OTHER THINGS YOU MAY HAVE MISSED – JANUARY 17

17th January 2020

 GLOBAL CIVIL UNREST EXPECTED TO INCREASE TO NEARLY 40% OF COUNTRIES IN 2020

On 16 January, CNBC carried an article saying that a new index of civil unrest has claimed that 47 of the world’s states witnessed a rise in civil unrest in 2019, and also predicted that in 2020, the number will increase to 75 countries.  Naming a number of countries as high-risk, and saying that a risk also exists in large and important states such as Russia, China, Saudi Arabia, Turkey and Brazil, the analysts behind the report say that companies and investors will have to adapt to increased unrest and may need high levels of protection.  However, they warned, companies would be in danger of complicity if they employ state or private security forces that perpetuate violations.

https://www.cnbc.com/2020/01/16/40percent-of-countries-will-witness-civil-unrest-in-2020-report-claims.html

UK: HOW TO TELL COMPANIES HOUSE IF THE INFORMATION YOU HOLD ABOUT A BENEFICIAL OWNER IS DIFFERENT FROM THE INFORMATION ON THE PSC REGISTER

On 10 January, Companies House published guidance, saying that a beneficial owner does not have the same definition as a PSC.  The requirement to report discrepancies is based on the Companies Act definition of a PSC.  The “obliged entities” covered by the guidance are credit institutions, financial institutions, auditors, insolvency practitioners, external accountants and tax advisors, notaries and other independent legal professionals, TCSP, estate agents, including when acting as intermediaries, other persons trading goods in cash amounting to €10,000 or more, gambling services, exchange services between virtual and fiat currencies, custodian wallet providers, art dealers in galleries and auction houses, and art dealers in free ports.

https://www.gov.uk/guidance/report-a-discrepancy-about-a-beneficial-owner-on-the-psc-register-by-an-obliged-entity

ITALIAN AUTHORITIES TO LOOK INTO REPORTS MAFIA USED MALTA BANKS IN EU FUNDS SCAM

On 17 January, KYC 360 reported claims that banks in Malta were used by the Italian mafia in a massive operation in Sicily that defrauded the EU of millions of euros in funds for farmers.  Since 2013, the so-called Tortorici Mafia is said to have defrauded about €10 million from the EU by falsely claiming they owned plots of land that in reality were owned by the region and local councils.

https://www.riskscreen.com/kyc360/news/authorities-to-look-into-reports-mafia-used-malta-banks-in-eu-funds-scam/

UK PROSECUTOR LOOKS AGAIN TO SEIZE IBORI PROCEEDS

On 17 January, KYC 360 reported that a British prosecutor launched a fresh attempt to confiscate tens of millions of pounds stolen from an oil-producing state in Nigeria by its former governor, James Ibori, who was governor of Delta State from 1999 to 2007, and pleaded guilty at London’s Southwark Crown Court in 2012 to 10 counts of fraud and money laundering.

https://www.riskscreen.com/kyc360/news/uk-seeks-to-confiscate-convicted-nigerian-politicians-loot/

PayPal OFFERS UP FINANCIAL DATA TO COMBAT HUMAN TRAFFICKING

Reuters on 16 January reported that PayPal Holdings Inc will share its financial data with a leading advocacy group in the US to try and stop human traffickers from moving funds on the digital money transfer platform.  Anti-trafficking group Polaris said it would work with Paypal to identify red flag transactions.

https://www.reuters.com/article/us-usa-trafficking-paypal-trfn/paypal-offers-up-financial-data-to-combat-human-trafficking-idUSKBN1ZF2X1

VANCOUVER PROPERTIES WORTH A COMBINED $7.5 MILLION SOUGHT IN CIVIL FORFEITURE

On 16 January, CBC in Canada reported that a civil suit from the province seeks to seize 6 homes allegedly involved in money laundering, drug trafficking.  The Civil Forfeiture Office alleges 6 homes were bought or maintained with money from trafficking fentanyl, heroin, cocaine and methamphetamine.  It also alleges an auto and appliance repair business registered at one of the properties was used as a front to conceal operations of the drug ring.

https://www.cbc.ca/news/canada/british-columbia/metro-vancouver-money-laundering-civil-suit-forfeiture-1.5430306

NEW LIMITED PARTNERSHIP REGIME FOR PRIVATE EQUITY FUNDS IN HONG KONG

On 16 January, Dechert published an article saying that the Hong Kong government was seeking to establish a limited partnership regime for funds (LPF), in order to facilitate industry development while maintaining market integrity and investor protection.  The Financial Services and the Treasury Bureau published a consultation paper setting out the key features of the proposed LPF regime in July 2019, with proposals for consideration by the Legislative Council in December 2019.

https://info.dechert.com/10/13399/landing-pages/new-limited-partnership-regime-for-private-equity-funds-in-hong-kong.asp?sid=e314a925-1440-4479-bd28-c88ee5d44dd9

