Day: February 28, 2020

28 February 2020

STEVEN SEAGAL SETTLES SEC CRYPTOCURRENCY CHARGES

On 27 February, the Wall Street Journal reported that martial-arts actor Steven Seagal has settled charges brought by US securities regulators that allege he didn’t disclose payments he received for promoting an investment in an initial coin offering (ICO) for the cryptocurrency Bitcoiin2Gen, also known as B2G.

https://www.wsj.com/articles/actor-steven-seagal-settles-sec-cryptocurrency-charges-11582825714

https://www.findknowdo.com/news/02/27/2020/hollywood-action-star-settles-sec-charges-failing-disclose-ico-promotion-payments

 

MANY MINERS DIE AND IT NEVER SHOWS UP IN SAFETY DATA

On 27 February, the Wall Street Journal reported that around 90% of the world’s miners, according to the World Bank, work in small-scale operations or illegally by trespassing on land controlled by others, including bigger mining companies.   When tragedies occur, few of the deaths are recorded as mining-related and, if they were, they could add thousands to the industry’s death toll, according to some estimates.

https://www.wsj.com/articles/many-miners-die-and-it-never-shows-up-in-safety-data-11582815186

 

SWISS WATCHDOG TO PROBE JULIUS BAER EMPLOYEES ON MONEY LAUNDERING OVERSIGHT

On 27 February, Reuters reported that FINMA will probe the actions of individuals at Julius Baer after it reprimanded the bank for ignoring money laundering risks in payments linked to corruption in Venezuela and world soccer body FIFA; and would look at the behaviour of individuals at the Swiss private bank, with employment bans among the possible punishments for those found to have breached regulations.

https://www.reuters.com/article/julius-baer-finma/swiss-watchdog-to-probe-julius-baer-employees-on-money-laundering-oversight-idUSL5N2AQ376

 

EU WALKS TURKEY TIGHTROPE WITH LIMITED SANCTIONS ON DRILLING

On 28 February, KYC 360 reported on the recent listing of 2 officials of the Turkish Petroleum Corporation (TPAO) by the EU.  This is described as a move that has more political symbolism than an economic punch.  The article says that the decision by the EU stops short of targeting any Turkish companies. This reflects a desire to avoid antagonising a key ally in the fight to prevent Middle East migration, particularly from war-torn Syria.

https://www.riskscreen.com/kyc360/news/eu-walks-turkey-tightrope-with-limited-sanctions-on-drilling/

 

AFRICA: ORGANISED CRIME INDEX

Available from ENACT Africa (which is funded by the EU and is implemented by the Institute for Security Studies and INTERPOL, in affiliation with the Global Initiative against Transnational Organised Crime) is the Organised Crime Index 2019, a 130-page report, which is said to provide a multi-dimensional measure of organised crime and its impact, allowing key actors to develop effective strategies.  It examines where there is high levels of criminality and the resistance, or resilience, to it.  Data showed that the greatest overall organised crime threat was from human trafficking, with the illegal wildlife trade and IIU fishing in second place, both ahead of arms trafficking and the drugs trade.  Interestingly, the report found that the 2 high-value drug markets, cocaine and heroin, have the lowest market scores of all 10 criminal markets examined in the Index  This, it says, is explained by the relatively concentrated flows of these commodities – heroin down the east African coast, and cocaine along the west African littoral to North Africa   However, where the scores were markedly higher, countries were seen to be grappling with considerable damage created by growing user populations for low-grade heroin

https://enact-africa.s3.amazonaws.com/site/uploads/2019-09-24-oc-index-2019.pdf

 

US GOVERNMENT AUTHORITIES FAIL TO TRAIN EMPLOYEES ON RANSOMWARE DETECTION, PREVENTION

On 27 February, ZD Net reported that the majority of state and local government agencies in the US are failing to prepare their employees to spot cyberattacks or teach them how to handle ransomware incidents in the workplace, new research suggests, and based on responses from close to 700 US local and state employees in IT, education, emergency services, and security departments.

https://www.zdnet.com/article/government-authorities-fail-to-train-employees-on-ransomware-detection-prevention/

 

US UNIVERSITY RESEARCHER ARRESTED FOR WIRE FRAUD AND MAKING FALSE STATEMENTS ABOUT AFFILIATION WITH CHINESE UNIVERSITY

On 28 February, MENA-FN reported that Anming Hu, an associate professor in the department of mechanical, aerospace and biomedical engineering at the University of Tennessee, Knoxville (UTK) was arrested and charged with 3 counts of wire fraud and 3 counts of making false statements.  He is alleged to have committed fraud by hiding his relationship with a Chinese university while receiving funding from NASA.  It is said to be the latest case involving professors or researchers concealing their affiliations with China from their American employers and the US government.

