OTHER THINGS YOU MAY HAVE MISSED – APRIL 29

Panama Covid-19 update – all the numbers (including the positive test results) reported today up again, with the overall number of active cases up by nearly 400 – worrying when on 2 crowded buses, although here masks remain mandatory on public transport. Relaxed by feeding a family of racoons on dog biscuits…

No new fatalities reported, but 939 new cases reports and 5,635 active cases. The hit rate on the 7,639 tests up again, to 12.3%. Meanwhile, there are just 10 patients in ICU, 75 in other wards, with another 17 in quarantine in the hospital-hotels.

29 APRIL 2022

TRAFIGURA GROUP IS CUTTING OFF RUSSIAN GIANT ROSNEFT OIL FROM GLOBAL OIL MARKETS

On 28 April, the Wall Street Journal reported that Russia hitherto depended on foreign middlemen to ferry its most strategic and lucrative export around the world: oil.  Now the Swiss commodities trader plans to stop exporting Rosneft’s crude oil.  It will cut its business with the state producer to a sliver of pre-war levels, supplying only some refined products such as diesel into Europe.

https://www.wsj.com/articles/russia-oil-sanctions-europe-middlemen-fueled-putins-war-machine-now-theyre-getting-out-trafigura-11651166288

STEMMING THE TIDE OF FAKE MEDICINE IN GABON

On 15 March, ENACT Africa published an article saying that cheap and deadly counterfeit drugs are found around every corner in Gabon’s major cities, despite their dangers.  It explains that unlicensed medicinal drugs started appearing on Libreville’s streets decades ago and continue to increase in range and accessibility.  They were smuggled into Gabon from Benin, Côte d’Ivoire, Ghana, Nigeria and India, where original pharmaceutical products are substituted with a substandard drug that either excludes an active ingredient or contains a toxic substance. 

https://enactafrica.org/enact-observer/stemming-the-tide-of-fake-medicine-in-gabon

TOXIC TRASH DUMPS AFRICA IN THE DANGER ZONE

On 21 April, an article in ENACT Africa says that mafia groups are increasingly involved in global waste disposal, putting North African citizens at risk.  Toxic waste is a billion-dollar industry for criminal networks and a life-threatening hazard.  Waste is shipped from Europe to legitimate pollution-control countries in North Africa for recycling.  However, these countries don’t always have the technical means to recycle the waste. 

https://enactafrica.org/enact-observer/toxic-trash-dumps-africa-in-the-danger-zone

EVIDENCE FROM CASE STUDIES OF FOREIGN CRIMINAL ACTORS OPERATING IN EAST, WEST AND SOUTHERN AFRICA

On 14 April, ENACT Africa published a paper saying that foreign criminals are a significant presence in Africa.  4 typologies of foreign criminal actors are identified, allowing an exploration into why some actors develop more successful criminal enterprises than others.  Success appears to be the result of a slow embedment in the local criminal economy, avoiding displays of wealth and the targeted corruption of officials.  It also depends on the expansion of ethnic networks where high levels of trust or coercion of members prevent law enforcement penetration.  Eroding these successful criminal operations requires an ability to disrupt recruitment into the networks and ultimately their more effective integration into legitimate economic activities.

https://enact-africa.s3.amazonaws.com/site/uploads/2022-04-14-research-paper-27.pdf

IMPACTS OF NEW TECHNOLOGIES ON TERRORISM FINANCING RISKS

On 5 April, RUSI published an Occasional Paper which investigates the potential terrorist financing risks that new technologies may pose.  With their focus on speed, efficiency and a positive user experience, new technologies not only have the potential to make life easier for ordinary consumers, but also to reduce the frictions terrorist financiers face when funding attacks and organisational activities.

https://rusi.org/explore-our-research/publications/occasional-papers/bit-bit-impacts-new-technologies-terrorism-financing-risks

PANAMA APPROVES ITS CRYPTOCURRENCY LAW

On 29 April, various sources reported that Panama has just approved a Law that regulates the use of cryptocurrencies. The Law seeks to strengthen the public and private use of digital assets, including the payment of taxes.

https://es.crypto-economy.com/panama-aprueba-su-ley-de-criptomonedas-para-regularlas/

JUDGE IN GUATEMALA ORDERS RETURN OF AIRCRAFT OWNED BY RICARDO MARTINELLI

On 28 April, Panama America reported that a judge has ordered the return of the aircraft owned by former Panamanian President Martinelli that had carried his 2 sons, who were detained and subsequently extradited to the US on money laundering charges.

