Month: May 2020

Panama Covid-19 update – as we prepare for an end to the total lockdown and gender-based 2-hours per day restrictions on going out from tomorrow, 347 new cases reported and 6 more fatalities – the latter figure taking us to 336 to date.  It appears the confusion over new cases reported is due to late reporting of some cases by the social security minister.  meanwhile, 79 people are in ICU, 279 in other hospital wards and 526 in requisitioned hotel rooms. It is also reported that now 9,514 people who were identified as having the virus have recovered.

31 May 2020

IRELAND: SEIZURE OF CONTAINER LOAD OF SMUGGLED CIGARETTES IN COUNTY ARMAGH LEADS TO CROSS-BORDER INVESTIGATION

On 30 May, Echo Live in Ireland reported that investigations on both sides of the border continued after the seizure of a container load of illicit, smuggled cigarettes worth £3million in Co Armagh.  A number of premises were raided in Co Louth as part of the joint cross border operation, involving the gardaí, the PSNI, Revenue Commissioners and HMRC.

https://www.echolive.ie/nationalnews/Seizure-of-container-load-of-smuggled-cigarettes-in-Co-Armagh-leads-to-cross-border-investigation-b93f1a67-80fd-4886-b71d-67147feb442b-ds

MALTA: ECONOMIC CRIMES POLICE GETS MANPOWER BOOST AS MONEYVAL TEST LOOMS

On 31 May, Malta Today reported that the police force has assigned 18 more officers to the economic crimes unit as Malta braces itself for the follow-up Moneyval report in the coming months.  The police force now has 79 officers assigned to the unit tasked with investigating financial crime, a 51% increase in human resources since March.  It has issued a call for cybercrime analysts and will shortly be doing the same to recruit financial crime analysts from outside the force to strengthen its analytical capacity; and the specialist unit is shortly expected to move into a dedicated building.

https://www.maltatoday.com.mt/news/national/102655/economic_crimes_police_gets_manpower_boost_as_moneyval_test_looms#.XtOuUEBFxes

RUSSIAN OPPOSITION LEADER CRITICISES SWISS ATTORNEY GENERAL FOR ‘TOO CLOSE CONTACT’ WITH RUSSIAN PROSECUTOR GENERAL’S OFFICE

On 31 May, Swissinfo reported that Alexei Navalny has criticised in a newspaper interview the Swiss Attorney General’s Office (OAG), claiming that that personal and tight contact between the offices had slowed or even halted important investigations into alleged money laundering cases in Switzerland.

https://www.swissinfo.ch/eng/sunday-papers_russian-opposition-leader-criticises-swiss-attorney-general/45796858

PLAYTECH, MOR WEIZER AND THE UK GAMBLING COMMISSION

On 31 May, the Daily Mail published an article attacking Isle of man-based gambling giant Playtech and its chief executive, mainly over the case of a Chris Bruney, a 25-year-old electrical engineer from Sheffield who took his own life in 2017 having lost almost £35,000 playing on the company’s casino websites, and the shareholders rejecting Weizer’s hefty pay award.  It is said that Bruney — who earned a salary of £60,000 — was then allowed to gamble on the site’s blackjack and roulette games, placing bets that eventually totalled an astonishing £4,458,782; and the Gambling Commission report notes that the company involved ‘failed to carry out any responsible gambling interaction’ with him.  The report also says that only 3 of the 40 most active gamblers on the site were given any responsible gambling advice, investigators found (while 39 of them were accorded ‘VIP’ status). A mere 0.26% of all customers were ever sent responsible gambling emails.  Playtech closed the site down and the company’s chairperson has agreed to make a personal apology to the family.

https://www.dailymail.co.uk/news/article-8371383/Desperate-man-lured-addiction-tycoon-GUY-ADAMS-exposes-truth-gambling-fat-cat.html

STIFF NEW PENALTIES FOR CORRUPTION OFFENCES COME INTO FORCE IN MALAYSIA

On 31 May, the Malay Mail reported that the Malaysian Institute of Integrity (IIM) is committed to helping companies to formulate sufficient procedures to prevent corrupt practices as the section 17A of the Malaysian Anti-Corruption Commission (MACC) Act 2009 will come into force on 1 June, imposing steep penalties for corporate corruption.  It will criminalise commercial organisations if their employees or associates had committed corrupt practices.  It provides a fine of not less than 10 times of the value of the gratification, or $230,000, whichever is higher or imprisonment of up to 20 years, or both.

https://www.malaymail.com/news/malaysia/2020/05/31/malaysian-institute-of-integrity-ready-to-assist-companies-developing-anti/1871163

