THINGS YOU MAY HAVE MISSED – SEPTEMBER 21

21st September 2019

US: CFIUS PROPOSES RULES TO IMPLEMENT FIRRMA

An article in the National Law Review on 21st September says that the Committee on Foreign Investment in the United States (CFIUS) will focus its review on investments in critical technology, critical infrastructure, and sensitive personal data.  It has published 2 separate proposed rules that will implement many of the changes to US foreign investment review outlined in the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), introduce greater jurisdictional scope to CFIUS while clarifying certain exceptions and carve-outs, and including one clarifying controls on real estate investments.  The article provides detail of the proposals and their effects.

https://www.natlawreview.com/article/cfius-proposes-rules-to-implement-firrma

US: HOW MACHINE VISION COMPANIES CAN STAY FLEXIBLE WITH ITAR AND SIMILAR EXPORT CONTROL FRAMEWORKS

An article in Vision Systems Designs on 20th September recommends that even manufacturers not currently subject to regulatory frameworks under the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). Regulations apply, for example, to current products on the US Munitions List (USML) or Commerce Control List (CCL), should have a plan in place.  It says that for machine vision and imaging companies, the aerospace and defence market can represent significant revenue opportunity and even the impetus for design advancements and technological breakthroughs. Companies participating in this market, however, may be subject to regulations such as ITAR and EAR; for example, to current products on the USML or CCL.  Many vision and imaging companies provide products that are often part of larger systems in a supply chain where either the direct customer or ultimate customer is in the defence field.  The article recommends that, even if not bidding for contracts that would include such regulatory concerns, companies should have plans in place, in case of future developments.  It emphasises that the regulations stipulate that any technical data deemed controlled by ITAR or EAR be under export control – i.e. the technical data must not be exported at any point during design or production (or sustaining activities) unless covered under an export licence; and that the regulations ensure that companies have tight control over all regulated technical data, including what’s referred to as controlled unclassified information (CUI).

https://www.vision-systems.com/cameras-accessories/article/14040293/how-machine-vision-companies-can-stay-flexible-with-itar-and-similar-frameworks

https://www.jdsupra.com/legalnews/expanding-the-national-security-review-76921/

ITAR

BRITISH COLUMBIA SECURITIES COMMISSION IMPOSES $1.7 MILLION OF FINANCIAL PENALTIES ON 3 MEN AND 2 MORTGAGE INVESTMENT COMPANIES AFTER FINDING THAT THEY COMMITTED FRAUD

On 20th September, Investment Executive reported that Patrick K. Prinster and David Scott Wright were each ordered to pay $250,000 and Donald Bruce Edward Wilson was ordered to pay $150,000 for diverting investors’ funds from mortgages secured by real estate, which was the purpose described in marketing materials.  Prinster, Wright and Wilson were also permanently banned from the various regulated activities.  Financail penalties of $561,479 were also imposed on DominionGrand II Mortgage Investment Corporation, and $500,961 on DominionGrand Investment Fund Inc.

https://www.investmentexecutive.com/news/from-the-regulators/bcsc-imposes-1-7-million-in-financial-sanctions-for-fraud/

TURKEY RETURNS SMUGGLED ARTEFACTS TO IRAQ

Daily Sabah on 21st September reported that Turkish authorities have returned 80 ancient artefacts ranging from silk carpets to candle holders to Iraq, about 11 years after they were seized from smugglers.  They had been sent to a archaeology museum where they were preserved.  After they were identified as Iraqi origin Iraq formally made a request for their return.  Artefacts include 20 silk carpets, 49 pieces of furniture, 2 primitive heaters, 2 pieces of a door, a closet, 2 chests, 4 candle holders.  Also handed over was a cylindrical seal of Iraqi origin dating back to 2,000 BC was also discovered to be Iraqi origin and was kept in a museum in Ankara.

https://www.dailysabah.com/turkey/2019/09/21/turkey-returns-smuggled-artifacts-to-iraq

NEW ZEALAND: AML LAWS COSTING REAL ESTATE INDUSTRY ‘MULTI-MILLIONS’

On 21st September, Radio New Zealand reported that the cost of implementing a raft of new laws has cost the real estate industry tens of millions of dollars, the Real Estate Institute has said.  A survey of 1,861 real estate professionals around the country found 59% cited changing regulation as their top concern, whereas 2 years ago it was 6th on the list.

https://www.rnz.co.nz/news/national/399296/anti-money-laundering-laws-costing-real-estate-industry-multi-millions

UK GAMBLING COMMISSION IMPOSE £1.8 MILLION FINE ON LAND-BASED CASINO OPERATOR FOR AML FAILINGS

On 20th September, CMS Law reported that the Gambling Commission had issued Silverbond Enterprises Limited a £1.8 million fine, an operator licence warning and additional conditions added to its licence following an investigation into the operation of Silverbond’s Park Lane Club for failings relating to money laundering.  In particular, it is mentioned that the licensee had failed to apply enhanced due diligence (EDD) to their top 250 customers – one example was the failure to identify a customer as a Politically Exposed Person (PEP).  There were also findings that the operator failed to fully comply with social responsibilities, and that the operator had failed to recognise the indicators of potential problem gambling.

https://www.cms-lawnow.com/ealerts/2019/09/gambling-commission-impose-1-point-8-million-fine-on-park-lane-club-operator?_ga=2.196473900.1832454755.1569052695-1120114776.1520330292

 

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

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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