Day: August 14, 2020

Panama Covid-19 update – from Monday the construction sector  reopens, and it has been confirmed that the main, and secondary, airports have reopened, albeit in a limited way – anyone arriving has to have pre-clearance for their flight and face 14-day quarantine, as well as having a test 48 hours before setting out…todays sees 18 flights; 12 in and 6 out, with an approximate of 1,000 passengers in transit and 730 leaving the country to other destinations – a mere trickle compared to normal times.

In an aside, it seems the city’s mayor has been fined $5,000 for his trip to his beach house, violating curfew controls, last week.

More good news, in that the number of fatalities was “only” 12 today (the last 7 days have seen an a daily average of 20), taking the total of 1,735 – with a fatality rate of 2.2% of reported cases.  However, another 956 new infections were also reported.

 

14 August 2020

US SEIZES IRANIAN FUEL CARGO FOR FIRST TIME

On 13 August, the Wall Street Journal reported that the Trump administration has for the first time confiscated cargo in vessels allegedly loaded with Iran fuel in violation of sanctions, US officials have said, as it steps up its campaign of maximum pressure.  The US had filed suit last month to seize the 4 tankers of gasoline that Iran was sending to Venezuela. 4 medium-range tankers allegedly carrying Iranian gasoline for Venezuela are headed for Houston after US authorities seized the cargoes, according to reports. A federal court authorised the seizures based on alleged links between the cargoes and Iran’s Islamic Revolutionary Guard Corps, which Washington has designated a foreign terrorist organisation.

https://www.wsj.com/articles/u-s-seizes-iranian-fuel-cargoes-for-first-time-11597352574

https://lloydslist.maritimeintelligence.informa.com/LL1133527/Greek-tankers-with-Iranian-gasoil-reportedly-headed-for-US

https://www.statista.com/chart/22571/companies-moving-operations-out-of-china

KENYA: NAIROBI GOVERNOR FAILED TO PERSUADE A COURT THAT HE IS BROKE AND CANNOT EVEN BUY GROCERIES FOR HIS FAMILY AFTER HIS ACCOUNTS WERE FROZEN

On 12 August, The Standard reported that the governor, Mike Sonko,  had petitioned the Anti-Corruption Court as he sought access money in accounts now held by the State. The Asset Recovery Agency had obtained orders to freeze the accounts following suspicion that some cash transactions were proceeds of crime.

https://www.standardmedia.co.ke/nairobi/article/2001382169/state-hangs-on-to-sonko-s-sh500m

UK -US BILATERAL DATA ACCESS AGREEMENT COMES INTO EFFECT

On 11 August, an article from Wilmer Hale says that this Agreement is the first agreement to be put in place under legislation introduced to address contemporary challenges to data-gathering by domestic authorities where data is located overseas. It notes that there are significant differences between the UK and US domestic legislation. The Agreement allows law enforcement in the UK to access data from communications providers in the US without review by US authorities, and vice versa. It comments that, in practice, the UK gains more than the US as the legislation currently stands — quicker access to data held by major US communications providers for use in UK investigations. The article says that the arrangements should have the effect of streamlining the process for the UK to make data requests of US communications providers, albeit with some limitations. The Agreement certainly gives the US scope to introduce a similar process, although it has not sought to do so to date.

https://www.wilmerhale.com/en/insights/blogs/WilmerHale-W-I-R-E-UK/20200811-apples-and-oranges-uk-us-bilateral-data-access-agreement-comes-into-effect#page=1

UK: THE COURTS’ CONTINUING TOUGH APPROACH WHEN IT COMES TO SUSPECTED INVESTMENT FRAUD INVOLVING CRYPTOASSET SCHEMES

A briefing from Rahman Ravelli on 10 August was concerned with a recent High Court case a case involving a number of different claimants and defendants. It concerned assets lost via a cryptoasset project and the pursuit of a claim for investment fraud.

https://s3.amazonaws.com/documents.lexology.com/361d8c09-8a5b-4cea-a300-c53fac89b7f4.pdf?AWSAccessKeyId=AKIAVYILUYJ754JTDY6T&Expires=1597409378&Signature=Zjo9E9OCMDgDBueNPPqDXlRU9Iw%3D

GUERNSEY: DIRECTORS’ DUTIES AND CORPORATE GOVERNANCE

On 13 August, Ogier published an article which says that directors’ duties in Guernsey arise from customary law, statute and contractual obligations – but are not codified under the Companies (Guernsey) Law 2008, as amended. Instead, they are drawn from the English common law duties which were in place prior to the introduction of the UK Companies Act 2006. It also says that corporate governance for Guernsey companies can be found in a number of sources.