https://www.panamaamerica.com.pa/judicial/juez-en-guatemala-reitera-devolucion-de-aeronave-propiedad-de-ricardo-martinelli-1205979

IRAQ: BRITISH AND GERMAN TOURISTS DETAINED IN BAGHDAD ACCUSED OF SMUGGLING ANTIQUITIES

On 29 April, Middle East Eye reported that the tourists accused of trying to smuggle antiquities out of Iraq have been detained in Baghdad and possibly face the death penalty or imprisonment, with relatives accusing the travel company and embassy authorities of letting the pair down.  One is 66-year old British retired geologist, James Fitton.  Their tour group was found with 32 artefacts – believed to be small fragments with little to no commercial value – at the airport.

https://www.middleeasteye.net/news/iraq-british-german-tourists-detained-accused-smuggling-antiquities

HMRC WAIVES FINES FOR MILLION BRITS UNWITTINGLY CAUGHT IN AML CRACKDOWN

On 29 April, City AM reported that HMRC has said it is waiving fines for those who unwittingly faced penalties for failing to list any trusts they own on AML registers, following the introduction of new rules requiring trustees to list any trusts on official registers.  The new rules could mean thousands of people who are unaware they are now required to register their trusts could face hundreds of pounds worth of fines.

https://www.cityam.com/taxman-waives-fines-for-brits-unwittingly-caught-in-anti-money-laundering-crackdown/

GERMAN AUTHORITIES SEARCH DEUTSCHE BANK OVER POTENTIAL MONEY LAUNDERING

On 29 April, the Guardian reported that prosecutors, federal police and other officials have conducted a search at Deutsche Bank in Frankfurt.

https://www.theguardian.com/business/live/2022/apr/29/eurozone-gdp-growth-france-germany-inflation-russia-ukraine-energy-crisis-business-live

HOW MONEY LAUNDERING WORKS IN THE ART WORLD

On 28 April, Art & Object published an article asking how does one launder money in the art world?

https://www.artandobject.com/news/how-money-laundering-works-art-world

UK: BORDERS ACT TO OVERHAUL ASYLUM SYSTEM BECOMES LAW

On 28 April, the Home Office said that the Nationality and Borders Act will deliver the biggest overhaul of the UK asylum system in decades.

https://www.gov.uk/government/news/borders-act-to-overhaul-asylum-system-becomes-law

UK: 10-YEAR DRUGS PLAN TO CUT CRIME AND SAVE LIVES

On 29 April, the Home Office published a 10-year plan which aims to cut crime and save lives by reducing the supply and demand for drugs and delivering a high-quality treatment and recovery system.  The plan sets out 3 core priorities: break drug supply chains, deliver a world-class treatment and recovery system, and achieve a shift in the demand for recreational drugs.

https://www.gov.uk/government/publications/from-harm-to-hope-a-10-year-drugs-plan-to-cut-crime-and-save-lives

INTERNATIONAL COMPARATIVE LEGAL GUIDE TO: TRADE MARKS 2022

On 28 April, law firm Bird & Bird published the latest edition of this guide (others are available on copyright, patents and designs).  It is described as a practical cross-border insight into trade mark law. The firm contributed 2 chapters covering trade mark exhaustion and an update on trade mark law in the UK.

https://www.twobirds.com/en/insights/2022/global/international-comparative-legal-guide-to-trade-marks-2022

6 GENOVESE CRIME FAMILY MEMBERS CHARGED IN NEW YORK

On 29 April, OCCRP reported this news from the US, serving to remind one that traditional mafia crime organisations are still operating.  The Genovese crime family is the successor to the gang established in the 1930s by Charles “Lucky” Luciano, described as the godfather of the American mob who rose to prominence during the Prohibition era.

https://www.occrp.org/en/daily/16258-six-genovese-crime-family-members-charged-in-ny

JORDAN: A BUSINESSMAN, THE KING’S UNCLE, SENTENCED FOR CORRUPTION

On 28 April, OCCRP reported that a Jordanian businessman related to the royal family has been sentenced to 18 years of hard labour and fined $269 million for corruption and abuse of office.  Walid Al-Kurdi is married to Jordan’s King Abdullah II’s aunt Princess Basma Bint Talal, and the charges relate to his work as head of the state-owned mining company Jordan Phosphate Mines (JPMC).

https://www.occrp.org/en/daily/16257-jordanian-businessman-the-king-s-uncle-sentenced-for-corruption

