Panama Covid-19 update – it’s reported that, in the first 6months of 2021, the Panama’s security forces recorded a total of 30,846 people being held for breaching the curfew ordered amid the pandemic. Meanwhile, the Government has extended for a further 6 months (i.e. until the end of the year) the order limiting the profits made on a number of products needed during the pandemic – face masks (maximum mark-up 15%), anti-bacterial or anti-microbial product, alcoholic or anti-bacterial gel, alcohol for external use, soap antibacterial stick or liquid, tissue disinfectants, aerosol disinfectants, vitamin C, disposable gloves and wet wipes (all with a maximum mark-up of 23%).
Today, another 605 new cases reported (perhaps linked to the “clandestine” parties mentioned in the TV news tonight) and 9 new fatalities, with now 12,711 active cases – 121 in ICU and 610 in other wards. It is notable that, while the overall number of active cases has fallen, the numbers in both the ICU and other hospital wards have risen by quite a few.
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5 JULY 2021
CRYPTO EXCHANGE BINANCE HIT BY CRIMINAL COMPLAINT FROM THAI REGULATORS
On 4 July, KYC 360 reported that Thailand’s financial watchdog filed a criminal complaint against cryptocurrency exchange Binance for operating a digital asset business without a licence.
SOUTH AFRICA MOVES TO TIGHTEN CRYPTO REGULATION AFTER SCAMS
On 30 June, Yahoo News reported that a new regulatory timeline foresees finalising a framework in 3 to 6 months, after the publication of proposals earlier in June that requires public comment before approval, according to Kuben Naidoo, chief executive officer of South Africa’s banking regulator known as the Prudential Authority.
https://news.yahoo.com/regulatory-clock-ticks-cryptocurrency-assets-210000501.html
CROATIA: GRAFT PROBE OF LATE ZAGREB MAYOR’S ASSOCIATES
On 1 July, Balkan Insight reported that the anti-graft body USKOK is seeking the detention of 5 people, including the public broadcaster HTV’s director, in connection to anti-corruption investigations involving various associates of the late Mayor of Zagreb, Milan Bandic. Newly elected Zagreb Mayor Tomislav Tomasevic confirmed the arrest of some employees from the city administration.
https://balkaninsight.com/2021/07/01/croatias-anti-graft-body-probes-late-zagreb-mayors-associates/
AML AND THE ART MARKET: HMRC PUBLISHES ITS FIRST RISK ASSESSMENT
A post from Kingsley Napley on 1 July said that HMRC has now published its first assessment of the key areas that art market participants (AMP) should consider when conducting their own assessments of the risk of money laundering and terrorist financing to which their business is subject. It has identified the key areas where AMP are most at risk of becoming involved in money laundering and also where they are at risk of breaching the Money Laundering Regulations. HMRC warns that AMP must understand and comply with their obligations in order ‘to protect themselves, their families and their communities from the dangers of infiltration by criminals’ and this risk assessment will put sole practitioners and businesses on guard to an even greater extent to prevent money laundering. It also flags up for the first time that businesses in the art rental market and interior designers may find themselves within the regulated sector. This, says the post, will undoubtedly come as a shock to many.
A NEW DIRECTION FOR WITNESS EVIDENCE?
On 1 July, Fenwick Elliott published slides from a recent webinar which discusses the new rules on witness statements for trials in the Business and Property Courts in England, highlighting the practical implications for all those involved in construction disputes and looking at their potential impact on other forms of dispute resolution including adjudication and international arbitration.
https://www.fenwickelliott.com/sites/default/files/a_new_direction_for_witness_evidence.pdf
CONSTRUCTIVE TRUSTS OF IMMOVABLE PROPERTY – GUERNSEY AND JERSEY LAW’S DIFFERING PATHS
On 2 July, an article from Walkers considers an English High Court case involving the SFO in relation to constructive trusts of immovable property under Jersey law and what impact, if any, this may have on the question of whether and, if so when, constructive trusts of Guernsey-situated immovable property can arise. The Court had held that Jersey law does not recognise a constructive trust of Jersey immovable property, but the article argues that the decision is highly unlikely to impact on the position in Guernsey where it seems clear that, under Guernsey law, a constructive trust can arise over Guernsey immovable property.