https://www.internationallawoffice.com/Newsletters/Private-Client-Offshore-Services/Guernsey/Ogier/Directors-duties-and-corporate-governance

OCEAN-GOING YACHTS UNDER THE SWISS FLAG

On 7 August, MME Legal Tax Compliance published an article about the Yachting Ordinance and the register of yachts maintained by the Swiss Maritime Navigation Authority in Basel. The owner of a Swiss yacht must be a Swiss citizen. It is said that there are currently around 1,500 ocean-going yachts sailing under the Swiss flag. If the owner is a dual citizen, he cannot register his yacht if he resides in the country of his other nationality. Alternatively, only an association constituted under Swiss law with the purpose of promoting sports and pleasure boating may register as the owner of a yacht. The Swiss flag for yachts is reserved for Swiss citizens and cannot be used commercially.

https://www.mme.ch/en/magazine/magazine-detail/url_magazine/ocean_going_yachts_under_the_swiss_flag_a_pure_gimmick/

LUXURY HOMES TIE CHINESE COMMUNIST ELITE TO HONG KONG’S FATE

On 14 August, KYC 360 related a New York Times report containing claims that members of the Communist Party aristocracy in China have made huge investments in Hong Kong and if Hong Kong suddenly loses its financial status they cannot park their money there, and that one of the leadership’s biggest exposures to Hong Kong is in real estate.

https://www.riskscreen.com/kyc360/news/luxury-homes-tie-chinese-communist-elite-to-hong-kongs-fate

THOUSANDS OF ARTIFACTS SEIZED IN TURKEY’S BIGGEST OPERATION AGAINST SMUGGLERS

On 14 August, Daily Sabah reported that authorities have seized thousands of artifacts in an operation against artifact smugglers in western Turkey, and the 65,000 artifacts including 52,000 coins. Operations were held in the western cities of Izmir and Manisa.

https://www.dailysabah.com/turkey/thousands-of-artifacts-seized-in-turkeys-biggest-operation-against-smugglers/news

SRI LANKA NAVY SEIZES OVER 7000 KG OF TURMERIC

On 14 August, News First in Sri Lanka reported that the Turmeric was seized while being transported by vehicles, after being smuggled into the country via sea. 261 kg of Cardamom smuggled into the country was also seized.

https://www.newsfirst.lk/2020/08/14/sri-lanka-navy-seize-over-7000-kg-of-turmeric-smuggled-since-28th-july/

CONVICTIONS UPHELD IN CUBAN BASEBALL PLAYER SMUGGLING

CBS 12 News reported on 13 August that a federal appeals court has upheld the convictions of 2 South Florida men in a smuggling operation that brought Cuban baseball players to the US to play in the major leagues.  The men were convicted on conspiracy and smuggling charges in 2017.

https://cbs12.com/news/local/convictions-upheld-in-cuban-baseball-player-smuggling

CUSTOMS DISCOVERS €76,000 IN UNDECLARED CASH AT MALTA INTERNATIONAL AIRPORT

Malta Today on 14 August reported that officials discovered €75,600 of undeclared cash at the Airport Arrival Lounge when a passenger was selected for a currency check.  The passenger had just arrived from Bucharest.

https://www.maltatoday.com.mt/news/court_and_police/104177/customs_discovers_75600_in_undeclared_cash_at_malta_international_airport?src=ilaw#.XzaWp6eSmM8

US SENTENCES CANADIAN CITIZEN FOR FINANCIAL FRAUD RING

On 14 August, OCCRP reported that a Canadian citizen, Morrie Tobin, a resident of Los Angeles, has been jailed in Boston for artificially inflating stocks owned by him and his co-conspirators with the intention to generate $15 million in fraudulent proceeds. Tobin and 3 other co-conspirators disguised their ownership and control of securities in small publicly traded companies and then artificially inflated the value of the stocks through paid promotional campaigns and manipulative trading techniques to make the substantial profit when selling them. From 2013 to 2018, the team built up the scheme by setting a network of shell and offshore companies between which they transferred shares.

https://www.occrp.org/en/daily/12941-us-sentences-canadian-citizen-for-financial-fraud-ring

