Panama Covid-19 update – missed yesterday’s statistics, but it seems “only” 1 fatality but 244 new cases, with 4,043 active cases and 55 in ICU.
Today, reports say there has been again just 1 fatality, with 203 new cases for a total of 4,020 active cases. 311 people remain in hospital wards, with another 56 in ICU.
19 APRIL 2021
BREXIT MYTH BUSTERS
On 15 April, an article from Herrington Carmichael Solicitors says that between the UK and the EU coming into force on 1 January, there have been many Brexit myths and misconceptions that the firm has tried to clear up in the article. It addresses – EU law no longer has any applicability in the UK; you don’t need to make any changes to existing agreements as a result of Brexit; you now need to change my governing law and jurisdiction clauses given we are no longer in the EU; there are no import tariffs or other customs duties or quotas on the movement of goods between the EU and the UK; as a supplier, you are responsible for any increased costs of providing goods/services to my clients in the EU as a result of Brexit.
https://www.herrington-carmichael.com/brexit-myth-busters/
UK: LATEST SFO INVESTIGATION EVIDENCE OF GROWING COOPERATION BETWEEN ENFORCEMENT AGENCIES
On 15 April, a post from Burges Salmon says that the SFO has opened an investigation regarding suspected fraudulent activity in connection with the Raedax Consortium group of companies, which includes Buy2Let Cars, PayGo Cars, Raedex trading as Wheels4Sure and Rent2Own Cars. The SFO announcement acknowledged assistance the SFO has received with the matter from the National Economic Crime Centre (NECC) and FCA, and from the NCA and City of London Police.
BACK TO BASICS: INTERNATIONAL TRADE AND SUPPLY OF SERVICES
On 16 April, an article from Gowling WLG considers how the international trading rules apply to cross-border trade in services. It advises that businesses supplying services across borders should ensure that they are aware of any applicable conditions on the sector in which they operate, noting that the restrictions may vary depending on the mode through which the service is delivered.
CANADA: FINTRAC UPDATES GUIDANCE ON RECORD KEEPING, CLIENT IDENTIFICATION, BENEFICIAL OWNERSHIP AND CORRESPONDENT BANKING
On 14 April, McCarthy Tetrault published an article saying that FINTRAC updated its guidance in March which reflects the series of regulatory amendments made to the law over the past few years, the majority of which will come into force on 1 June. The firm has previously published summaries of the regulatory amendments and this latest article outlines some notable changes to the various guidance documents.
https://www.mccarthy.ca/fr/node/70661
4 DRUGMAKERS ARE SLATED TO GO ON TRIAL IN CALIFORNIA OVER CLAIMS THEY FED THE OPIOID CRISIS IN THE US
On 18 April, the Wall Street Journal reported that the case is just the second to go to trial out of thousands of similar lawsuits accusing the drug industry of fuelling an opioid epidemic. 4 California communities allege that Johnson & Johnson , Teva Pharmaceutical Ltd. , Allergan and Endo International PLC ran misleading marketing campaigns that played down the risks of opioid addiction to boost sales of powerful prescription painkillers.
https://www.wsj.com/articles/drugmakers-go-on-trial-over-opioid-epidemic-11618758002
INTRODUCTION TO SANCTIONS LICENSING IN THE UK
On 19 April, a blog post from OFSI says that the new UK autonomous sanctions framework in place since January brings important opportunities and changes. Among the updates contained in these new regulations, some of these specifically relate to licensing. The post provides an overview of the licensing process, explaining the new changes, OFSI process and some top tips on how to complete a licence application.
https://ofsi.blog.gov.uk/2021/04/19/introduction-to-licensing/
ITALY’S ’NDRANGHETA MAFIA CLAN SPREAD TENTACLES AND TOXIC WASTE INTO TUSCANY
On 19 April, an article from KYC 360 reported that prosecutors claim that Italy’s most dangerous mafia clan has moved into Tuscany, buying businesses, dumping toxic waste in streams and using it to lay the foundation for roads through one of Italy’s most verdant regions.