DECAYING INTERNATIONAL TAX REGIME THREATENS THE GLOBAL ECONOMY

On 17 January, an article from Foreign Affairs cautioned that a threat to the global economy has received little attention: a looming tax war. Since the early 20th Century countries have largely agreed on how to tax income earned by multinational corporations that conduct business across borders. But this long-standing regime is coming apart, imperilling the broader international economic order.  The regime rests on the norms set in domestic tax laws as well as a patchwork of almost 4,000 bilateral treaties, but the digital age contains tensions and threats.  European governments, especially the French, have attempted to impose digital services taxes on giant technology firms. Their efforts have rankled the US, which views such new taxes as unfairly singling out US companies.  It also says that China, India, and other emerging markets are reshaping the economic order, and other measures that depart from historic international tax norms are popping up.  The article warns that if the OECD fails to reach a new agreement, the old order will continue to decay, only faster and, without a compromise, multinational corporations face punishment with levies equivalent to tariffs, except on both goods and services.  The consequences of inconsistent taxation of cross-border activity go far beyond the current dispute between the Trump administration and France.

https://www.foreignaffairs.com/articles/united-states/2020-01-17/looming-tax-war

UKRAINE: COURT SEIZES $10.2 MILLION FROM FORMER PRESIDENT YANUKOVYCH’S ENTOURAGE

112 UA reported on 17 January that a court had seized $10,2 million belonging to the All-Ukrainian Development Bank and held in the accounts of the International Investment Bank and transferred them to the National Agency of Ukraine for finding, tracing and management of assets derived from corruption and other crimes (ARMA).

https://112.international/society/sourt-seizes-102-million-of-yanukovychs-entourage-47593.html

UK: COMPANY DIRECTOR TRIED TO STEAL £405,000 FROM AVIVA INSURANCE COMPANY

On 17 January, the Insurance Times carried an article about a failed attempt to steal £405,000 from Aviva by Edward Camborne de Lucy, who has received a suspended sentence and a £33,000 confiscation order.  It is said that there was a genuine loss involved, which he attempted to inflate by £200,000.

https://www.insurancetimes.co.uk/news/1432343.article

FCA BEGINS REVIEW OF FUND AUTHORISED CORPORATE DIRECTORS IN WAKE OF WOODFORD AND OTHER CASES

On 17 January, an article from Out-Law says that the FCA has begun a review of the role played by third party authorised corporate directors (ACD) in the oversight of regulated investment funds, and the first such firm has already received a site visit and questionnaire from the regulator.  It is said that the review would focus on the commercial conflicts that may arise when an external ACD is contracted by a fund to provide governance functions.

https://www.pinsentmasons.com/out-law/news/fca-begins-review-of-fund-authorised-corporate-directors

COSTA RICA SEIZURES SHOW HEIGHTENED FOCUS ON PACIFIC DRUG ROUTE

On 17 January, Insight Crime reported that, since 2020 began, major operations along Costa Rica’s western coast have brought in nearly 1,000 kg of cocaine showing the country’s increasing efforts to tackle drug smuggling in the Pacific.  Costa Rica is an increasingly important transshipment point in the international drug trade.

https://www.insightcrime.org/news/brief/costa-rica-pacific-drug-route/

SPANISH BANKER GETS JAIL TERM FOR TRYING TO SMUGGLE PICASSO MASTERPIECE OUT OF SPAIN ON YACHT

The Local on 16 January reported that a Madrid court also fined ex-Bankinter head Jaime Botín, 83, €52.4 million.  It awarded ownership of the work, “Head of a Young Girl”, to the Spanish state.  French customs seized the work, which is estimated to be worth €26 million, in July 2015 on Corsica, halting what they said was an attempt by Botin to export it to Switzerland to sell it.  Botin, whose family are one of the founders of the Santander banking group, had been trying since 2012 to obtain authorisation to export the painting.

https://www.thelocal.es/20200116/spanish-banker-gets-jail-term-for-trying-to-smuggle-out-picasso-masterpiece

https://www.superyachtnews.com/business/picasso-painting-seized-on-board-yacht-in-corsica

BELGIUM: COUNTERFEIT CIGARETTES SEIZURES IN JANUARY ALONE NEARLY TOPPLE 2019 RECORD

On 17 January, the Brussels Times reported that over 100 million counterfeit cigarettes have been seized by customs authorities in Belgium in the first weeks of January, a number which nearly shatters the record set in all of 2019.  The cigarettes were discovered in separate shipments identified as coming into the country from SE Asia, according to the FPS Finance, and 8 people have been arrested as part of the investigation by customs officials, with all detainees claiming to be of Turkish nationality.

https://www.brusselstimes.com/belgium/90035/counterfeit-cigarettes-seized-in-january-near-2019-record/

CHINA CUSTOMS SEIZES 58 ENDANGERED CACTUS SEEDLINGS

On 17 January, China.org reported that Qingdao Customs in east China’s Shandong Province said that it had seized 58 cactus seedlings subject to CITES restrictions in several inbound parcels sent from Germany and Italy.

http://www.china.org.cn/china/2020-01/17/content_75622181.htm

UK: ‘URGENT REVIEW’ OF MEDICAL CANNABIS ACCESS NEEDED TO CURB USE OF STREET DRUGS, SAYS TRADE BODY

The Pharmaceutical Journal reports that the Centre for Medicinal Cannabis has called on the government to “urgently review” access to medical cannabis, to prevent patients from having to rely on illegal and unregulated “street” cannabis.

