OTHER THINGS YOU MAY HAVE MISSED – JULY 22

The Panamanian health authorities have confirmed the registration of 3,372 cases of malaria, and Minsa also reported that to date i1,932 people with dengue have been reported, with only 225 with warning signs and 8 being identified as serious.

Meanwhile, the negotiations over the protests continued, and the Government has proposed adding another 17 products to the list of price-controlled food and other products, including toothpaste, toilet paper, bath soap, sanitary towels, deodorants, clorox disinfectant, vegetable oil, bread and bakery products, etc. In total, there would be 35 products that will have price regulation.

Interestingly, while fruit and veg has encountered problems in moving through the country, the National Migration Service has found ways of continue to process migrants and ship them to Costa Rica – with La Prensa noting that an estimated 50,000 migrants have entered Panama through the Darien so far this year.

22 JULY 2022

TRUST COMPANY SURVEY 2022: AML REGULATION

On 20 July, Herbert Smith Freehills published the findings of its 2021 survey of the most significant risk and compliance issues faced by trust companies, saying that AML concerns again ranks second again in survey responses. It says that the stand-out areas of difficulty in 2022 – by some margin – were understanding or evidencing source of wealth/source of funds for non-PEP clients, and addressing regulatory change.

https://www.herbertsmithfreehills.com/latest-thinking/trust-company-survey-2022-anti-money-laundering-regulation

UK: EVIDENCE PRESERVATION ORDERS

On 14 July, Clyde & Co published Part 2 of its guide to preliminary court applications, this time looking at Evidence Preservation Orders under the Civil Procedure Rules.  These may be made ex parte and in private.  A lengthier hearing might be needed where applying apply for an imaging application to create a digital copy of all data held on an electronic device, or a search order whereby the respondent is obliged to allow their home to be searched and for certain items to be removed.

https://www.clydeco.com/en/insights/2022/07/part-2-of-preliminary-applications-used-in-fraud-a

Part 1 is at –

https://www.clydeco.com/en/insights/2021/12/part-1-of-preliminary-applications-used-in-fraud-a

RUSSIAN TITANIUM MAKER IS LEFT OFF EU SANCTIONS LIST

On 21 July, the Wall Street Journal reported that the EU blocked a proposal to sanction Russian metals company VSMPO-Avisma PJSC, after France and other EU Member States objected to the move over fears of a potential retaliatory ban by Russia on titanium exports.  The company is a critical supplier of titanium to Airbus, which has publicly called for the EU to not ban Russian exports of titanium.

https://www.wsj.com/articles/russian-titanium-maker-is-pulled-off-sanctions-list-11658425381

FATF TRAVEL RULE FACES IMPLEMENTATION ISSUES

On 22 July, The Banker reported that the proposed changes, accompanied by additional clarifications and guidance published in subsequent years, have run into a number of implementation problems at the national level.  Since 2018, FATF has updated its standards to include virtual assets and virtual asset service providers (VASP).  The Travel Rule, which was adopted in 2019, requires that both originators and beneficiaries of digital fund transfers must swap key identifying information. It applies to all financial institutions and VASP, as well as obliged entities, which includes credit institutions, accountants and financial advisors, among other actors. 

https://www.thebanker.com/Banking-Regulation-Risk/FATF-s-Travel-Rule-faces-implementation-issues?ct=true

https://www.fatf-gafi.org/publications/fatfrecommendations/documents/targeted-update-virtual-assets-vasps.html

GERMANY: DEUTSCHE BANK SETTLES MONEY LAUNDERING CASE FOR €7 MILLION

On 21 July, the Luxembourg Times reported that Deutsche Bank has settled a probe by prosecutors looking into whether the bank violated money laundering prevention rules.  An inquiry found that the bank filed to file 701 reports of suspicious activities and acted “thoughtlessly”. 

https://www.luxtimes.lu/en/business-finance/deutsche-bank-settles-money-laundering-case-for-7m-62d98959de135b923621b0b2

