Day: January 7, 2021

On 7 January, an article from Baker Donelson refers to advisories on the regulatory considerations financial institutions should take into account when processing ransom payments.  This comes in the light of substantial increase in ransomware attacks during the COVID-19 pandemic and anticipate that they will continue in 2021. OFAC and FinCEN warn financial institutions and payment intermediaries of potential sanctions risks involved in making ransom payments as well as provide information on requirements for SAR under AML regulations.  After examining the situation, the firm says that the new advisories reinforce the importance of financial institutions doing tabletop exercises to simulate what to do in the event of a ransomware attack and/or how to respond when a suspicious transaction is identified involving a customer that may be paying a ransom. 

https://www.jdsupra.com/legalnews/new-ransomware-advisories-from-ofac-and-8077534/

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On 7 January, KPMG reported that the US was suspending the additional customs duties on certain French imports, that should have come into effect from 6 January as a response to the digital tax imposed in France.  KPMG says the planned duties have been suspended in light of an ongoing investigation of similar digital services taxes adopted or under consideration in 10 other jurisdictions, including the EU and UK, and is said to be intended to allow a coordinated response in all ongoing digital services tax investigations.

https://home.kpmg/us/en/home/insights/2021/01/tnf-additional-customs-duties-on-imports-from-france-suspended-digital-services-tax-investigation.html

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On 7 January, Gowling WLG published a briefing that sets out to explain the key takeaways from the Code, although in the view of the firm the Code formalises current practices that have already adopted when advising on data-sharing agreements and requirements, and does not add anything unusual or new.

https://gowlingwlg.com/en/insights-resources/articles/2021/new-ico-data-sharing-code-of-practice

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On 6 January, a news release from AUSTRAC in Australia says that, in trade-based money laundering (TBML), criminals take advantage of the size and complexity of international trade to transfer money between parties and evade authorities.  Techniques include mismatching the value of the goods and payment (over- or under-pricing relative to market value, quantity or quality), issuing multiple invoices for a single shipment or sending no goods at all; and developing countries are particularly vulnerable.  Acknowledging that no single body can tackle such challenges, AUSTRAC has been taking a collaborative approach.  It established the Fintel Alliance in 2017, the world’s first private-public partnership of its kind, with 28 members which include experts from financial industry, intelligence agencies, law enforcement, and academic and research institutions.  Along with improved operational outcomes, members’ capability increases as partners learn from one another and synthesise knowledge. Fintel Alliance has now formed a TBML working group that includes front line experts from industry and law enforcement to develop indicators and typologies that can be broadened to other jurisdictions and trade types.  The article also mentions that a joint FATF-Egmont Group project on TBML included AUSTRAC-led input and there were substantial contributions from private and public Fintel Alliance members to the development of the project’s final report.

https://www.austrac.gov.au/collaboration-key-combating-trade-based-money-laundering

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On 5 January, Reuters reported that a civil court in El Salvador has found former President Elias Antonio Saca and his wife Ana Mixco guilty of “illicit enrichment” and ordered them to return $4.4 million to state coffers.  Prosecutors had found irregularities in the couple’s wealth declaration and accused both of transferring public money to their personal bank accounts and to those of broadcasting companies they owned during Saca’s presidency.

https://www.reuters.com/article/idUSKBN29B05W

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