UPDATE ON GERMAN COMPLIANCE LEGISLATION
On 1 July, an article from Morrison Foerster explained, at the end of the legislative period, important decisions on central compliance legislative proposals made by the German Federal Government. This involved the Act on Corporate Due Diligence in Supply Chains (Gesetz über unternehmerische Sorgfaltspflichten in Lieferketten). However, it says that another compliance legislative proposal failed.
https://www.mofo.com/resources/insights/210701-supply-chain-due-diligence-act.html
AMNESTY AND RESEARCH GROUPS MAP OUT GLOBAL REACH OF ISRAELI NSO GROUP’S SPYWARE
On 4 July, the Times of Israel reported that Amnesty International claims Pegasus software ‘has been used in some of the most insidious digital attacks on human rights defenders’. A new interactive tool has mapped the global spread of the spyware Pegasus, made by Israeli cybersecurity company, NSO Group.
10 CONTAINERS OF SMUGGLED “UKAY-UKAY” OR USED CLOTHING DESTROYED IN PHILIPPINES
On 5 July, the Manilla Bulletin reported that an official of Bureau of Customs (BOC)-Davao said that the contents of the 10 containers were destroyed in the first quarter of 2021. There is a national policy to prohibit the commercial importation of textile articles which are used clothing and rags which may potentially pose a health threat.
https://mb.com.ph/2021/07/05/p4-8-m-smuggled-ukay-ukay-destroyed-by-port-of-davao/
IRELAND: SENIOR KINAHAN GANG MEMBER JAILED FOR MONEY LAUNDERING
On 5 July, RTE reported that Jason Reed, 40, a senior member of the Kinahan organised crime gang has been jailed for 7 years for money laundering after he was caught with over €350,000 in cash last year.
https://www.rte.ie/news/courts/2021/0705/1233115-jason-reed-court/
WELL-KNOWN NEW ZEALAND ENTERTAINER CHARGED WITH $6 MILLION MONEY LAUNDERING CONSPIRACY
On 5 July, Newstalk ZB reported that a well-known New Zealand entertainer has been charged with conspiracy to money launder $6 million for an alleged organised crime group. This followed the use of the Anom encrypted platform created by the FBI and the Australian Federal Police in a sting called Operation Trojan Shield. It is said that the alleged $6m money launderer is a well-known entertainer, although details of his career cannot be reported without identifying him.
ITALIAN POLICE CRACK BLACK MARKET FOR FAKE ELECTRONIC VACCINATION CERTIFICATES
On 5 July, EU Observer reported that thousands of Europeans were keen to buy fake electronic certificates about their vaccination status and fake vaccines, according to Italian police, who have broke up a cyber-crime marketplace where prices ranged from €110 to €130 for an “all-inclusive” package of fake pass and fake vial of vaccine. “Anyone found with these fake certificates, including buyers, risks … offences punishable by up to six years,” Italian police said.
https://euobserver.com/tickers/152343
WILL HONDURAS WIN THE FIGHT AGAINST CORRUPTION?
An article from Forbes on 5 July posed this question after the US State Department accused former Honduran President Jose Lobo Sosa of accepting bribes from drug trafficking organisations, and a US court sentenced the brother of current Honduran President Juan Orlando Hernandez on drug trafficking charges. In 2020, Transparency International ranked Honduras 157 out of 180, slightly ahead of Iraq, Afghanistan and Venezuela, but far worse than Colombia, Panama, and Mexico.
https://www.forbes.com/sites/nathanielparishflannery/2021/07/05/can-honduras-fight-corruption
HIGH PROSECUTORIAL COUNCIL SUSPENDS 2 ALBANIAN PROSECUTORS
On 5 July, Exit News reported that the KLP had suspended the Head Prosecutor of Kukës, Edmond Kariqi and Maksim Sota, a Vlora prosecutor over corruption charges.
https://exit.al/en/2021/07/05/high-prosecutorial-council-suspends-two-albanian-prosecutors
AZERI PEP HAS AGREED TO SURRENDER £4 MILLION WHICH WAS TRANSFERRED VIA THE “AZERBAIJAN LAUNDROMAT” MONEY LAUNDERING SCHEME.