https://menafn.com/1099772142/University-researcher-arrested-for-wire-fraud-making-false-statements-about-affiliation-with-Chinese-University

 

MALAWI LEGALISES THE GROWING, SELLING AND EXPORT OF CANNABIS

Africa Feeds on 27 February reported that the country still restricts the legalisation of cannabis for personal use, unlike in South Africa where the courts allowed for cannabis for personal use.  It is said that the cannabis will be used to make medicines and hemp fibres. Southern African countries, including Zambia, Lesotho and Zimbabwe, have all relaxed their rules on growing cannabis.

https://africafeeds.com/2020/02/27/malawi-legalises-the-growing-selling-and-export-of-cannabis/

 

INDIA: BULLION MERCHANT ARRESTED IN GOLD SMUGGLING PROBE
On 28 February, the Mumbai Mirror reported that he Directorate of Revenue Intelligence (DRI) had arrested bullion merchant Ketan Shroff for allegedly smuggling 400 kg of gold.  Shroff is the founder and managing director of Penta Gold Ltd.

https://mumbaimirror.indiatimes.com/mumbai/crime/bullion-merchant-arrested-in-gold-smuggling-probe/articleshow/74352447.cms
CONTRABAND CHEESE FROM VENEZUELA ON COLOMBIA’S CRIMINAL MENU

Insight Crime on 28 February carried a report saying that cheese has increasingly joined oil and other commodities smuggled along the border between Colombia and Venezuela, and criminal groups are milking the profits, as the dairy product more than doubles in value after crossing the Arauca river and reaching Bogotá.

https://www.insightcrime.org/news/analysis/venezuela-cheese-colombia-menu/

 

NEW LAW TO HELP TACKLE TRADE-BASED MONEY LAUNDERING IN KENYA

On 28 February, Ventures Africa published an article saying the Kenya is looking to curb illegal transactions while promoting transparency in the shipping industry with a new Bill, which is reportedly being drafted by more than 19 government agencies and is expected to be tabled before parliament before year-end.  Under the Bill, importers and exporters would be compelled to identify individuals or companies sending or receiving packages from around the world.  Banks and other financial institutions also have to identify senders and receivers of funds as well as assess the risk that the transaction might be used for illegal purpose.  The article points out that Kenya is the economic and transport hub of East Africa as well with the country’s Mombasa Port being the major trade gateway for much of the region; and this is said to make the region susceptible to the illegal movement of goods.

http://venturesafrica.com/new-law-to-help-tackle-illegal-trade-money-laundering-in-kenya/undefined

 

AUSTRALIA: PRE-INSOLVENCY ADVISER IMPRISONED FOR MONEY LAUNDERING

On 28 February, Mirage News reported that former pre-insolvency adviser Stephen O’Neill has been sentenced at Brisbane District Court to 5 years in prison after pleading guilty to one charge of dealing in the proceeds of crime.  He and a fellow conspirator engaged in activity that would involve the illegal removal of company assets to prevent creditors from accessing these assets.  The transactions were made to defeat creditor interests and to undermine the liquidator, with the prosecution resulting from an unfunded supplementary report by the liquidator.

https://www.miragenews.com/pre-insolvency-adviser-imprisoned-for-money-laundering/

 

BIG INCREASE IN NUMBER OF LATVIAN MONEY LAUNDERING CASES IN 2019

On 27 February, LSM in Latvia reported that 59 criminal cases involving 102 persons charged for laundering of the proceeds from crime were brought to court last year.  In 2018, there were only 23 similar criminal cases involving 54 persons.

https://eng.lsm.lv/article/society/crime/big-increase-in-number-of-latvian-money-laundering-cases-in-2019.a349938/

 

ISLE OF MAN: POST-BREXIT IMMIGRATION RULES – LIKE THE UK, BUT DIFFERENT

An article in Isle of Man Today on 28 February says that, despite an agreement for the Island to maintain its immigration law in line with that of the UK (as it does its customs and VAT laws), and UK primary immigration legislation being extended to cover the Isle of Man, there is some flexibility, and that the island is at liberty to tailor the rules to meet the needs and profile of its own economy. While assuring that the Island won’t be a “back door” for entry into the UK, when or if the planned tightened UK immigration rules, and its points-based system, takes effect, the Chief Minister has said that the Island is under no obligation to introduce the same system.  He said the that the visa issued to the migrant to work in the Island is not valid to work in the UK.

http://www.iomtoday.co.im/article.cfm?id=54095&headline=The%20Isle%20of%20Man%20%27won%27t%20be%20back%20door%20to%20Britain%27&sectionIs=news&searchyear=2020

 

US INVESTIGATION INTO BRITISH AMERICAN TOBACCO OVER POTENTIAL SANCTIONS VIOLATIONS

On 28 February, the EU Sanctions Blog reported that the annual report from BAT has said that OFAC and DoJ are currently investigating “suspicions of breach of sanctions”, with BAT saying that it is cooperating.