CHINA LAUNCHES ANTI-ONLINE GAMBLING TIP OFF PLATFORM

On 14 August, Calvin Ayre reported that China-facing online gambling operators are facing a new threat from within as the government launches its illegal online gambling snitch platform. Users can both report on illegal gambling or check the progress of a previously filed complaint.

https://calvinayre.com/2020/06/05/business/china-launches-online-gambling-snitch-platform/

SUDAN: US VISA RESTRICTIONS ON INDIVIDUALS SAID TO BE UNDERMINING SUDAN’S CIVILIAN-LED TRANSITIONAL GOVERNMENT

A news release from the US State Department on 13 August advised that it was imposing restrictions on individuals residing both inside and outside Sudan who are believed to be responsible for or complicit in, or to have engaged, directly or indirectly, in undermining Sudan’s civilian-led transitional government’s efforts to implement the 2019 Political Agreement and Constitutional Declaration.  The list of these individuals is not publicly available.

https://www.state.gov/the-united-states-imposes-visa-restrictions-on-multiple-individuals-undermining-sudans-civilian-led-transitional-government/

US: TOP 2 DEPARTMENT OF HOMELAND SECURITY OFFICIALS ARE SERVING ILLEGALLY

On 14 August, Government Executive reported that a legal decision reached by the Government Accountability Office has concluded that both acting DHS Secretary Chad Wolf and second-in-command Ken Cuccinelli were unlawfully appointed to their posts. It is said that the fate of Wolf and Cuccinelli will likely be decided in federal court. Both are facing several lawsuits seeking to deem their appointments as illegal, most of which aim to strike down policies they have put in place.

https://www.govexec.com/management/2020/08/top-two-homeland-security-officials-are-serving-illegally-gao-rules/167714/

 

 

 

 

 

 

 

 

 

 

 

 

On 13 August, Cadwalader Cabinet published an article saying that the US Government Accountability Office has recommended that FinCEN undertake additional procedures to implement and evaluate the effectiveness of GTO for certain real estate transactions between 2016 and 2020. These GTO require title insurance companies to collect and report beneficial ownership information for certain all-cash real estate purchases in Manhattan and Miami, initially, and later for other New York City boroughs and certain other cities. The recommendations are contained in a report to Congress, and they include those flowing from conclusions that FinCEN failed to properly share data and failed to monitor compliance by the insurance companies.

https://www.findknowdo.com/news/08/13/2020/gao-recommends-improvements-fincens-geographic-targeting-orders

The report is at –

https://www.gao.gov/assets/710/708115.pdf

A news release from the US State Department on 13 August announced that the US was suspending all charter flights between the US and Cuba over which its Department of Transportation exercises jurisdiction, except for authorised public charter flights to and from Havana and other authorised private charter flights for emergency medical purposes, search and rescue, and other travel deemed in the interest of the US.

https://www.state.gov/suspension-of-private-charter-flights-between-the-united-states-and-cuba/

On 12 August, the Wolfsberg Group of leading international banks, issued a statement on “Developing an Effective Anti-Money Laundering (AML)/Counter-Terrorism Financing (CTF) Programme”. This document outlines steps that financial institutions can take to evolve their AML/CFT regimes to meet the key elements of an effective programme, which were set out in the Group’s December 2019 statement on effectiveness. The Group contends that the guidance will enable financial institutions to optimise the detection and deterrence of illicit activity, while at the same time reducing friction on innocent customers and helping governments achieve their financial inclusion objectives.

https://www.wolfsberg-principles.com/sites/default/files/wb/Wolfsberg%20Effective%20Financial%20Crimes%20Programme%20-%20August2020%20%28FFP%29.pdf

A news release on 14 August advised that a new INTERPOL report on online organised crime in Africa shows how digitalisation has permeated almost every major crime area across the continent. Despite relatively low rates of online connectivity organised crime groups from taking advantage of the Internet. In 2016, it says that approximately 24 million malware incidents targeted Africa. In one East African country alone, the cost of cyber fraud more than doubled between 2017 and 2018, reaching nearly $6.5 million. Even the criminal activities that have longed formed the ‘bread and butter’ of organised crime groups are being digitalised.

https://www.interpol.int/News-and-Events/News/2020/Online-crime-in-Africa-a-bigger-threat-than-ever-before-INTERPOL-report-warns

