11th January 2020
TRAVELEX CYBER RANSOMWARE CASE SHOWS IMPORTANCE OF SERVICE CONTRACTS
On 10 January, an article on Out-Law was concerned with the ransomware attack on foreign exchange company Travelex, and says that businesses that rely on others for providing services to their customers should review their contracts with their service providers in light of the case. It also says that the terms of such contracts will dictate whether the businesses have any recourse against their service provider in circumstances where services are disrupted due to a cyber event.
ISLE OF MAN: AML/CFT CODE AMENDMENT
On 10 January, the FSA released a news release saying that there has been an amendment to the Anti-Money Laundering and Countering the Financing of Terrorism Code 2019 that came into operation on 25 November. The amendments address some minor typographical errors and make some updates that were required.
ISLE OF MAN: PROCEEDS OF CRIME CHANGES CONCERNED WITH “TIPPING OFF”
Also included in the FSA news release on 10 January was mention of a further package of measures was approved by the Island’s parliament in December which resulted in amendments being made to the Proceeds of Crime Act 2008 and Anti-Terrorism and Crime Act 2003. These changes were made to enhance the Island’s AML/CFT legislation in connection with FATF and MONEYVAL recommendations around disclosures and what is colloquially referred to as “tipping off”, the confidentiality of the information disclosed to the FIU on a STR, and the legitimate disclosure of information within group companies.
US BANS CHARTER FLIGHTS TO CUBA IN TIGHTENED SANCTIONS
On 11 January, the Daily Mail reported that the US is curbing public charter flights to Cuba in a further effort to squeeze the Cuban government’s income. The U.S. Department of Transportation (DOT) has suspended until further notice all public charter flights between the US and Cuban destinations other than Havana’s José Martí International Airport. 9 Cuban airports currently receiving US public charter flights will be affected. Operators will have a 60-day wind-down period to discontinue all affected flights.
2019 UPDATES TO CHINA’S DRAFT EXPORT CONTROL LAW – WHAT YOU NEED TO KNOW
On 11 January, Global Compliance News carried an article explaining the main features of the changes. It notes that consultation on the draft ends on 26 January, but there is no set schedule for implementation of the changes.
GERMANY JAILS RUSSIAN FOR EXPORTING EMBARGOED MILITARY TECH
On 11 January, the Moscow Times reported that authorities detained the man, identified as Vladimir D and who had lived in Germany for some 25 years, in December 2018 and his trial began in November 2019. He was accused of selling more than $2 million worth of illegal dual-use goods to “military recipients in Russia” between 2014 and 2018. It is said that he exported heat-and-pressure technology known as hot isostatic presses used in the production of aircraft and rocket engines, and 4.5 kg of a chemical used to make rocket propellants and explosives.
US COMMERCE DEPARTMENT WILL MOVE FORWARD WITH MORE STRINGENT EXPORT CONTROLS FOR CERTAIN EMERGING TECHNOLOGIES
On 11 January, an article from Skadden said that in November, the Bureau of Industry and Security published an advance notice of proposed rulemaking (ANPRM) soliciting comments on the criteria to be used to identify “emerging technologies” that are essential to US national security, and with a representative list of broadly scoped technologies, including, for example, artificial intelligence (AI) and machine learning technology. After commenting on this, Skadden also says that BIS is poised to issue an ANPRM regarding the identification and control of so-called foundational technologies, described as items that currently are subject to control only for anti-terrorism reasons. The article warns that the coming year promises to be momentous for technology export controls, and that companies operating in any of the industries identified by BIS in November should carefully monitor regulatory developments.
SUDAN CHARGES AL BASHIR’S BROTHERS,] AND PROMINENT ISLAMIST CLERIC UNDER MONEY LAUNDERING AND TERRORISM LAWS
On 11 January, Dabanga reported that the prosecutor of Sudan’s Anti-Money Laundering and Terrorism-Financing Department issued arrest warrants against 2 brothers of ousted dictator Omar Al Bashir and prominent Islamist cleric Abdelhay Yousef. The department also seized the El Nour Islamic Complex in Khartoum North which was built by the ousted president.