EU: BREXIT AND THE PROTOCOL ON IRELAND/NORTHERN IRELAND – COMMISSION LAUNCHES 4 NEW INFRINGEMENT PROCEDURES AGAINST THE UK

On 22 July, the European Commission launched 4 new infringement procedures against the UK for not complying with significant parts of the Protocol on Ireland / Northern Ireland.  The UK has 2 months to reply to the letters, after which the Commission stands ready to take further measures.

https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4663

https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_4664

JERSEY RETURNS TO US £440,000 STOLEN BY FRAUDSTER ANTHONY GIGNAC

On 22 July, the BBC reported that fraudster Anthony Gignac was transferring money to a Jersey-based account before he was arrested; and the DoJ said he adopted at least 18 aliases and defrauded at least 26 victims from at least 5 countries out of more than $8 million.

https://www.bbc.com/news/world-europe-jersey-62262491

UK: FIRST-EVER CRITICAL MINERALS STRATEGY THAT AIMS TO IMPROVE THE SECURITY OF SUPPLY OF CRITICAL MINERALS

On 22 July, a news release from the Department of Business, Energy and Industrial Strategy says that the Strategy sets out the UK Government’s plans for improving the resilience of critical minerals supply chains and increasing our security of supply.

https://www.gov.uk/government/publications/uk-critical-mineral-strategy/resilience-for-the-future-the-uks-critical-minerals-strategy

TRANSPORTING GOODS BETWEEN GREAT BRITAIN AND THE EU BY RORO FREIGHT: UPDATED GUIDANCE FOR HAULIERS

On 22 July, the Department for Transport issued updated guidance which explains what documents you need, how to follow new rules to manage traffic heading to ports, and new border control processes.  Guidance on moving goods between Great Britain and Northern Ireland is published separately.

https://www.gov.uk/guidance/transporting-goods-between-great-britain-and-the-eu-by-roro-freight-guidance-for-hauliers

INSPECTOR’S REPORT RAISES CONCERNS AND CRITICISMS ABOUT THE CURRENT UK MIGRANT MANAGEMENT SYSTEM

On 21 July, Jurist reported on the release of the first report from the UK Independent Chief Inspector of Border and Immigration, David Neal.  The report focuses on the Home Office’s initial processing of migrants in Dover as they enter British waters and criticises the current process. 

https://www.jurist.org/news/2022/07/independent-inspector-releases-first-report-on-uk-french-border-migrant-crisis/

UN REPORT: MIGRANT SMUGGLING FROM THE NORTHWEST AFRICAN COAST TO THE CANARY ISLANDS

The UNODC Observatory on Smuggling of Migrants has published a report saying that, since 2020, around 40,000 people from West and North Africa have departed from the African coast across the Atlantic Ocean, and irregularly entered Spain at the Canary Islands. An interactive storymap investigates the characteristics of migrant smuggling along this route.  The analysis is based on field research conducted by UNODC on the Canary Islands in November 2021, in cooperation with the Spanish national authorities.  The findings have been triangulated and updated with academic literature and specialised sources.

https://www.unodc.org/res/som/docs/Observatory_StoryMap_3_NorthWestAfrica.pdf

UK: MAN JAILED FOR CONTEMPT OF COURT FOR BREACHES OF A RESTRAINT ORDER OBTAINED UNDER THE PROCEEDS OF CRIME ACT 2002

On 22 July, a release on Mondo Visione advised that the individual accepted all 10 breaches and the court sentenced him to 4 months imprisonment for each breach, to run concurrently.  All 10 breaches were in respect of his failure to disclose financial interests as required by the restraint order, which frustrated the FCA’s ability to identify and secure assets required to be frozen by the restraint order.

https://mondovisione.com/media-and-resources/news/uk-financial-conduct-authority-individual-sentenced-to-four-months-imprisonment/

G9 v G-PEP – THE 2 GANG ALLIANCES TEARING HAITI APART

On 21 July, Insight Crime reported on the 2 well-armed and well-connected gang alliances.