“ITAR-FREE SATELLITES” AND THE IMPACT OF ITAR REGULATIONS ON US SATELLITE MANUFACTURERS

On 15 May, CSIS published a paper which explains that from in 1976, the US has generally regulated commercial satellites as a defence article and, for 34 out of the last 44 years, controlled exports through the State Departments International Traffic in Arms Regulations (ITAR) which regulates the US Munitions List (USML).  However, during the other 10 years, 1996-98 and from 2014 to the present, commercial satellites have been regulated by the Commerce Department Export Administration Regulations (EAR) as a dual-use item on the Commerce Control List (CCL).  According to both industry leaders and government officials, these regulatory changes have had significant impacts on the global satellite industry.  The paper explores the emergence of ITAR-free satellites in the early 2000’s and evaluates the impacts of ITAR regulations on US satellite manufacturers.  For example, even though commercial satellites and satellite components were removed from ITAR, they could still not be sold to China and, as a result, the majority of customers who only wanted ITAR-free satellites in order to sell them in China still faced the same obstacle. The paper makes policy recommendations for a more global approach to studying export regulations moving forward.

https://aerospace.csis.org/the-myth-of-itar-free/

IRAN FUEL REACHES VENEZUELAN STATIONS AS FIFTH TANKER HEADED TO CARIBBEAN

On 31 May, Hellenic Shipping News reported that PDVSA has begun supplying the nation’s stations with fuel provided by ally Iran as drivers wait anxiously for the gasoline to be sold.  Meanwhile, the fifth cargo of Iran’s 5-vessel flotilla heads to the Caribbean Sea and is expected to reach Venezuelan waters on 31 May.

https://www.hellenicshippingnews.com/irans-fuel-reaches-venezuelan-stations-fifth-tanker-headed-to-caribbean/

CAYMAN ISLANDS NOW INDIA’S TENTH-LARGEST SOURCE OF FOREIGN DIRECT INVESTMENT

On 31 May, the Business Standard reported that the Cayman Islands is now the 10^th largest source of Foreign Direct Investment (FDI) for India, leaving behind major nations like South Korea and UAE.  It also reported that the BVI contributed in $262.5 million, a small figure until someone considers that it only sent $46 million in 2018-19.

https://www.business-standard.com/article/economy-policy/cayman-islands-now-india-s-10th-largest-source-of-foreign-direct-investment-120053101007_1.html

 

 

 

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On 31 May, The Gleaner reported that Finance Minister Dr Nigel Clarke is saying that the country will remain on the blacklist if non-financial businesses and professions do not provide data on their dealings.  He explained some of the challenges facing Jamaica, pointing specifically to the non-financial businesses, adding that there has been very limited activity in the area of AML/CFT supervision of these professions and entities.  He went on to say that it was far too easy for those with ill-gotten gains to transact in real estate, acquire cars and jewellery, participate in gaming, and channel funds through unregulated moneylending institutions without any alarms being triggered.  However, he said the passage several pieces of legalisation has improved Jamaica’s compliance with FATF recommendations. It is mentioned that, in October 2019, FATF indicated that the 2016 national risk assessment did not include sufficient data from the non-profit sector and from non-financial businesses and professions – and the minister said that it was important that the assessment was updated, and has to be done again.

http://jamaica-gleaner.com/article/news/20200531/far-too-easy-launder-money-real-estate-vehicles-admits-clarke-finance-minister

 

 

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The Observer on 31 May claimed that a string of luxury properties, including a £17 million home near Harrods, were acquired by the children of Azerbaijan’s former security chief, Eldar Mahmudov.  Customer files hacked from the Cayman National Bank (Isle of Man) Ltd (CNBIOM) in November 2019, and subsequently published online, reveal that Mahmudov’s family has built up an estimated €100 million business and property empire.  Almost all of its assets were acquired through companies linked to Mahmudov’s son, Anar, 36, and his daughter, Nargiz Mahmudova, 31.  It reports that, in 2016, the bank filed a disclosure with the FIU in the Island.

https://www.theguardian.com/uk-news/2020/may/31/children-of-azerbaijan-minister-eldar-mahmudov-built-up-100m-property-and-business-empire

 

 

 

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Panama Covid-19 update – the last full lockdown Sunday tomorrow is followed by a partial release from the lockdown on Monday, but with a continuing nightly curfew from 1900 to 0500.  This is despite relatively high figures for new cases, and a group of doctors at tone of the main hospitals warning of a breakdown in the health system, and calling for the opening  of the new, modular hospital built at the start of the crisis.