https://www.europeansanctions.com/2020/02/us-treasury-doj-sanctions-investigation-into-british-american-tobacco/

 

MEXICO RETURNS A BRONZE SCULPTURE TO NIGERIA

A Mexican Government news release has advised that the sculpture was discovered by customs officials at the Mexico City International Airport when the buyer tried to get it into the country.  No details have yet been released relating to the identification and capture of the smugglers.

https://www.gob.mx/sre/prensa/the-government-of-mexico-returns-a-bronze-sculpture-to-nigeria

 

CRIMINAL CASES REVIEW COMMISSION’S PROCESS FOR REVIEW OF CONVICTIONS RELATING TO THE POST OFFICE AND HORIZON ACCOUNTING SYSTEM

On 28 February, the House of Commons published a briefing paper in preparation for a debate in Westminster Hall and concerned with one of the scandal of sub-postmasters running sub-post offices in the UK being accused (or even jailed) for fraud and theft that appears to have actually involved defects in the IT system employed.

https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CDP-2020-0040

 

EX-ROMANIAN HEALTH MINISTER ALLEGEDLY CAUGHT ‘RED-HANDED TAKING BRIBE’

A report by Universul on 28 February claimed that Romanian anti-corruption prosecutors have allegedly caught former Health Minister Sorina Pintea red-handed taking a bribe exchange for an acquisition of medical equipment.

https://universul.net/https-universul-net-media-ex-romanian-health-minister-caught-red-handed-taking-bribe

 

SPANISH COURT REFUSES US EXTRADITION REQUEST FOR EX-VENEZUELAN MINISTER

On 28 February, Reuters reported that Spain had refused a request from the US to extradite former Venezuelan minister Javier Alvarado Ochoa in connection with an investigation into money laundering – because the allegations were based on alleged crimes also under investigation in Spain, and because Alvarado Ochoa also holds Spanish citizenship.

https://www.reuters.com/article/us-spain-venezuela-extradition/spanish-court-refuses-u-s-extradition-request-for-ex-venezuelan-minister-idUSKCN20M2NZ

 

NORTH KOREA’S ILLICIT CYBER OPERATIONS: WHAT CAN BE DONE?

An article from 38 North on 28 February considers the background to the problem, some options to counter it.  It concludes that containing and constraining North Korea’s cyber activities will require a wholescale rethinking of how to integrate cyber defence, starting with the financial services sector, into both measures the international community needs to take in its own defence as well as into a broader strategy for dealing with North Korea.  However, it questions whether the international community will be resilient, agile and cohesive enough to finally deal with this challenge.

http://bit.ly/2Pzgujk

 

ALBANIA: WELL-KNOWN PUBLICIST AMONG THE 28 DETAINED IN THE WIDE-RANGING OPERATION ON CRIMINAL NETWORK

On 28 February, Top Channel reported that the majority of the detainees face charges of manufacturing and selling narcotics, but others are also charged with other offences.  Among those arrested is publisher and analyst Henri Cili.

http://top-channel.tv/english/well-known-publicist-among-the-28-detained-in-the-wide-ranging-operation-on-criminal-network

 

MEXICO AND EUROPOL IN TALKS TO STRENGTHEN MUTUAL COOPERATION

A news release from Europol on 28 February advised that the Mexican Ministry of Security and Citizen Protection (SSPC), the Mexican Ministry of Foreign Affairs and Europol are in talks to expand and deepen collaboration on security matters – Mexico having been identified by the EU as a “priority partner” for security concerns, in particular, to curb the illicit flow of arms, their components, ammunition, and explosives.

https://www.europol.europa.eu/newsroom/news/mexico-and-europol-begin-consultations-to-strengthen-cooperation-security-and-illicit-flow-of-arms-ammunition-and-explosives

 

US: STAKEHOLDERS’ VIEWS ON POSSIBLE CHANGES TO INBOUND MAIL REGARDING CUSTOMS FEES AND OPIOID DETECTION EFFORTS

A news release from US watchdog agency, the Government Accountability Office, on 27 February mentioned the new $1 per item fee which helps fund inspection of that mail for illicit opioids and other prohibited goods.  It then asks should there be more fees on other types of inbound mail?  US Customs and Border Protection has said such fees could help fund its mail inspection, but are unlikely to deter people from mailing illicit opioids. The US Postal Service said more fees could make it too expensive to mail some goods and cut mail volume.  The STOP Act of 2018, which introduced the $1 fee, also included a provision for GAO to examine issues related to the possible assessment of an additional customs fee on other inbound international mail. The GAO undertook an inquiry and now has published a 15-page report.