DANSKE BANK CEO RESIGNS AFTER BEING NAMED A SUSPECT IN DUTCH PROBE
On 19 April, Reuters reported that Chris Vogelzang, the CEO of Denmark’s Danske Bank resigned after Dutch authorities named him as a suspect in an investigation into violations of money laundering regulations at ABN Amro.
https://www.reuters.com/article/idUSL1N2MC087
and
NETHERLANDS: ABN AMRO TO SETTLE MONEY LAUNDERING PROBE FOR €480 MILLION
On 19 April, Reuters reported that Dutch bank ABN Amro said it had reached a €480 million settlement with prosecutors in the Netherlands over money laundering allegations. The prosecution service said in a statement its investigation was ongoing and that 3 former board members, who it did not name, had been identified as suspects said to be “effectively responsible for violation” of AML laws. The investigation into ABN started a year after fellow Dutch bank ING paid a record fine of €775 million to settle a similar case.
https://www.reuters.com/article/idUSKBN2C60HK
SPANISH POLICE RAID FACTORY MAKING 3D-PRINTED WEAPONS
On 19 April, EU Observer reported that Spanish officers raided an illegal 3D-printing weapons workshop in Santa Cruz de Tenerife in Spain’s Canary Islands and arrested the owner, who has been charged with illegal possession of weapons and explosives.
https://euobserver.com/tickers/151589
VAT AND OVERSEAS GOODS SOLD DIRECTLY TO CUSTOMERS IN THE UK
On 19 April, HMRC released updated guidance on how sellers deal with VAT for goods from overseas that they sell direct to customers in the UK.
https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk
HMRC UPDATES GUIDANCE ON IMPORTING AND EXPORTING COMMERCIAL GOODS IN BAGGAGE
On 19 April, Accountancy Daily reported that HMRC had updated its “Merchandise in Baggage” guidance to include details information about making simple online declarations.
https://www.gov.uk/guidance/taking-commercial-goods-out-of-great-britain-in-your-baggage
https://www.gov.uk/guidance/bringing-commercial-goods-into-great-britainin-your-baggage
UK: POST OFFICE HORIZON IT INQUIRY 2020
On 19 April, the Department of Business, Energy and Industrial Strategy published information concerned with the inquiry into the scandal at the Post Office which saw subpostmasters accused of fraud and theft. The Inquiry is seeking accounts from those affected (including but not limited to postmasters) and information from the organisations: the Post Office Limited, Fujitsu, the Department of Business, Energy and Industrial Strategy, and UK Government Investments.
https://www.gov.uk/government/publications/post-office-horizon-it-inquiry-2020
LITHUANIA: LARGE CONSIGNMENT OF SMUGGLED CIGARETTES FROM BELARUS SEIZED
On 19 April, Belsat reported that Lithuanian border guards had detained a large batch of smuggled cigarettes from Belarus – about 300 thousand packs of cigarettes “NZ Gold” and “Minsk Superslims” with an estimated value of more than €1 million.
HONG KONG: CUSTOMS SEIZE COUNTERFEIT SHOES AND HANDBAGS WORTH HK$2.7 MILLION
On 19 April, The Standard reported that Customs seized around 22,000 items of suspected counterfeit goods worth about HK$2.7 million, after officers inspected 2 40-foot containers arriving in Hong Kong from Mainland China. They found 2 batches of suspected counterfeit goods, including smart phone accessories, handbags, shoes and watches inside the containers; and initial investigation suggests that the counterfeit goods were intended for re-export to North American and Middle East countries.
ILLEGAL IMPORTED HARMFUL ANTS SEIZED BY CHINESE CUSTOMS
On 19 April, Global Times reported that Customs in Qingdao of East China’s Shandong Province seized a consignment of imported living ants which were identified as illegal imported harmful insects. A total of 38 ants were kept in test tubes concealed in a foam parcel box. Living insects from abroad are not allowed to enter China by post.
https://www.globaltimes.cn/page/202104/1221406.shtml
COURT OF APPEAL ALLOWS APPEAL BY COUNCIL OVER £270 CONFISCATION ORDER FOR UNLAWFUL FLATS CONVERSION WHEN IT CLAIMED FOR MORE THAN £455,000
On 19 April, Local Government Lawyer reported that the London Borough of Barnet has won an appeal after the Crown Court imposed a confiscation order of £270 when the council had contended for more than £455,000. The original case involved an alleged offence of failure to comply with an enforcement notice, and at some point the property involved had been converted from a 5-bedroom single dwelling into separate flats. The defendant had been fined £10,000.
