Month: January 2021

Panama Covid-19 update – La Prensa reported on 30 January that, so far, 101 healthcare workers in Panama have died as a result of Covid-19, with a total of 9,810 being infected.

Meanwhile, today sees another 936 new cases and 25 new fataliities. Of 38,692 active cases, 247 are in ICU and 2,186 in other wards.

31 JANUARY 2021

11 UAE BANKS FINED FOR BREAKING AML RULES

On 31 January, the Khaleej Times reported that the UAE Central Bank has imposed financial sanctions on 11 banks $12.5 million for violating AML regulations.  They take into account the banks’ failures to achieve appropriate levels of compliance regarding their AML and sanctions compliance frameworks as at the end of 2019.  The only bank identified was India’s Bank of Baroda which has made a statement to the National Stock Exchange.

https://www.khaleejtimes.com/news/11-uae-banks-fined-dh45-million-for-breaking-anti-money-laundering-rules

MALTA: LIMIT OF €10,000 TO BE PUT ON CASH TRANSACTIONS

On 31 January, the Times of Malta reported that a long-shelved plan to ban cash transactions in excess of €10,000 will be introduced in the coming days, with  legal amendments dating back some 6 years to be redrafted and would be published in February.

https://timesofmalta.com/articles/view/limit-of-10000-to-be-put-on-cash-transactions.848376

INDIA: MONEY LAUNDERING ARREST IN LONG-RUNNING VIP HELICOPTER CASE

On 31 January, Grain Mart India and others reported that a company director had been arrested by the Enforcement Directorate on charges of money laundering in the AgustaWestland VVIP helicopter case.  The arrest was made on claims that he was not cooperating with the investigation. The case involved refers to a multimillion-dollar corruption case in India, wherein money was paid to middlemen and Indian officials in 2006 and 2007 to purchase helicopters for high level politicians.  The latest charge sheet involves money allegedly transferred to or via Dubai and Tunisian companies.

https://www.grainmart.in/news/ed-arrests-director-of-krbl-in-money-laundering-case/

https://www.theweek.in/news/biz-tech/2021/01/30/ed-arrests-businessman-in-vvip-choppers-money-laundering-case.html

LSB PUBLISHES REVIEW OF CRM CODE FOR AUTHORISED PUSH PAYMENTS

On 31 January, the Fintech Times reported that the Lending Standards Board in the UK has carried out a review of the code first issued in May 2019.  The review by the LSB, the primary self-regulatory body for the banking and lending industry, sought to better understand how effective the Code is in achieving its objectives to provide greater consumer protection, as well as to understand the impact it has had on the volume of scams taking place.

https://thefintechtimes.com/lsb-publishes-review-of-crm-code-for-authorised-push-payments/

ALEX SAAB AND THE STATE OF CORRUPTION IN VENEZUELA

On 31 January, an article from Global Risks Insight says that among other individuals linked to corruption by the Maduro government, in June 2020 Colombian national Alex Saab was arrested in Cape Verde in connection with an Interpol Red Notice concerning money laundering.  Now, 6 months after his arrest, it seems likely that he will be extradited to the US.  The article asks how significant is Saab to the Maduro government and what impact might his extradition have?  It says that Alex Saab’s arrest and extradition is only the first step in a complicated international process towards dismantling a network of corruption.

https://globalriskinsights.com/2021/01/alex-saab-and-the-state-of-corruption-in-venezeula

PREVENTING NUCLEAR PROLIFERATION WITH MACHINE LEARNING & PUBLICLY AVAILABLE INFORMATION

On 12 January, the Nuclear Threat Initiative published an article saying that, for decades, illicit trade in nuclear materials, equipment, and technologies has undermined global nuclear non-proliferation efforts.  Sophisticated actors establish front companies, forge documents, and launder money to obscure proliferation activities, and are too often able to evade detection — even as they operate within legal systems of trade, finance, transportation, and communication.  However, the article says that they do leave footprints, however, and now, with an increase in the volume and variety of publicly available data, there are new opportunities to discover and expose such activities.  An NTI-C4ADS pilot project has yielded several key findings, and it recommends that leaders of non-proliferation efforts in governments and multilateral organisations around the world ensure that publicly available information and modern analytical approaches are employed to monitor and ultimately disrupt illicit nuclear activities. 

https://www.nti.org/analysis/reports/signals-in-the-noise

EXTRATERRITORIAL SANCTIONS AND CHINA

On 26 January, CEPS (the Centre for European Policy Studies) published a paper saying that China has recently updated its laws on the (security) screening of foreign investment, promulgated a new export controls law, drawn up an ‘unreliable entity’ list, and adopted an EU-style statute blocking the extraterritorial jurisdiction of US law.  Historically, the EU Blocking Regulation has provided for a unified European response to the extraterritorial application of other country’s sanctions.  However, the proliferation of such sanctions requires a deeper debate on possible additional measures to increase deterrence and, if needed, to counteract them.  This paper asks how the EU might prepare to be better protected, and finds inspiration in the established practice of hedging against secondary sanctions, as adopted by the US Treasury.

https://www.ceps.eu/ceps-publications/extraterritorial-sanctions-with-a-chinese-trademark/

EXTRATERRITORIAL SANCTIONS ON TRADE AND INVESTMENTS AND EUROPEAN RESPONSES

On 15 January, the Centre for European Policy Studies published a paper saying that recent US measures directed against Iran, Cuba and Russia (North Stream 2) have indirectly become a critical challenge for the EU as well.  They have an important extraterritorial dimension that affects EU business and individuals, and ultimately the sovereignty of the EU and its Member States.  A review of the existing sanction regimes and of the geopolitical context reveals that other international players, including China, may follow suit in using such measures.  The paper says that a study shows that extraterritorial sanctions have considerable economic implications, particularly for the EU and its vulnerabilities.  Extraterritorial sanctions also raise critical questions as to their legality under general international law, WTO law and other specific international rules.  The EU is especially affected by these measures and has already taken some measures of its own in response.  These could be improved and additional measures taken, as the policy recommendations in this study set out.

https://www.ceps.eu/ceps-publications/extraterritorial-sanctions-on-trade-and-investments-and-european-responses/

WARNING OF CRITICAL RISKS IN 2021 ON DATA PROTECTION DAY

On 28 January, an article from Data Centre & Network News reported a warning that, based on their research of recent cyberattack trends and existing business practices, organisations around the world currently face a global threat to data privacy and security in 2021. It briefly details the various risks identified by the cybersecurity experts at the global network of Acronis Cyber Protection Operations Centers (CPOC).

https://dcnnmagazine.com/security/acronis-issues-warning-of-risks-in-2021/

UK JUDICIAL REVIEW REPORT DELIVERED

On 31 January, Joshua Rozenberg reported in his blog that the Independent Review of Administrative Law, set up last year to consider judicial review has now delivered its report to the government and, having completed its task, the panel, chaired by Lord Faulks QC, has been disbanded.