https://www.gao.gov/products/GAO-20-340R

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An article from Out-Law on 28 February said that the High Court has ruled that a director’s fiduciary duties survive a company’s entry into administration or voluntary liquidation.  In the case in question, a liquidator was successful in his application in respect of company property sold at undervalue and payments made after the company entered administration.  The decision confirms that, while a director’s powers cease on insolvency, their fiduciary duties remain – even when not exercising those powers themselves.

https://www.pinsentmasons.com/out-law/legal-updates/directors-duties-survive-company-insolvency

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On 28 February, a news release from the US State Department announced that the former governor of the Mexican state of Nayarit, Roberto Sandoval Castañeda, had been designated by the US due to his involvement in significant corruption.  It is said that he misappropriated state assets and received bribes from narcotics trafficking organisations, including the Jalisco New Generation Cartel (CJNG), in exchange for information and protection.  In addition, he is said to have accepted bribes from the Beltran Leyva Organisation.  He and his immediate family members are ineligible for visas to the US.  In addition to Sandoval, the State Department is publicly designating his spouse, Ana Lilia Lopez Torres; his daughter, Lidy Alejandra Sandoval Lopez; and his son, Pablo Roberto Sandoval Lopez.

https://www.state.gov/public-designation-of-the-former-governor-of-the-mexican-state-of-nayarit-roberto-sandoval-castaneda-due-to-involvement-in-significant-corruption

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This survey was undertaken by ACAMS and RUSI and is based on 366 unique survey responses received between 7 November and 6 January by respondents throughout the world.  Involved in various sectors, the majority of survey respondents work in sanctions and compliance, in a variety of roles.  The key findings include –

• respondents overwhelmingly (wrongly) stated that proliferation finance is primarily about the procurement and financing of nuclear, chemical and biological weapons, rather than primarily about the proliferation efforts of specific state actors or non-state groups;
• institutions headquartered in Africa, Middle East and Asia are most likely to have a compliance function that incorporates proliferation finance, but only 50-60% of those based in Europe or the US;
• respondents from international banks report they are most likely to be familiar with proliferation finance risk;
• respondents indicated they are most concerned about detecting payments related to goods that can be used in a WMD programme), and least concerned with implementing targeted financial sanctions on Iran and North Korea;
• respondents in the US indicated they are less concerned by all the listed proliferation finance risks;
• only a fifth of respondents say that governments provide adequate guidance on dual-use and sensitive items. Two-fifths of respondents say they would find it useful if governments shared lists of high-priority items that they should be particularly aware of;
• over three-fifths agree it is challenging to incorporate lists of dual-use goods into transaction monitoring programmes, and a majority of respondents also agreed that the industry should prioritise strict end-user checks rather than identifying specific goods in transactions;
• the country perceived as most exposed to Iranian proliferation finance risk is the US, and China as being the most exposed to proliferation finance risk from North Korea;
• efforts to combat proliferation finance are hindered by an inability for industry to share data on proliferation finance with other private sector actors and with government. Respondents also agreed that sanctions evasion by proliferators is almost impossible to detect, unless the industry has access to intelligence leads; and
• only one-fifth of respondents say they receive sufficient guidance from their government to support understanding and identification of proliferation finance risk.

http://files.acams.org/pdfs/2020/ADT175_ACAMS_RUSI-Survey-Report-Documentation.pdf

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On 27 February, a report published by ACFCS by a Scotiabank AML analyst, and well worth a read, tackles financial crime compliance and crowdfunding.  The funding platforms in the nascent but burgeoning sector, in some cases it says, can be abused by money launderers, fraudsters and even terror groups, and in many jurisdictions it is not subject to formal AML rules – seemingly leaving the duty to craft programmes to counter criminals as optional.  The report looks at the varieties of crowdfunding and potential red flags.  It suggests that equity crowdfunding might be the “smart choice” for launderers, and explains how this might be done, in ways that sometimes resembles the equally little-known “transaction laundering”.  The report considers when crowdfunding is, in fact, a pyramid scheme.  Finally, it looks at the potential use of crowdfunding by terrorists.

https://www.acfcs.org/acfcs-special-contributor-report-crowdfunding-an-unorthodox-way-of-money-laundering-definitelymaybe/

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Business Times in India on 28 February reported that Indian refiners Reliance Industries and Nayara Energy are reportedly planning to wind down purchases of Venezuelan oil in April fearing future US sanctions could choke off all avenues to trade with state-run oil firm PDVSA.  Reliance operates the world’s biggest refining complex.  Nayara is part-owned by Russian oil major Rosneft.  India is one of Venezuela’s last big export destinations and accounted for about a third of Venezuela’s oil shipments in January.

https://www.businesstoday.in/sectors/energy/indian-oil-firms-to-wind-down-business-in-venezuala-fearing-us-sanctions/story/397156.html

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On 28 February, a news release from the Isle of Man advised that the recently adopted EU sanctions listing of 2 officials of the Turkish Petroleum Corporation (TPAO) has effect in the Island.