UK AND ROMANIA: CRIMINAL NETWORK INVOLVED IN HUMAN TRAFFICKING, LABOUR EXPLOITATION AND MONEY LAUNDERING

A news release from Europol on 29 April advised that Romanian and UK police, supported by Europol and Eurojust, have dismantled a criminal network involved in human trafficking, labour exploitation and money laundering.  Active since early 2018, the criminal network lured vulnerable people in unstable financial situations by offering them jobs in the UK.

https://www.europol.europa.eu/media-press/newsroom/news/violent-labour-exploitation-gang-busted-in-romania-and-uk

NEW ENGLISH WITNESS EVIDENCE RULES LIKELY TO INFLUENCE WIDER BEST PRACTICE

An article from Out-Law on 28 April said that businesses involved in disputes before a wide range of courts and tribunals should expect their factual witness evidence to be closely scrutinised and should be aware of best practice principles recently set out by one of the main branches of the English courts, the Business and Property Courts (BPC) in England and Wales.  New rules on the preparation of trial witness statements were introduced in April 2021.  It refers to concerns relating to the fallibility of human memory expressed in a 2020 report published by the International Chamber of Commerce (ICC).

https://www.pinsentmasons.com/out-law/analysis/new-english-witness-evidence-rules-likely-to-influence-wider-best-practice

https://iccwbo.org/content/uploads/sites/3/2020/11/icc-arbitration-adr-commission-report-on-accuracy-fact-witness-memory-international-arbitration-english-version.pdf

SPAIN BANS TANKER OVER RUSSIAN CARGO TRANSFER AT SEA

On 28 April, Lloyds List reported that a Malta-flagged chemical tanker had been banned from Spanish ports after undertaking ship-to-ship transfer of palm oil from a Russia-flagged tanker off Malta in breach of new EU port ban.  It says that intensified scrutiny of carriage of Russian cargoes has led to increased ship-to-ship transfer activity at key ports near Europe.

https://lloydslist.maritimeintelligence.informa.com/LL1140665/Spain-blocks-tanker-over-Russian-cargo-transfer

NORWAY TO CLOSE ITS BORDERS AND PORTS TO RUSSIAN TRUCKS AND SHIPS, JOINING SANCTIONS IMPOSED BY THE EU 

On 29 April, the Guardian reported that Russian fishing vessels, which often land their catch at ports in northern Norway, and Norway’s Arctic Svalbard archipelago, which operates under a 1920s treaty allowing expanded foreign access, will be exempt from the ban.

https://www.theguardian.com/world/live/2022/apr/29/russia-ukraine-war-ukraine-decries-barbaric-missile-strikes-on-kyiv-russian-gains-in-donbas-come-at-significant-cost-says-uk-live#block-626bd4678f089c79bcffa42d

UK: MINISTERIAL STATEMENT ON IMPORT CONTROL – FURTHER DELAYS TO POST-BREXIT CONTROLS

On 28 April, CILT reported that the remaining import controls on EU goods will no longer be introduced this year, the UK Government has announced. Instead, traders will continue to move their goods from the EU to Great Britain.

https://www.ciltuk.org.uk/News/Latest-News/ArtMID/6887/ArticleID/36653/Ministerial-Statement-on-import-control

However –

On 29 April, Loadstar reported that furious port operators are threatening legal action after the UK government’s decision to delay indefinitely, or scrap, phytosanitary checks, the final post-Brexit border control policy.  They claim the move puts UK exporters at a competitive disadvantage.

https://theloadstar.com/port-fury-over-wasted-100m-as-uk-drops-sps-deadline-for-a-new-approach/

SANCTIONING RUSSIA RAISES QUESTIONS ON OTHER CURRENCIES

On 29 April, an article in Hellenic Shipping News from PIMCO says that it believes that emphasis will shift to currencies of countries deemed as sanctions-remote.   It also says that it believes the US dollar will come out at least as strong as before, while the picture for the renminbi is more clouded.

https://www.hellenicshippingnews.com/pimco-the-big-freeze-sanctioning-russia-raises-questions-on-other-currencies/

FBI ELDER FRAUD REPORT 2021

The FBI has issued this report, saying that, working with the DoJ Elder Fraud Initiative and other internal and external partners, the FBI is committed to identifying, investigating, and prosecuting criminals who target seniors.  The Internet Crime Complaint Center (IC3) is a key component in this endeavour, as it provides victims a venue to identify the subject and the fraud committed against them.  The number of elderly victims has risen at an alarming rate, while the loss amounts are even more staggering. In 2021, over 92,000 victims over the age of 60 reported losses of $1.7 billion to the IC3. This represents a 74% increase in losses over losses reported in 2020.