https://insightcrime.org/news/g9-gpep-two-gang-alliances-tearing-haiti-apart/

CANADA: CROWDFUNDING PLATFORMS AND CERTAIN PAYMENT SERVICE PROVIDERS MUST REGISTER WITH FINTRAC

A Notice from FINTRAC on 21 July reminded reporting entities that crowdfunding platforms and certain payment service providers are covered as money services businesses or foreign money services businesses under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).  This means that businesses engaged in crowdfunding platform services and certain payment services have obligations under the PCMLTFA, including the need to register with FINTRAC.

https://fintrac-canafe.canada.ca/notices-avis/2022-07-21-eng

2 SUSPECTS ARRESTED OVER $1.6 MILLION WINE HEIST AT SPANISH HOTEL

On 21 July, CNN reported that Spanish police have detained a pair of professional thieves accused of stealing more than $1.6 million worth of wine from a hotel in southern Spain.  They had evaded capture for almost 9 months before being arrested on the Montenegro-Croatia border for stealing the 45 bottles of wine in October. 

https://edition.cnn.com/2022/07/21/europe/spain-hotel-wine-heist-scli-intl/index.html

US: 3 CHARGED IN FIRST-EVER CRYPTOCURRENCY INSIDER TRADING TIPPING SCHEME

A news release from US DoJ on 21 July advised that the 3 were charged with wire fraud conspiracy and wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets by using confidential information about which crypto assets were scheduled to be listed on exchanges.

https://www.justice.gov/usao-sdny/pr/three-charged-first-ever-cryptocurrency-insider-trading-tipping-scheme

INDIA: NIRAV MODI ASSETS IN HONG KONG SEIZED BY ENFORCEMENT DIRECTORATE

On 22 June, NDTV and others reported that the gems, jewellery and deposits are said to belong to companies linked to fugitive diamond merchant Nirav Modi and are part of a money laundering probe.  All these moveable assets are in Hong Kong.  Modi, 50, is presently in a UK jail and has lost his appeal against extradition to India in connection with the $2 billion PNB bank fraud case.

https://www.ndtv.com/india-news/nirav-modis-assets-worth-rs-250-crore-seized-by-enforcement-directorate-3184206

https://www.thehindu.com/news/national/ed-attaches-gems-bank-deposits-worth-over-253-cr-of-nirav-modi-group-in-hong-kong/article65671084.ece

UK: NCA ARRESTS OF “ENABLERS”

On 21 July, the Belfast Telegraph reported that the NCA has said around a dozen people had been arrested in recent weeks, including some from the legal profession, in an attempt to stop countries such as Russia investing corrupt proceeds in the UK.  An NCA spokesman said that he could only provide limited details about the dozen “enablers” arrested.

https://www.belfasttelegraph.co.uk/news/uk/corrupt-foreigners-dissuaded-from-investing-in-uk-due-to-arrests-of-enablers-41858133.html

https://elements.visualcapitalist.com/a-lifetimes-consumption-of-fossil-fuels-visualized/

https://www.statista.com/chart/24571/central-bank-digital-currencies-around-the-world

US: BAN THE BOX LAWS – WHAT’S THE BOX AND WHY IS IT BANNED?

On 22 July, an article from Dorsey & Whitney LLP explains that an overwhelming majority of states have adopted what is widely known as “ban-the-box” laws or policies that generally prohibit employers from inquiring about an applicant’s criminal background until later in the hiring process.  The laws are intended to allow an employer to evaluate an applicant’s job qualifications first, without a criminal record overshadowing their candidacy.

https://www.jdsupra.com/legalnews/ban-the-box-laws-what-s-the-box-and-why-7045580/

US: TELEMEDICINE SPECIAL FRAUD ALERT

On 22 July, an article from Tucker Arensberg PC said that, on 20 July, the US Office of Inspector General (OIG) released another in a Special fraud Alert, directed to potentially fraudulent telehealth, telemedicine, and telemarketing service fraud schemes (“Telemedicine Companies”).  It warned that these were engaged in schemes to pay kickbacks to practitioners to generate fraudulent orders for medical services.