A Notice from HM Treasury was also published on 28 February.

https://www.gov.im/news/2020/feb/28/financial-sanctions-turkey/

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/869298/Notice_Turkey_2020_274.pdf

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iHLS on 27 February reported on a decision of the 42 member states of the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the international non-binding regime that restricts the exporting of commodities and technologies that can be diverted for use by military forces and in weapons; and governs 9 dual-use technologies and 22 categories of weaponry.  The states have agreed to add military-grade software and manufacturing technology for weapons-capable chip parts to an international list of items subject to export controls in an effort to counter cyberattacks and other threats.  Members of the group include the UK, Russia, India and South Korea, but China, Iran and North Korea do not participate. The agreement was reached unanimously at a meeting in December.

https://i-hls.com/archives/99301

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27 February 2020

GULNARA KARIMOVA, IMPRISONED DAUGHTER OF LATE UZBEK PRESIDENT, HAS OFFERED TO RETURN $686 MILLION END CASE

On 26 February, Rferl reported that Gulnara Karimova, the imprisoned eldest daughter of the late Uzbek President Islam Karimov, has offered to return $686 million to the country’s treasury in exchange for closure in the latest court case against her.

https://www.rferl.org/a/jailed-gulnara-karimova-offers-686-million-frozen-in-swiss-bank-for-freedom/30455680.html

 

OVER A DOZEN ROMANIAN BANKS PROBED FOR MONEY LAUNDERING

On 27 February, Romania Insider reported that the central bank had said it is investigating 16-17 local banks for an “awkward transaction” related to money laundering.  In at least one case, money from the Danske Bank scandal passed through a local bank.

https://www.romania-insider.com/bnr-banks-money-laundering-probe-feb-2020

 

RISE OF THE EAST AFRICA CATTLE SMUGGLING CARTELS

A news release from ENACT Africa on 27 February says that cattle rustling has been commercialised by international criminal networks in East Africa, aided by a proliferation of small weapons.  This, it says, undermines development and has caused multiple deaths among rural communities and security forces.  In the region, small-scale farmers are the backbone of the regional beef industry but find their livelihoods threatened by criminals who supply stolen beef to growing urban meat markets.  A new report shows how cattle rustling characterised by high-intensity conflicts has left dozens killed or maimed in 2017 and 2018.  The report outlines the impact of these crimes on human security and development in the region, and how the problem can be mitigated.  Cattle rustling has become a form of organised crime embedded in the wider business of cattle trade. It is enabled by government corruption, with state officials turning a blind eye or collaborating with criminals; and cattle rustlers also exploit weak cross-border coordination between governments in the region.

https://enactafrica.org/research/research-papers/vanishing-herds-cattle-rustling-in-east-africa-and-the-horn

 

INDIA AMONG TOP SUPPLIERS OF PHARMA DRUGS USED IN TRAFFICKING

On the 27 February, The Hindu reported that globally most of the tramadol — a controlled substance — seized between 2013 and 2017 was reported to have originated in India.  According to the 2019 report of the International Narcotics Control Board (INCB), released by United Nations Office of Drugs and Crime (UNODC), India features prominently among top manufacturers of illicit and licit drugs that are smuggled to other countries and into the hands of addicts.

https://www.thehindubusinessline.com/economy/india-among-top-suppliers-of-pharma-drugs-used-in-trafficking-un-report/article30932029.ece#

 

US TREASURY DEPARTMENT LIFTS SANCTIONS AGAINST FORMER ISRAELI GENERAL ZIV

The Jerusalem Post on 27 February said that Israel Ziv was sanctioned in December 2018 over accusations of selling arms to South Sudanese during its civil war.  Ziv and his company Global CST were designated following allegations that he sold millions of dollars of arms to South Sudan during its civil war.

https://www.jpost.com/Israel-News/US-Treasury-Department-lifts-sanctions-against-former-IDF-general-619050

 

SOUTH AFRICANS AND LOOMING EXPAT TAX

On 27 February, International Adviser reported that the recent South African budget statement mentioned, in just 2 paragraphs, a so-called “expat tax”.  From 1 March, South African tax residents working in another country will be liable to pay the Revenue Service (Sars) for money earned abroad – although the budget did lift the annual limit to ZAR 1.25 million, from the initially proposed ZAR 1 million (US$65,600).  It is said that the Government proposes to remove the exchange control treatment for individuals, while strengthening the tax treatment, and that “the intention is to allow individuals who work abroad more flexibility, provided funds are legitimately sourced and the individual is in good standing with Sars”.  The current rules allow people to transfer ZAR 10 million offshore, while this remains unchanged anyone breaching this limit “will be subjected to a more stringent verification process”, with this phased in by 1 March 2021.