https://www.pharmaceutical-journal.com/20207568.article

THE JOURNEYS OF THE 2 SHIPMENTS OF LOW-ENRICHED URANIUM TO THE IAEA LEU BANK

On 16 January, the International Atomic Energy Agency published an slideshow article about the second and final delivery in December of a shipment of low-enriched uranium (LEU) at the Ulba Metallurgical Plant in Ust-Kamenogorsk, Kazakhstan. The IAEA LEU Bank aims to provide assurance to countries about the availability of nuclear fuel.

https://www.iaea.org/newscenter/multimedia/photoessays/the-journeys-of-the-two-shipments-of-low-enriched-uranium-to-the-iaea-leu-bank

UK: INFORMATION FOR PROSPECTIVE GROWERS OF LOW THC CANNABIS (INDUSTRIAL HEMP), FOR THE PRODUCTION OF SEED AND FIBRE ONLY

On 17 January, the Home Office published updated guidance directed at any company or organisation wanting to cultivate industrial hemp and which therefore needs to apply for a controlled drugs domestic licence.

https://www.gov.uk/guidance/controlled-drugs-industrial-hemp

MAN ARRESTED IN NORTHERN IRELAND SUSPECTED OF TRYING TO SELL 12 BILLION STOLEN PASSWORDS ONLINE

On 17 January, The Journal reported that police had arrested 2 men in the Netherlands and Northern Ireland suspected of trying to sell some 12 billion stolen usernames and passwords via an online website.  Officers believe the pair made total profits in excess of £200,000 from the site.

https://www.thejournal.ie/weleakinfo-stolen-passwords-4969801-Jan2020

https://www.nationalcrimeagency.gov.uk/news/weleakinfo-com-site-hosting-stolen-credentials-taken-down-after-international-operation

DELOITTE – WE DENY ANY ASSOCIATION OR INVOLVEMENT IN STATE CAPTURE AND CORRUPTION

A report on News 24 Wire on 17 January reported that auditing firm Deloitte has denied any involvement in state capture or corruption, particularly relating to its consultancy contracts with state power producer Eskom.  It says that Eskom is now litigating against Deloitte in a bid to get it pay back money for 2 tenders and other work the cash-strapped power producer says the auditing firm was “improperly” awarded in 2016.

https://allafrica.com/stories/202001170739.html

FUEL FRAUDSTERS BUSTED FOR TRAFFICKING OVER 300,000 LITRES OF ILLICIT FUEL IN EUROPE

A news release from Europol on 17 January reported that an operation began in 2019 with surveillance as part of an investigation targeting mineral oil fraud in the EU.  Thanks to coordinated action, 16,000 litres of illicit fuel were seized in November 2019 and the organised crime group behind the illegal activities was dismantled.  Also, 4 individuals were arrested, and also seized were vehicles (2 semi-trailers and 3 tractors), technical equipment, and documents proving that 348,000 litres of illicit oil had been shipped.

https://www.europol.europa.eu/newsroom/news/fuel-fraudsters-busted-for-trafficking-over-300-000-litres-of-illicit-fuel

CAN’T SELL YOUR PRESIDENTIAL PLANE? MEXICO MULLS A RAFFLE INSTEAD

On 17 January, Reuters reported that the Mexican President Andres Manuel Lopez Obrador has floated the idea of raffling off his predecessor’s $130 million jet after the government’s efforts to sell the plane over the past year came to nothing.  Mexico has yet to find a buyer for the Boeing 787 Dreamliner.

https://uk.reuters.com/article/uk-mexico-airplane/cant-sell-your-presidential-plane-mexico-mulls-raffle-instead-idUKKBN1ZG28K

CENTRAL BANK OF THE BAHAMAS LAUNCHES PROJECT SAND DOLLAR FOR DIGITAL CURRENCY

On 15 January, the CFTAF reported that the Central Bank of The Bahamas will introduce a digital version of the Bahamian dollar through an initiative titled ‘Project Sand Dollar’. The sand dollar is also the name given to the proposed central bank digital currency (CBDC), which is part of the Bahamian Payments System Modernization Initiative (PSMI). The main objective of the Project is improving financial inclusion and access to all citizens of The Bahamas.

For more details see –

https://www.centralbankbahamas.com/news.php?cmd=view&id=16660

UK NOTICE TO EXPORTERS 2020/02: OPEN GENERAL EXPORT LICENCES (OGEL) UPDATED – TURKEY LICENCE DELETED

On 17 November, the Department for International Trade released this latest Notice to Exporters saying that the Department has amended 14 OGEL, 1 open general transhipment licence (OGTL), and revoked the OGEL for Turkey, following the review of OGEL where Turkey was a permitted destination.

https://www.gov.uk/government/publications/notice-to-exporters-202002-open-general-licences-updated/notice-to-exporters-202002-open-general-licences-updated