https://www.jdsupra.com/legalnews/telemedicine-special-fraud-alert-5377051/

UKRAINE AND RUSSIA SIGN UN-BACKED DEAL TO RESTART GRAIN EXPORTS

On 22 July, the Guardian reported that Ukraine and Russia have signed a UN-backed deal to allow the export of millions of tonnes of grain from blockaded Black Sea ports, potentially averting the threat of a catastrophic global food crisis.  Ukraine has deep scepticism about Russia’s intentions but an adviser to Ukraine’s president said Ukraine was trusting in the UN and Turkey to police the agreement.

https://www.theguardian.com/world/2022/jul/22/ukraine-russia-sign-un-backed-deal-restart-grain-exports

“OPENING EXTRACTIVES”: HOW BENEFICIAL OWNERSHIP TRANSPARENCY IN EXTRACTIVE SECTORS HELPS CURB CORRUPTION

On 20 July, an article from the Basel Institute on Governance consists of a blog by the Executive Director of the Extractive Industries Transparency Initiative (EITI) explains the key takeaways with insights from a in panel meeting in Basel which discussed how the new “Opening Extractives” programme seeks to create new momentum for beneficial ownership transparency in a sector that has been prone to corruption risks.  It is said that Opening Extractives will build on progress made by governments, companies, civil society and other stakeholders to establish the legal reforms and technical systems required to make ownership data public and promote its use.

https://baselgovernance.org/news/opening-extractives-how-beneficial-ownership-transparency-extractive-sectors-helps-curb

https://eiti.org/opening-extractives

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ENSURING INTEGRITY IN THE GLOBAL GOLD SUPPLY CHAIN – AN INITIATIVE AIMS TO MONITOR THE MOVEMENT OF GOLD THROUGH THE GLOBAL SUPPLY CHAIN, INCLUDING PROVENANCE AND CHAIN OF CUSTODY

On 21 July, HFW published a briefing saying that the London Bullion Market Association (LBMA) and the World Gold Council recently announced their collaboration on the new Gold Bar Integrity (GBI) initiative. The GBI initiative aims to monitor the movement of gold through the global supply chain, including provenance and chain of custody.  It is initiative is currently in its pilot phase but over time, the intention is that it will ensure more sustainable and responsible sourcing throughout the wider international gold market.

https://www.hfw.com/downloads/004218-HFW-Ensuring-integrity-in-the-global-gold-supply-chain.pdf

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HMRC: CDS FREQUENTLY ASKED QUESTIONS – UPDATED 20 JULY 

On 20 July, the British International Freight Association published updated FAQ about the import/export declaration system that is replacing the old CHIEF system.  HMRC will be closing the Customs Handling of Import and Export Freight (CHIEF) system in 2 stages –

  • On 30 September 2022: the ability to make import declarations will end; and
  • On 31 March 2023: the ability to make export declarations will end.

In its place, the Customs Declaration Service (CDS) will serve as the UK’s single
customs platform, with all businesses needing to declare goods through CDS after 31 March 2023.

https://www.bifa.org/media/4946828/cds-faqs-v1_july20th-2022.pdf

https://www.bifa.org/media/4878813/106503_cds_data_element_correlation_table_v4.pdf

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OFAC: RUSSIA SANCTIONS – 2 NEW GENERAL LICENSES, 2 AMENDED FAQ, PLUS 1 EXISTING ENTRY AMENDED

On 22 July, OFAC advised the issue of 2 General Licenses – 45 (Authorising transactions related to the wind down of certain financial contracts) and 46 (Authorising transactions in support of an auction process to settle certain credit derivative transactions); plus 2 FAQ relating to investment prohibitions are amended; and the entry relating to NORTH WESTERN REGIONAL CENTER OF ALMAZ ANTEY CONCERN OBUKHOVSKY PLANT has been amended.

https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220722

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JOINT STATEMENT BY THE US AND THE UK ON DATA ACCESS AGREEMENT

A news release from the US DoJ on 21 July advised that the 2 countries intend to bring into force the 2019 Agreement on access to electronic data for the purpose of countering serious crime, on 3 October.  It is said that the entry into force of the Data Access Agreement will start a new era of co-operation between the US and the UK, bringing forward a renewed commitment to tackling the threat of serious crime.  