https://international-adviser.com/small-consolation-for-south-africans-hit-by-looming-expat-tax/

 

REGULATORY FORECAST 2020 – HOW THE INTERNATIONAL TRADE SUPPLY CHAINS ARE CAUGHT IN THE REGULATORY CROSSFIRE

On 26 February, Crowell Moring published a report that explores the impact of regulatory changes on the technology industry and other sectors, and provides insight into what an in-house counsel can expect to face in the coming year.  It highlights the driving forces behind the increased regulatory focus, including access to the data, online platforms, and cutting-edge technologies that define competitive advantage. It explores regulatory trends in antitrust, environment and natural resources, and public affairs.  One chapter focuses on international trade and how the current trade conflict has created a new set of challenges for companies with supply chains reliant on China.  The article is said to offer in-house counsel considerations for moving forward.

https://www.crowell.com/NewsEvents/Regulatory-Forecast/2020

 

US STATE DEPARTMENT TERRORISM DESIGNATION OF AHMAD AL-HAMIDAWI

A news release from the US State Department on 26 February explained the reasons for the Department designating Ahmad al-Hamidawi a Specially Designated Global Terrorist (SDGT).  Ahmad al-Hamidawi is the Secretary General of Kata’ib Hizballah (KH), an Iran-backed terrorist group active in Iraq and Syria, which the Department  designated as a Foreign Terrorist Organization and SDGT in July 2009.  KH has claimed responsibility for numerous terrorist attacks against U.S. and Coalition Forces in Iraq, including IED attacks, rocket-propelled grenade attacks, and sniper operations.

https://www.state.gov/state-department-terrorist-designation-of-ahmad-al-hamidawi/

 

UK: REPORT OF THE INDEPENDENT REVIEWED OF TERRORISM LEGISLATION FOR 2018 NOT PUBLISHED

The EU Sanctions Blog on 27 February reported that the 2018 report had not been published, despite being submitted and vetted.  It notes that the Home Secretary must lay a copy of the report before Parliament as soon as the Secretary of State is satisfied that doing so will not prejudice any criminal proceedings.

https://www.europeansanctions.com/2020/02/uk-independent-reviewer-of-terrorism-legislation-2018-report-not-released-for-publication/

 

FORECASTING NEW TRENDS IN IRAN THREAT NETWORK FOREIGN OPERATIONS TRADECRAFT

An article in the always interesting CTC Journal from the Combating terrorism Center at West Point looks at the aftermath of the killing of the Islamic Revolutionary Guard Corps Quds Force chief.  It warns that Iran and the foreign legion of Shi`a proxies at its disposal are likely to employ new types of operational tradecraft, including deploying cells comprised of operatives from various proxy groups and potentially even doing something authorities worry about but have never seen to date, namely encouraging Shi`a homegrown violent extremist terrorist attacks.  One of the conclusions of the article is that the most likely scenarios for near-term operations targeting the US or its allies involve attacks on US and other forces in the region and a wide range of cyberattacks.

https://ctc.usma.edu/fighters-without-borders-forecasting-new-trends-iran-threat-network-foreign-operations-tradecraft/

 

INTERVIEW WITH AN OFFICIAL AT EUROPOL’S EU INTERNET REFERRAL UNIT

Another article in the latest edition of the CTC Journal consists of an interview about a campaign involving Europol and the social media messaging service Telegram, which engaged in a serious disruption campaign against the Islamic State’s channels and groups on the platform, about the ongoing relationship with social media companies, and the continued challenge of combating terrorist content online.  The official requested anonymity but Europol has reviewed this interview and approved its publication.  He starts by explaining that the IRU was set up in 2015, to build on existing capacity within Europol (the EU police agency) to monitor and analyse terrorist propaganda, meaning jihadist propaganda, and to engage with online service providers to flag terrorist content to them and find solutions on how to disrupt the dissemination of terrorist content online.

https://ctc.usma.edu/view-ct-foxhole-interview-official-europols-eu-internet-referral-unit/

 

UK: REVIEW OF DRUGS: PHASE ONE REPORT

On 27 February, the Home Office released phase one of a report which provides a detailed analysis of the challenges posed by drug supply and demand, including the ways in which drugs fuel serious violence.  Professor Dame Carol Black was commissioned in February 2019 to undertake an independent review of drugs. This was to inform the UK government’s thinking on what more can be done to tackle the harm that drugs cause.

https://www.gov.uk/government/publications/review-of-drugs-phase-one-report

The NCA has issued a statement on the report –

https://www.nationalcrimeagency.gov.uk/news/nca-statement-on-professor-dame-carol-black-review-of-drugs

 

AUSTRALIA: FAKE TAHITIAN PRINCE IMPRISONED OVER THE THEFT OF $16 MILLION FROM QUEENSLAND HEALTH, RELEASED AND DEPORTED TO NEW ZEALAND