The revoked OGEL for Turkey can be seen at –

https://www.gov.uk/government/publications/open-general-export-licence-turkey

SINGAPORE: FIRST PENALTY FOR FAILURE TO DISCLOSE SHAREHOLDING INTERESTS

A release on Mondo Visione on 17 January reported that the Monetary Authority of Singapore (MAS) has imposed a civil penalty of $200,000 on Mr Lim Soon Fang for not disclosing changes in, and providing false information regarding his shareholding in Asia-Pacific Strategic Investments Limited (ASIL).  This is the first civil penalty action by MAS for breaches of shareholding disclosure requirements under Part VII of the Securities and Futures Act (SFA) since the civil penalty regime was extended to these contraventions in November 2012.

https://mondovisione.com/media-and-resources/news/monetary-authority-of-singapore-first-civil-penalty-enforcement-action-for-fail/

FORMER PHILIPPINES POLICE CHIEF AND DRUG WAR ENFORCER TO BE CHARGED WITH CORRUPTION – 13 OTHER OFFICERS SAID TO BE IMPLICATED

On 17 January, The Guardian reported that Oscar Albayalde, who resigned in October was the former chief police enforcer of Philippine president Rodrigo Duterte’s deadly war on drugs.  He will be charged with corruption for allegedly protecting officers linked to the narcotics trade.  Prosecutors found “probable cause” to charge Albayalde for not punishing officers accused of failing to account for 163 kg of drugs and about $517,000 seized from a drug raid, and it is said that 13 other police officers would be charged with drug offences, corruption and taking bribes for their role in the operation.

https://www.theguardian.com/world/2020/jan/17/former-philippines-police-chief-to-be-charged-with-corruption

US TREASURY ISSUES FINAL REGULATIONS IMPLEMENTING FIRRMA RE THE COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES (CFIUS)

On 17 January, Baker McKenzie issued a Client Alert about 2 recently-issued Final Rules which implement the Foreign Investment Risk Review Modernization Act (FIRRMA) enacted in August 2018, which expanded the US foreign investment review regime.  FIRRMA mandated pre-closing notification of certain foreign investments and expanded the scope of transactions subject to CFIUS’ jurisdiction.  The Alert examines the Final Rules, including the mandatory notification of foreign government-affiliated investments, mandatory notification of investments in critical technology businesses, certain real estate transactions affected, the exempt countries and investors and a preserved exemption for investment funds.

https://bakerxchange.com/rv/ff00586abbf1f5eed49b6cce8241abe47bd0504f

 

 

AML/CFT MUTUAL EVALUATION REPORT ON BERMUDA RELEASED

On 17 January, Business Wire reported that the mutual evaluation report (MER) of Bermuda’s systems and framework, published by FATF-style regional body CFATF, highlights the outstanding work that has been done to comply with the FATF 40 Recommendations.  It is said that, of the more than 75 MER published to date, Bermuda ranks first against the Technical Compliance requirements, with 39 of the 40 Recommendations rated as Compliant or Largely Compliant, and is in the top 6 for overall level of effectiveness and one of only two jurisdictions with a high level of effectiveness in relation to its risk assessment and domestic coordination mechanisms.

https://www.businesswire.com/news/home/20200117005478/en

The report can be found at –

https://www.cfatf-gafic.org/documents/4th-round-meval-reports/13596-bermuda-4th-round-mer/file

It was adopted at the CFATF Plenary in November

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45 POLICEMEN, 11 MAYORS OF MOLDOVA AMONGST THOSE DETAINED FOR CORRUPTION ACTS IN 2019

On 17 January, Moldpress reported that officers of the National Anticorruption Centre (CNA) detained 45 police inspectors, 18 directors and deputy directors of state enterprises and 11 mayors and deputy mayors for corruption acts in 2019.  The Interior Ministry (MAI), Health, Labour and Special Protection Ministry (MSMPS), mayors, as well as the Customs Service are among the institutions where most corruption acts were discovered in 2019.

https://www.moldpres.md/en/news/2020/01/17/20000380

SAUDI ARABIA: FATF AML/CFT ASSESSMENT FOLLOW-UP REPORT

On 17 January, FATF published a follow-up report following the mutual evaluation of Saudi Arabia in 2018, after which the country (like many others) was put in the enhanced follow-up process.  FATF has upgraded the results in respect of 2 FATF Recommendations – 6 (Targeted financial sanctions related to terrorism and terrorist financing), from partially compliant to largely compliant; and 7 (Targeted financial sanctions related to proliferation), from partially compliant to largely compliant.  Such follow-up reports do not address the effectiveness ratings of a country.  The report also looks at whether Saudi Arabia’s measures meet the requirements of FATF Recommendations that have changed since the 2018 mutual evaluation, maintaining the rating of largely compliant for Recommendation 2 (National cooperation and coordination), but it downgraded the rating for Recommendation 18 (Internal controls and foreign branches and subsidiaries) and Recommendation 21 (Tipping-off and confidentiality) from compliant to largely compliant.  As a result, Saudi Arabia is now compliant on 17 of the 40 FATF Recommendations and largely compliant on 21, remaining partially compliant on 2 of the 40 Recommendations.  Saudi Arabia will continue to report back to FATF on its progress.

