OTHER THINGS YOU MAY HAVE MISSED – AUGUST 2

Well, some good news – Panamanian health authorities have only registered 1 case of monkeypox and this person has already recovered. Meanwhile, in just 3 months authorities have given 1 million flu vaccinations.

2 AUGUST 2022

UK: WILLS – FRAUDULENT CALUMNY AND UNDUE INFLUENCE

On 28 July, an article from Herbert Smith Freehills reported that the High Court had examined the circumstances in which a will can be set aside on the basis of fraudulent calumny and/or undue influence.  It says that this decision is relevant to those wishing to challenge the validity of wills on the basis they were procured improperly, and to those who are seeking to defend such a challenge.  It helpfully explains that fraudulent calumny occurs where a beneficiary of a will makes untrue comments to the testator about the character of another potential beneficiary in order to reduce their entitlement under the will, and that there is a high burden of proof on the Claimant for proving fraudulent calumny. 

https://www.mondaq.com/uk/white-collar-crime-anti-corruption-fraud/1210806/fraudulent-calumny-and-undue-influence-the-high-court-determines-the-validity-of-a-will

UK: EXTRADITION PROCESSES AND REVIEW

On 1 August, the Home Office issued updated guidance on extradition processes and agreements between the UK and other countries, including the role of the Secretary of State, the High Court and Supreme Court.

https://www.gov.uk/guidance/extradition-processes-and-review#full-publication-update-history

BREXIT AND THE UK’S OVERSEAS TERRITORIES 

On 1 August, the House of Commons Library published a briefing which considers Brexit and the 14 Overseas Territories, in relation to trade, funding, defence and sovereignty (of Gibraltar and the Falkland Islands).

https://researchbriefings.files.parliament.uk/documents/CBP-9592/CBP-9592.pdf

THE NEW CAYMAN ISLANDS RESTRUCTURING OFFICER REGIME

On 1 August, Walkers published an article saying that reforms to the Cayman Islands restructuring and insolvency legislation will come into force on 31 August.  They will introduce a new restructuring officer regime available to companies in financial distress, which can be accessed without the need to present a winding up petition to the Grand Court.

https://www.jdsupra.com/legalnews/introduction-of-the-new-cayman-islands-8157710/

HONDURAS REPORTS ‘HISTORIC’ COCA PLANTS SEIZURE

On 1 August, Reuters reported that Honduran authorities announced the discovery of more than 1.6 million coca leaf bushes in the most important seizure of its kind.  The bushes, used to make cocaine, were discovered after a 3-day operation and were located in 42 blocks in at least 4 plantations in mountainous areas in the coastal department of Colon.  The action brings total seizures so far this year to 2,625,015 bushes, up significantly from the 424,900 bushes found by local authorities in 2020 and 531,826 bushes found in 2021.

https://www.reuters.com/world/americas/honduras-reports-historic-coca-seizure-2022-08-02/

UK REGISTER OF OVERSEAS ENTITIES – A JERSEY PERSPECTIVE

On 1 August, an article from Appleby considers the effects of the new UK requirements, saying that any Jersey entities who are currently actively considering acquiring a relevant interest in land should ensure their application to be registered is done as soon as possible from 1 August to account for any delays or teething issues.  On and from 1 February, all Jersey entities owning land in the UK will need to be registered before any application or dealing made at the relevant Land Registry in respect of such land will be successfully registered.

https://www.applebyglobal.com/publications/register-of-overseas-entities-a-jersey-perspective/

SECURITIES COMMISSION MALAYSIA SEEKS ASSISTANCE FROM MEMBERS OF THE PUBLIC FOR INFORMATION TOWARDS LOCATING THE WHEREABOUTS OF 6 INDIVIDUALS

On 2 August, a release on Mondo Visione advised that the 6 persons are being investigated for possible breach of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) for receiving illegal proceeds via their bank accounts. 

https://mondovisione.com/media-and-resources/news/securities-commission-malaysia-seeks-public-help-to-locate-six-individuals-conne/

http://www.sc.com.my/regulation/enforcement/have-you-seen-these-people

UN VOTES TO EASE ARMS EMBARGO ON CENTRAL AFRICAN REPUBLIC

On 29 July, the UN advised that its Security Council has extended its arms embargo against the Central African Republic — as well as a travel ban and assets freeze imposed on certain individuals and entities, as designated by its Sanctions Committee — for 1 year to 31 July 2023, eased some of the embargo’s restrictions and renewed for 13 months the mandate of the Panel of Experts tasked with assisting that body.  Measures shall not apply to supplies brought into the CAR by Chadian or Sudanese forces solely for their use in international patrols of the tripartite force established to enhance security in the common border areas.  Supplies of non-lethal military equipment, intended solely for humanitarian or protective use, and related technical assistance or training, as notified to the 2127 Sanctions Committee are also exempted. 