https://www.ic3.gov/Media/PDF/AnnualReport/2021_IC3ElderFraudReport.pdf

UNDERSTANDING AL-QAIDA IN THE ISLAMIC MAGHREB (AQIM) EXPANSION INTO WEST AFRICA

On 29 April, this report from the Combating Terrorism Center argues that over the past 30 years Al-Qaida and its branches and allies in North and West Africa have followed what this report calls its “Imperial Playbook”, as they have sought to expand their areas of influence southward.  The “playbook,” this report shows, is composed of 5 fundamental tactics: befriending or creating militant groups operating in the midst of conflict; integrating themselves into communities where those militants exist; exploiting grievances of those communities to gain sympathy; addressing internal or external dissent either passively or aggressively; and looking toward new theatres once their base is solidified.

https://ctc.westpoint.edu/wp-content/uploads/2022/04/AQIMs-Imperial-Playbook.pdf

https://www.statista.com/chart/27343/container-ship-backlog-off-shanghai-port

THE TOP 12 SANCTIONED RUSSIAN BILLIONAIRES AS OF 11 APRIL

Available online from ACAMS.

https://www.acams.org/sites/default/files/2022-04/Infographic_Sanctioned%20Russian%20Billionaires%20and%20Individuals%20with%20Political%20Influence_White_April%2011.pdf

RUSSIA-RELATED COMMODITY RESTRICTIONS AND PORT BANS AS OF 25 APRIL

Another infographic from ACAMS, the table sets out key commodity restrictions imposed against Russia by a number of jurisdictions.  While individual designations against an individual or entity can carry an impact on commodities, this infographic is focused on direct restrictions targeting commodities themselves, as the impact of designations can be unclear. ACAMS has also included port access within this table, since this relates to commodities.

https://www.acams.org/sites/default/files/2022-04/ADT1124_Ukraine_Commodity%20Restrictions%20Infographic%20vF.pdf

ISLE OF MAN: THE RUSSIA (SANCTIONS) (EU EXIT) (AMENDMENT) (NO. 9) REGULATIONS 2022

A news release from the Isle of Man on 29 April advised of the effects of the above Regulations.  They provide for a number of restrictions in the form of trade in services sanctions.  Separately, the always-useful EU Sanctions blog summarised the content of the UK regulations concerned –

  • Social media services, including video sharing platforms, to take reasonable steps to prevent content that is generated, uploaded or shared by a designated person/entity being encountered by a UK-based user;
  • internet access services, including fixed and wireless broadband providers, to take reasonable steps to prevent UK-based users from accessing websites provided by a designated person/entity; and
  • application stores, including those on smartphones, to take reasonable steps to prevent UK-based users from downloading or otherwise accessing an application provided by a designated person/entity.

https://www.gov.im/news/2022/apr/29/sanctions-russia/

https://www.europeansanctions.com/2022/04/uk-introduces-internet-related-russia-trade-sanctions/

COUNTERING A RESURGENT TERRORIST THREAT IN AFGHANISTAN

On 14 April, the Council on Foreign Relations think-tank in the US published an article saying that, with al-Qaeda and the self-proclaimed Islamic State in Khorasan growing in strength since the US withdrawal, it lays out a strategy for the US to prevent a renewed terrorist threat from emerging in Afghanistan.

https://www.cfr.org/report/countering-resurgent-terrorist-threat-afghanistan

CANADIAN PARLIAMENT IS CONSIDERING PROPOSED LEGISLATION THAT WOULD ALLOW FOR THE FORFEITURE AND DISTRIBUTION OF A SANCTIONED PERSON/ENTITY’S PROPERTY FOR HUMANITARIAN PURPOSES

On 29 April, the EU Sanctions blog reported that the 2 pieces of proposed legislation that would allow for the forfeiture and distribution of a sanctioned person/entity’s property for humanitarian purposes.

https://www.europeansanctions.com/2022/04/canada-proposes-legislation-to-redistribute-frozen-assets/

FinCEN ACTING DIRECTOR REPORTS ON EFFORTS TO IMPLEMENT AMLA

On 28 April, a news release from FinCEN said that the Acting Director had testified before the US House Financial Services Committee on the status of proposed rules to implement the Anti-Money Laundering Act 2020 (AMLA).  He described 3 proposed rules to implement the statutory requirements of AMLA corporate transparency provisions (CTA) on anonymous shell companies.  He also said that FinCEN is working with the Treasury Office of Terrorist Financing and Financial Crimes to “better understand” the unique AML/CFT risks of advisory activities; and that an Advance Notice of Proposed Rulemaking had been issued to address money laundering weaknesses in the US real estate market.