Meanwhile, 487 new cases take us to 13,081 to date (0.3% of the total population), with 4 more fatalities (330 to date, or 0.008% of the population, or 2.5% of the identified cases).

One reason for the continuing worryingly high number of new cases (if relatively modest by other countries’ standards) may be the news that 38,860 arrests had been made since mid-March for violations of the lockdown rules – with over 36,000 of these being men…

30 May 2020

UN EXTENDS ARMS EMBARGO AND OTHER SANCTIONS IN SOUTH SUDAN FOR A YEAR

On 30 May, CGTN reported that the UN Security Council has approved a resolution extending for a year an arms embargo on South Sudan and a travel ban and financial sanctions for targeted individuals (with Russia, China and South Africa abstaining).

https://africa.cgtn.com/2020/05/30/un-extends-arms-embargo-and-other-sanctions-in-south-sudan/

BNP PARIBAS CHINESE UNIT FINED FOR AML VIOLATIONS

On 30 May, Caixin Global reported that the Chinese unit of BNP Paribas SA has been fined $378,200 by China’s central bank for failure to verify client identification and report large and suspicious transactions as required.  3 senior executives of BNP Paribas (China) Ltd has also been fined for responsibility in the violations.  It also reports that 2 Chinese banks have been fined recently for shortcomings.

https://www.caixinglobal.com/2020-05-30/bnp-paribas-chinese-unit-fined-for-anti-money-laundering-violations-101560914.html

SWISS PROSECUTORS FORCED INTO CLIMBDOWN OVER MONEY LAUNDERING CASE INVOLVING RUSSIA’S OTKRITIE BANK

On 29 May, the FT reported a climbdown over one of the country’s highest-profile money laundering cases, a probe centred on Russia’s Otkritie bank and the 3 defendants have been offered 4- and 5-month suspended sentences by prosecutors.  The case involves the alleged theft of $173 million by a clique of the bank’s own employees and unravelled in London in early 2011.

https://www.ft.com/content/8b464b54-d977-4372-b9d4-bfb4833cf969

UPDATE ON OBLIGATION TO USE INDONESIAN VESSELS FOR CERTAIN EXPORTS AND IMPORTS

HFW has reported that the Indonesian Government has finally issued a new amending regulation on the use of national sea transport for the export and import of certain goods, replacing the previous regulation and applies to vessels with a capacity of not more than 15,000 DWT (deadweight tonnage). The export and import activities that are subject to this regulation remain the same, namely the export of coal and crude palm oil, and the import of rice and goods for government procurement.

https://www.hfw.com/Indonesia-New-Regulatory-Updates-on-the-Obligation-to-Use-Indonesian-Vessels-for-Certain-Exports-and-Imports-2020

UK: 2 INDIAN-ORIGIN MEN JAILED FOR £2.4 MILLION MONEY LAUNDERING

On 30 May, the Hindustan Times reported that 2 Indian-origin men have been jailed for a total of 12 years and 9 months following an international £2.4 million money-laundering operation and attempt to launder a further £1.6 million.  Police said they received a report in 2018 from Barclays Bank that several IP addresses were repeatedly accessing multiple business accounts suspected of being utilised for money laundering.

https://www.hindustantimes.com/world-news/two-indian-origin-men-jailed-for-2-4-million-money-laundering/story-rh9s2tf3Y54LuDsthRTyNM.html

IVORY COAST OPPOSITION LEADER HANDED 20-YEAR PRISON TERM IN ABSENTIA

On 30 May, IOL reported that Ivory Coast opposition politician Guillaume Soro has been sentenced in absentia to 20 years in prison on charges of embezzling public funds and money laundering.  It says that Soro, who has been living in Europe, diverted his plane instead of returning home to Ivory Coast in December when it became clear that Ivorian authorities had issued an arrest warrant for him.  Soro, a former ally of President Quattara, later fell out of favour while serving as parliament speaker and ultimately stepped down.

https://www.iol.co.za/news/africa/ivory-coast-opposition-leader-handed-20-year-prison-term-in-absentia-48709850

BOSNIA-CROAT FEDERATION PM DETAINED OVER DEAL TO BUY RESPIRATORS FROM CHINA

On 30 May, Rferl reported that Fadil Novalic, prime minister of Bosnia’s autonomous Bosniak-Croat Federation has been questioned in a potential corruption case involving the purchase of 100 respirators from China for coronavirus patients.  Neither the police nor the prosecutor’s office would comment on the matter.  The €5.4 million deal raised suspicions after it emerged that the authorities had hired a local fruit-processing company with no license to import medical equipment to procure the respirators.

https://www.rferl.org/a/bosniak-croat-federation-respirators-china-coronavirus-corruption/30642876.html