https://rozenberg.substack.com/p/judicial-review-report-delivered

TRANSFERRING PERSONAL DATA IN ASIA

This report was published in May 2020 by the Asian Business Law Institute takes the form of a Comparative Review which sets out proposals for how Asian public stakeholders may promote legal certainty and greater consistency between their respective laws and regulations on cross-border transfers of personal data in the region.  To do so it involves the then-current status of rules, laws, codes etc in the Asia-Pacific region.  In doing so it covers Australia, China, Hong Kong, India, Indonesia, Japan, Macau SAR, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand, and Vietnam.  It is said to show shows that there is great potential for interoperability of some mechanisms in current laws. In particular, contracts, binding corporate rules, and certification (in multiple forms).

https://fpf.org/wp-content/uploads/2021/01/Transferring-Personal-Data-in-Asia-A-Path-To-Legal-Certainty-And-Regional-Convergence-1.pdf

MARITIME PIRACY HOTSPOTS PERSIST DURING 2020

On 31 January, an article in Hellenic Shipping News says that global piracy and armed robbery numbers increased in 2020, according to the International Maritime Bureau’s Piracy Reporting Centre (IMB PRC).  Its latest annual report lists a total of 195 actual and attempted attacks in 2020, up from 162 in 2019 and the agency attributes the rise to an increase of piracy and armed robbery reported within the Gulf of Guinea as well as increased armed robbery activity in the Singapore Straits.  The article provides details from the report, not just the obvious SE Asia and Gulf of Guinea hotspots, but also elsewhere

https://www.hellenicshippingnews.com/maritime-piracy-hotspots-persist-during-2020/

 

 

 

If you would like to make a (polite) gesture and make a (very) modest contribution to my ongoing costs of relocation, removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

On 28 January, the Centre for European Policy Studies published a paper which sets out the following key recommendations for a new approach to the fight against money laundering.  It says that banks and other ‘obliged entities’ complete thousands of SAR on a daily basis yet only a handful are followed up on by FIU.  This could be due to lack of capability, capacity or even political direction.  Meanwhile, the breadth and means to launder money have also increased, facilitated by technological progress.  Unfortunately, the current AML regulations have brought little success.  The paper includes a chart detailing the effectiveness ratings (“Immediate Outcomes” markings) for EU states.

https://www.ceps.eu/ceps-publications/anti-money-laundering-in-the-eu/

If you would like to make a (polite) gesture and make a (very) modest contribution to my ongoing costs of relocation, removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

Panama Covid-19 update – the daily figures continue to look a bit better (except for ICU occupation) – 1,200 new cases and 19 new fatalities. 39,403 active cases, with 255 in ICU, 2,230 in other wards and 477 in hotels.

30 JANUARY 2021

DOJ ANNOUNCES FIRST FALSE CLAIMS ACT SETTLEMENT WITH BORROWER AND ITS CEO FOR PPP FRAUD

A post on the Compliance & Enforcement Blog from the Program on Corporate Compliance & Enforcement from the New York University School of Law on 29 January reported on the announcement of the first civil settlement with a borrower for allegedly committing fraud in obtaining a Paycheck Protection Program (PPP) loan, in violation of the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).  It points out that, although the DoJ has brought over 50 criminal prosecutions for PPP fraud, this is the first civil action, highlighting another tool available to it to address alleged misconduct in connection with PPP loans.  Private plaintiffs also may bring lawsuits on behalf of the government under the FCA, and a qui tam relator recently filed a claim under the FCA alleging that a borrower committed PPP fraud.

https://wp.nyu.edu/compliance_enforcement/2021/01/29/doj-announces-first-false-claims-act-settlement-with-borrower-and-its-ceo-for-ppp-fraud/

CHINESE NATIONAL CHARGED WITH CRIMINAL CONSPIRACY TO EXPORT US POWER AMPLIFIERS TO CHINA

A news release from the US DoJ on 29 January advised that Cheng Bo, aka Joe Cheng, a 45-year-old national of the People’s Republic of China, has been charged with participating in a criminal conspiracy from 2012-2015 to violate US export laws by shipping US power amplifiers to China.  Cheng’s former employer, Avnet Asia Pte Ltd., a Singapore company and global distributor of electronic components and related software, agreed to pay a financial penalty to the US of $1,508,000 to settle criminal liability for the conduct of its former employees, including Cheng. Avnet’s employees repeatedly falsified documentation in order to send export-controlled goods with potential military applications to China.

https://www.justice.gov/opa/pr/chinese-national-charged-criminal-conspiracy-export-us-power-amplifiers-china

https://stl.news/joe-cheng-charged-with-criminal-conspiracy/

UK: FOREIGN OFFICE SECURITY VETTING WILL TARGET CHINA ACADEMICS ‘LIKELY TO SPY’

On 30 January, The Times reported that universities have been told that the Foreign, Commonwealth and Development Office will introduce security vetting for overseas academics and researchers wanting to study or work in fields relating to national security – amid concerns that academics and researchers are acquiring technology and knowledge that could benefit the People’s Liberation Army (PLA).

https://www.thetimes.co.uk/article/foreign-office-security-vetting-will-target-china-academics-likely-to-spy-gwzh5x2dn

TOP OFFICIAL WARNS OF ‘DISTURBING’ AMOUNT OF RUSSIAN MONEY LAUNDERING IN UK

On 25 January, City AM reported that Graeme Biggar, director general of the National Economic Crime Centre, told MPs about the “disturbing” prevalence of Russian money laundering in London, claiming up to half of all money laundered from the country is done through the UK.

https://www.cityam.com/top-official-warns-of-disturbing-amount-of-russian-money-laundering-in-uk/

ILLEGAL CHARTER – ARE ILLEGAL CHARTERS HARMING APAC BUSINESS AVIATION?

Law firm HFW says that it and the Asian Business Aviation Association (AsBAA) have conducted a joint survey of the AsBAA membership in relation to illegal charter of business jets across the Asia Pacific region.  Illegal charter activity essentially involves the use of private aircraft for commercial purposes.  It is said that the survey represents the first attempt to capture industry perception of this issue in the APAC region.

https://www.hfw.com/downloads/002600-HFW-AsBAA-Survey-Illegal-Charter-Jan-2021.pdf

WIDER CONSEQUENCES OF THE SUPREME COURT JUDGMENT IN THE FCA TEST CASE ON COVID INSURANCE

Law firm HFW has published an article examining the consequences of the judgment of 15 January by the UK Supreme Court in the COVID-19 Business Interruption test case commenced by the FCA. It says that it is clear that the Supreme Court’s judgment will have wider ramifications for English insurance law (beyond COVID-19 business interruption claims), particularly with regard to causation and quantum.

https://www.hfw.com/Wider-consequences-of-the-Supreme-Court-judgment-in-the-FCA-test-case-Jan-2021

IRISH BUYERS FACE 15% POST-BREXIT TAX PREMIUM ON ART SOLD IN UK

On 30 January, the Irish Times reported that Irish auction houses call for reduction in VAT on UK art sales to allow them compete with EU counterparts.  When Irish auction houses sell goods to Britain (Northern Ireland is excluded from new rules), buyers will pay less. The Irish VAT rate is replaced by the UK VAT rate of 5%.  However, goods trading in the other direction – from Britain to Ireland – will have more significant charges.  After paying the UK buyers’ premium, which is normally 25% (the additional UK 5% VAT being dropped), there will be an Irish customs VAT rate applied to goods coming into Ireland, which equates to 13.5% on art – but this rate is applied to the total cost – including shipping and premiums – so for large pieces of furniture, as the shipping costs rise, so too will the amount of duty paid.