On 14 August, the Daily Mail reported that Angola’s Supreme Court has handed a 5-year jail sentence to Jose Filomeno dos Santos, 42, aka “Zenu”, the son of the oil-rich country’s former president, for fraud when he headed the national sovereign wealth fund.  He faced allegations he tried to embezzle up to $1.5 billion from the sovereign wealth fund, which he oversaw from 2013 to 2018.  3 co-defendants, including the former governor of the national bank of Angola (BNA) Valter Filipe da Silva, were sentenced to between 4 and 6 years in prison for fraud, embezzlement and influence peddling. However, all 4 were acquitted of money-laundering charges.

https://www.dailymail.co.uk/wires/afp/article-8627653/Angolan-court-sentences-ex-leaders-son-5-years-fraud.html

On 13 August, Baker McKenzie reported that Singapore has updated its strategic goods control regime to ensure robust administration of controls and effective risk assessments, while ensuring the facilitation of legitimate trade. In addition, a new offence has also been created for failing to amend permits in the event that information submitted under initial permit application processes subsequently change.

https://insightplus.bakermckenzie.com/bm/international-commercial-trade/singapore-tightens-strategic-goods-controls

On 13 August, France 24 reported that Dario Messer, aka the “Master Dollar-Dealer”, a Brazilian foreign exchange dealer accused of masterminding a massive money laundering scheme has agreed to surrender nearly $190 million in a plea bargain.  Messer was arrested last year in an offshoot of “Operation Car Wash”.  The assets to be surrendered include “luxury properties, monetary assets in Brazil and abroad, as well as works of art and assets in Paraguay in the agricultural and real-estate sectors.

https://www.france24.com/en/20200813-brazilian-to-surrender-190-mn-in-laundered-money

On 13 August, the Wall Street Journal reported that the $575,000 fine for Pure Circle USA Inc of Chicago, a PureCircle Ltd affiliate, was the first time US Customs and Border Protection CBP officials have issued since it stepped up investigations of suspected forced labour in China in the past 5 years.

https://www.wsj.com/articles/company-fined-for-importing-sweetener-u-s-says-was-made-with-chinese-prison-labor-11597327201

Panama Covid-19 update – it seems that Air France/KLM have started limited flights to/from Amsterdam, though it is not clear how you can get on it (or to the airport for that matter), and what happens when you get to Amsterdam (seeing Panama seems to be on everyone’s red list), whether you have to quarantine there, and how (if) you can carry on to your intended final destination…Italy, for example, has banned anyone who has spent more than 2 weeks in Panama (and as there is mandatory 2-week quarantine if you had visited here, means anyone from here!).

Meanwhile, the pandemic rumbles on – 1,069 new infections reported, 19 additional fatalities and 24,514 active cases – with 158 in ICU and 1,515 in other wards.

13 August 2020

RUSSIA BANS ANONYMOUS BITCOIN WALLET DEPOSITS

On 5 August, Coingeek reported that authorities in Russia have outlawed anonymous deposits to online digital currency wallets, in a ruling expected to affect as many as 10 million users in the country.

https://coingeek.com/russia-bans-anonymous-bitcoin-wallet-deposits/

NETHERLANDS: FORMER LEADER OF THE TERRORIST HOFSTAD GROUP HAS BEEN ARRESTED AGAIN – FOR TERRORIST FINANCING

NRC on 30 July reported that the former Hofstad group terrorist Samir A has been re-arrested 7 years after his release on suspicion of a terrorism financing charges.  He became known in 2004 as the leader of the terrorist Hofstad group and was sentenced to 13 years in prison for plotting attacks. Since his release in 2013 he has been under surveillance by the police. It is said that since his release he has maintained frequent contact with Dutch IS fighters and investigators suspect he is an inspiration to jihadists.

https://www.nrc.nl/nieuws/2020/07/30/samir-a-ex-hofstadgroep-zit-weer-vast-nu-voor-financiering-syriestrijders-a4007479

MALTA: BANKS TOLD TO KEEP EYES OPEN FOR SUSPICIOUS TERROR FUNDING PATTERNS

On 30 July, Malta Today reported that case studies in FIAU report show Maltese credit institutions can be prone to suspect transactions for the funding of terrorism. The report cites Malta’s open economy and status as an international financial centre.

https://www.maltatoday.com.mt/news/national/103835/banks_told_to_keep_eyes_open_for_suspicious_terror_funding_patterns#.XzVGCV-SmM9

SERBIA LAUNCHES PROBE INTO MEDIA AND RIGHTS GROUPS OVER TERROR FINANCING AND MONEY LAUNDERING

On 29 July, Referl reported that Serbia’s Finance Ministry has launched a terrorist financing and money laundering probe into journalists and nongovernmental organisations that critics say is a blatant attempt at intimidation by President Aleksandar Vucic’s government.