https://www.justice.gov/opa/pr/joint-statement-united-states-and-united-kingdom-data-access-agreement

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NEW UK RUSSIA GENERAL LICENCE FOR INSURANCE SERVICES

On 22 July, a new General Licence from HM Treasury allows individuals or entities designated under the UK Sanctions Regimes (but not UN sanctions) to make payments to UK insurers for insurance premiums and broker commissions relating to the provision of building and engineering insurance cover provided to UK properties.  It also permits UK insurers to make payments to UK Designated Persons due as a result of a successful claim made against an insurance policy provided by the UK insurer or refunds due as a result of any over payments made pursuant to the licence.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1093220/INT-2022-2009156__Publication_Notice.pdf

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FATF CONSOLIDATED AML/CFT ASSESSMENT RATINGS

On 21 July, following its publication of the MER on Aruba and Grenada, FATF published an updated consolidated schedule of assessment ratings to date.  It provides an up-to-date overview of the ratings on both effectiveness and technical compliance for all countries assessed against the 2012 FATF Recommendations and using the 2013 Assessment Methodology.

http://www.fatf-gafi.org/media/fatf/documents/4th-Round-Ratings.pdf

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FATF PUBLISHED AML/CFT EVALUATION REPORTS ON GRENADA AND ARUBA

On 21 July, FATF published the MER already published by FATF-style regional body CFATF.

http://www.fatf-gafi.org/media/fatf/documents/reports/mer-fsrb/CFATF-Mutual-Evaluation-Report-Grenada-2022.pdf

http://www.fatf-gafi.org/media/fatf/documents/reports/mer-fsrb/CFATF-Mutual-Evaluation-Report-Aruba-2022.pdf

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JERSEY FSC ANNUAL REPORT 2021

The Annual Report highlights AML/CFT as a core area of ongoing focus and, during 2021, the FSC staff have been heavily focused on preparations for the Moneyval inspection.  Work included strengthening the legislative and regulatory frameworks and enhancing our approach to the supervision of AML/CFT.  The FSC says that it believes that focus needs to continue beyond the following MONEYVAL assessment, and the success of Jersey relies on its reputation, and this is permanently under scrutiny, not just every time there is an assessment.  Therefore, the focus on AML/CFT is and will be a permanent priority for the FSC.

https://www.jerseyfsc.org/publications/annual-reports/annual-report-2021/

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EU COUNCIL SEVENTH RUSSIA SANCTIONS PACKAGE, INCLUDING ITS “MAINTENANCE AND ALIGNMENT” SANCTIONS PACKAGE 

On 22 July, EU Sanctions blog reported that the EU Council had adopted a new package of sanctions which include such things as a ban on the use of locks (i.e. those used by ships on canals etc), the import of Russian gold (excluding jewellery), expanding the scope of the ban accepting deposits from persons in third countries acting for Russians.  Some exemptions are provided for or extended.  The package also involves 48 individuals and 9 entities (an EU news release on 21 July says 54 and 10 respectively) being added to the sanctions lists, including Sberbank, and it obliges designated people and entities with assets within an EU Member State’s jurisdiction to report these assets and to cooperate with the competent authority in the verification of the reporting.  EU regulation 2022/1269/EU and Council Decision 2022/1271/CFSP refer.

https://www.europeansanctions.com/2022/07/eu-adopts-7th-package-of-russia-sanctions/

https://www.consilium.europa.eu/en/press/press-releases/2022/07/21/russia-s-aggression-against-ukraine-eu-adopts-maintenance-and-alignment-package/

https://www.consilium.europa.eu/en/press/press-releases/2022/07/22/russia-s-aggression-against-ukraine-the-eu-targets-additional-54-individuals-and-10-entities/

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022R1269&from=EN

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022D1271&from=EN

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022R1270&from=EN

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022D1272&from=EN

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