OTHER THINGS YOU MAY HAVE MISSED- SEPTEMBER 24

Pnama Covid-19 update – 5 more fatalities reported today, with the total to date nearing 7,200 at 7,197. Another 265 new cases reported, but none where I am, I think. There are now 3,763 active cases, with 61 in ICU and 232 in other wards. Total reported cases to date come to 465,736, well over 10% of the estimated total population of the country.

Note – as you can probably guess, I am still on this quiet, and today quite wet, island. Very few people on the ferry this morning, but that will be different tomorrow, aspeople flock to the island for the weekend. Mindyou, I saw some people sitting under their sunshades on the beach in the rain today- like British holidaymakers back home sitting on the promenade and eating ice cream whilst watching the rain…

24 September 2021

HMRC Publishes Tax Gap Statistics for 2019/2020

In an announcement confusingly dated 27 September, KPMG reported that the latest report on the tax gap (i.e. the difference between the total amount of tax that should, in theory, be paid and the total amount of tax actually paid in the financial year) was published on 16 September.  It says that the latest data shows the highest tax gap in three years and reverses an otherwise medium-term decline.  The current reported data pre-dates the onset of the COVID-19 pandemic so its effect on the tax gap remains to be seen.  The article briefly analyses the data.

https://home.kpmg/uk/en/home/insights/2021/09/tmd-hmrc-publish-the-tax-gap-statistics-for-2019-2020.html

EU Guidance on Dual-Use Export Compliance

On 24 September, the EU Sanctions blog reported that a new Recommendation from the EU Commission recommends that Member States and exporters take account guidance for compliance programs in relation to the new EU dual-use export Regulation.  The guidance on the EU website includes that on internal compliance programmes (ICP).

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2021.338.01.0001.01.ENG&toc=OJ%3AL%3A2021%3A338%3ATOC

El Salvador’s Bitcoin Folly

A commentary on the Project Syndicate website on 23 September asserts that while many aspects of cryptocurrencies are baffling, not least the success of a joke like Dogecoin, El Salvador’s recent adoption of Bitcoin as legal tender alongside the US dollar is perhaps the strangest and potentially most worrying example of all.

https://www.project-syndicate.org/commentary/el-salvador-dangers-of-adopting-bitcoin-as-legal-tender-by-jeffrey-frankel-2021-0-on-financial-crime/

US returns stolen ancient artifacts to Iraq in repatriation ceremony

A news release from US Immigration and Customs Enforcement on 24 September advised that the US had returned a rare cuneiform tablet bearing a portion of the epic of Gilgamesh, a Sumerian poem considered one of the world’s oldest works of literature, to the Republic of Iraq, following a US Customs investigation.  The artefact came from modern day Iraq, was smuggled in the US and was subsequently seized, having been acquired by Hobby Lobby Stores Inc, an arts-and-crafts retailer based in Oklahoma City, for display at the Museum of the Bible.

https://www.ice.gov/news/releases/us-returns-stolen-ancient-artifacts-iraq-repatriation-ceremony

Philippines Implements New POGO Tax

On 23 September, iGB reported on a new law imposing additional taxes on Philippine Offshore Gaming Operators (POGO).  It imposes a 5% tax on the gross gaming revenue of online gaming operators – who primarily target the Chinese market – while foreigners employed in online casinos and their service providers are now required to pay 25% income tax.

https://igamingbusiness.com/philippines-implements-new-pogo-tax

UK: Lottoland Operator fined £760,000 by Gambling Commission

On 23 September, iGB reported that the fine is for money laundering and social responsibility failings which occurred between October 2019 and November 2020, and the Commission has also issued the operator with a formal warning.  The AML failings consisted of inadequate analysis of customer bank statements to verify an address, not restricting customer accounts following a source of funds request and allowing customers to register third-party debit cards to their account.

https://igamingbusiness.com/lottoland-operator-fined-760000-by-gambling-commission

EU Aims to Deny Tax Breaks to Multinationals With Shell Entities

On 23 September, KYC 360 reported that the EU will make an official proposal to deny companies tax benefits linked to the use of shell entities, a top tax official has said.

https://kyc360.riskscreen.com/news/eu-aims-to-deny-tax-breaks-to-multinationals-with-shell-entities/

1MDB Casts Shadow on Ex-Swiss Bank CEO’s Money-Laundering Trial

On 24 September, Bloomberg reported that Eduardo Leemann, the former boss of Falcon Bank, a defunct Zurich private bank that was mired in the multibillion-dollar 1MDB scandal, faces a trial accused of money laundering for a Gulf businessman involved in the affair.  He is accused of using his position to launder €133 million in illicit proceeds for Khadem Al-Qubaisi. 

https://www.bloomberg.com/news/articles/2021-09-24/1mdb-casts-shadow-on-ex-swiss-bank-ceo-s-money-laundering-trial