https://www.rferl.org/a/serbia-probe-media-rights-groups-terror-financing-money-laundering/30754497.html

AMERICAN GUNS ARE FUELING UK CRIME

On 12 August, the New York Times reported that British are authorities worried about an expanding smuggling pipeline from the US. It says that most illegal firearms in the UK still come from Europe. But investigators seized hundreds of smuggled American guns last year. Police have traced some of the smuggled American guns back to loosely regulated gun fairs in states like Florida, and investigators have also seized American weapons being smuggled on a container ship and hidden in car engines. After Brexit, the illegal gun trade from America could accelerate, especially given the Trump administration’s broad support for the gun industry.

https://www.nytimes.com/2020/08/12/world/europe/handguns-smuggling-murder-us-uk.html

ISRAEL SAYS IT DEFEATED ATTACK BY NORTH KOREAN CYBER GROUP

On 12 August, the Wall Street Journal reported that Israel has said that it thwarted a North Korean cyber group’s attempt, by the Lazarus group, to steal sensitive information from leading defence companies in the country. It is reported that cyber criminals from the Lazarus group built fake LinkedIn accounts, tried to woo Israeli officials with lucrative job opportunities to gain access to their networks

https://www.wsj.com/articles/israel-says-it-beat-attack-by-north-korean-cyber-group-under-u-s-sanctions-11597248975

https://www.timesofisrael.com/israel-says-it-fended-off-north-korean-hack-attempt-against-defense-industry/

SECRET SIMs USED BY CRIMINALS TO SPOOF ANY NUMBER

An article from Vice on 12 August reported that criminals use so-called Russian, encrypted, or white SIMs to change their phone number, add voice manipulation to their calls, and try to stay ahead of law enforcement. Aka Russian SIMs, encrypted SIMs and white SIMs.

https://www.vice.com/en_us/article/n7w9pw/russian-sims-encrypted

RECORD NUMBERS RENOUNCING THEIR US CITIZENSHIP

https://www.statista.com/chart/8098/historic-numbers-renounced-their-us-citizenship-in-2016

PAKISTAN HOPES NEW LAWS WILL LEAD TO REMOVAL FROM FATF WATCH LIST

On 12 August, AP reported that Pakistan’s information minister has said that he hoped that 5 new Bills passed in Parliament aimed at curbing terror financing and money laundering will lead to the country’s removal from an international watch list. It is said that Pakistan had fulfilled 14 of 27 steps to get off the watch list, but still needed to do more to track money transfers and investigate and prosecute terrorism-related financiers.

https://apnews.com/b5961b99bfc22c6c4ac844955c6246ae

AUSTRALIA: WARNINGS THAT CRIME GANGS ARE TARGETING CORONAVIRUS EARLY ACCESS SUPERANNUATION SCHEME

On 11 August, ABC News reported warnings from the Australian Securities and Investment Commission (ASIC) that the Federal Government’s early access to superannuation scheme is a ripe target for “serious and organised” crime gangs. The Federal Government announced Australians would be able to apply for early access to their retirement nest eggs as part of its response to the coronavirus fuelled economic downturn.  The ASIC is also warning that real estate agents and property developers have been proposing the use of superannuation withdrawals in rent and property deals. It is reported that almost 600,000 Australians are already believed to have completely cleaned out their superannuation accounts, and the majority are workers under the age of 35.

https://www.abc.net.au/news/2020-08-12/early-access-superannuation-asic-organised-crime-coronavirus/12548686

THE G4S DEFERRED PROSECUTION AGREEMENT

On 10 August, law firm Rahman Ravelli published a concise summary of the DPA agreed between G4S and the SFO. The DPA with G4S Care and Justice Services (UK) Ltd was in relation to a scheme to defraud the MoJ over contracts for the electronic monitoring of offenders, contrary to section 1 of the Fraud Act 2006. The DPA requires G4S C&J to pay a penalty of £38.5 million and the full SFO costs of £5.9 million.  G4S C&J had paid compensation to the MoJ in 2014 as part of a £121.3 million civil settlement. The DPA financial penalty was discounted by 40%, only the second time in an SFO DPA that a discount lower than 50% has been applied, and this discount reflects the delayed cooperation G4S C&J offered the SFO investigation.

https://s3.amazonaws.com/documents.lexology.com/f028835b-bbb3-4218-9df8-335503ad84a8.pdf?AWSAccessKeyId=AKIAVYILUYJ754JTDY6T&Expires=1597328894&Signature=cOTjk6jfK%2FKhjtVduUu3KoJzR%2Fc%3D

UK: WILL THE ECONOMIC CRIME LEVY BRING MUCH NEEDED INVESTMENT IN THE FIGHT AGAINST ECONOMIC CRIME?