https://www.irishtimes.com/life-and-style/homes-and-property/fine-art-antiques/irish-buyers-face-15-post-brexit-tax-premium-on-art-sold-in-uk-1.4469577

CHINESE WINE DEAL FRAUD SUSPECT REPATRIATED FROM THAILAND

On 30 January, Shine reported that the suspect in a 2019 Shanghai fraud case has been repatriated to China from Thailand.  He allegedly signed wine deals with the victim in May and June 2019 and had fled when police started their investigation in July 2019.

https://www.shine.cn/news/metro/2101304089

FAQ: THE UK’S NEW IMMIGRATION SYSTEM

On 29 January, Littler Publications published a set of FAQ about the UK’s new immigration system.

https://www.jdsupra.com/legalnews/faqs-the-uk-s-new-immigration-system-5217035/

BREXIT AND COPYRIGHT: 6 KEY THINGS TO KNOW

On 29 January, an article from Gowling WLG says that for copyright and associated areas of the law, there are some important soundbites for businesses to be aware of – some of which you may already have heard about, while others may be news outside the UK (even for experienced copyright lawyers).

https://gowlingwlg.com/en/insights-resources/articles/2020/brexit-and-copyright-6-key-things-to-know/

POLITICAL ELITES SEEK AGAIN TO INFILTRATE GUATEMALA’S HIGH COURT

On 29 January, Insight Crime reported that Guatemala’s congress has named to the country’s Constitutional Court a judge who is under investigation for obstruction of justice, in a brazen attempt by political mafias to infiltrate the country’s highest courts and stack the deck.  The Special Prosecutor’s Office Against Impunity (Fiscalía Especial contra la Impunidad – FECI) in the Guatemalan Attorney General’s Office has investigated Moto in connection to an influence-peddling scheme perpetrated by powerful groups in the election of judges to Guatemala’s highest courts. 

https://www.insightcrime.org/news/analysis/political-elites-seek-again-to-infiltrate-guatemalas-high-court/

IT’S TIME TO TAKE DOMESTIC NUCLEAR TERRORISM SERIOUSLY

On 27 January, an article from the Belfer Center in the US says that while the policy community in the US perceives the threat of nuclear terrorism as almost uniquely emanating from outside of US borders, specifically from Islamist terrorism networks such as the Islamic State, al-Qaeda and their splinter groups.  But in fact, US far-right extremist groups have a history of attempted procurement of nuclear weapons and radiological materials to use against the federal government. Members of neo-Nazi groups such as Atomwaffen Division, which literally means “atomic weapons” in German, and the National Socialist Movement have attempted in the past to access nuclear materials with the intent to cause harm.

https://www.belfercenter.org/publication/its-time-take-domestic-nuclear-terrorism-seriously

ARTIFICIAL INTELLIGENCE SET TO TRANSFORM ASSET TRACING

On 29 January, an article from Global Banking & Finance Review sets out to predict the use of algorithms and their impact on the complex and labour-intensive work of tracing assets worldwide. 

https://www.globalbankingandfinance.com/artificial-intelligence-set-to-transform-asset-tracing/

COLOMBIA’S CERREJÓN MINE – ONE OF THE WORLD’S LARGEST OPEN-PIT COAL MINES – NOW THE SUBJECT OF NEW HUMAN RIGHTS COMPLAINTS

On 25 January, Global Witness reported that communities who live near the mine are some of Colombia’s poorest.  For nearly 40 years, they have been inhaling poisonous dust from the mine owned by BHP, Anglo-American and Glencore – with their water contaminated by the toxic waste dumped in their rivers.  It says that Cerrejón is a case study in corporate power left unchecked, and the devastating consequences that follow for people and the planet.

https://www.globalwitness.org/en/blog/we-are-going-to-kill-you-a-case-study-in-corporate-power-left-unchecked/

EUROPOL SPOTLIGHT – THE USE OF VIOLENCE BY ORGANISED CRIME GROUPS

On 29 January, Europol published an article in its Spotlight series which says that the use of violence by organised crime groups is a growing concern in the EU.  Recent cases suggest there has been a rise in the number of violent incidents associated with serious and organised crime over the last few years, as well as an increase in the impact and visibility they have had.  Recent cases in Belgium, Denmark, Italy, Spain, as well as gang wars in Sweden (among others) have also pointed to an increasing willingness by organised crime groups to employ deadly violence in pursuit of their criminal objectives.

https://www.europol.europa.eu/europol-spotlight/europol-spotlight-use-of-violence-organised-crime-groups

ZAMBIA’S MEDICAL SUPPLY SCANDAL MAKES ANTI-CORRUPTION A KEY ELECTORAL ISSUE

On 28 January, Transparency International says that corruption is endemic in Zambia and affects people’s access to essential public services.  But if there ever was a case that brings home the painful reality of the dangers of corruption in Zambia, it is the scandal surrounding the Ministry of Health’s negligent procurement that has put millions of citizens at risk.  In June 2020, investigative journalists broke a story about alleged irregularities worth $17 million in the procurement of health kits the year before. Journalists found that the winning company, Honey Bee Pharmacy Limited, was not even registered at the time of contract’s award.  It is said that the Ministry of Health scandal is symptomatic of the endemic nature of corruption in today’s Zambia – particularly in the area of public procurement

https://www.transparency.org/en/blog/cpi-2020-zambia-medical-supply-scandal-anti-corruption-key-electoral-issue

GLOBAL FOREIGN DIRECT INVESTMENT FELL BY 42% IN 2020, OUTLOOK REMAINS WEAK

On 24 January, the UN Conference on Trade & Development reported that says uncertainty about the COVID-19 pandemic’s evolution and the global investment policy environment will continue to affect FDI flows in 2021. For developing countries, the prospects for 2021 are a major concern.

https://unctad.org/news/global-foreign-direct-investment-fell-42-2020-outlook-remains-weak

THE NEPTUNE DECLARATION ON SEAFARER WELLBEING AND CREW CHANGE

On 26 January, UK P+I reported that the UK Club is to be a signatory on the Neptune Declaration on Seafarer Wellbeing and Crew Change, which is a global call to action to address the ongoing crew change crisis focusing on concrete actions that can facilitate crew changes and keep vital global supply chains functioning.  The 300+ signatories which have signed up to the Neptune Declaration on Seafarer Wellbeing and Crew Change that defines 4 main actions to facilitate crew changes and keep global supply chains functioning:

https://www.ukpandi.com/news-and-resources/articles/2021/neptune-declaration/

BIDEN UNDERSCORES SUPPORT FOR JONES ACT

On 25 January, American Shipper published an article saying that President’s “Made in America” Executive Order advocates for the 100-year-old US maritime law.  The Act is a 100-year-old law that requires ships moving between US ports be built and crewed in the US as well as being flagged in the US, but it is criticised by some as a protectionist regulation that raises prices for shippers — and ultimately consumers — due in part to higher US labour costs.  It is said that the Jones Act has also been affirmed as an opportunity to invest in America’s workers as we build offshore renewable energy, in line with the President’s goals to build our clean energy future in America.