On 27 February, the Canberra Times reported that fake Tahitian prince Joel Morehu-Barlow, who was imprisoned over the theft of $16 million from Queensland Health, has been released from jail and deported to New Zealand.

https://www.canberratimes.com.au/story/6653421/fake-prince-deported-after-jail-release

 

BRANCH OF MAJOR DUTCH BANK ABN AMRO RAIDED IN GERMAN CUM-EX SCANDAL INVESTIGATION

Deutsche Welle on 27 February reported that a Frankfurt branch of Dutch bank ABN Amro was searched in the bank’s second raid relating to the investigation.  ABN Amro is also said to be under investigation for money laundering, being suspected by Dutch authorities of money laundering after failing to report suspicious transactions.

https://www.dw.com/en/major-dutch-bank-raided-in-cum-ex-scandal-investigation/a-52562464

 

ZAMBIA SEIZES $3 MILLION BUGATTI OVER ALLEGED POSSIBLE MONEY LAUNDERING

Face2Face Africa reported on 27 February money laundering that authorities have confiscated a Bugatti Veyron imported into the country, pending investigations into possible money laundering.  It has been reported that car is owned by South African- -based Zimbabwean businessman, Ian Chamunorwa Nyarungwe Haruperi.

https://face2faceafrica.com/article/zambia-seizes-3m-bugatti-over-possible-money-laundering

 

UK: TOMMY ADAMS ORDERED TO REPAY £1.24 MILLION FOR DIRTY CASH LAUNDERING OPERATION

A CPS news release on 27 February advised that Thomas ‘Tommy’ Adams has been ordered to repay £1,243,270.75 for his part in a dirty cash laundering network.  He ran a money laundering operation with his associates, which was closed down in 2014.  The network was convicted of money laundering offences in two separate trials in 2017 and jailed for more than 30 years collectively.  Adams, a member of a prominent south London family, has been ordered to repay the full amount of his benefit by 26 May or he will face a further 7 years in prison.

https://www.cps.gov.uk/cps/news/tommy-adams-ordered-repay-ps124m-dirty-cash-laundering-operation

 

HMRC ARRESTS 5 OVER LOAN CHARGE TAX FRAUD

On 27 February, Accountancy Daily reported that 4 men and a woman have been arrested on suspicion of fraud in connection with promoting arrangements designed to avoid paying the loan charge. It is thought that the arrests involve disguised remuneration, where schemes are contrived arrangements that pay loans in place of an ordinary remuneration, usually through an offshore trust, with the purpose of avoiding income tax and NIC. The loans are provided on terms that mean they are not repaid in practice, HMRC said.

https://www.accountancydaily.co/hmrc-arrests-five-over-loan-charge-fraud

 

ISRAEL: 2 MORE EX-OFFICIALS TO BE INDICTED IN SUBMARINES CASE

The Times of Israel on 27 February reported that former deputy national security adviser Avriel Bar-Yosef and commander of elite naval commando unit Shay Brosh face bribery and corruption charges.  The “Case 3000” investigation involves alleged corruption in the purchase of naval vessels from German shipbuilder ‎Thyssenkrupp.

https://www.timesofisrael.com/2-more-ex-officials-to-be-indicted-in-submarines-case

 

TANZANIA: RAILWAY CONSTRUCTION MANAGER FOUND GUILTY OF MONEY LAUNDERING

The Citizen on 27 February reported that a Turkish national, Yetkin Gen Mehmen, facilitation manager of the Turkish company building the Standard Gauge Railway, had been sentenced to 3 years in prison or paying a fine of around $43,000 – with $84,000, found on him at the airport as he prepared to leave the country, to be forfeited.

https://www.thecitizen.co.tz/news/1840340-5471334-afmfs6/index.html

 

INDIA FINES JEWELLERY COMPANY FOR WITHHOLDING INFORMATION IN $2 BILLION PNB BANK FRAUD

On 27 February, Reuters reported that India’s securities regulator has fined jewellery retailer Gitanjali Gems Ltd and its executives $695,700 for failing to disclose key information related to a $2 billion fraud at Punjab National Bank (PNB).  Gitanjali’s promoter and MD, Mehul Choksi; his nephew, billionaire jeweller Nirav Modi, and others were accused of being involved in fraudulent transactions that led to losses of roughly $2 billion for PNB.  Modi was arrested in London in March last year and is currently fighting extradition to India, while Choksi, is said to be in hiding in the Caribbean.

https://in.reuters.com/article/india-fraud-punjab-natl-bank/india-fines-jewellery-firm-gitanjali-gems-for-withholding-information-in-2-billion-bank-fraud-idINKCN20L21Q

 

UK GAMBLING COMMISSION FINES MR GREEN £3 MILLION FOR AML FAILINGS

On 27 February, Calvin Ayre reported that the Gambling Commission has fined operator Mr Green over failings to verify customers’ source of funds.