On 11 August, an article from Kingsley Napley posed this question re the Levy announced in the Budget 2020. The subject of a subsequent public consultation, the levy aims to raise approximately £100 million per year from entities regulated for AML purposes and support reforms to the “sustainable resourcing of economic crime”. It is said that the government intends for the first set of levy payments to be made in the Financial Year 2022/23, although this may be subject to the findings of the consultation and the time needed to develop the necessary collection infrastructure and go through the legislative process.

https://www.kingsleynapley.co.uk/insights/blogs/criminal-law-blog/will-the-economic-crime-levy-bring-much-needed-investment-in-the-fight-against-economic-crime#page=1

CHARGES FRAMED AGAINST FORMER CHIEF JUSTICE OF BANGLADESH IN MONEY LAUNDERING CASE

On 13 August, DD News reported on charges against the former Chief Justice of Bangladesh Justice S.K. Sinha and 10 others in a money laundering case filed by the Anti-Corruption Commission (ACC). He was the first minority Chief Justice of Bangladesh belonging to the Hindu community, and he. is currently in the US – previously he had sought political asylum in Canada.

http://www.ddinews.gov.in/international/charges-framed-against-former-chief-justice-bangladesh-money-laundering-case

INSURGENTS SEIZE MOZAMBIQUE PORT IN GAS-RICH REGION

On 13 August, Defence Web reported that local media had claimed that Islamist insurgents –  known as Ahlu Sunnah Wa-Jama, which pledged allegiance to Islamic State last year – have captured a heavily-defended port in the far northern Mozambique town of Mocimboa da Praia, close to the site of natural gas projects worth some $60 billion.

https://www.defenceweb.co.za/security/national-security/insurgents-seize-mozambique-port-in-gas-rich-region-local-media-say/

UK: THE INSOLVENCY SERVICE AND CONFISCATING THE PROCEEDS OF CRIME

A post from the Gov.UK blog on 13 August by the senior prosecution lawyer in Legal Services Directorate (LSD) at the Insolvency Service. It is concerned with when and how confiscation proceedings under POCA 2002 are pursued.

https://insolvencyservice.blog.gov.uk/2020/08/13/confiscating-the-proceeds-of-crime/

POLICE OFFICERS NOW HAVE POWERS TO STOP, QUESTION, SEARCH AND DETAIN INDIVIDUALS AT UK PORTS IN RELATION TO ESPIONAGE AND FOREIGN INTERFERENCE

A news release from the Home Office on 13 August advised that now in force are new Schedule 3 powers, introduced in the Counter-Terrorism and Border Security Act 2019 and created in response to the 2018 Salisbury nerve-agent attack.

https://www.gov.uk/government/news/police-given-new-powers-to-tackle-hostile-state-activity

Factsheet –

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/890477/20200604_-_ports_powers_and_bio_retention_SI_fact_sheet.pdf

It has also issued updated Codes of practice for Schedule 3 to the Counter-Terrorism and Border Security Act 2019 and Schedule 7 to the Terrorism Act 2000 –

https://www.gov.uk/government/publications/codes-of-practice-for-officers-using-examination-powers-at-ports

BULGARIA CLOSES STATE GAMBLING COMMISSION FOLLOWING CORRUPTION ALLEGATIONS

On 13 August, eGR reported that Bulgaria’s government has officially shut the country’s State Gambling Commission (DHC) and transferred all regulatory authority to the Ministry of Finance’s National Revenue Agency.

https://egr.global/compliance/news/bulgaria-closes-state-gambling-commission-following-corruption-allegations

WARNING FROM GARDAÍ AFTER DUBLIN BUSINESS CONNED OUT OF €1.2 MILLION IN INVOICE REDIRECT FRAUD

On 13 August, The Journal reported that the Bank of Ireland had reported to the Garda National Economic Crime Bureau (GNECB) that a business customer had been the victim of fraud. It was making payment to a UK business when they received an email purporting to be from this business asking them to send the payment to a new bank account number.