https://www.freightwaves.com/news/biden-underscores-support-for-jones-act

NEW ZEALAND: THE FRAUD CASE THAT’S HALTED ‘MONSTER’ $1 BILLION PROPERTY DEVELOPMENT 

In its 31 January edition, Stuff reported that a planned ‘monster’ development in a sleepy town has faltered with a civil trial due to follow a criminal trial after a major battle between investors. 

https://www.stuff.co.nz/national/crime/123979299/the-fraud-case-thats-halted-monster-1b-pokeno-property-development

 

 

 

If you would like to make a (polite) gesture and make a (very) modest contribution to my ongoing costs of relocation, removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

In December, the Luxembourg Ministry of Justice published this risk assessment, which says that the high adoption of virtual assets by criminals poses significant challenges to virtual asset service providers (VASP), financial institutions, supervisors and law enforcement agencies, and multiple factors have contributed to the need for a VASP vertical risk assessment.  The 2018 and 2020 Luxembourg National Risk Assessment (NRA) specifically mentioned virtual assets as an emerging and evolving risk.  This risk assessment describes the mitigating factors that VASP are obliged to implement to reduce risks as per the 2004 AML/CFT Law, and the different measures implemented by the regulators and prosecution authorities.  It provides a list of legal obligations for the VASP private sector and presents a list of more than 40 red flag indicators.  Additionally, FATF has published red flag indicators on 14 September which entities should take into account.  It says that the list of red flag indicators should support private entities in setting up appropriate transaction-monitoring processes and improving their reporting to the FIU.  The risk assessment is intended to be updated in the near future when a more complete view of the market becomes attainable.

https://media-exp1.licdn.com/dms/document/C561FAQFU27m5iGliqA/feedshare-document-pdf-analyzed/0/1611921300391?e=1612112400&v=beta&t=Q_lIi7cWIMBzeM-o_BV0oSf1DK7d5KvfuUswIqpO5os

 

 

 

If you would like to make a (polite) gesture and make a (very) modest contribution to my ongoing costs of relocation, removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

On 30 January, IOL reported that Cindy Saunders, 36, appeared in the Durban Magistrate’s Court, facing more than 140 counts including fraud, corruption, forgery, theft and money laundering, for allegedly defrauding millions from her previous employer in the shipping industry.  She was also the subject of a recent Carte Blanche expose in which emigrating South Africans have lost money and goods, including irreplaceable sentimental items, after entrusting their containers to Saunders to be shipped to their new home countries.

https://www.iol.co.za/ios/news/container-con-accused-in-court–e41584a8-041d-4b16-8688-33c71f078b1b

 

 

 

If you would like to make a (polite) gesture and make a (very) modest contribution to my ongoing costs of relocation, removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

On 29 January, Finance Colombia reported that police on the border with Ecuador arrested 2 Germans, 1 Polish and 1 Venezuelan illegally transporting 9 captured specimens of tarantulas that they had captured.  When stopped, the foreigners could not justify their possession of the wildlife. During the stop, plastic boxes containing 9 spiders and a spider egg were found.  According to Colombian prosecutors, the tarantula has a black market value of roughly $7,600. Prosecutors say one of the German suspects presented an authorization by a German museum, but foreign museums have no authority to contravene Colombian environmental laws.  Last year alone, 19,609 species of birds, mammals and reptiles were recovered by Colombian authorities, and 2,405 people were prosecuted.

https://www.financecolombia.com/german-polish-venezuelan-men-arrested-in-colombia-for-tarantula-smuggling/

If you would like to make a (polite) gesture and make a (very) modest contribution to my ongoing costs of relocation, removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

Panama Covid-19 update – from 1 February (Monday) more businesses are to open, although the 2100-0500 curfew and all-weekend lockdown are to remain. The gender-based restrictions (men only shopping Tuesday/Thursday, women Monday/Wednesday/Friday – which doesn’t mean you can’t go out all, to exercise etc, just can’t go shopping) also stay in place, but all/both sexes are allowed out together to go to banks on Friday. The use of beaches, rivers and public spas also remains prohibited.

Meanwhile, 1,445 new cases and 24 new fatalities; with 40,852 active cases – 242 in ICU, 2,391 in other wards and 486 in hotels.

29 JANUARY 2021

MIAMI BUSINESSMAN PLEADS GUILTY TO ECUADOREAN CORRUPTION SCHEME

On 29 January, the Wall Street Journal reported that a Miami-based businessman was sentenced to 35 months in prison for his role in a bribery and money-laundering scheme involving former officials at a state-controlled oil company in Ecuador, Petroecuador.  Armengol Alfonso Cevallos Diaz, a citizen of Ecuador who lives in Miami, pleaded guilty last year to conspiring to pay $4.4 million in bribes.

https://www.wsj.com/articles/miami-businessman-pleads-guilty-to-ecuadorean-corruption-scheme-11579822576

NEW RUSI PROJECT: EMPOWERING CIVIL SOCIETY ACTORS AND THE MEDIA COMMUNITY TO TACKLE ILLICIT FINANCIAL FLOWS IN LATIN AMERICA AND EAST AFRICA

On 25 January, RUSI advised that the project entitled ‘Restricting Kleptocracy: Strengthening Monitoring and Accountability in the First Mile’, the project will centre on Latin America and East Africa with an emphasis on Panama City and Nairobi as regional hubs for financial crime.  By building partnerships with investigative journalists and civil society, the project aims to equip them with the knowledge, connections and understanding to hold to account the state institutions who should be preventing the outflows of the proceeds of corruption.  The project will involve a series of capacity building workshops focused on the domestic and international standards and requirements related to combatting illicit finance. 

https://rusi.org/rusi-news/rusi-empower-civil-society-and-journalists-exposing-corruption-latin-america-and-east

COMBATING ORGANISED CRIME IN THE AMERICAS REQUIRES COOPERATION

On 26 January, an article in Americas Quarterly says that, in the wake of the COVID-19 pandemic, transnational criminal organisations have adjusted their tactics, techniques and procedures. Use of commercial fishing vessels and shipping containers in cocaine transport has decreased and they have increasingly employed smaller, semi-submersible vessels instead. Their use of Western Caribbean transit routes also increased in response to travel and shipping restrictions. Every country has to be at the top of their game to counter this threat – as the gangs compete for the estimated $94 billion generated annually by cocaine trafficking worldwide.  It says that whole-of-hemisphere cooperative security approaches and strong security institutions, which share values and ensure security, prosperity and freedom, are vital.

https://americasquarterly.org/article/the-threat-that-cannot-be-addressed-alone/

WHEN POLITICS AND CRIME COLLIDED IN PERU

On 26 January, an article in the Americas Quarterly told the story of Peru’s Áncash department, which is resource-rich, replete with a mix of zinc, gold and silver deposits, and César Álvarez, governor from 2007 to 2014.  The article says that the region is also home to the country’s most notorious mix of government and organised crime, said to be led by its governor.  Known as “the Beast”, because of his reputation for political violence, he asserted control through an elaborate network of government institutions and criminal organizations, extorting, threatening and ordering the assassination of political adversaries, according to a congressional investigation and an indictment.  It sets out to answer the questions: how did someone like Álvarez become so powerful? How do organised crime and politics end up mixing? It says that Álvarez’s early days in politics may shed some light.

