On 7 August, the Wolfsberg Group – an association of 13 global banks which aims to develop frameworks and guidance for the management of financial crime risks – has published a set of FAQ on how financial institutions can identify, mitigate and manage money laundering risks by undertaking source of wealth and source of funds checks on relevant customers, when appropriate and/or required by applicable regulation. Such checks are to be considered among the key elements of customer risk assessment and risk management for certain customers.
Day: August 7, 2020
SECURITY GUARD HIJACKS DRYBULK CARRIER THAT HE WAS MEANT TO BE PROTECTING
Insurance Marine News on 5 August that a security guard who was involved in a pay dispute hi-jacked the dry bulker Jaeger, and its crew. After a stand-off that lasted nearly 3 days, US-based ship operator Eagle Bulk Shipping said that the security incident had been resolved successfully. The incident apparently began when 3 security guards boarded the ship to provide security during the crossing of the Indian Ocean to the Red Sea.
WHAT IS AMMONIUM NITRATE AND WHAT HAPPENS WHEN IT EXPLODES?
FISHERIES CRIME
The UN Office on Drugs and Crime has produced material seeking to publicise the impact of illegal fisheries activities. These include a factsheet and posters highlighting links between illegal fishing and other criminal activities.
https://www.unodc.org/unodc/en/about-unodc/campaigns/fisheriescrime.html
UN REPORT: THE IMPACT OF COVID-19 ON ORGANISED CRIME
The UN Office for Drugs and Crime has published a research report which, among other things, warns that businesses in the transport, hospitality, arts, retail, and beauty sectors are particularly vulnerable to infiltration by organised criminal groups – and will thereby by vulnerable after the crisis. This is in addition to more obvious risks, such as in production, trafficking and sale of counterfeit, or sub-standard, PPE, disinfectant and medicines.
https://www.unodc.org/documents/data-and-analysis/covid/RB_COVID_organized_crime_july13_web.pdf
ICELANDIC FISHING GIANT SAMHERJI IN BID TO EXONERATE ITSELF IN NAMIBIAN “FISHROT” SCANDAL
On 7 August, IntraFish reported that Icelandic fishing giant Samherji is defending itself against allegations of corruption within its Nambian operations by publishing the results of an in-depth analysis of the financial accounts of the companies in question. It says that all operations in Namibia were discontinued at the end of 2019, and the subsidiaries are under closure.
OFAC ADDS MILITIA LEADER TO CENTRAL AFRICAN REPUBLIC SANCTIONS LISTS FOLLOWING UN DESIGNATION
On 7 August, OFAC advised that it had added Bi Sidi SOULEYMANE, who has several aliases including Sidiki Abbas, to its SDN Lists following the recent decision of the relevant UN Security Council. He is the leader of the Central African Republic-based militia group Return, Reclamation, Rehabilitation (3R).
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20200807.aspx
OFAC ADDS 11 INDIVIDUALS, INCLUDING THE HONG KONG CHIEF EXECUTIVE, TO HONG KONG SANCTIONS LISTS
On 7 August, OFAC advised that 11 individuals had been added to its sanctions lists. The names include Carrie Lam, the Chief Executive of the Hong Kong Special Administrative Region, are listed for undermining Hong Kong’s autonomy and restricting the freedom of expression or assembly of the citizens of Hong Kong. Others listed include the Commissioner of Hong Kong Police Force and other senior officials.
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20200807.aspx
UK: NEW JMLSG INDUSTRY AML GUIDANCE FOR CRYPTOASSET EXCHANGES AND CUSTODIAN WALLET PROVIDERS
On 7 August, an article from Baker McKenzie says that, on 27 July, the Joint Money Laundering Steering Group (JMLSG) – which comprises UK financial services industry trade bodies – published new sectorial guidance for cryptoasset exchange and custodian wallet providers regarding compliance with money laundering obligations. The Guidance provides an outline of the money laundering risks posed by cryptoassets and how cryptoasset firms can mitigate such risks. The Guidance explains that businesses should carry out a thorough risk assessment and identifies a number of measures to mitigate risks.
The JMLSG guidance is available at –
WHY FINANCIAL SERVICES FIRMS NEED ISO 37001
On 5 August, the CRI Group reported that the ISO 37001:2016 Anti-Bribery Management System standard is designed to help global organisations implement an anti-bribery management system (ABMS), as the standard specifies a series of measures required by the organisation to prevent, detect and address bribery, and provides guidance relative to that implementation. It is said to provide a critical layer of protection that provides both anti-bribery controls and a system for compliance with various anti-corruption legislation, such as the FCPA and UK Bribery Act. It says that the ISO 37001 ABMS standard is an established, tried and tested program to address those issues head-on through a comprehensive programme of training and certification. It is said that ISO 37001 can be used by any organisation, large or small, whether it be in the public, private or voluntary sector, and in any country. It is a flexible tool, which can be adapted according to the size and nature of the organisation and the bribery risk it faces.
https://crigroup.com/why-financial-services-firms-need-iso-37001-abms/
https://www.iso.org/iso-37001-anti-bribery-management.html
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