UNDERGROUND ARMS WATCH – MAY, PART 1

The regular update from the Firearms Blog looking at black market made and modified firearms which have recently surfaced.  They include modified blank-firing handguns and home-made sub-machine guns.

https://www.thefirearmblog.com/blog/2020/05/26/underground-arms-watch-may-pt-1/

STRENGTHENING ENFORCEMENT OF THE OECD ANTI-BRIBERY CONVENTION

Transparency International has a campaign “Exporting Corruption”, a research project that rates the performance of 44 leading global exporters, including 40 countries that are signatories of the OECD Anti-Bribery Convention, and shows how well – or poorly – countries are enforcing the rules, and pointing out that more than 50% of world exports come from countries that fail to punish foreign bribery, according to a 2018 report.

https://www.transparency.org/en/projects/strengthening-enforcement-of-the-oecd-anti-bribery-convention-1

UK: MATALAN OWNER APPLIES FOR STATE-BACKED LOAN – AT SAME TIME AS HE’S BEING CHASED BY HMRC OVER £84 MILLION TAX BILL

On 30 May, the Daily Mail reported that John Hargreaves, who lives in Monaco, has revealed in a statement to his company’s lenders that Matalan expects to access £25 million under the Coronavirus Large Business Interruption Loan Scheme (CLBILS), which is guaranteed by HM Treasury.  It says that the family-owned firm has already furloughed 11,000 staff under the Government Coronavirus Job Retention Scheme, which the company estimates would save it £21 million over an 8½-week period. Matalan has also been given a 12-month holiday from paying business rates, which represents a saving of £44 million. However, the newspaper notes that courts had awarded Hargreaves victory last year in a battle with HMRC over the £84 million tax bill, which relates to a £237 million share windfall he received from his firm in 2002, although HMRC is appealing the case.

https://www.thisismoney.co.uk/money/news/article-8372263/Matalan-tycoon-big-tax-bill-seeks-state-loan.html

SOUTH SHIELDS FRAUDSTER SCAMS MORE THAN £100,000 FROM MULTINATIONAL OIL AND GAS COMPANIES

On 30 May, Chronicle Live reported that a 37-year-old woman from the north-east of England has been convicted after spinning a web of lies and defrauding businesses in Panama, Kuwait, UAE and Australia out of more than £115,000, falsifying emails and creating fake invoices, billing a total of £115,159.86 from 8 multinational companies.  She managed to convince investors to back a new recruitment company called Oil Recruitment Solutions by lying about her extensive skills and contacts in the oil sector.

https://www.chroniclelive.co.uk/news/north-east-news/south-shields-fraudster-scams-more-18332979

TRADER “FLED UAE AFTER $1 MILLION FRAUD”

Gulf Today on 30 May reported claims that a trader carried out a fraud by purchasing over $1 million worth of goods before fleeing on a repatriation flight to India.  It is claimed that he purchased food and medical supplies against cheques, but that he sold the goods to a third party and fled from Abu Dhabi.

https://www.gulftoday.ae/news/2020/05/30/trader-flees-uae-after-fraud-worth-dhs6m

https://english.manoramaonline.com/news/nation/2020/05/30/indian-flees-on-repatriation-flight-after-conning-uae-biz-men-of.html

KUWAIT-MALAYSIA-CHINA DEALINGS IN 1MDB CASE UNDER SCANNER

On 30 May, Gulf News reported that financial transactions involved had been referred to the public prosecutor in UAE on suspicion of violating AML/CFT laws.  This is said to follow media and social media claims involving Kuwaiti companies or government agencies or officials of Chinese companies and the former government of Malaysia.

https://gulfnews.com/world/gulf/kuwait/kuwait-malaysia-china-dealings-in-1mdb-case-under-scanner-1.71771668

POLAND TO TIGHTLY REGULATE MAJOR ACQUISITIONS BY NON-EEA ENTITIES

On 29 May, Dentons published an updated article saying that the Polish government is planning to implement a special procedure to control acquisitions of “protected entities” by buyers from outside of the EEA. “Protected entities” would include most listed companies, as well as private companies that hold assets critical for the Polish economy or operate in strategic sectors such as energy, oil and gas, military technologies, telecommunications, and pharmaceutical production.

https://www.whitecase.com/publications/alert/poland-tightly-regulate-major-acquisitions-non-eea-entities