https://americasquarterly.org/article/the-governor-and-the-gangs-when-politics-and-crime-collided-in-peru/

UK: COMPANY STRIKE OFF, DISSOLUTION AND RESTORATION

On 27 January, Companies House released updated information for directors, secretaries or company advisers about how to dissolve a company or restore a company to the register.

https://www.gov.uk/government/publications/company-strike-off-dissolution-and-restoration

WARNING OF 3 VESSELS BOARDED IN SINGAPORE STRAIT IN A WEEK

On 29 January, the Seatrade Maritime News reported that, between 25 and 29 January, 3 ships were boarded by robbers in the eastbound lane of the Traffic Separation Scheme (TSS) close to the Indonesian islands of Batam and Bintan.  The article repeated the warning of the possibility of further incidents and ships transiting the busy shipping are advised to adopt extra precautionary measures and enhanced vigilance.

https://www.seatrade-maritime.com/ship-operations/warning-three-vessels-boarded-singapore-strait-week

SOUTH AFRICA CAN’T AFFORD MORE DELAYS ON CONTROLLING THE USE OF EXPLOSIVES

On 21 January, ENACT Africa said that the police minister needs to fast-track explosives regulations to stop the illegal trade and safeguard the public.  Huge quantities of explosives are regularly transported on public roads in South Africa.  While the volumes being carried for legitimate business purposes present a controlled risk, a more worrying threat is the illegal movement of explosives in South Africa and the region.  Organised criminal networks use illegal explosives in crimes such as cash-in-transit heists, ATM bombings and illegal mining. According to the latest police crime figures, there were 64 cash-in-transit robberies nationally from July to September 2020 – a 60% increase from the same period in 2019.

https://enactafrica.org/enact-observer/south-africa-cant-afford-more-delays-on-controlling-the-use-of-explosives

THE CURRENT DRIVERS OF ORGANISED CRIME THAT HAVE TURNED THE ENTIRE NIGER DELTA INTO A DANGEROUS AND LAWLESS ZONE

On 7 December, ENACT Africa told of a new report which analyses the drivers.  It says that what began as a struggle for the political and economic autonomy of the Niger Delta region of Nigeria has morphed into organised crime of transnational dimensions that has turned the West African coast and the Gulf of Guinea into one of the most unsafe maritime zones in the world and is decimating Nigeria’s economy. The Niger Delta region accounts for most of Nigeria’s estimated daily oil production of 2.5 million barrels, which makes the country Africa’s largest producer of oil and the sixth-largest oil-producing country in the world.

https://enact-africa.s3.amazonaws.com/site/uploads/2020-12-07-niger-delta-studies-paper.pdf

NEW REPORT SHEDS LIGHT ON THE ILLICIT PROLIFERATION OF AMMUNITION IN UKRAINE

The Small Arms Survey has produced a new report which has found that thousands of hand grenades, rockets, mortar rounds, landmines, and tins of firearms cartridges have proliferated throughout Ukraine, including to areas located far from the conflict zone in the east.  The report is said to reveal that the types and sources of illicit ammunition in the country, as well as the modes of transport and smuggling techniques used by Ukrainian arms traffickers and their co-conspirators abroad. The analysis shows that the overwhelming majority of the 1,600 items analysed were Soviet-designed models produced in Eastern European and Soviet factories prior to the dissolution of the USSR.

https://www.smallarmssurvey.org/fileadmin/docs/U-Reports/SAS-Report-Illicit-Ammunition-Ukraine.pdf

THE US WAR ON DRUGS AND COMBATING UNMANNED VESSELS

An article from the US Naval Institute argues that as autonomous vessel technology advances and transnational criminal organisations seek to retain their edge, the US Coast Guard needs to consider the impact to one of its highest visibility missions: counter-narcotics.  Autonomous maritime vehicles and their associated technologies are rapidly approaching initial operating capability in both commercial and military sectors.

https://www.usni.org/magazines/proceedings/2021/january/war-drugs-autopilot

US CUSTOMS BEGINS 2021 WITH EXPANSIVE NEW ENFORCEMENT AGAINST FORCED LABOUR

An article from Arent Fox reported that, after just 2 weeks into 2021, US Customs and Border Protection (CBP) had expanded its enforcement efforts against forced labour in China.  It is said that this follows months of increasing pressure from labour and human rights groups and members of Congress to halt imports of cotton and agricultural products from China’s Xinjiang Uyghur Autonomous Region (XUAR).  In addition, the government is considering seeking increased enforcement authority to prevent certain importers from being able to import into the US.  The article looks at what is happening, what it means and why now?

https://www.internationallawoffice.com/Newsletters/International-Trade/USA/Arent-Fox-LLP/CBP-begins-2021-with-expansive-new-enforcement-against-forced-labour

MEXICO: FIRST MAJESTIC SILVER – CRIMINAL TAX FRAUD CASE THAT WILL TEST THE STRENGTH OF THE COUNTRY’S CRACKDOWN ON TAX EVASION

On 29 January, KYC 360 reported that the company has won a reprieve on criminal tax fraud charges in initial Mexican court hearings for a case that will test the strength of the country’s crackdown on tax evasion, according to people familiar with the matter.  It is said that a judge in Mexico City declined to charge the Canadian mining company with criminal tax fraud, with the judge delaying a ruling until an audit by Mexico’s tax authority was finished.  The Vancouver-based company that operates 3 producing silver mines and other projects in Mexico

https://www.riskscreen.com/kyc360/news/first-majestic-gets-break-in-opening-round-of-mexico-tax-case/

CHINA: PROPOSAL TO TIGHTEN CONTROLS ON IMPORT AND EXPORT OF COMMERCIAL CRYPTOGRAPHY PRODUCTS

On 29 January, an article from AnJie Law Firm reported that on 20 August, the State Cryptography Administration released Regulations for the Administration of Commercial Cryptography (Draft for Comment) for public comment.  These draft regulations provide that the import of commercial cryptography products on the Commercial Encryption Import Licence List and the export of commercial cryptography products on the Commercial Encryption Export Control List should be subject to the import and export licence for dual-use items issued by the competent commercial department of the State Council.

https://www.internationallawoffice.com/Newsletters/Tech-Data-Telecoms-Media/China/AnJie-Law-Firm/Proposal-to-tighten-controls-on-import-and-export-of-commercial-cryptography-products

CALL FOR UK TO ISSUE SANCTIONS AGAINST INTERNATIONAL FENCING FEDERATION (FIE) PRESIDENT ALISHER USMANOV

On 29 January, Inside the Games reported that there have been calls to sanctions FIE President Alisher Usmanov after he was named by jailed Russian politician Alexei Navalny as “one of the key enablers and beneficiaries of Russian kleptocracy”.Navalny ally Vladimir Ashurkov has published a list of 8 individuals Navalny wanted to see punished by the international community. Outside of the Olympic Movement, Usmanov has ties to Premier League football club Everton as USM – a holding company founded by Usmanov – holds the naming rights to Everton’s new stadium once built, and USM chairman Farhad Moshiri is the majority owner of Everton. Navalny’s list of individuals also includes 2 Russian Ministers and Andrey Kostin, President of the state-owned VTB Bank.  The article notes that Usmanov successfully sued Navalny for libel in 2017, and a Russia court ordered that Navalny delete certain statements from the internet.

