January 20, 2021 – raytodd.blog

US: ANSWERS TO FAQ RE SAR AND OTHER AML CONSIDERATIONS

On 19 January, FinCEN and US regulatory agencies jointly issued a set of FAQ that seek to clarify the regulatory requirements related to SAR to assist such financial institutions with their compliance obligations, while enabling financial institutions to focus resources on activities that produce the greatest value to law enforcement agencies and other government users of Bank Secrecy Act (BSA) reporting.

https://www.fincen.gov/sites/default/files/2021-01/Joint%20SAR%20FAQs%20Final%20508.pdf

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HOW IRAN’S NATIONAL SHIPPING COMPANY USED OFFSHORE COMPANIES TO DODGE US SANCTIONS

On 19 January, Sayari reported claims that Iran’s national maritime carrier IRISL used front companies in Cyprus, Hong Kong, China, and Turkey to hide its ownership and management of 4 sanctioned vessels, according to an investigation which is said to demonstrate the need to monitor sanctioned individuals, companies, and vessels to identify future sanctions evasion schemes.

https://sayari.com/blog/how-irans-national-shipping-company-used-offshore-companies-to-dodge-u-s-sanctions/

KYRGYZ TYCOON AND WIFE CHANGE NAMES AFTER HIT WITH US MAGNITSKY SANCTIONS

On 20 January, Rferl reported that the former deputy chief of Kyrgyzstan’s Customs Service, Raimbek Matraimov, has changed his last name after being placed on the US Magnitsky sanctions list for his alleged involvement in the illegal funnelling of hundreds of millions of dollars abroad. Both Matraimov and his wife, Uulkan Turgunova, have changed their surnames.

https://www.rferl.org/a/kyrgyz-tycoon-wife-change-names-after-us-magnitsky-sanctions/31055850.html

UK UPDATED TERRORISM SANCTIONS DESIGNATIONS AND AMENDED ENTRY FOR HAMAS INCLUDING IZZ AL-DIN AL-QASSAM BRIGADES

On 20 January, a Notice from HM Treasury that the entry for HAMAS INCLUDING IZZ AL-DIN AL-QASSAM BRIGADES had been amended. HM Treasury has also issued an updated list of those subject to financial sanctions in connection with terrorism.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/954195/Notice_Counter_Terrorism__International__200121.pdf

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/954194/Counter-Terrorism__International_.pdf

FORMER PREMIER OF BERMUDA FACES 13 COUNTS OF CORRUPTION

On 20 January, the Gleaner in Jamaica reported that the former Premier of Bermuda Dr Ewart Brown has been charged with 13 counts of corruption in the Magistrates’ Court. The offences allegedly took place between 2001 and 2010, with earlier offences taking place while Brown was the Minister of Tourism and Transport and later one taking place while he was Premier.

http://jamaica-gleaner.com/article/news/20210120/former-premier-bermuda-faces-13-counts-corruption

UK: REVIEW AML PROCEDURES NOW, LEGAL PRACTITIONERS WARNED AS NEW GUIDANCE RELEASED

On 20 January, the Law Society Gazette reported that a “radical” overhaul of the Legal Sector Affinity Group (LSAG) AML guidance has been launched to help the legal profession navigate AML risks and challenges. Described as the definitive guide for the legal sector, it has undergone an extensive revision and redraft and replaces previous versions following the introduction of the 5^th AML directive last year.

https://www.lawgazette.co.uk/practice/review-aml-procedures-now-practitioners-warned/5107087.article

The new guidance is available at –

https://www.lawsociety.org.uk/topics/anti-money-laundering/anti-money-laundering-guidance

A NON-MEMBER STATE MAY HAVE LEGAL STANDING IN A LEGAL ACTION FOR ANNULMENT OF RESTRICTIVE MEASURES ADOPTED BY THE EU COUNCIL AGAINST THAT STATE

On 20 January, the Advocate General of the Court of Justice of the European Union published advice that a third country (Venezuela in this case) may have legal standing to intervene in a challenge seeking annulment of an EU Regulation imposing restrictions (sanctions) against that country. One needs to note that an Advocate General’s Opinion is not binding on the Court of Justice. It is the role of the Advocates General to propose to the Court, in complete independence, a legal solution to the cases for which they are responsible. The Judges of the Court are now beginning their deliberations in this case and judgment will be given at a later date.

https://curia.europa.eu/jcms/upload/docs/application/pdf/2021-01/cp210006en.pdf

UK AMENDS 15 ENTRIES ON DR CONGO SANCTIONS LIST

A Notice from HM Treasury on 20 January advises that 15 entries on the sanctions list have been amended.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/954310/Notice_Democratic_Republic_of_the_Congo_200121.pdf

EU: MAJOR NEW SANCTIONS STRATEGY

On 19 January, the European Commission published a Communication setting out its new strategy with wide-ranging ideas which suggest far more active involvement by the Commission in EU sanctions than previously, to counter “the extra-territorial application” of unilateral sanctions by third countries (such as the US), and to promote the uniform implementation and enforcement of EU sanctions and monitor their effectiveness.

A new Sanctions Information Exchange Repository will be a database for reporting and exchange of information between the Commission and Member States on the implementation and enforcement of sanctions and there will be a single point of contact for cross-border enforcement and implementation in the EU. There will be a system for anonymous reporting of sanctions evasion, including whistleblowing. From 2021, the Commission will conduct a review of practices that circumvent and undermine sanctions, including the use of cryptocurrencies, and the results of this will inform possible legislative proposals or implementation guidelines from 2022.

https://ec.europa.eu/finance/docs/policy/210119-economic-financial-system-communication_en.pdf

HONG KONG BANK STAFF ARRESTED IN $810 MILLION LAUNDERING PROBE

On 20 January, Yahoo Finance reported that 7 former and current bank employees have been arrested in Hong Kong as part of a major operation against a $810 million international money laundering syndicate. Investigators said those detained are alleged to have helped a key Hong Kong-based member of the syndicate apply for business accounts, including falsifying company documents and coaching applicants for interviews. At least 14 business accounts were opened between 2017 and 2018 using names of 16 people from mainland China and Belgium.

https://au.finance.yahoo.com/news/hong-kong-bank-staff-arrested-063700699.html