UK: WOMAN JAILED FOR FRAUD FOR PROVIDING UNQUALIFIED IMMIGRATION ADVICE
On 19 April, Legal Futures reported that a woman has been jailed for fraud and providing unqualified immigration advice and services, with her husband sentenced to community service. The court heard that many of the complainants handed over large amounts of money and legal documents such as birth certificates and passports, and the defendants refused to hand them back or even to speak to the complainants leading to one contacting the Legal Ombudsman.
https://www.legalfutures.co.uk/latest-news/woman-jailed-for-providing-unqualified-immigration-advice
THE IRAN THREAT NETWORK (ITN)
The RAND Corporation has published a report saying that the Iran Threat Network (ITN) is a formidable force made up of tens of thousands of fighters and spreads across the Middle East and South Asia and has ties to and influence in Africa and Latin America. It affords Iran the ability to have a presence and project power throughout the region, and to deter and harass its adversaries. The network consists of diverse and disparate groups, which is reflected in the nature and amount of support provided and the level of command and control exerted by Tehran over each group. These differences allow Iran to employ the ITN to achieve four buckets of political and military objectives. It argues that Iran’s further expansion of the ITN would increase its ability to use the network to undermine stability in the region, antagonise US allies and partners, undercut US influence, and pose a risk to US military personnel. In light of this expansion. The study explores Iran’s relationships with its nonstate network to better enable the US Government to counter Iranian subversion in the region via the ITN. It classifies the ITN under 4 headings – Targeters, Deterrers, Stabilizers, and Influencers.
https://www.rand.org/content/dam/rand/pubs/research_reports/RR4200/RR4231/RAND_RR4231.pdf
UK REGTECH INDUSTRY BACKS FCA CALL FOR “PURPOSEFUL” AML POLICIES
On 19 April, a release on Mondo Visione reported that regtech industry experts have spoken out in support for the recent call for ‘purposeful’ AML controls and financial fraud action. The FCA Executive Director for Enforcement at the FCA had called for better systems and controls that are “purposeful, efficient and courageous in identifying suspicious activity”, and that system and controls currently in place are flawed. In response, a representative of the regtech sector is quoted as saying that existing money laundering and financial crime systems and controls in the UK are far from perfect, and the advent of Covid-19, remote working, and digital banking has made the war against financial crime all the more challenging.
THE BANK OF ENGLAND AND HM TREASURY HAVE ANNOUNCED THE JOINT CREATION OF A CENTRAL BANK DIGITAL CURRENCY (CBDC) TASKFORCE TO COORDINATE THE EXPLORATION OF A POTENTIAL UK CBDC
A release on Mondo Visione on 19 April announced that the Bank of England and HM Treasury have announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC. A CBDC would be a new form of digital money issued by the Bank of England and for use by households and businesses. It would exist alongside cash and bank deposits, rather than replacing them. The Taskforce aims to ensure a strategic approach is adopted between the UK authorities as they explore CBDC, in line with their statutory objectives, and to promote close coordination between them. The Bank of England has also announced it will establish a CBDC Unit. This new division of the Bank of England will lead its internal exploration around CBDC. It will also lead the Bank’s external engagement on CBDC, including with other UK and international authorities.
PHILIPPINES SEIZES ILLEGALLY HARVESTED GIANT CLAM SHELLS WORTH $25 MILLION
On 17 April, the Guardian reported that around 200 tonnes of illegally harvested giant clam shells worth nearly $25 million have been seized in one of the biggest known operations of its kind in the country. Conservationists have expressed alarm over the surging illicit trade in the endangered creatures, which are used as a substitute for ivory. The Philippines is home to most of the world’s giant tropical clam species.
MEDICINAL CANNABIS COMPANIES BEGIN TO LIST ON LONDON STOCK EXCHANGE
Law firm Bird & Bird has produced an update saying that a number of cannabis companies have been vying to be the first to list on the London Stock Exchange after the FCA gave the green light to certain specific cannabis-related businesses last year.
MOST CYPRUS PASSPORTS ISSUED IN INVESTMENT SCHEME WERE ‘ILLEGAL’
On 16 April, Al Jazeera reported that more than half the passports Cyprus issued to rich foreigners in an investment scheme were illegal, a government-appointed board of inquiry has found. More than 3,000 foreign investors paid up to €2 million for Cypriot passports between 2013 and 2019. The programme was terminated last year after a corruption scandal.
LEBANON-SYRIA: SMUGGLING AND SANCTIONS, THE NEW FRONT LINE
On 16 April, France 24 carried a report saying that, in order to dodge international sanctions on the Assad regime products such as food and petrol are being smuggled across the border into Syria on a massive scale. Reporters have investigated a phenomenon that costs the Lebanese economy several million euros a day and prevents the international community from coming to its aid.