On 5 July, a news release from the NCA advised that London-based Suleyman Javadov has close links to the ruling elite in Azerbaijan where his father was deputy energy minister until his dismissal last year. A forfeiture hearing to recover the money was due to start at Westminster Magistrates’ Court but will now not go ahead following a settlement.
https://www.nationalcrimeagency.gov.uk/news/azeri-elite-agrees-to-hand-over-4-million
CHINA ISSUES GUIDANCE ON EXPORT COMPLIANCE PROGRAMMES
On 5 July, Sandler Travis Rosenberg advised that new guidance from China’s Ministry of Commerce sets forth a number of factors that companies exporting from China should consider when establishing their export control compliance programmes. The guidance was issued in April and sets forth the following basic elements that should be included in export compliance programsme.
MALTA: MAN DENIED BAIL AFTER CUSTOMS INTERCEPT 113 KG CONSIGNMENT OF KHAT
On 4 July, the Times of Malta reported that Abdinur Shucayb Mohammed, a 34-year-old Somali national and shop owner had appeared in court. It is said that a search of air cargo revealed a green substance labelled as henna leaves.
WOLFSBERG GROUP GUIDANCE ON THE STEPS THAT CAN BE TAKEN BY FINANCIAL INSTITUTIONS TO ASSESS RISK FACED IN PRIORITY AREAS AND TO DEMONSTRATE THE EFFECTIVENESS OF AML/CFT PROGRAMMES
On 5 July, an article from Eversheds Sutherland considers the latest statement from the Wolfsberg Group of leading banks.
UK: ROCHDALE GROOMING GANG MEMBERS FIGHT DEPORTATION TO PAKISTAN USING HUMAN RIGHTS LAW
On 3 July, The Independent reported that the men are invoking Article 8 of the European Convention on Human Rights – the right to a private and family life. They were part of a gang convicted of a litany of serious sex offences against young girls.
THE RISE OF RANSOMWARE AND PRACTICAL TIPS FOR THE NEW NORMAL
On 5 July, an article from Dentons in Singapore considers the situation in the light os recent Singapore court case involving HMI Institute of Health Sciences.
https://dentons.rodyk.com/en/insights/alerts/2021/july/5/the-rise-and-rise-of-ransomware
ICELAND FISHING COMPANY GOES ‘GUERILLA’ ON JOURNALISTS WHO UNCOVERED ALLEGED CORRUPTION
On 2 July, the Committee to protect Journalists reported alleged activity by Icelandic fishing company Samherji, which is accused of having bribed officials in Namibia with payments equating millions of dollars in exchange for the right to fish. It is said that Samherji has waged a campaign to discredit reporters and colleagues at a state-owned TV channel’s investigative TV show.
https://cpj.org/2021/07/iceland-fishing-company-journalists-alleged-corruption/
DENMARK’S BIGGEST BANK SELLS LUXEMBOURG WEALTH ARM AMID POLICE MARKET ABUSE CHARGES
On 2 July, International Investment reported that Union Bancaire Privée is to buy the Luxembourg-based wealth management business Danske Bank International just days after the parent company Danske Bank faced police charges over 2 potential violations of the EU market abuse rules.
THE TAX AVOIDANCE STRUCTURES OF ViacomCBS
On 1 June, an article from SOMO in the Netherlands claims that, through the shifting of IP licensing rights from country to country, ViacomCBS has been able to avoid paying billions of dollars in taxes in several countries.
https://www.somo.nl/keep-watching/
Xbox ENGINEER USED GIFT CARDS TO FUEL A $10 MILLION FRAUD SPREE
On 1 July, the Gamasutra website reported a Bloomberg story of a Ukrainian Microsoft engineer is facing 10 years in prison and deportation to Ukraine from the US after stealing $10 million in gift card codes for the company’s digital storefront. It is said that he discovered a bug in the company’s testing system that allowed him to use internal testing accounts to “purchase” millions of dollars of gift card codes without paying any money to Microsoft.
