAIL COMPROMISE FRAUD

On 15th July, the Egmont Group of FIU published a Bulletin not just to alert member FIU and their jurisdictions of the increasing threat posed by business email compromise (BEC) fraud schemes, but law enforcement authorities and the private sector also.  BEC fraud schemes are among the fastest-growing cyber-enabled crime threats adversely affecting financial institutions, exposing the financial sector to billions of dollars in losses worldwide.  BEC fraud schemes target business organizations, professionals, and individuals by compromising either business or personal email accounts to send (or cause to be sent) false payment instructions and other information used to conduct financial fraud.

https://egmontgroup.org/sites/default/files/filedepot/external/20190708_EGMONT%20GROUP%20BEC%20BULLETIN-final.pdf

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

EGMONT GROUP BULLETIN – PROFESSIONAL MONEY LAUNDERING FACILITATORS

egmont

The Egmont Group of FIU reports that the recent Plenary endorsed the Egmont Information Exchange Working Group’s (IEWG) Bulletin on Professional Money Laundering Facilitators dated 30th June.  This focuses on the shadow market of professional facilitators, who provide services of moving, redistributing and laundering illicit funds. Professional money laundering facilitators work with money irrespective of its origin, providing expertise to hide, conceal and disguise illicit funds, providing “Money Laundering-as-a-service”.  It is said that it should assist authorities and reporting entities in better detecting, investigating, and reporting the proceeds of professional money laundering activities.

The Bulletin says that the main characteristic that makes Professional Money Laundering (PML) unique is the provision of money laundering services in exchange for a commission, fee or other type of profit; and that PML can belong to 3 categories: individuals, organisations (a professional money laundering organisation or PMLO – and laundering funds may be the core activity of the organisation, but not necessarily the only activity) and networks (professional money laundering network or PMLN).  One of the services mentioned is record-keeping (shadow accountancy).

The Bulletin defines a PMLN as a collection of associates or contacts working together to facilitate PML schemes and/or subcontract their services for specific tasks.  These networks usually operate globally and can include 2 or more PMLO that work together.  They may also operate as informal networks of individuals that provide the criminal client with a range of ML services.  These interpersonal relationships are not always organised and are often flexible in nature.

The Bulletin provides a list of red flags for FIU and the private sector to contemplate.

https://egmontgroup.org/sites/default/files/filedepot/external/20190701%20-%20IEWG%20Professional%20ML%20Networks%20Bulletin%20-%20final.pdf

 

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

ICO ISSUES THE LONG-AWAITED DATA SHARING CODE OF PRACTICE FOR CONSULTATION

On 26th July, Eversheds Sutherland reported that the UK Information Commissioner’s Office has launched a public consultation on its new draft data-sharing code of practice, with a consultation period that ends on 9th September.  It is an update of the previous code, to align it with GDPR so as to address transparency, lawful bases for processing, the new accountability principle and the requirement to record processing activities. It aims to give practical advice and guidance on how to share data safely and fairly: and the final code is due for launch this Autumn.  The vast majority of organisations share personal data in some way and this code focuses on sharing between data controllers.  It explains the law and provides examples of good practice, and following it will enable organisations to manage risks, clarify misconceptions, and share data in confidence.  The Code runs to 100+ pages, and the article provides a “speed read” of some key themes.

https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/Data-Protection/ico-issues-260719

The draft Code is at –

https://ico.org.uk/media/about-the-ico/consultations/2615361/data-sharing-code-for-public-consultation.pdf

 

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

FATF: FOLLOW-UP REPORTS ON ZIMBABWE AND MAURITANIA

On 25th July, FATF published follow-up reports on –

  • Zimbabwe – which has made progress in addressing some of the technical compliance deficiencies identified in its 2016 evaluation report and has been re-rated on 10 of the FATF 40 Recommendations;

zimbabwe

  • Mauritania – which has been re-rated on 3 recommendations, but remains in the enhanced follow-up procedures, with a further update report due in 2020.

mauretania

http://www.fatf-gafi.org/media/fatf/documents/reports/fur/ESAAMLG-Follow-Up%20Report-Zimbabwe-2019.pdf

FATF MUTUAL ASSESSMENT PROCEDURES

FATF has published a document which sets out the procedures that are the basis for that fourth round of mutual evaluations which continue to be undertaken by FATF and regional FATF-style bodies like Moneyval.  It also published a further document which sets out the core elements that form the basis for all evaluations, and are based on the procedures.  While there is some flexibility in the procedural arrangements, the set of core elements that should apply to all assessments.

http://www.fatf-gafi.org/media/fatf/documents/methodology/FATF-4th-Round-Procedures.pdf

http://www.fatf-gafi.org/media/fatf/FATF-Universal-Procedures.pdf

 

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