January 28, 2021 – raytodd.blog

ICC FRAUDNET ANNUAL REPORT 2020

ICC FRAUDNET ANNUAL REPORT 2020

The International Chamber of Commerce has released its report on international developments and perspectives in the field of fraud, financial crime and asset recovery. It includes articles on –

Economic substance and beneficial ownership: legal and regulatory developments;
The international corporate transparency landscape: a not so silver bullet?;
Using bankruptcy proceedings to investigate and combat fraud;
Push payment fraud and the liability of banks;
Case study of the Coincheck cryptocurrency hack;
VASP – liability for abuse of traded cryptoassets; and
Technology in investigations and evidentiary considerations.

https://icc-ccs.org/reports/2021_Fraudnet_Global_Report.pdf

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TRANSPARENCY CORRUPTION PERCEPTION INDEX 2020

Transparency International has published the latest copy of its annual index, which includes a list of the top 25 countries and their corruption challenges, an overarching analysis of the root causes of corruption in top countries and 5 high-profile corruption cases in otherwise “clean” countries.

https://www.transparency.org/en/news/cpi-2020-trouble-in-the-top-25-countries

How corrupt is your country?

https://www.rferl.org/a/how-corrupt-is-your-country/31074222.html

DISCLOSURE AND PRIVILEGE – A GLOBAL GUIDE

On 28 January, Eversheds Sutherland provided a quick reference guide to the approach to disclosing documents and privilege across different jurisdictions. It covers the UK, Europe, parts of the Middle east, Asia and Africa, as well as the US and Brazil.

https://www.eversheds-sutherland.com/documents/global/ireland/Desktop/CMS%20upload/global-privilege-guide.pdf

SECONDARY SANCTIONS ON THE IRANIAN FINANCIAL SECTOR CREATE DE FACTO EMBARGO WITH LASTING IMPLICATIONS FOR THE BIDEN ADMINISTRATION

On 27 January, Iran Watch from the Wisconsin Project on Nuclear Arms Control published an article about the effects of the October 2020 sanctions on the Iranian financial sector, with secondary sanctions on Iran’s entire financial sector for the first time, potentially barring foreign entities from the US financial system should they do business with Iranian banks. According to the US Treasury, the October moves were part of an effort to isolate the financial sector and prevent Iran from acquiring US dollars. A simultaneous State Department press release cited Iran’s decades-long pattern of diverting financial resources to its armed forces—including, most recently, budget increases for the IRGC and the Basij, Iran’s volunteer militia, proposed by Supreme Leader Ali Khamenei in March. The article details how the “layers” of US sanctions work, through the various Executive Orders and other means.

https://www.iranwatch.org/our-publications/articles-reports/secondary-sanctions-iranian-financial-sector-create-de-facto-embargo-lasting-implications-biden

SANCTIONS CLAUSE FOR CONTAINER VESSEL TIME CHARTER PARTIES 2021

BIMCO, the world’s largest international shipping association, saying that the sanctions landscape for the container trade has grown increasingly complex over the past decade, has provided the container industry with a bespoke contractual solution that addresses the practical and commercial realities of the liner trade. It has developed a Sanctions Clause for Container Vessel Time Charter Parties 2020. The BIMCO Sanctions Clause for Container Vessel Time Charter Parties 2021 is intended to address 2 scenarios – transactions with a “Sanctioned Party” and voyages involving a “Sanctioned Cargo”. The clause is intended as a template for general application. As with any standard clause it may need to be amended to address specific sanctions regulations and the bespoke risks arising out of them as identified by the parties. Due to the complexity of the subject, it is recommended that parties act cautiously and obtain legal advice before amending the clause to ensure that they fully understand the consequences of any amendments.

https://www.bimco.org/contracts-and-clauses/bimco-clauses/current/sanctions_clause_for_container_vessel_time_charter_parties_2021

INTERNATIONAL FRAUD IN FOREX TRADE AND BINARY OPTIONS BUSTED IN ANDORRA

A news release from Europol on 28 January advised that Spain’s Civil Guard together with Catalan police, Andorra and Europol have teamed up to dismantle an investment fraud in foreign exchange and binary options markets. The scam is believed to have an international scope. The suspects allegedly defrauded thousands of clients via an investment training company. Located in Andorra, the company specialised in the training of investment in cryptocurrencies and other assets, and is thought to have also carried out trading activities.

https://www.europol.europa.eu/newsroom/news/international-fraud-in-forex-trade-and-binary-options-busted-in-andorra

UK: ICAEW AND IFAC RELEASE FOURTH INSTALMENT OF 6-PART AML EDUCATIONAL SERIES: ASSET TRANSFERS

On 26 January, the Institute for Chartered Accountants in England & Wales announced that the latest instalment examines asset transfers, and how criminals use it as a primary way to launder money. The ICAEW and the International Federation of Accountants (IFAC) have been releasing their Anti-Money Laundering: The Basics educational series. This is a 6-month short series helping accountants enhance their understanding of how money laundering works, the risks they face, and what they can do to mitigate these risks and make a positive contribution to the public interest. Instalment 4 examines asset transfers, one of the primary ways in which criminals layer or integrate the proceeds of crime into the legitimate economy.

https://www.icaew.com/about-icaew/news/press-release-archive/2021-news-releases/icaew-and-ifac-release-fourth-installment-of-six-part-anti-money-laundering-educational-series

The series can be accessed at –

https://www.ifac.org/knowledge-gateway/preparing-future-ready-professionals/discussion/anti-money-laundering-basics

MARKETING COMPANY AGREES TO PAY $150 MILLION FOR FACILITATING ELDER FRAUD SCHEMES

A news release from the US DoJ advised that Epsilon Data Management LLC, one of the largest marketing companies in the world, has entered into a settlement with the DoJ to resolve a criminal charge for selling millions of Americans’ information to perpetrators of elder fraud schemes. Headquartered in Irving, Texas, with its principal sales office in Westminster, Colorado, Epsilon used sophisticated data modelling to identify consumers most likely to respond to its clients’ marketing solicitations. In 2008-2017, employees in its Direct to Consumer (DTC) Unit knowingly sold modelled lists of consumers to clients engaged in fraud. In particular, Epsilon acknowledged that the DTC Unit sold consumer lists to a number of mass-mailing fraud schemes that sent false “sweepstakes” and “astrology” solicitations to consumers. Those solicitations stated that each consumer recipient had won a large prize or individualized psychic service that they could obtain by paying a fee.

https://www.justice.gov/opa/pr/marketing-company-agrees-pay-150-million-facilitating-elder-fraud-schemes