http://www.fatf-gafi.org/media/fatf/documents/reports/mer4/Follow-Up-Report-Saudi-Arabia-2020.pdf

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PRIVATE WAR IN LIBYA FUNDED VIA SCOTTISH LIMITED PARTNERSHIPS

On 17 January, The Times reported that a convicted arms dealer used a notorious form of company to finance a private air war in Libya.  Rami Ghanem supplied mercenaries to fly and maintain fighter-bombers for one of the local militias, and with crews paid through 2 Scottish limited partnerships.  Ghanem, an Arab-American, was jailed for 30 years in the US last year.

https://www.thetimes.co.uk/article/private-war-in-libya-funded-via-scots-firms-kh5gs9klc

AB InBev LOOKS TO MACHINE LEARNING TO ROOT OUT CORRUPTION

On 17 January, the Wall Street Journal reported that Anheuser-Busch InBev, the world’s largest brewer, has spent 3 years developing machine-learning technology that can identify risky business partners and potentially illegal payments.  The analytics platform, BrewRight, draws on data from operations in more than 50 countries, allowing the company to monitor legal risks and prevent violations.  It is said that the platform is designed to get smarter and more effective over time, and that it has cut hundreds of thousands of dollars in costs associated with investigating suspect payments.

https://www.wsj.com/articles/ab-inbev-taps-machine-learning-to-root-out-corruption-11579257001

OTHER THINGS YOU MAY HAVE MISSED – JANUARY 16

16th January 2020

 OFAC ISSUES NEW FAQ RE NEW SANCTIONS ON IRANIAN INDUSTRIES

On 16 January, OFAC announced issue of FAQ 816, which asks if there a wind-down period for the most recent Executive Order 13902, “Imposing Sanctions with Respect to Additional Sectors of Iran”.  Essentially, those affected have a 90-day period after the issuance of E.O. 13902 to wind down those transactions without exposure to sanctions.

https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_iran.aspx#816

ALMOST ALL NORTH KOREAN WORKERS HAVE NOW LEFT RUSSIA, SENIOR DIPLOMAT SAYS

NK News on 16 January reported that a senior Russian diplomat has said that nearly all the over 11,000 North Koreans working in Russia have left, as UN sanctions banning the use of such workers takes effect.

https://www.nknews.org/2020/01/almost-all-north-korean-workers-have-now-left-russia-senior-diplomat-says/

RISE IN CHEQUE FRAUD IN US COULD MOTIVATE SWITCH TO OTHER PAYMENT TOOLS

The Wall Street Journal on 15 January reported that a recent rise in check fraud could motivate corporate treasurers to ditch paper cheques and replace them with faster, safer and cheaper electronic payments.  It says that attempted check fraud increased to $15.1 billion in 2018 — up from $8.5 billion in 2016 — and accounted for 60% of attempted fraud against deposit accounts at US banks.

https://www.wsj.com/articles/rise-in-check-fraud-could-motivate-treasurers-to-switch-to-other-payment-tools-11579131505

PODCAST: WAGNER AND RUSSIAN PRIVATE MILITARY CONTRACTORS

The latest Defense One podcast sets out to take a closer look at Russian private military contractors, saying that it is a phenomenon with a history; and something that does not seem to be going away anytime soon.

https://www.defenseone.com/ideas/2020/01/ep-62-wagner-and-russian-private-military-contractors/162447

US VIRGIN ISLANDS ATTORNEY GENERAL SAYS JEFFREY EPSTEIN TRAFFICKED GIRLS AND EXPLOITED SHELL COMPANIES IN 2018

On 16 January, KYC 360 reported that a lawsuit filed by the US Virgin Islands Attorney General alleges that deceased multimillionaire financier Jeffrey Epstein sexually trafficked hundreds of young women and girls on his private island, some as recently as 2018, aided by a web of shell companies to carry out and conceal his crimes.

https://www.riskscreen.com/kyc360/news/virgin-islands-allege-epstein-trafficked-girls-exploited-shell-companies-in-2018/

REPORT CITES A “ROGUE 100” GROUP OF CRIMINAL BROKERS WHO CONTROL BITCOIN ADDRESSES THROUGH WHICH HUNDREDS OF BILLIONS OF DOLLARS FLOWED IN 2019

On 16 January, KYC 360 reported that a report from Chainalysis cites a “Rogue 100” group of criminal over-the-counter brokers who control Bitcoin addresses, a form of digital wallet, through which hundreds of billions of dollars flowed in 2019.  The company says the Rogue 100, none of which are directly identified in the report, often transact with each other and also transfer Bitcoin through intermediary accounts to make it harder to trace.  Chainalysis says the Rogue 100 rely heavily on 2 major overseas exchanges, Huobi and Binance, with 70 of the Rogue 100 operating on Huobi.

https://www.riskscreen.com/kyc360/news/how-shadowy-brokers-allegedly-launder-billions-for-crypto-criminals/

GHANA CHARGES CEO OF 2 DEFUNCT LENDERS OVER BANKING CRISIS THAT COST $2.2 BILLION

On 16 January, Bloomberg reported that Ghanaian prosecutors charged the CEO of 2 defunct lenders for alleged crimes that contributed to a banking crisis that cost the nation $2.2 billion in bailouts.  They were Michael Nyinaku, the former CEO of Beige Bank Ltd and Prince Kofi Amoabeng, who founded UT Bank Ltd.