https://www.thejournal.ie/invoice-redirect-fraud-2-5174845-Aug2020

MORECAMBE MAN WHO MADE A FORTUNE FROM A FAKE MUSIC CD SCAM IS JAILED

On 13 August, the Lancashire Post reported that John Waldie, 56, made £464,000 from selling counterfeit albums via Amazon with his offending dating back as far as 2014. He, his wife and a co-defendant were convicted and he also pleaded guilty to converting £16,987.60 of criminal property through his bank account – payments for sales of counterfeit CDs sold via Amazon.

https://www.lep.co.uk/news/crime/morecambe-man-who-made-fortune-fake-music-cd-scam-jailed-2941595

DISGUISED REMUNERATION: INDEPENDENT LOAN CHARGE REVIEW – UK GOVERNMENT RESPONSE

On 13 August, a news release from HM Treasury advised that the independent review of the disguised remuneration loan charge has now concluded and the government has published its response. HMRC has published guidance setting out what this means for those affected, and has updated their guidance with some additional information about Self-Assessment.

https://www.gov.uk/government/publications/disguised-remuneration-independent-loan-charge-review

LITHUANIA BANS HEZBOLLAH AFFILIATES

On 13 August, Al Jazeera reported that Lithuania has banned individuals affiliated with the Lebanese Shia Hezbollah movement from entering the country. While most EU states distinguish between the group’s military and political wings, only classifying the former as a “terrorist” entity, the UK, Germany and Netherlands – and now Lithuania – do not make the distinction.

https://www.aljazeera.com/news/2020/08/lithuania-bans-hezbollah-affiliates-move-hailed-israel-200813111838735.html

SOURCE OF CASH-FILLED TRUCKS CONFOUNDS ARGENTINA OFFICIALS

On 13 August, an article on Insight Crime reported that a series of trucks smuggling large amounts of cash of unknown origin have been intercepted along Argentina’s northern border. Since the beginning of June, authorities have seized more than $830,000 hidden in trucks traveling from Argentina’s northern provinces to the capital Buenos Aires. Though the source of the cash is unknown, contraband is increasingly moving through northern Argentina, where border shutdowns due to the coronavirus have created new opportunities for smugglers.

https://www.insightcrime.org/news/brief/cash-filled-trucks-confound-argentina-officials/

FINANCIAL SERVICES FIRMS ARE BEING ATTACKED ON ALL FRONTS AS CRIMINALS BECOME INCREASINGLY ADAPTIVE AND SOPHISTICATED IN THEIR APPROACH

A release from Lexis Nexis Risk Solutions on 13 August made this statement and warning, also commenting on the sheer volume and diversity of attacks. It says that, in just the last 12 months, financial institutions report seeing several types of attack including: money mules (37%), criminal use of third parties (37%) and trade-based money laundering (31%) – and the complexity of these crimes makes detection and prevention very difficult and the threat level for each is not expected to abate.

https://mondovisione.com/media-and-resources/news/financial-services-firms-are-being-attacked-on-all-fronts-as-criminals-become-in/

ZIM CONTAINER SHIPPING LINE ROLLS OUT MISDECLARATION SCREENING SOFTWARE

On 13 August, Lloyds List reported that the Israeli container line is rolling out screening software which it believes will detect and identify misdeclared hazardous cargo before loading to vessels, following a number of serious casualties that have affected the shipping industry.

https://lloydslist.maritimeintelligence.informa.com/LL1133515/Zim-rolls-out-misdeclaration-screening-software

FREEPORTS AND FREE TRADE ZONES: A UK PERSPECTIVE

An article in the Focus magazine from trade body CILT in the UK asks why does the UK value freeports as innovative hubs that boost global trade, attract inwards investment, promote job creation and increase productivity?

https://ciltuk.org.uk/Portals/0/DNNGallery/uploads/2020/7/28/FOCUS_Freeports.pdf

CORRUPTION AND THE FRUITS OF KLEPTOCRACY: THE SAGA OF THE KARIMOVA SISTERS CONTINUES

On 11 August, an article in The Diplomat says that the daughters of Uzbekistan’s late dictator, Islam Karimov, are back in the news.  The article says that their story illustrates how current mechanisms designed to counter money laundering and kleptocracy – systems of governance in which leaders systematically abuse power for personal gain – fall short.

https://thediplomat.com/2020/08/corruption-and-the-fruits-of-kleptocracy-the-saga-of-the-karimova-sisters-continues/