THE INTRODUCTION AND THE IMPORT OF CULTURAL GOODS (REVOCATION) REGULATIONS 2021

These UK Regulations revoke EU Regulation 2019/880 on the introduction and the import of cultural goods insofar as it applied and formed part of the law of the UK.  However, revocation of the Regulation as retained EU law does not affect its continued application in respect of Northern Ireland in consequence of its inclusion in the Protocol on Ireland/Northern Ireland in the European Union Withdrawal Agreement.  It is said that, although the UK Government supports the stated aims of the Regulation and recognises the importance of tackling the illicit trade in cultural goods, and in particular preventing the proceeds of that trade from being used to fund terrorism, it says that it considers that the requirement for businesses and importers to ensure the legal provenance of cultural goods which they bring into the UK (as set out, for example, in codes of conduct for art market businesses and museums), and the measures already available to border authorities to prevent cultural goods being brought into the UK when there is information or evidence that they have been unlawfully removed from another country, are sufficient.  The UK maintains that the revocation will not adversely affect our ability to prevent unlawfully removed cultural goods being brought into the UK.

https://www.legislation.gov.uk/uksi/2021/1087/pdfs/uksiem_20211087_en.pdf

Court Jails Ugandan Government Official and Orders Him To Pay $5.4 million

On 24 September, Channels TV reported that a Ugandan anti-corruption court sentenced a government official, Godfrey Kazinda, to 40 years in prison and ordered him to pay $5.4 million in compensation for looting a donor-funded programme to help rebuild the country’s conflict-battered north following the ravages of a decades-long insurgency by the notorious Lord’s Resistance Army.

https://www.channelstv.com/2021/09/24/court-jails-ugandan-govt-official-orders-him-to-pay-5-4m

Ex-Pastor of Orange County Church Sentenced to 14 Years in for Orchestrating $33 Million Con that Defrauded Investors

A news release from US DoJ on 24 September advised that Kent R.E. Whitney, 39, the former pastor of the Westminster-based Church of the Healthy Self was sentenced today to 168 months in federal prison for orchestrating a church-based investment scam that took in more than $33 million.

https://www.justice.gov/usao-cdca/pr/ex-pastor-orange-county-church-sentenced-14-years-federal-prison-orchestrating-33

US: 2 Charged in Airline Baggage Scam Involving Over $550,000 in False Claims

A news release from US DoJ on 24 September advised that it is alleged that the defendants submitted over 180 claims to commercial airlines, including American, Alaska, Southwest, United, and JetBlue, requesting over $550,000 in reimbursement for luggage that falsely alleged had been lost. 

https://www.justice.gov/usao-edla/pr/two-charged-airline-baggage-scam-involving-over-550000-false-claims

Podcast: FATF’s Unintended Consequences – The Past

On 24 September, FATF released this podcast, the first of a 3-part series which considers FATF’s past, delving into the standard-setter’s efforts in relation to non-profit organisations, money service businesses, and correspondent banking.

https://rusi.org/podcasts/financial-crime-insights/episode-23-fatfs-unintended-consequences-past

How Contraband Chicken is Flooding Paraguay

On 24 September, Insight Crime reported that a large influx of smuggled chicken meat from Argentina into Paraguay has overwhelmed the local market and is threatening to put local farmers out of business.  It is said to make up 70% of chicken consumption in Paraguay, says to the country’s poultry farmer association, Avipar.  Chicken smuggling is not just a Paraguay problem. Last April, InSight Crime reported on how Mexican chickens and eggs were increasingly being smuggled into Guatemala.

https://insightcrime.org/news/fowl-play-how-contraband-chicken-is-flooding-paraguay/

Kenya High Court clears cabinet minister Dr. Lomuro of money laundering charges

On 24 September, Radio Tamazuj reported that the Kenyan Anti-Corruption and Economic Crimes Court division of the High Court has cleared cabinet affairs minister Dr Martin Elia Lomuro of money laundering charges brought against him by the Asset Recovery Agency (ARA).  ARA froze his bank accounts in June.

https://radiotamazuj.org/en/news/article/kenya-high-court-clears-cabinet-minister-dr-lomuro-of-money-laundering-charges

Man Extradited to US from Czech Republic to Face Charges for Wire Fraud and Money Laundering Involving Charging Students for Non-existent Lessons

A news release from US DoJ on 24 September advised that Michael Lawson, 49, was indicted in 2013 on 6 counts of wire fraud and 6 counts of international money laundering.  Lawson was the owner of several internet-based companies that matched art and music teachers with students in need of lessons throughout the US.  It is said that Lawson started renewing students’ contracts for music lessons without the students’ knowledge and consent, and started charging the students’ credit cards for the lessons that they had not requested.

https://www.justice.gov/usao-nj/pr/new-jersey-man-extradited-united-states-face-charges-wire-fraud-and-international-money

China: Former chairman of the top liquor-maker sentenced to life in prison for bribery

On 23 September, CNBC reported that the former chairman of China’s top liquor maker, Kweichow Moutai, was sentenced to life in prison for taking bribes.  Yuan Renguo was sentenced for accepting cash and properties worth more than $17.48 million while working at Kweichow Moutai between 1994 and 2018.

https://www.cnbc.com/2021/09/24/former-kweichow-moutai-chair-sentenced-for-life-xinhua-reports.html

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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