https://www.riskscreen.com/kyc360/news/ghana-charges-ceos-over-banking-crisis-that-cost-2-2-billion/

ANOTHER LAW FIRM DRAGGED INTO NAMIBIA’S FISHROT” SCANDAL

On 15 January, The Namibian reported that the Anti-Corruption Commission (ACC) has confirmed investigating another law firm, Ellis Shilengundwa Incorporated, in connection with funds deposited into their bank account by the National Fishing Corporation of Namibia (Fishcor).  The other law firms being investigated are those of Sisa Namandje and Sacky Kadhila Amoomo.

https://www.namibian.com.na/87025/read/Another-law-firm-dragged-into-Fishrot

US: OLD EXPORT REGULATIONS GET A NEW USE

In its 18 January edition, the Economist carried an article about the Bureau of Industry and Security (BIS) and its control of rules governing the flow of goods from and through the US, called the Export Administration Regulations (EAR).  Under President Trump, it argues, these rules are being transformed into a new weapon in the fight against Chinese technology. But changing them risks driving high-tech business out of America, the article says.

https://www.economist.com/united-states/2020/01/18/old-export-regulations-get-a-new-use

FORMER SENIOR EU DIPLOMAT INVESTIGATED OVER CHINA SPYING CLAIMS

The Washington Post on 16 January reported that a former senior European diplomat and 2 others are being investigated on suspicion of spying for China.  Apartments and offices in Germany and in Brussels were searched but no arrests made, with the investigation said to be centred on a former German career diplomat.  He is said to have held senior posts in a number of European institutions, including the Commission and the European External Action Service.  He served as an EU ambassador in Asia before he left diplomacy in 2017 to join a lobbying business.  The other 2 suspects work for a separate lobbying company.

https://www.washingtonpost.com/world/former-senior-eu-diplomat-investigated-over-china-spying-claims/2020/01/16/1a850cca-386a-11ea-a1ff-c48c1d59a4a1_story.html

ISRAELI COURT REJECTS NSO SPYWARE FIRM’S ATTEMPT TO DROP HACKING CASE

On 16 January, Middle East Eye reported that a judge in Israel has ordered the NSO Group, the country’s largest surveillance company, to fight a hacking case brought against it by prominent Saudi activist Omar Abdulaziz and pay for his legal fee.  Abdulaziz, a Saudi dissident living in Canada, has claimed that his mobile phone was infected with Pegasus spyware by an operator “linked to Saudi Arabia’s government and security services”.  Pegasus was the same software used to spy on Middle East Eye and Washington Post columnist Jamal Khashoggi, a friend of Abdulaziz’s.

https://www.middleeasteye.net/news/israeli-court-rejects-nsos-attempt-drop-hacking-case

https://www.theguardian.com/world/2020/jan/16/israeli-spyware-firm-nso-hacking-case

US LIFTS VISA RESTRICTIONS ON GHANA

On 16 January, Modern Ghana reported that the US had imposed visa restrictions on Ghana for refusing to accept the deportation of some 7,000 Ghanaians, and restrictions included suspension of issuance of all new visas for domestic employees of Ghanaian Diplomats hosted in the US.

https://www.modernghana.com/news/979431/us-lifts-visa-sanctions-on-ghana.html

DON’T ATTEND NORTH KOREAN CRYPTOCURRENCY CONFERENCE, UN SANCTIONS EXPERTS WARNS

On 16 January, News 18 reported that UN sanctions experts are warning people not to attend a cryptocurrency conference in North Korea in February, flagging it as a likely sanctions violation. It also reminds one that the US has formally charged American digital currency expert Virgil Griffith after he attended the North Korean cryptocurrency conference last year.

https://www.news18.com/news/tech/dont-attend-north-korean-cryptocurrency-conference-un-sanctions-experts-warn-people-2460235.html

DUTCH MAN JAILED IN THAILAND FOR MONEY LAUNDERING IN NETHERLANDS IS RELEASED

On 16 January, Dutch News reported that Johan van Laarhoven, a Dutch man who ran several cannabis cafes, or coffee shops, in the Netherlands and was jailed for 100 years in Thailand, is heading back home after years of campaigning for his release.  Once back he will have to sit out some 2 years in a Dutch jail to complete his sentence, it is believed, and he also faces a criminal investigation for money laundering of €20 million, tax fraud, and membership of a criminal organisation.

https://www.dutchnews.nl/news/2020/01/dutchman-jailed-in-thailand-for-money-laundering-in-nl-is-released/