BOOMS AND BUSTS IN MARITIME TRANSPORT COSTS AND THEIR DRIVERS
On 18 April, VOX at the Centre for Economic Policy Research says that, as the recent past has shown, maritime transport costs are subject to wide swings. The article analyses a large new dataset on dry bulk freight rates from 1850 to 2020, when maritime transport costs fell 79%. Turning to the drivers of booms and busts in the dry bulk shipping industry, it finds that shipping demand shocks dominate both fuel price and shipping supply shocks. Shipping demand shocks have increased in importance over time while shipping supply shocks have become less relevant.
https://voxeu.org/article/booms-and-busts-maritime-transport-costs-and-their-drivers
US: DANGERS OF ILLEGAL GAMBLING MACHINES
On 19 April, SBC Americas reported that the American Gaming Association (AGA) has released a white paper underlining the dangers of unregulated, illegal gambling machines proliferating across the US. These illegal gambling machines, AGA says, are not subjected to meaningful testing, licensing or regulatory standards and are often tied to criminal activity, including money laundering, drug trafficking and violent crime. The report recommends that law enforcement and policymakers need to prioritise robust enforcement of laws to root out illegal and unregulated gaming machines.
BULGARIA: PROSECUTORS DISRUPT COMPUTER FRAUD AND MONEY LAUNDERING RING
On 19 April, the Bulgarian News Agency BTA reported that prosecutors claimed that, over a period of 2 years, the criminal operation withdrew or rechannelled $1.2 million and €200,000 by using
computer fraud methods against companies in various countries, including one in Hong Kong. After hacking the victims’ bank accounts, the group transferred the money to front men. The
financial flow sometimes went through several countries and the final destination was China.
https://www.bta.bg/en/c/DF/id/2399781
JERSEY: AML/CFT HANDBOOK AMENDMENT WEBINAR
On 19 April, the Jersey FSC released a recording of a recent webinar about the changes to the AML/CFT Handbooks. It says that the amendments are a direct result of aligning the regulatory regime with FATF Recommendations and industry consultation feedback.
https://www.jerseyfsc.org/news-and-events/watch-our-amlcft-handbook-amends-webinar/
FinCEN SEEKS COMMENT ON BENEFICIAL OWNERSHIP REPORTING REQUIREMENTS
On 19 April, a post from Crowell Moring advised that FinCEN was seeking public comment on 48 questions with respect to the implementation of the beneficial ownership reporting requirements in the Corporate Transparency Act (CTA) and the implementation of the related database maintenance use and disclosure provisions. The deadline for comment is 5 May.
OFAC NEW, AMENDED BELARUS SANCTIONS LICENCE
On 19 April, OFAC advised that General License 2H, which authorises a 45-day wind-down period for certain transactions involving 9 sanctioned Belarusian state-owned entities, and entities in which they own a 50% or greater interest. It replaces previous General License 2G, which previously authorised such transactions.
https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20210419
https://home.treasury.gov/system/files/126/belarus_gl2h.pdf
BIDEN RAMPS UP RUSSIA SANCTIONS PRESSURE
K2 Integrity has produced a Policy Alert saying that on 15 April, the Biden Administration imposed new sanctions on Russia in response to its efforts to interfere in US and other countries’ elections; the Solar Winds hacks; and Russia’s continued occupation of the Crimea region of Ukraine. These new sanctions include broad authority under a newly-issued Executive Order to impose sanctions across any sector of the Russian economy, including asset freezes, additional targeted designations, and visa restrictions.
https://f.datasrvr.com/fr1/721/38596/Biden_Ramps_Up_Russia_Sanctions_Pressure.pdf
SETTLEMENT AGREEMENT BETWEEN OFAC AND ALLIANCE STEEL INC OVER IRAN SANCTIONS VIOLATIONS
A news release from OFAC on 19 April advised OFAC had agreed a settlement with Alliance Steel Inc, a designer and manufacturer of prefabricated steel structures headquartered in Oklahoma City, Oklahoma. It agreed to remit $435,003 to settle its potential civil liability for apparent violations of the Iranian Transactions and Sanctions Regulations. It is said that on at least 61 occasions between October 2013 and October 2018, it knowingly imported engineering services from a third-party engineering company located in Iran. Multiple members of Alliance senior management were aware of these transactions and participated in the approval process, which, in each transaction, included reviewing a 2-page invoice containing the company’s permanent address in Tehran.
https://content.govdelivery.com/accounts/USTREAS/bulletins/2cddc3e
https://home.treasury.gov/system/files/126/20210419_alliance.pdf
MARITIME PIRACY ON THE INCREASE IN THE GULF OF GUINEA AND AMERICAS
On 16 April, Homeland Security Today reported that the Gulf of Guinea accounted for 43% of all reported piracy incidents in the first 3 months of 2021, according to the latest figures from the International Chamber of Commerce’s International Maritime Bureau (IMB), although the overall number of incidents are down compared to 2020, and there was only one incident of reported piracy around Somalia. In the Americas, it mentions reported piracy incidents in Callao Anchorage, Peru and container vessels are the target of attacks while underway or at anchor in Colombian waters. It says that in these attacks, perpetrators have been known to open containers and steal cargoes even while vessels are under pilotage.