https://www.findknowdo.com/news/04/28/2022/fincen-acting-director-reports-efforts-implement-amla

Measnwhile –

ACTING FINCEN CHIEF SAYS FUNDING SHORTFALLS HAVE CAUSED DELAYS IN ON POLICING CRYPTOCURRENCY AND IMPLEMENTING MAJOR AML LAW

On 29 April, ICIJ reported that Acting Director told a US Congress committee that his agency is coming up short in the battle against dirty money due to a lack of resources.

https://www.icij.org/investigations/pandora-papers/as-us-pledges-renewed-fight-against-dirty-money-head-of-financial-crime-agency-says-funding-shortfalls-have-caused-delays/

IRAN: DRONES AND DIRECTED ENERGY AT CENTRE OF PROCUREMENT NETWORK

On 28 April, the Wisconsin Project on Nuclear Arms Control published an article saying that, from 2017 to 2018, an Iranian procurement network attempted to export sensitive counter-drone technology from the US to Iran.  The CEO of a telecommunications company in the UK was involved, using the British company as a front.  The man behind the attempt, Iranian national Jalal Rohollahnejad, is still active in Iran.  The network sought systems that would have required a licence from OFAC to be exported from the US to Iran – Industrial Microwave Systems (IMS) and counter-drone systems.

https://www.iranwatch.org/our-publications/international-enforcement-actions/drones-directed-energy-center-procurement-network

GUERNSEY TO DELAY TAX REFORM DEBATE TO EXPLORE CORPORATE TAX OPTIONS

On 29 April, Wolters Kluwer reported that Guernsey had announced that a parliamentary debate on tax reform, scheduled for July, will now be delayed until the end of the year, to allow time for consideration of corporate tax options.  Previously, Guernsey’s Policy and Resources Committee proposed that Guernsey could implement a goods and services tax to buoy finances. The introduction of a GST with either a 5% or 8% rate was included in 2 of 3 options put forward by the Policy and Resources Committee, which was asked to identify potential sources of revenue for the government. The alternative was proposed to be a 3% “health tax”, levied through the social security system.

https://www.tax-news.com/news/Guernsey_To_Delay_Tax_Reform_Debate_To_Explore_Corporate_Tax_Options____98012.html

500 SEAFARERS REMAIN TRAPPED ON VESSELS STUCK IN UKRAINIAN PORTS

On 29 April, Hellenic Shipping News reported that just under 500 seafarers remain sheltered awaiting evacuation onboard 109 ships at Ukrainian ports in the Black Sea and the Sea of Azov, down from 2,000 6 weeks ago.  Around 1,500 have now been evacuated from their stranded vessels, according to new data gathered by the International Chamber of Shipping, collated in association with the IMO.

https://www.hellenicshippingnews.com/500-seafarers-remain-trapped-on-vessels-stuck-in-ukrainian-ports-1500-evacuated-since-march/

THE J5 JOINT CHIEFS OF GLOBAL TAX ENFORCEMENT LISTS ‘RED FLAG INDICATORS’ OF FRAUD IN NFT MARKETPLACES

OODA Loop reported that the  international tax consortium has issued a list of “red flag indicators” of fraud in non-fungible token (NFT) marketplaces to help banks, law enforcement and private industry crack down on criminal activity.  The J5 is made up of representatives of tax agencies from Australia, Canada, the Netherlands, UK and the US, and is tasked with sharing information and coordinating operations to fight international tax crime.

https://www.oodaloop.com/technology/2022/04/29/international-tax-consortium-lists-red-flag-indicators-of-fraud-in-nft-marketplaces/

https://www.coindesk.com/policy/2022/04/29/international-tax-consortium-lists-red-flag-indicators-of-fraud-in-nft-marketplaces/

OCC ISSUES FINAL RULE ALLOWING FOR SAR EXEMPTIONS

On 29 April, Weiner Brodsky Kider PC reported that the Office of the Comptroller of Currency in the US OCC recently issued a final rule which amends the OCC suspicious activity report (SAR) regulations and allows the agency to exempt certain financial institutions from the requirements of SAR regulations upon written request, and it harmonises the OCC’s legal authority with the exemption authority of FinCEN.  

https://www.jdsupra.com/legalnews/occ-issues-final-rule-allowing-for-sar-5786549/

Any modest contributions for my time and ongoing expenses are welcomed!  I have a page where you can do so, and where one-off contributions start as low as $3, at https://www.buymea3coffee.com/KoIvM842y

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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