SUSPECTED HACKER FACES MONEY LAUNDERING AND CONSPIRACY CHARGES: USED BITCOIN TO HIDE PROCEEDS

On 30 May, Bank Info Security reported that a New York City man is facing federal charges after FBI agents arrested him at John F Kennedy Airport in March 2019 after returning from Ukraine, with a PC allegedly containing thousands of stolen credit card numbers.  He has only now been indicted.  Vitalii Antonenko, 28, and the other 2 co-conspirators used bitcoin, as well as traditional banks, to allegedly launder money and hide the proceeds, according to the indictment.

https://www.bankinfosecurity.com/suspected-hacker-faces-money-laundering-conspiracy-charges-a-14359

 

 

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The latest “Deep Dive podcast from the Global Initiative Against Organized Crime asks how will the ongoing violent Islamist insurgency in the Cabo Delgado region of Northern Mozambique overlap with the organized criminal networks that operate in the area?  How has the corruption within the Mozambican state contributed to the growth of the insurgency?

https://globalinitiative.net/deep-dive-podcast/

 

 

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On 14 May, ICLG has published its latest edition of this report on AML and its enforcement in 26 jurisdictions.  Some of its country chapters are freely available online, together with the following interesting and useful chapters –

• The International Reach of US AML Statutes

https://iclg.com/practice-areas/anti-money-laundering-laws-and-regulations/1-the-international-reach-of-the-u-s-money-laundering-statutes

• EU AML legislation: Historical Perspective and Where Are We Going?

https://iclg.com/practice-areas/anti-money-laundering-laws-and-regulations/3-eu-legislation-in-the-area-of-aml-historical-perspective-and-quo-vadis

• The Intersection of AML Law and Real Estate

https://iclg.com/practice-areas/anti-money-laundering-laws-and-regulations/2-the-intersection-of-money-laundering-and-real-estate

• AML in the APAC Region: Overview of Law Enforcement and Regulation

https://iclg.com/practice-areas/anti-money-laundering-laws-and-regulations/4-anti-money-laundering-in-the-apac-region-an-overview-of-the-international-law-enforcement-and-regulatory-framework

The entire report costs £295, if you want to whole thing, or you can purchase the individual country chapters that are not available free online (the UK, US, Isle of Man are among the 26 free country chapters).

https://iclg.com/practice-areas/anti-money-laundering-laws-and-regulations

 

 

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On 30 May, the Brussels Times reported that the yet unpublished report from the country’s FIU reveals that while the flow of money from traffic in cocaine alone is estimated at €30 billion in a year, the CIF was only able to send cases worth an estimated €11.5 million through to the courts.  It reported a total of €1.538 billion in suspected transactions last year to the justice system, roughly in line with past years, and 1,065 cases reported to prosecutors.  It also says that €11.5 million of suspect money was connected to the drugs trade – spread among 127 cases – an average of about €90,500 a case, compared to €311 million from serious tax fraud, €299 million from illegal arms and €228 million from social fraud.

https://www.brusselstimes.com/belgium/114273/financial-watchdogs-uncover-a-minimal-proportion-of-illegal-money/

 

 

 

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A post on the Compliance & Enforcement blog from the New York University School of Law reported on 29 May that the SEC Investor Advisory Committee (IAC) has recommended that the SEC begin an “earnest” effort to update reporting requirements to include “material, decision-useful, ESG factors” , i.e. environmental social and governance factors.  The IAC reasoned that if the SEC does not take the lead with this type of disclosure, it is highly likely that US issuers will be bound to follow standards imposed by other jurisdictions, such as the EU.

https://wp.nyu.edu/compliance_enforcement/2020/05/28/investor-advisory-committee-urges-sec-to-advance-mandatory-esg-disclosures/

 

 

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Panama Covid-19 update – the end of the total lockdown remains due to be on Monday, 1 June – but with a nightly curfew from 7 pm.  This is despite new cases reported continuing to be high – 103 in the last 24 hours (there seems to be some confusion – on my part anyway – over the daily new cases figures for the past few days, but the total remains over 12,500).  There have been 6 more fatalities, taking us to 326.

Just to make one feel even better, we had a noisy fumigating team around the neighbourhood today, spraying to prevent mosquitoes bearing potential dengue propagating, it having been a rainy few days.