SOUTH KOREAN CRYPTO EXCHANGE EXECUTIVES ARRESTED AMID $2 BILLION FRAUD FEARS
On 3 July, Crypto News reported that police have been investigating the V Global platform for several months, after a group of investors claimed they had not been able to withdraw funds from the exchange, with fears that it may have been a pyramid scam. Police have obtained arrest warrants for 4 individuals, th3ree of whom are reportedly senior-level executives, and 70 others have been cautioned as the police continue their investigations into V Global.
https://cryptonews.net/en/946781/
US: FEMA ANNOUNCES EXPIRATION OF ITS EXPORT ALLOCATION RULE ON MEDICAL SUPPLIES AND EQUIPMENT FOR COVID-19
On 5 July, Crowell Moring reported that Federal Emergency Management Agency (FEMA) had announce the expiration of its export allocation rule on medical supplies and equipment for Covid-19. The temporary rule had prohibited surgical N95 filter facepiece respirators, personal protective equipment (PPE) surgical masks, PPE nitrile gloves, level 3 and 4 surgical gowns and surgical isolation gowns, piston syringes, and hypodermic needles from being exported from the US without the explicit approval of FEMA. It expired on 1 July.
https://www.fema.gov/fact-sheet/information-for-exporters-with-surplus-personal-protective-equipment
9 ARRESTED IN MOLDOVA AND FRANCE FOR €2 MILLION IMMIGRATION FRAUD
A news release from Europol on 5 July advised that a total of 9 individuals – 8 Moldovan nationals and 1 French national – had been arrested in France and Moldova for their involvement in this scheme which defraud the French authorities of over €2 million. The investigation uncovered the complex scheme set up by an organised crime group. Criminals recruited over 1 000 Moldovan nationals to apply under false pretences to a French programme known as the ‘Migration Co-Development Program in Moldova’ which aims at facilitating the social and economic reintegration of Moldovan migrants who have volunteered to return to Moldova from France.
BRAZIL’S BOLSONARO FACES MORE CORRUPTION ACCUSATIONS
On 5 July, Al Jazeera reported that President Jair Bolsonaro has been accused of being involved in a scheme to skim salaries of his aides while a federal deputy. The racket allegedly involved hiring close associates as employees and then receiving a cut of their public salaries back from them.
https://www.aljazeera.com/news/2021/7/5/brazils-bolsonaro-faces-corruption-accusations
INTERPOL ISSUES ‘RED NOTICE’ FOR SOUTH AFRICA’S GUPTA BROTHERS AND ASSOCIATES
On 5 July, India Today reported that the 3 Gupta brothers – Ajay, Atul and Rajesh – are at the centre of a long-running probe into the embezzlement of state assets under former President Jacob Zuma. In a statement, the South African prosecution authority’s chief investigator said that Interpol had issued a “red notice” against 2 of the brothers, Atul and Rajesh. They fled South Africa and are suspected to be in the UAE, and last month South Africa said it was close to finalising an extradition treaty with the UAE. The red notice also applies to Atul Gupta’s wife, Chetali. In 2019, the US Treasury slapped sanctions on the Guptas under the Global Magnitsky regime.
JERSEY FINANCIAL SERVICES FIRMS (AND MANY OTHERS) EXEMPT FROM OECD TAX PROPOSAL
On 5 July, International Adviser reported that the 15% rate proposed by the OECD would apply only to multinational companies with a global turnover above €750 million – and with regulated financial firms and investment funds exempted from the measure.
https://international-adviser.com/jersey-financial-services-firms-exempt-from-oecd-tax-proposal/
JERSEY JEWELLER JAILED FOR MORE THAN 7 YEARS FOR MONEY LAUNDERING
On 5 July, ITV News reported that Darius James Andrew Pearce, aged 49, used his business to receive cash, to buy gold which was then used to fund the importation of drugs. He has now been jailed for 7½ years. He had been convicted in December.
CONTAINER SHIPPING’S STRANGER-THAN-FICTION FIRST HALF OF 2021
On 2 July, American Shipper reported on the first 6 months of 2021 – container shortages, rapidly rising freight and charter rates, more accidents and lost containers, Suez Canal blocked, congestion at LA, major Chinese port restricts activity due to Covid. All this plus the continuing crew and traffic problems caused by the pandemic.
https://www.freightwaves.com/news/container-shippings-stranger-than-fiction-first-half-of-2021
Any modest contributions for my time and ongoing expenses are welcomed! I have a page where you can do so, and where contributions start as low as $3, at https://www.buymeacoffee.com/KoIvM842y
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