UK: NEW CRIMINAL, CIVIL AND INVESTIGATORY POWERS FOR THE PENSIONS REGULATOR
On 19 April, Bryan Cave Leighton Paisner produced an article saying that the Pension Schemes Act 2021 significantly augments the enforcement powers of the Pensions Regulator. The Act not only creates new criminal offences but also enables the regulator to make use of civil financial penalties and new powers of investigation. The article takes a look at the key changes industry which practitioners should note.
US: SENATE EYES NEW ROLE FOR CFIUS IN COMBATING ‘FOREIGN MALIGN INFLUENCE OR ESPIONAGE ACTIVITIES’ TARGETING ‘INSTITUTIONS OF HIGHER EDUCATION
On 19 April, an article from Arent Fox says that a potential expansion of the powers of the Committee on Foreign Investment in the United States (CFIUS) suggests broader congressional concern about attempts by Chinese entities to circumvent CFIUS reviews and access critical technologies. New legislation may soon expand the jurisdiction of CFIUS. The Strategic Competition Act, if enacted, would create a new role for CFIUS in preventing “foreign malign influence or espionage activities” directed towards “institutions of higher education” in the US – defined as, generally speaking, a nationally accredited public or private college or university that receives federal funding. This legislative provision is especially noteworthy because it would represent an expansion of CFIUS jurisdiction to include transactions that are not actually investments.
ITALIAN MAFIA HAS MASTERED COMPLEX ECONOMIC SCHEMES
On 19 April, an article from OCCRP reported that the Italian mafia is no longer just a violent gang running local rackets and smuggling drugs, but has mastered complex financial operations that can impact the country’s economy, experts have said following a massive bust of money laundering operations run by several Italian mafia groups.
https://www.occrp.org/en/daily/14254-expert-italian-mafia-has-mastered-complex-economic-schemes
US: CANTON WOMAN SENTENCED FOR ROLE IN BUSINESS EMAIL COMPROMISE (BEC) SCHEME
A news release from the US DoJ on 19 April announced that Bintu Toure, 26, was sentenced to 1 year and 1 day in prison, 3 years of supervised release, restitution and forfeiture. In January Toure had pleaded guilty to wire fraud and money laundering conspiracy. She conspired with others to open numerous bank accounts in Massachusetts in the name of sham companies, as part of a BEC scheme — a sophisticated scam often targeting businesses involved in wire transfer payments.
https://www.justice.gov/usao-ma/pr/canton-woman-sentenced-role-bec-scheme
MORE IRISH-BRITISH TRADE DIVERTED VIA NORTHERN IRELAND POST-BREXIT
In its 20 April edition, Hellenic Shipping News reported that more companies are shipping goods between Ireland and Britain via Northern Ireland to avoid post-Brexit red tape and delays, the head of Dublin Port has said, describing it as a “worrying” and potentially permanent development. The introduction of checks on some goods since neighbouring UK left the EU has led to a sharp fall in trade between Ireland and the UK and a big increase in shipping routes from Ireland to mainland Europe. Dublin, Ireland’s largest port reported a 29% year-on-year drop in trade volumes between Ireland and Britain in the first quarter. It is also reported that Irish ro-ro volumes to and from France, Belgium and the Netherlands increased by 26% in the first quarter while lift-on/lift-off services between Dublin Port and mainland European ports were 18% higher.
TAJIK CITY’S CHINATOWN DREAM COMES CRASHING DOWN
On 19 April, a depressing article in Rferl reported that in 2015 city officials in Khujand and private Chinese investors had signed an agreement to build a massive residential and leisure complex called Chinatown in the neighbourhood, replacing its one-story houses with modern apartment blocks and recreational facilities. More than 30 houses were bulldozed in the picturesque area on the banks of the Syrdaryo River when the project officially kicked off in August 2015. The excited residents were promised new homes in Chinatown’s first buildings, which authorities said would be completed within a year. The project, which also included recreational and leisure facilities, was supposed to be finished in 2020. It seemed too good to be true – and it was. Khujand officials say the Chinese investors abandoned the project in 2018.
https://www.rferl.org/a/tajikistan-chinatown-dream-comes-crashing-down/31209646.html
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