https://www.insidethegames.biz/articles/1103574/uk-government-urged-to-sanction-usmanov

CHINA: 20 PEOPLE SENTENCED FOR SMUGGLING MEAT FROM INDIA AND ARGENTINA

On 29 January, the Global Times reported that 20 people in Wenzhou, a trading hub in East China’s Zhejiang Province, have been sentenced to prison and fined for smuggling more than 487 tons of frozen meat products from countries with animal disease outbreaks, including India and Argentina.

https://www.globaltimes.cn/page/202101/1214351.shtml

PARAGUAY’S aposta.la SPORTS BETTING COMPANY DENIES MONEY LAUNDERING ACCUSATIONS

On 29 January, SBC Americas reported that the Paraguayan sports betting company has denied in a public statement any relationship with illegal activities following accusations said to arise from a confidential report from the Secretariat on Prevention of Money Laundering (Seprelad).  The report claims that only 6% of its operations go through the banking system, and that, in a 1-year period between August 2018 and 2019, 241 prizes worth over $3.7 million were awarded to just 80 people.

https://sbcamericas.com/2021/01/29/paraguays-aposta-la-denies-money-laundering-accusations/

UK: HOW TO AVOID TIPPING OFF AFTER SUBMITTING A DEFENCE AGAINST MONEY LAUNDERING (DAML)

On 28 January, an article from Jonathan Bray Ltd says that, to start with, the NCA will probably contact you within 7 days, either for further information or to give or refuse the defence you have requested.  Where you have been refused consent, law enforcement has up to 31 days after the consent was refused (so a maximum of 7 plus 31 days) to obtain a constraint order. If they have not obtained one by Day 32 after the refusal, then consent to the DAML is assumed. This means you will not end up in a limbo position where you have funds in your account that you cannot do anything with for a long period and end up in breach of the SRA Accounts Rules.  The article examines the consequences of this and the potential risks of tipping off the client/potential criminal or, alternatively, prejudicing an ongoing or future investigation.

https://www.jonathonbray.com/how-to-avoid-tipping-off-after-submitting-a-defence-against-money-laundering-daml/

GREECE TO ALLOW PRODUCTION AND EXPORT OF MEDICAL CANNABIS

On 29 January, EU Observer reported that a Bill that seeks to reform the framework for the production and export of medical cannabis was presented to the Cabinet.  The Bill facilitates the export of medical cannabis products, adhering to the same procedures that apply to generic medicinal products produced in Greece.

https://euobserver.com/tickers/150767

BAHAMAS: CORRUPTION INDEX SCORE DOWN FOR THIRD CONSECUTIVE YEAR

On 29 January, the Nassau Guardian reported that The Bahamas’ score on the 2020 Transparency International Corruption Perceptions Index (CPI) dropped 1 notch, which reveals the country’s score has declined on the index since 2018.  The Bahamas’ score moved from 66 to 65 in 2018, to 64 in 2019, to 63 on the 2020 index.  This country’s CPI score remains one of the best in the Caribbean, second only to Barbados, which has a score of 64 and a rank of 29.

https://thenassauguardian.com/corruption-index-score-down-for-third-consecutive-year/

CORRUPTION CASE: EX-ZAMFARA GOVERNOR YARI FORFEITS MONEY TO NIGERIAN GOVERNMENT

On 29 January, Sahara Reporters reported that monies found in 3 separate bank accounts allegedly linked to the former governor should be forfeited to the Nigerian government.  The money was traced to the former governor of Zamfara State, Abdulazeez Abubarkar Yari, by the Independent Corrupt Practices and Other Related Offences Commission (ICPC). 

https://saharareporters.com/2021/01/29/corruption-case-ex-zamfara-governor-yari-forfeits-n27898-million-nigerian-government

Q&A: UK ARMS EXPORTS TO SAUDI ARABIA

On 29 January, the House of Commons published an updated Research Paper saying that Saudi armed forces are using UK-built and licensed arms in Yemen, including Typhoon aircraft, missiles and bombs.  Campaign groups actively lobby MPs to make this point, but the Government has resisted pressure from opposition parties and backbench MPs to suspend arms sales to Saudi Arabia.

https://commonslibrary.parliament.uk/research-briefings/cbp-8425/

NEARLY 410 MILLION ILLEGAL CIGARETTES SEIZED IN BELGIUM IN 2020

On 29 January, the Brussels Times reported that a total of 409.9 million illicit cigarettes were seized, up from 196.7 million in 2019 (an increase of 108%).  In addition, customs seized 49 tonnes of shisha tobacco (against 4.1 tonnes in 2018) and 73 tonnes of tobacco, and 18 sites producing counterfeit tobacco/cigarettes were dismantled, compared to 14 in 2019.

https://www.brusselstimes.com/belgium/151705/number-of-illegal-cigarettes-more-than-doubled-in-2020-tobacco-customs/

ORGANISED CRIME GROUPS FUEL A RISE IN VIOLENT CRIME IN THE EU

On 29 January, a news release from Europol advised that a new report by Europol warns that organised crime groups are increasingly employing violence in pursuit of their criminal objectives, and such violence represents a threat to public security in the EU.  Based on an analysis of contributions made by Member States to Europol in recent years, there has been a rise in the number of violent incidents associated with serious and organised crime.  Furthermore, the analysis points to an increasing willingness from criminal groups to resort to lethal violence.  In the report, Europol highlights the factors underpinning this trend and the challenges it poses to law enforcement and develops a set of recommendations.

https://www.europol.europa.eu/newsroom/news/organised-crime-groups-fuel-rise-in-violent-crime-in-eu

UK: GAMBLING COMMISSION CONSULTS ON NEW METHODOLOGY FOR GAMBLING PARTICIPATION AND PROBLEM GAMBLING RESEARCH

On 29 January, CMS Law published an article saying that on 18 December, the Gambling Commission opened a consultation into the research methodology used in collecting gambling participation and problem gambling statistics.  This follows a commitment made by the Commission in its 2020/2021 Business Plan to review this approach.  The article details the proposals contained in the consultation, which closes on 12 February.

https://www.cms-lawnow.com/ealerts/2021/01/gambling-commission-consults-on-new-methodology-for-gambling-participation-and-problem

UK: CYBER INSURER WALKS AWAY FROM HIGH-PROFILE LITIGATION AGAINST BITFINEX SEEKING TO RECOVER A BITCOIN RANSOM IT PAID OUT UNDER A CYBER-POLICY

A release on Mondo Visione on 29 January advised that a UK-based cyber insurer has walked away from high-profile litigation against Bitfinex, in which the insurer was seeking to recover a bitcoin ransom it paid out under a cyber-policy, and argued that Bitfinex should be liable to pay damages despite bitcoin being innocently received onto its exchange.  The discontinuance means the insurer will not receive any compensation from Bitfinex but instead will reimburse Bitfinex for its legal costs, which once fully assessed will be considerably more than £100,000.  