POLICING IN THE UK: SERIOUS AND ORGANISED CRIME

On 16 January, the House of Lords Library published a briefing paper which explores the nature of serious and organised crime in the UK.  It includes statistics on the scale of the problem as well as information on the response by the Government and the NCA.  In the UK, no single official or body is in overall charge of the response to serious and organised crime.  Rather, there are over 100 government departments, law enforcement bodies, agencies and other organisations involved in tackling this type of crime.  Operationally, the NCA leads and coordinates the UK’s response.  It also publishes an annual national strategic assessment on the issue, highlighting key findings and trends.  There is no dedicated funding stream for tackling serious and organised crime.  The work is financed through several unconnected funding streams by sources that are subject to annual bidding and decision processes.  It is said that recent reports have concluded that “there remain some significant and avoidable shortcomings” and, in addition, the director general of the NCA has called for an increase to the amount of funding aimed at tackling serious and organised crime.

http://researchbriefings.files.parliament.uk/documents/LLN-2020-0016/LLN-2020-0016.pdf

UK: PERSONAL SERVICE COMPANIES AND “IR 35”

On 16 January, the House of Commons Library published an updated briefing paper reminding one that ‘IR35’ is the commonly-used term for legislation introduced in 2000 to tackle the misuse of personal service companies (PSC) for tax avoidance purposes.  The briefing looks at debates as to the effectiveness of these rules and wider concerns about the use of employment intermediaries to avoid tax, before discussing recent developments as to their application in the public and private sector.

http://researchbriefings.files.parliament.uk/documents/SN05976/SN05976.pdf

TAX AVOIDANCE IN THE UK: A GENERAL ANTI-AVOIDANCE RULE

On 16 January, the House of Commons Library released a pair of briefing papers.

The first gives some background to the earlier debates there have been on the case for a general statutory prohibition of aggressive tax avoidance, in relation to the Coalition Government’s introduction of a General Anti-Abuse Rule in 2013.

http://researchbriefings.files.parliament.uk/documents/SN02956/SN02956.pdf

The second briefing notes looks at the case that has been made recently for a general anti-avoidance rule, and the Coalition Government’s introduction of a ‘narrower’ General Anti-Abuse Rule in 2013.

http://researchbriefings.files.parliament.uk/documents/SN06265/SN06265.pdf

GUATEMALA: EX-ECONOMY MINISTER SOUGHT ON GRAFT CHARGES

KSL.com in the US on 16 January reported that a former economy minister, Acisclo Valladares Urruela, was declared a fugitive from justice after he appeared in court to face corruption allegations.  Valladares was economy minister in then-President Jimmy Morales’ administration until 15 January, when a new President was inaugurated and a new Congress sworn in. As a sitting Cabinet official, Valladares had enjoyed immunity from prosecution under Guatemalan law.

https://www.ksl.com/article/46705238/guatemala-ex-economy-minister-sought-on-graft-charges

ANGOLAN NATIONAL BANK ADMITS FAILURES THAT ENCOURAGED CORRUPTION

Prensa Latina on 16 January reported that the current administration of the National Bank of Angola (BNA) detected serious internal failures that led to the illegal sending abroad of considerable sums of money, now the subject of a lawsuit in the so-called ‘500 million’ case.

https://www.plenglish.com

BAHAMIAN COMPANY AT CENTRE OF LEKOIL FRAUD SCANDAL SEAWAVE INVEST MAY HAVE ALREADY BEEN STRUCK OFF

On 16 January, This is Money reported that a company that claimed to represent Qatar’s huge sovereign wealth fund may have been struck off at the time it allegedly duped a Nigerian oil company.  Seawave Invest, which calls itself an ‘independent consultancy firm’ specialising in Africa, received a consultancy fee from petroleum company Lekoil in return for a $184million loan agreement from the Qatari Investment Authority (QIA).

https://www.thisismoney.co.uk/money/markets/article-7894367/Bahamian-company-centre-Lekoil-scandal-struck-allegedly-duped-oil-company.html

INDIVIDUAL BEHIND SUSPECTED FX SCAM SIMPLE WEALTH REFUSES TO COMPLY WITH CFTC SUBPOENA

On 16 January, Retail FX reported that the US Commodity Futures Trading Commission still has no access to the documents it sought in a subpoena in November from Cody Wilson, the individual behind the allegedly fraudulent Forex and binary options scheme.  He is said to have solicited customers through a variety of ventures, including an entity called Simple Wealth LLC.

https://financefeeds.com/individual-behind-suspected-fx-scam-simple-wealth-refuses-comply-cftc-subpoena/

UN AMENDS 85 ENTRIES ON ITS ISIL/AL-QAIDA SANCTIONS LIST

A news release from the UN on 14 January advised that the entries relating to 85 separate persons on the sanctions list had been amended, to make reference to a review of said entries in December for the purposes of UN SCR 2368.

https://www.un.org/press/en/2020/sc14078.doc.htm

UN AMENDS 7 ENTRIES ON ITS MALI SANCTIONS LIST TO INCLUDE PHOTOS

On 14 January, a UN news release advised that the entries for 7 individuals had been amended to include links to photos of said individuals being available.

https://www.un.org/press/en/2020/sc14079.doc.htm

US STRATEGY TO COMBAT HUMAN TRAFFICKING, IMPORTATION OF GOODS PRODUCED WITH FORCED LABOUR AND CHILD SEXUAL EXPLOITATION

On 15 January, Homeland Security Today reported that the US Department of Homeland Security had issued its first strategy on the subjects.  It sets out the Department’s priorities over the next 5 years to combat the growing threat of human trafficking, the importation of goods produced with forced labour, and child sexual exploitation, which include investigating and prosecuting perpetrators and enabling DHS through organisational improvements to combat these illicit activities.  It is said that in 180 days, the Department will publish an implementation plan that includes specific deliverables, timelines, and metrics for key results.

