On 11 February, a news release advised that the Security Council has extended the authorisation of measures against the illicit export of petroleum products, including crude oil and refined petroleum products, from Libya until 30 April 2021, including inspections by Member States of designated vessels on the high seas, adopting UN SCR 2509.
Day: February 11, 2020
EU ADDS AMADOU KOUFA TO ISIL/AL-QAIDA SANCTIONS LIST
EU Regulation 2020/184/EU has followed the lead of the UN and added AMADOU KOUFA (who has numerous aliases) to its sanctions lists.
SWISS CANCEL CRYPTOGRAPHIC COMPANY’S EXPORT LICENCE AFTER CLAIMS OF SECRET CIA OWNERSHIP
On 11 February, the Washington Post and German broadcaster ZDF published an article revealing claims about Crypto AG, a Swiss cryptographic communications gear company that got its big break building code-making gear for the US Army in World War II, and has been a provider of encryption systems for more than 120 countries. Apparently, it was owned secretly by the CIA and German intelligence, allowing access to the communications of many countries, excluding China and the USSR. The Germans backed out of the deal in the 90s, but CIA ownership continued to 2016. It is said that more than a dozen countries still use encryption systems from Crypto AG – but the Swiss government has now revoked the company’s export licence.
AML: JMLSG IN UK PROPOSES AMENDED GUIDANCE
An article from Katten on 7 February reported that, on February 4, the UK Joint Money Laundering Steering Group (JMLSG) announced proposed amendments to its AML/CFT guidance, and explained that the JMLSG is a UK-focused group of trade bodies which produces AML/CFT guidance to assist the financial services industry. The JMLSG noted that the proposed amendments are a response to the updated regulations, which involve UK implementation of the EU 5th Money Laundering Directive. The consultation runs to 3 April.
Amongst the changes proposed are 4 more illustrative risk factors, updating guidance relating to electronic identification, digital identity and other electronic data sources; adding “anonymous safe-deposit boxes” to the list of prohibited anonymous products; and adding letting agents, antiquities and art market participants, cryptoassets exchange providers and custodian wallet providers to those caught by the regulations.
The proposed amendments are detailed here –
EU CLAMPDOWN ON FREE PORTS OVER CRIME AND TERRORISM LINKS, AS UK ANNOUNCES PLANS FOR MORE
On 10 February, the Guardian carried an article saying that the EU is clamping down on 82 free ports or free zones after identifying that their special tariff and duty status has aided the financing of terrorism, money laundering and organised crime. Since 10 January EU Member States (including the UK until December…) have to take extra measures to identify and report suspicious activities at the ports and zones as a result of the “high incidence of corruption, tax evasion, criminal activity”, and the situation will be reviewed in a year’s time. The UK plans to open its first new free ports (they died a death in the UK years ago, largely as seen to be offering no real advantages over other forms of customs warehousing under EU law) in 2021. The EU identified problems with some existing free ports (or “free zones” as EU law refers to them), including high net worth individuals using them for the storage of art, precious stones, antiques, gold and wine as alternative assets to cash; allow counterfeiters to land consignments, tamper with loads or associated paperwork and re-export the products without customs intervention; disguising the true origin and nature of goods, and the identity of the original supplier; and use in narcotics trafficking, the illegal ivory trade, people smuggling, VAT fraud, corruption and money laundering.
https://www.theguardian.com/world/2020/feb/10/eu-clamps-down-free-ports-zones-crime-terror-links
PODCASTS: ILLICIT ARMS TRAFFICKING FROM NORTH KOREA AND ITS ILLICIT MARITIME ACTIVITIES
A 36-minute podcast from the Small Arms Survey on 18 December focused on illicit arms trafficking from North Korea, including sources of arms, routes and modes of transport, concealment methods, and ways to curb such trafficking.
Then on 7 February it released a further podcast which focused on North Korea’s illicit maritime activities in violation of UN sanctions. It discusses what these activities are; how they relate to the UN sanctions regime on North Korea in general as well as the arms embargo in particular; how North Korea tries to circumvent these restrictions; and the tools available to monitor and address the situation.
http://www.smallarmssurvey.org/resources/multimedia/podcasts/podcast-49.html
http://www.smallarmssurvey.org/resources/multimedia/podcasts/podcast-50.html
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