https://mondovisione.com/media-and-resources/news/uk-insurer-walks-away-from-high-profile-litigation-against-bitfinex/

NIGERIA: EFCC ARRAIGNS OIL COMPANY DIRECTORS OVER ALLEGED £2.55 BILLION FRAUD

On 27 January, The Herald reported that the Economic and Financial Crimes Commission (EFCC) has re-arraigned 4 directors of Petrol Union Oil and Gas Company Ltd. charged with £2.55 billion fraud.  They are facing trial along with Petro Union Oil and Gas Company Ltd and are alleged to have committed the fraud between 1994 and 2007. The EFCC alleged that the defendants fraudulently procured a cheque from a Barclays Bank in London for £2.55 billion on the pretext that it was meant to construct 3 petrochemical refinery complexes in Nigeria.

https://www.herald.ng/alleged-2-55bn-fraud-efcc-arraigns/

FINNISH AND SWEDISH POLICE ARE CONDUCTING AN EU-FUNDED PROJECT CALLED BlackWallet TO IDENTIFY THE RISKS OF TERRORIST FINANCING AND MONEY LAUNDERING IN THE FinTech SECTOR

Finnish Police report that Finnish and Swedish Police, together with other concerned authorities, are conducting an EU-funded project called BlackWallet to identify the risks of terrorist financing and money laundering in the FinTech sector. With the participation of the private sector, the project aims to establish a platform for collaboration between the public and the private sector to identify risks in the evolving market and to develop risk-mitigating measures.

https://poliisi.fi/en/reviews-and-reports-on-combating-money-laundering-and-terrorist-financing

US CHARGES UK NATIONAL WITH BRIBERY SCHEME TO OBTAIN IRAQ CONTRACTS

On 29 January, Reuters reported that an Iraqi-born British national has been criminally charged with involvement in a bribery scheme to obtain millions of dollars of US Army Corps of Engineers reconstruction contracts in Iraq.  Shwan Al-Mulla, and his co-conspirators allegedly received confidential information to get an edge in the bidding process for the contracts.  He is the former owner of Baghdad-based Iraqi Consultants & Construction Bureau (ICCB).

https://www.reuters.com/article/us-usa-iraq-corruption-charges/u-s-charges-uk-national-with-bribery-scheme-to-obtain-iraq-contracts-idUSKBN29W2YY

MONEY LAUNDERING PUTS HONG KONG’S REPUTATION AT RISK

On 28 January, the South China Morning Post reported that recent arrests highlight the need for authorities to defend image of financial centre at Asian crossroads and greatly valued by criminal syndicates.

https://www.scmp.com/comment/opinion/article/3119676/money-laundering-puts-hong-kongs-reputation-risk

PHILIPPINES: DUTERTE SIGNS MEASURE BOOSTING AML LAW

On 29 January, ABS-CBN News reported that President Rodrigo Duterte has signed a measure amending the Anti-Money Laundering Act (AMLA), in a bid to boost regulations on money laundering in the Philippines.  Changes to the country’s laws are aimed to comply with AML/CFT standards established by international bodies.

https://news.abs-cbn.com/news/01/29/21/duterte-signs-measure-boosting-anti-money-laundering-law

THIRD COUNTRIES ALIGN WITH EU BURUNDI SANCTIONS

A news release from the EU on 28 January advised that North Macedonia, Montenegro, Albania, Bosnia and Herzegovina, Iceland, Liechtenstein, Norway, Ukraine and Moldova have agreed to align themselves with this Council Decision (CFSP) 2020/1585, which extends EU sanctions to 31 October.

https://www.consilium.europa.eu/en/press/press-releases/2021/01/28/declaration-by-the-high-representative-on-behalf-of-the-european-union-on-the-alignment-of-certain-countries-concerning-restrictive-measures-in-view-of-the-situation-in-burundi/

UN HIGH COMMISSIONER FOR HUMAN RIGHTS HAS CALLED FOR TARGETED SANCTIONS AGAINST “CREDIBLY ALLEGED PERPETRATORS OF GRAVE HUMAN RIGHTS VIOLATIONS AND ABUSES IN SRI LANKA”

A new UN report says that Sri Lanka is on an alarming path towards recurrence of grave human rights violations, and that the failure of Sri Lanka to address past violations has significantly heightened the risk of human rights violations being repeated.

https://www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=26695&LangID=E

OFAC HAS CLOSED INVESTIGATION INTO ADHESIVES MANUFACTURER SUPPLIES TO IRAN

On 29 January, the EU Sanctions Blog reported that OFAC has concluded its investigation into HB Fuller, an adhesives manufacturer based in Minnesota, which it was thought may have breached US Iran sanctions by reselling hygiene products to Iran via customers of its subsidiaries in Turkey and India.  It is said that OFAC has decided to issue HB Fuller with a warning letter.

https://www.europeansanctions.com/2021/01/ofac-concludes-investigation-into-hb-fuller/

CYBERSECURITY CONSIDERATIONS FOR THE DIGITALISATION OF MARITIME SUPPLY CHAINS

On 26 January, Homeland Security Today reported that a new report by the World Bank and the International Association of Ports and Harbors (IAPH) shows that better digital collaboration between private and public entities across the maritime supply chain will result in significant efficiency gains, safer and more resilient supply chains, and lower emissions.  It says that although the IMO has made it mandatory for all its member countries to exchange key data electronically (the FAL convention), a recent IAPH survey reveals that only a third of over 100 responding ports comply with that requirement.  The article also reminds one that cybersecurity must not be overlooked in an eagerness to digitalise.  According to London-based company Astaara, there has been a fourfold increase in cyberattacks in the maritime industry since February 2020. T he Port of Los Angeles, the busiest container port in the US, has seen a 50% increase in unauthorized intrusion attempts since the beginning of the pandemic. Other ports around the globe also report increased cyberthreat activity.

https://www.hstoday.us/subject-matter-areas/transportation/cybersecurity-considerations-for-the-digitalization-of-maritime-supply-chains/

CANADIAN COURT REFUSES TO RELAX HUAWEI EXECUTIVE’S BAIL TERMS

On 29 January, the Daily Mail reported that a Canadian judge has rejected Huawei executive Meng Wanzhou’s request to relax her bail conditions as she fights against extradition to the US on fraud and conspiracy charges.  He ruled that the Chinese businesswoman must remain under constant supervision by court-ordered security guards — imposed after her arrest 2 years ago.

https://www.dailymail.co.uk/wires/afp/article-9203125/Canadian-court-refuses-relax-Chinese-execs-bail-terms.html

CANADIAN MILLIONAIRE AND WIFE FACE JAIL TIME OVER ALLEGED COVID-19 VACCINE FRAUD

On 29 January, Fox News reported that a millionaire and his wife could face up to 6 months in jail after they were caught posing as motel workers to receive the vaccine from a mobile clinic, according to reports.  It is claimed that Casino owner Rodney Baker, 55, and his wife, Ekaterina, 32, flew from Vancouver to Beaver Creek, home to mostly Indigenous people who live in smaller populations, and where people do not need identification to get vaccinated. The couple was fined C$2,300 for breaching coronavirus rules, but community elders have demanded a tougher penalty.