GAO REVIEWS PROGRESS OF US NATIONAL BIO AND AGRO-DEFENSE FACILITY

On 11 August, Homeland Security Today reported that the Department of Homeland Security (DHS) is building the National Bio and Agro-Defense Facility (NBAF) to address animal diseases which may infect people, and is transferring ownership of this facility to the Department of Agriculture (USDA), which will use it for research and vaccine development. The facility is to house state-of-the-art laboratories for research on foreign animal diseases. A Government Accountability Office (GAO) review has found that the two agencies are following practices for a successful transfer.

https://www.hstoday.us/subject-matter-areas/infrastructure-security/gao-reviews-progress-of-national-bio-and-agro-defense-facility/

https://www.gao.gov/assets/710/708025.pdf

HMRC REAPS £73 MILLION FROM FOOTBALL TAX CLAMPDOWN

On 13 August, Accounting Web reported that a freedom of information request from accountants UHY Hacker Young confirmed that HMRC investigated 246 professional footballers during the 2019/20, up from 87 the previous year. The main focus of the tax department clampdown was on revenue from image rights that are used to supplement players’ contractual wages. In addition, the tax affairs of 25 clubs and 55 agents were put under the spotlight.

https://www.accountingweb.co.uk/tax/business-tax/hmrc-reaps-ps73m-from-football-tax-clampdown

QUEENSLAND GOVERNMENT MOVES TO BAN PUBLICATION OF POLITICAL CORRUPTION ALLEGATIONS DURING ELECTION CAMPAIGN PERIODS

On 13 August, ABC News reported that journalists could be jailed for up to 6 months for publishing allegations of corrupt conduct about candidates during election periods, Queensland’s Attorney-General has told Parliament in a surprise announcement meaning that any complaints made to the Crime and Corruption Commission (CCC) would be shielded from the public.

https://www.abc.net.au/news/2020-08-14/qld-government-moves-to-ban-corruption-reporting-in-elections/12556534

SEC HAS ANNOUNCED CHARGES AGAINST VIRGINIA-BASED BOON.TECH AND ITS CEO FOR FRAUD AND REGISTRATION VIOLATIONS IN CONNECTION WITH A $5 MILLION ICO OF DIGITAL ASSET SECURITIES

A release on Mondo Visione on 13 August advised the SEC had  announced charges against Boon.Tech and Rajesh Pavithran.

https://mondovisione.com/media-and-resources/news/sec-charges-issuer-and-ceo-with-misrepresenting-platform-technology-in-fraudulen/

BELARUS: MINSK’S THRIVING IT SECTOR AT DANGER FROM CRACKDOWN

On 13 August, Rferl reported that thousands of programmers and coders have helped birth hundreds of innovations, from games to apps to networking utility tools – not to mention the massively popular online game World Of Tanks. That sector is now threatened by the brutal, ongoing police crackdown after the bitterly disputed election.

https://www.rferl.org/a/another-casualty-of-the-brutal-belarus-crackdown-minsk-s-thriving-it-sector-/30782256.html

US RELEASES CYBERSECURITY ADVISORY ON NEW ‘DROVORUB’ RUSSIAN MALWARE

On 13 August, Rferl reported that the US National Security Agency (NSA) and FBI have released an advisory on cybersecurity warning about previously undisclosed Russian malware. The malware is a set of hacking tools named “Drovorub”.

https://www.rferl.org/a/u-s-release-cybersecurity-advisory-on-new-drovorub-russian-malware/30782412.html

US FEDERAL BANKING AGENCIES JOINT STATEMENT UPDATING THEIR EXISTING ENFORCEMENT GUIDANCE WHEN FINANCIAL INSTITUTIONS FAIL TO MEET BSA/AML OBLIGATIONS

A release on 13 August on Mondo Visione announced that federal banking agencies had issued a joint statement updating their existing enforcement guidance to enhance transparency regarding how they evaluate enforcement actions that are required by statute when financial institutions fail to meet Bank Secrecy Act/anti-money laundering (BSA/AML) obligations. The statement:

• clarifies that isolated or technical violations or deficiencies are generally not considered the kinds of problems that would result in an enforcement action;
• addresses how the agencies evaluate violations of individual components (known as pillars) of the BSA/AML compliance program; and
• describes how the agencies incorporate the customer due diligence regulations and recordkeeping requirements issued by the US Treasury as part of the internal controls pillar of the financial institution’s BSA/AML compliance programme.

https://mondovisione.com/media-and-resources/news/federal-banking-agencies-issue-joint-statement-on-enforcement-of-bank-secrecy-ac/