https://calvinayre.com/2020/02/27/business/uk-gambling-regulator-fines-mr-green-aml-shortcomings/

 

SERIOUS ORGANISED CRIME AND BRITAIN’S FORTHCOMING INTEGRATED REVIEW

On 27 February, RUSI published a Commentary, arguing that the government should raise the national security threat from serious and organised crime to “Tier One” status.  It remarks that to date the threat has been a Tier Two threat.  However, it says that it is evident that the threat is increasing in scale and complexity.  It was estimated in 2015 to cost the economy £24 billion, and the latest figure, even at a conservative estimate, indicates that this figure has risen to £37 billion – a huge rise, even allowing for methodology differences.

https://rusi.org/commentary/serious-organised-crime-and-britain’s-forthcoming-integrated-review

 

SEVERAL MONTENEGRIN CITIZENS DETAINED AFTER ARUBA INTERCEPTED A SHIP CARRYING TONS OF COCAINE DESTINED FOR EUROPE

On 27 February, OCCRP reported that several Montenegrin citizens have been detained when authorities of the Caribbean island of Aruba intercepted a ship carrying tons of cocaine destined for Europe.  The ship, Arresa, sailing under the flag of Cameroon, was intercepted near Venezuela and carried about 5 tons of cocaine with a street value of €160 million.

https://www.occrp.org/en/daily/11704-aruba-detains-montenegrins-in-cocaine-bust

 

SHAM MARRIAGES IN EUROPE: RINGLEADER ARRESTED IN GERMANY

On 27 February, a news release from Europol reported that a cross-border criminal investigation into Indian nationals entering into bogus marriages for immigration purposes has led to the arrest in Germany of the ringleader of the network. This followed a parallel investigation for which an action day took place in Greece last year.

https://www.europol.europa.eu/newsroom/news/sham-marriages-in-europe-ring-leader-arrested-in-germany

 

CAN PORT OF ANTWERP STEM THE FLOW OF COCAINE ENTERING EUROPE?

An article in Insight Crime on 27 February posed this question, saying that Antwerp has become the main entry point for cocaine into Europe, and authorities are actively trying to change that fact – but what can really be done besides continually increasing seizures of cocaine?  There is a plan which brings together local and federal police, customs, prosecutors, port authorities and city officials in Antwerp.  Its beefing up of port security structure is also being replicated in Latin America, in the source and transit countries.  The article reflects on the difficulties being encountered by the Antwerp plan.

https://www.insightcrime.org/news/analysis/port-antwerp-belgium-cocaine-europe/

 

HONG KONG: DISCLOSURE OF BENEFICIAL OWNERS OF COUNTERPARTIES IN CORPORATE TRANSACTIONS

On 27 February, Eversheds Sutherland published a briefing saying that, after identifying shortcomings, the Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Limited have published a series of materials to provide guidance and clarification on where rules impose certain disclosure obligations on listed issuers when they engage in different types of corporate transactions.

https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/global/Hong-Kong/Disclosure_of_Beneficial_Owners_of_Counterparties

 

4 WAYS THE DoJ SIDESTEPS THE FCPA STATUTE OF LIMITATIONS

A post on the FCPA Blog on 27 February commented on how, in a recent case, the US DoJ has employed several notable legal strategies to reach the defendants’ conduct from over 18 years ago –

• the 5-year statute of limitations is generally taken from the filing of an indictment;
• the statute of limitations remains for a superseding indictment, as long as that new indictment does not substantially alter the original filing;
• the statute of limitations remains even if the indictment, immediately upon filing, is sealed and kept secret for years; and
• for conspiracy offences, the DoJ needs only prove that a single overt act in furtherance of the conspiracy occurred during the 5-year time limit, and then all parts of the conspiracy become punishable.

The post elaborates on these, arguing that the 5-year statute of limitations cannot be read literally to mean defendants should only fear legal repercussions for conduct that occurred in the last 5 years.

https://fcpablog.com/2020/02/27/four-ways-the-doj-sidesteps-the-fcpa-statute-of-limitations/

 

BERNARDO PAZ, TOP BRAZILIAN ART COLLECTOR, CLEARED OF MONEY LAUNDERING CHARGES

On 27 February, Art News reported that, after 2 years, an appeals court has cleared an eccentric art collector who built a massive sculpture park that reads as a who’s who of international contemporary art.  In 2017, he was sentenced to 9 years and 3 months for money laundering related to that sculpture park, after charges brought forth in a criminal complaint by Brazil’s federal prosecutors. Paz’s sister, Virgínia de Mello Paz, was also convicted and sentenced to 5 years. The new ruling also acquitted her.

https://www.artnews.com/art-news/news/collector-bernardo-paz-criminal-charges-cleared-1202679199/

 

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