https://www.foxnews.com/world/canadian-ceo-wife-face-possible-jail-time-vaccine-fraud

GERMAN FINANCIAL REGULATOR DEPARTS OVER WIRECARD FALLOUT

On 29 January, the Irish Times reported that Germany’s Wirecard collapse has claimed another head with the departure of Felix Hufeld as head of Germany’s financial supervisor (BaFin).  Finance minister Olaf Scholz said Mr Hufeld’s departure had been a mutual decision to allow a fresh start at an organisation that overlooked Germany’s greatest postwar accounting fraud.

https://www.irishtimes.com/business/financial-services/german-financial-regulator-departs-over-wirecard-fallout-1.4471341

US: PATRIOT ACT SUBPOENAS: REINVIGORATED AND REACHING ACROSS BORDERS

An article from White & Case on 29 January was concerned with one of the many amendments made by the National Defense Authorization Act 2021.  The US PATRIOT Act 2001 granted the US Treasury and the US Attorney General sweeping new powers to demand information from non-US banks that maintain correspondent accounts in the US.  The new powers gave the US Government access to any records of the non-US bank related to correspondent accounts, including “records maintained outside of the United States relating to the deposit of funds into the foreign bank”, but they were used rarely, as obtaining information under those subpoenas in a manner that was legally admissible proved to be difficult, resulting in protracted negotiations in litigation. Among the amendments made by the NDAA was a DoJ proposal to amend the Patriot Act subpoena authority, adopted almost entirely as originally proposed by the DoJ.  The amendments expand the scope of the authority to subpoena a non-US bank’s records related to not only the bank’s correspondent account in the US, but to any records related to any account at the foreign bank that are the subject of certain types of enforcement actions.  The amendments also provide the US Government more expansive tools for enforcing compliance with subpoenas, including the ability to seek civil contempt findings and issue civil penalties.

https://www.jdsupra.com/legalnews/patriot-act-subpoenas-reinvigorated-and-3763242/

US: THE NATIONAL SECURITY IMPERATIVE TO TACKLE ILLEGAL FISHING

On 29 January, an article in Lawfare says that over the last few years illegal, unreported and unregulated (IUU) fishing has become more recognised as a national security concern; and, in the years to come, make no mistake, fishing may indeed become an increasingly important mission for the US and its security partners and allies around the world, and most certainly those in the Indo-Pacific.  Fishing is a $401 billion global industry, provides 20% of the protein intake for nearly half of the world’s population, and global fish consumption has been on the rise for almost 60 years.  Yet 93% of world fish stocks are fully exploited, overexploited, or significantly depleted, and global climate change is adversely affecting stocks.  In addition, Chinese fishing practices present a truly unique and dire IUU threat. 

https://www.lawfareblog.com/national-security-imperative-tackle-illegal-fishing

BELGIUM: INSIDE A PRO-HUAWEI INFLUENCE CAMPAIGN

On 29 January, an article in the New York Times says that a covert online push to sway telecommunications policy in favour of the Chinese company may presage a new twist in social manipulation.  It says that at least 14 Twitter accounts posing as telecommunications experts, writers and academics shared articles attacking draft Belgium legislation that would limit “high-risk” vendors like Huawei from building the country’s 5G system, according to Graphika, a research company that studies misinformation and fake social media accounts.  The pro-Huawei accounts used computer-generated profile pictures, a telltale sign of inauthentic activity.  Huawei officials retweeted the fake accounts, giving the articles even wider reach to policymakers, journalists and business leaders. 

https://www.nytimes.com/2021/01/29/technology/commercial-disinformation-huawei-belgium.html

BANKER HELD POTENTIALLY LIABLE FOR MONEY LAUNDERING

On 14 January, an article from the Stolen Assets Initiative at the World bank reported that, last month, a Dutch appeals court ordered the public prosecutor to initiate the criminal prosecution of the former CEO of the nation’s largest bank.  The court directed that Ralph Hamers be put on trial for money laundering and other crimes the Amsterdam-based banking giant ING committed during his 7 year tenure as its CEO.  Financial and legal professionals are rarely prosecuted for crimes they facilitate, and it is even rarer that senior executives, as opposed to the institution they run, are targeted.  

https://star.worldbank.org/blog/every-bank-robber-needs-getaway-car-banker-held-accountable-money-laundering

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On 29 January, Metro reported that El Salvador has extradited the former president of the Salvadoran Football Federation (FESFUT), Reynaldo Vasquez, to the US to face charges of money laundering and fraud linked to a corruption scheme involving the Confederation of North, Central America and Caribbean Association Football (Concacaf).

https://www.metro.us/el-salvador-extradites-ex-soccer/

If you would like to make a (polite) gesture and make a (very) modest contribution to my ongoing costs of relocation, removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

On 29 January, the FATF-style regional body, CFATF, published this report, adopted at the December Plenary. The MER follows the on-site visit in September 2019.

Notably, the report mentions concerns about the Citizenship Investment Programme (CIP), which has seen publicity and criticism in recent months.  It also says that while the island’s National Risk Assessment assessed the overall terrorism financing threat as low, there is a concern that this assessment is not reflective of the jurisdiction’s overall understanding of its risk.  It says that Saint Lucia is an international financial centre and has a reasonable number of International Business Companies (IBC) and active international trusts with beneficial owners from across the world. This information was not considered in the National Risk Assessment from a terrorism financing perspective. It is also said that while the CIP is mentioned in the National Risk Assessment Summary Report and the money laundering vulnerability rating of “Medium High” was noted, the terrorism financing risk posed by the CIP, as a niche offering in Saint Lucia, was not considered in the National Risk Assessment – despite CIP being promoted globally, including in jurisdictions with known terrorist activity (although the authorities are said to have indicated CIP applicants are approved after a vigorous due diligence process).

https://www.cfatf-gafic.org/home/cfatf-news/702-fourth-round-mutual-evaluation-report-of-saint-lucia

If you would like to make a (polite) gesture and make a (very) modest contribution to my ongoing costs of relocation, removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

Anticoruptie in Moldova on 29 January claimed in a report that separatist regimes in Donbas and Transnistria boost economies with Russia’s involvement by mining cryptocurrencies to survive and flourish.  IT SAYS THAT separatist regimes in Donbas use cryptocurrencies in Kyiv. Ukrainian Secret Services, SBU, sporadically detains miners and cryptocurrency sellers. They are accused of participating in terrorist financing schemes in Donbas.  The sale and exploitation of cryptocurrencies are in a grey zone: they are not forbidden, but they are neither allowed. As there is no law regulating the market for virtual assets, there is also no company registered in Ukraine to handle these operations.  It also says that since 1999, the National Bank of Moldova has accused Transnistria of terrorist financing and money laundering.  As a result of these actions, the banking sector of Transnistria is wholly isolated from the international financial system In 2018, Transnistria legalised cryptocurrency mining after adopting the Law on the development of blockchain technology.

https://anticoruptie.md/en/investigations/economic/how-separatists-in-breakaway-regions-mine-cryptocurrencies-for-terrorist-financing-and-money-laundering

If you would like to make a (polite) gesture and make a (very) modest contribution to my ongoing costs of relocation, removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y