29 May 2020

FinCEN TO UPDATE METHODOLOGY FOR CALCULATING REGULATORY BURDEN OF SAR

On 26 May, the American Bankers Association said that Bank Secrecy Act reporting institutions in the US annually spend roughly $206 million and 5.4 million hours of work investigating, evaluating cases and filing SAR. Of this, approximately 52% of the dollar cost and burden hours are borne by banks, with credit unions, money services businesses and other businesses accounting for the rest.  It says the FinCEN is re-analysing how it calculates the burden imposed on financial institutions for filing the form, trying to capture the impact that technology has on submitting these reports, and has asked for comments, the consultation closing on 27 July.

https://bankingjournal.aba.com/2020/05/fincen-to-update-methodology-for-calculating-regulatory-burden-of-sars/

DoJ BLOCKS ‘ESSENTIAL’ MARIJUANA WORKERS FROM US COVID-19 BANKRUPTCY PROTECTION

On 28 May, the Wall Street Journal reported that the DoJ is preventing struggling cannabis businesses and their workers from accessing bankruptcy, even in states that determine medical marijuana is an essential industry during the pandemic.

https://www.wsj.com/articles/justice-department-blocks-essential-marijuana-workers-from-bankruptcy-protection-11590694160

PANAMA: LATEST COCAINE HAUL TAKES NAVAL SERVICE HAUL IN 2020 SO FAR TO OVER 21 TONS

On 28 May, Newsroom Panama reported on a further ton of cocaine seized by the naval service, SENAN, and US Coast Guard and 3 Colombians being arrested.

https://www.newsroompanama.com/news/latest-haul-brings-senan-drug-seizures-to-over-21-tons

ZIMBABWE IMPOSES BANK TRANSFER LIMITS TO STOP ILLICIT TRANSACTIONS

On 29 May, KYC 360 reported a Bloomberg story that Zimbabwe’s central bank had imposed limits on the amounts banks may transfer via a payment platform with 2 million users, as it tries to curtail illicit transactions and money laundering.  ZimSwitch Technologies, owners of the Zipi) system, has been told to implement daily and monthly limits of around $800 and around $4,000, respectively, with immediate effect.  Zipt is used by mobile-phone users to send money to each other.

https://www.riskscreen.com/kyc360/news/zimbabwe-imposes-bank-transfer-limits-to-stop-illicit-transactions/

ITALY UNCOVERS MAJOR MAFIA FRAUD INCLUDING EU FUNDS

On 28 May, Barrons reported that Italian police say they had dismantled a major organised crime ring involving public works tenders valued at over €100 million, including EU funds.  11 public officials were identified among the 63 people targeted in the operation codenamed “Waterfront” against the powerful ‘Ndrangheta mafia of southern Italy.

https://www.barrons.com/news/italy-uncovers-major-mafia-fraud-including-eu-funds-01590660607?tesla=y

RUSSIA: SCAMMERS EXPLOIT PANDEMIC TO LAUNDER MONEY USING MEDICAL GOODS PURCHASES

On 28 May, Reuters reported that the Russian central bank says people are using medical goods purchases as a front for a money laundering scam, with a small number of suspicious foreign purchases of protective gear.

https://uk.reuters.com/article/uk-russia-cenbank-transfers/in-russia-scammers-exploit-pandemic-to-launder-money-using-medical-goods-purchases-idUKKBN2342VW

INDIVIDUALS IN CROSS-BORDER INVESTIGATIONS OR PROCEEDINGS: THE UK PERSPECTIVE

Available online is a chapter from the Global Investigations Review by BCL Solicitors which looks at the key issues that can arise when acting for an individual who is present in the UK and subject to a criminal investigation or proceedings here or in one or more overseas jurisdictions.

https://globalinvestigationsreview.com/benchmarking/the-practitioner’s-guide-to-global-investigations-fourth-edition/1212383/individuals-in-cross-border-investigations-or-proceedings-the-uk-perspective

GAME DEVELOPERS SHOULD TAKE RESPONSIBILITY FOR KEEPING THE VIRTUAL WORLDS THEY CREATE FREE FROM REAL CRIME

On 29 May, RUSI published a Commentary which says that with lockdowns continuing around the globe and people staying at home, it is no wonder that the popularity of online gaming has skyrocketed – and as in-game economies flourish, it has not taken criminals long to discover the appeal of virtual worlds.  It says that, with increasing frequency, news reports of criminal exploitation of online games have a financial aspect to them – such as theft of personal data, stolen cards and game-related gambling and corruption.  It says that it is essential for governments to clarify what is expected of game developers as best practice, and then work in partnership to mitigate criminal risks – a game that is only now beginning.

https://www.rusi.org/commentary/are-criminals-playing-games-us

CAN DUE DILIGENCE ON SHIPPING CLIENTS DETER CONTRABAND TRAFFICKING IN KENYA?