https://www.hstoday.us/federal-pages/dhs/dhs-issues-strategy-to-combat-human-trafficking-the-importation-of-goods-produced-with-forced-labor-and-child-sexual-exploitation/

The Strategy itself can be found at –

https://www.dhs.gov/publication/strategy-combat-human-trafficking-importation-goods-produced-forced-labor-and-child

NEW GUATEMALA GOVERNMENT ARRESTS FORMER MAYOR IN CORRUPTION RAIDS

On 16 January, Reuters reported that Guatemala’s government said prosecutors carried out raids and arrested a former mayor – Ángel Ren Guarcas of Chiche – accused of corruption as the US embassy announced it had revoked visas for some ex-officials.

https://www.reuters.com/article/us-guatemala-corruption/new-guatemala-government-arrests-former-mayor-in-corruption-raids-idUSKBN1ZG04P

LAS VEGAS HIGH-ROLLER WHO CLAIMED HE HELPED CREATE “GRAND THEFT AUTO” PLEADS GUILTY TO SWINDLING INVESTORS OF HIS LATEST VENTURE

On 16 January, the New York Post reported that Robert Alexander has pleaded guilty to using his gaming company, Kizzang, as a personal piggy bank.  It is said that Alexander blew through more than $1.3 million he got from investors exaggerating his role in “Grand Theft Auto” and lying about his now-defunct company’s success.

https://nypost.com/2020/01/16/grand-theft-auto-kingpin-pleads-guilty-to-fraud-charges/

FORMER MEMBER OF BARBADOS PARLIAMENT AND MINISTER OF INDUSTRY FOUND GUILTY OF RECEIVING AND LAUNDERING BRIBES FROM BARBADIAN INSURANCE COMPANY

On 16 January, a news release from the US DoJ advised that Donville Inniss, 54, a US legal permanent resident who resided in Tampa, Florida, and Barbados, was found guilty by a federal jury for his role in a scheme to launder bribes paid to him by executives of the Insurance Corporation of Barbados Limited (ICBL).  It is said that in 2015 and 2016, he took part in a scheme to launder into the US approximately $36,000 in bribes that he received from high-level executives of ICBL.

https://www.justice.gov/opa/pr/former-member-barbados-parliament-and-minister-industry-found-guilty-receiving-and-laundering

MALAWI ANTI-BRIBERY PROTESTS DRAW THOUSANDS

On 16 January, VoA reported that tens of thousands of Malawians took part in protests at alleged attempts to bribe judges overseeing a legal challenge to the re-election last year of President Peter Mutharika – and after the country’s chief justice charged that the 5 judges presiding over the case had been offered kickbacks.

https://www.voanews.com/africa/malawi-anti-bribery-protests-draw-thousands

INDIA: ENFORCEMENT DIVISION TO QUIZ AIR ASIA CHIEF ON LAUNDERING SUSPICIONS

On 16 January, the Telegraph in India reported that the Enforcement Directorate (ED) has summoned the senior executives of AirAsia, including its CEO Tony Fernandes, for questioning in an alleged money laundering case.  The probe is related to allegations that the airline tried to manipulate government policies through corrupt means to get an international licence for its Indian venture, AirAsia India Limited.

https://www.telegraphindia.com/business/enforcement-directorate-ed-to-quiz-airasia-chief-tony-fernandes-on-money-laundering/cid/1736445

BRITISH PHARMACIST JAILED FOR SELLING OPIATE PAINKILLERS, TRANQUILLISERS AND CANCER DRUGS TO ORGANISED CRIMINALS

On 16 January, illicit Trade reported that Jaspar Ojela, 56, from West Bromwich, a pharmacist has received a 28-month jail sentence after being convicted of supplying controlled drugs with an estimated street value of almost £280,500 to members of an organised crime network.  He purchased controlled opiate painkillers, tranquillisers and medications intended for the treatment of cancer from drug wholesalers in 2016 before selling them on to his underworld contacts.

https://www.illicit-trade.com/2020/01/british-pharmacist-jailed-for-selling-opiate-painkillers-tranquillisers-and-cancer-drugs-to-organised-criminals

ITALIAN COURT CONFIRMS ING NEW CUSTOMER BAN IN MONEY LAUNDERING CASE

On 16 January, Reuters reported that an Italian court has backed a decision last year by supervisors at the Bank of Italy prohibiting Dutch lender ING from taking on new customers in Italy over a money laundering case.  The central bank also ordered the lender to remove its Italian CEO.  The Netherlands’ largest financial services provider admitted in 2018 that criminals had been able to launder money through its accounts and agreed to pay €775 million to settle the case in the Netherlands.

https://www.reuters.com/article/ing-groep-italy-moneylaundering/italian-court-confirms-ing-new-customer-ban-in-money-laundering-case-idUSL8N29L43Z?rpc=401&