On 25 May, ENACT Africa published an article saying that Kenyan authorities are struggling to identify the sources and destinations of contraband passing through the country’s ports.  The DPP and Kenya Revenue Authority aim to improve investigative and law enforcement powers by adapting KYC processes used to curb banking fraud and money laundering to the shipping industry. They hope this system will help verify the identity and suitability of clients, and potentially illegal intentions.  Conservation organisation Space for Giants is behind the push to introduce a KYC regime for import-export agents and shippers.

https://enactafrica.org/research/trend-reports/can-due-diligence-on-shipping-clients-deter-contraband-trafficking-in-kenya

UK: YOU MUST GET PERMISSION TO EXPORT CERTAIN DRUGS AND MEDICINES

On 29 May, a news release from the Home Office advised that You need permission to export controlled drugs like opioids, certain stimulants or psychotropic substances; certain drugs that can be used in lethal injections outside the EU; and medicines for humans or animals.  There’s a different process if you travel with controlled drugs for personal use – for example, taking medicine with you on holiday.

https://www.gov.uk/guidance/export-drugs-and-medicines-special-rules

HOME OFFICE URGED NOT TO LET COVID-19 AFFECT PRE-CHARGE BAIL REFORM

On 29 May, the Law Society Gazette reported that the Law Society has urged the Home Office not to let Covid-19 halt work on reforming the legislation.  The Home Office announced last year that it would review pre-charge bail laws and began a consultation on proposals in February. Pre-charge bail allows police to release a suspect from custody, usually subject to conditions, while officers continue their investigation or await a charging decision.

https://www.lawgazette.co.uk/law/home-office-urged-not-to-let-covid-19-affect-pre-charge-bail-reform/5104440.article

NETHERLANDS: POLICE ARREST BRAZILIAN NATIONAL WITH €500,000 IN A SHOPPING BAG

On 29 May, Dutch News reported that Rotterdam police have confirmed they have arrested a 51-year-old Brazilian national who was getting into a car carrying a Jumbo supermarket bag containing €525,000 in cash.  It is said that the man has relinquished the money and been sent out of the country. No further details were given.

https://www.dutchnews.nl/news/2020/05/police-arrest-brazilian-national-with-e500000-in-a-shopping-bag

SUMMARY NOTE ON DISCLOSURE IN CIVIL PROCEEDINGS IN ENGLAND AND WALES

A briefing note from Hogan Lovells explains disclosure, which involves parties to litigation identifying and making available to each other (unless privileged) relevant documents in their control.  It includes reference to the Disclosure Pilot operating in the Business and Property Courts at present.

https://www.jdsupra.com/legalnews/summary-note-on-disclosure-in-civil-11509/

US CUSTOMS REPORTS UPTURN IN TEXTILE ENFORCEMENT CASES

On 29 May, Sandler Travis Rosenberg reported that US Customs and Border Protection saw a major rise in duties collected on textile goods in the second quarter of fiscal year 2020 as well as increases in some enforcement measures over the previous year. Textile and apparel goods have some of the highest import duty rates in the US.  It says that schemes designed to circumvent these tariffs include illegal transshipment and origin fraud, invalid importers of record, inaccurate descriptions, undervaluation, smuggling and overstuffing, and de minimis use of trade preference programs and free trade agreements.

https://www.strtrade.com/news-publications-textile-duties-enforcement-CBP-052920.html

UK: 3 CASES ON CONTEMPT OF COURT AND WHAT THEY MEAN FOR COMMERCIAL FRAUD LITIGATION

On 19 May, a brief from Radcliffe Chambers says that recent weeks have seen a spate of decisions on contempt of court, and 3 cases raise issues of general principle which can arise in the commercial fraud context – the right to silence at a committal hearing; whether threats to commit are an abuse of process?; and Proceeding in the Respondent’s absence.

https://radcliffechambers.com/wp-content/uploads/2020/05/Three-cases-on-contempt-of-court-Article-by-Shantanu-Majumdar-QC.pdf

UK: HIGH COURT ISSUES INNOVATIVE ORDERS TO MANAGE COMPLEX FRAUD CLAIM

On 29 May, an article from Out-Law says that the High Court in England has used its powers under the Civil Procedure Rules (CPR) to help manage a complex fraud case involving a large number of victims, in order to help identify the owners of assets connected to an ongoing claim.

https://www.pinsentmasons.com/out-law/news/high-court-issues-orders-complex-fraud-claim

COCAINE SEIZURES EXPOSE FLAWS AT GUATEMALA AND HONDURAS PORTS

On 29 May, Insight crime reported that the discovery of large amounts of cocaine in cargo shipped from Honduran and Guatemalan ports has revealed the difficulties in securing maritime shipping operations on the northern stretch of Central America’s Caribbean coast.

https://www.insightcrime.org/news/analysis/cocaine-central-america-caribbean-ports/

UK AD CAMPAIGN SEEKS TO DETER YOUNG PEOPLE FROM CYBERCRIME

On 28 May, Krebs on Security published a post saying that online ads running in the UK are aimed at young people who search the Web for services that enable computer crimes, specifically trojan horse programs and DDoS-for-hire services. The ad campaign follows a similar initiative launched in late 2017 that academics say measurably dampened demand for such services by explaining that their use to harm others is illegal and can land potential customers in jail.

https://krebsonsecurity.com/2020/05/uk-ad-campaign-seeks-to-deter-cybercrime/

PAST SCANDALS HAUNT PAPUA NEW GUINEA’S POST-COVID 19 RESPONSE

On 29 May, Transparency International published an article saying that its local branch has heightened its efforts in calling on the government to implement measures to safeguard emergency funding against misuse and misappropriation.  It mentions allegations that part of the initial €6 million released by the PNG government for the COVID-19 State of Emergency had been spent on hired cars and media consultants.

https://www.transparency.org/en/blog/past-scandals-haunt-papua-new-guineas-coronavirus-response

ATLETICO MADRID STRIKER DIEGO COSTA TO FACE TRIAL FOR TAX FRAUD IN SPAIN

On 29 May, the Evening Standard and others reported that the Brazilian-born former Chelsea forward is charged with defrauding the state of more than €1 million by not declaring payments of more than €5.15 million from his 2014 move to Stamford Bridge, and that he failed to declare €1 million in image rights.

https://www.standard.co.uk/sport/football/atletico-madrid-striker-diego-costa-face-trial-tax-fraud-a4455101.html

DUO JAILED FOR A £2 MILLION ONLINE BANKING FRAUD

A news release from the CPS on 29 May advised that 2 men, who siphoned £2 million through fraudulent bank accounts, have been jailed.  Victims who thought they were paying for goods or services were actually sending money to Krishnasamy and Nallayan, who were posing as the legitimate suppliers.

https://www.cps.gov.uk/cps/news/duo-jailed-ps2-million-online-banking-fraud

CYPRIOT COURT UPHOLDS HIZBULLAH SUSPECT EXTRADITION TO US ON MONEY LAUNDERING CHARGES

On 29 May, Naharnet reported that Cyprus’ supreme court has upheld an order to extradite a suspected Hizbullah member, identified only by his surname Diab, to the US on money laundering charges, official media said.  The suspect is wanted by authorities in Florida for alleged money laundering crimes.  Diab was arrested at Larnaca airport in Cyprus when he arrived from Lebanon in March 2019.

http://www.naharnet.com/stories/en/272200-cypriot-court-upholds-hizbullah-suspect-s-u-s-extradition-on-money-charges

NETHERLANDS TO GET TOUGHER ON TAX AVOIDANCE WITH NEW WITHHOLDING TAX

On 29 May, the NL Times reported that the Dutch Cabinet is proposing a new withholding tax which would cap dividend flows to tax havens effective from 2024.  The new measure would make it less attractive for corporations to transfer their dividends from or via the Netherlands to international tax havens, defined as countries which offer a profit tax rate of less than 9%.  It is reported that an estimated €37 billion was hidden from government reach in 2018.

https://nltimes.nl/2020/05/29/netherlands-get-tougher-tax-avoidance-new-withholding-tax

JERSEY: CHANGES TO SAR AND MIR RESPONSE LETTERS FROM 1 JUNE

On 29 May, Jersey FSC issued a news release reminding institutions that the FIU is changing how they send response letters for suspicious activity reports (SAR) and miscellaneous information report (MIR).  The change involves an email from the FIU to confirm they have received the report, which will replace the response letter that the unit previously sent out.

https://www.jerseyfsc.org/news-and-events/changes-to-sars-and-mirs-response-letters/

 

 

 

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An article from Crowell Moring on 28 May was concerned with the statement by the US Secretary of State that Hong Kong “does not continue to warrant treatment under United States laws in the same manner as US laws were applied to Hong Kong before July 1997”.  It explains that US relations with Hong Kong are governed by a 1992 Act, which authorises the US to provide “different” treatment for Hong Kong than it accords PRC in a variety of political, economic, trade, and other areas so long as Hong Kong remains “sufficiently autonomous”.  The article lists the potential developments to watch for, including additional tariffs and sanctions which may be imposed on persons identified by the US as responsible for undermining Hong Kong’s fundamental freedoms and autonomy. It also warns that export controls currently in place for China could be extended in whole or in part to US exports to Hong Kong.

https://www.cmtradelaw.com/2020/05/u-s-state-dept-fails-to-certify-hong-kongs-autonomy-signals-potential-change-in-trade-and-economic-treatment

 

 

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