https://press.un.org/en/2022/sc14991.doc.htm

AUSTRALIA: MAN CHARGED WITH ALLEGEDLY CREATING AND SELLING SPYWARE PURCHASED BY DOMESTIC VIOLENCE PERPETRATORS AND OTHER CRIMINALS

On 30 July, the Australian Federal Police advised that the man was 15 years old when he allegedly created the Remote Access Trojan (RAT).  He is now 24.  It is said that, in a world first for any law enforcement agency, the AFP was not only able to identify the alleged Australian offenders who bought the RAT but also identified the Australian victims who were targeted.

https://www.afp.gov.au/news-media/media-releases/afp-charges-man-creating-global-spyware-tool

AML COST BINANCE EXCHANGE ‘BILLIONS IN REVENUE’

On 31 July, CoinDesk carried an interview with 3 leading members of Binance’s investigations team, who opened up about what it takes to deal with fraud, money laundering, terrorist financing and bad press for the world’s largest crypto exchange.  They shared insights about the scale of illicit activity at Binance and its crime-fighting methods.

https://www.coindesk.com/layer2/2022/08/01/binance-compliance-officer-kyc-cost-exchange-billions-in-revenue/

The fall of the British Passport after Brexit, formerly ranked as the most powerful in the world.  According to the Henley Passport Index, one could visit more destinations without a prior visa than any other nationality.

https://twitter.com/paullewismoney/status/1554367479689920512?s=20&t=C_20kc8hHvmurw6gu473HQ

UAE CENTRAL BANK ISSUES NEW GUIDELINES ON DEALING WITH POLITICALLY EXPOSED PERSONS (PEP)

On 2 August, The National reported that the Bank had issued new guidelines on the risks related to PEP to help licensed financial institutions combat money laundering and terrorism financing.  It requires institutions to carry out risk ratings and additional assessments of such persons, and they are also required to conduct on-going monitoring of their business relationships with PEP.

https://www.thenationalnews.com/business/banking/2022/08/02/uae-central-bank-issues-new-guidelines-on-dealing-with-politically-exposed-persons/

BREXIT IS RADICALLY RESHAPING TRADE ON THE ISLAND OF IRELAND

On 2 August, Hellenic Shipping News reported that, amid acute political uncertainty and the upheaval of Brexit, the movement of goods on the island of Ireland has been transforming and seeing a significant boost.  According to figures from Ireland’s Central Statistics Office, in the first quarter of 2022 imports from Northern Ireland grew 34% year-on-year to €294 million and exports to the north grew 49% to €368 million.  Since early 2021, there has been a rapid increase in the number of cargo ships leaving Irish ports, such as Dublin and Rosslare in the south-east of the country, for ports in France and Spain to avoid the red tape of crossing through Britain.

https://www.hellenicshippingnews.com/theres-no-port-lying-idle-brexit-tumult-is-radically-reshaping-trade-on-the-island-of-ireland/

US TREASURY RELEASES CFIUS ANNUAL REPORT FOR 2021

On 2 August, the US Treasury published the public version of the Committee on Foreign Investment in the United States (CFIUS) Annual Report to Congress for calendar year 2021.  It highlights key indicators of the CFIUS process and provides statistics on transactions that were filed with CFIUS in 2021, the first full year since the regulations implementing the Foreign Investment Risk Review Modernization Act of 2018 were finalised.  Among other things, the Annual Report details measures taken to address national security risks arising from covered transactions.  During the year CFIUS reviewed a record number of covered transactions, including 164 declarations and 272 notices.

https://home.treasury.gov/system/files/206/CFIUS-Public-AnnualReporttoCongressCY2021.pdf

US: UPDATED LIST OF FOREIGN-PRODUCED COMMERCIAL AIRCRAFT EXPORTED TO RUSSIA IN APPARENT VIOLATION OF EXPORT CONTROLS

On 2 August, KPMG reported that the Commerce Department had announced an update to the list of aircraft that have flown into Russia or Belarus in apparent violation of the Export Administration Regulations (EAR) and added the first 25 foreign-produced aircraft that BIS has identified as apparently violating the de minimis threshold for US components.  There are now a total of 183 aircraft identified on the list for apparent violations of US export controls.

https://home.kpmg/us/en/home/insights/2022/08/tnf-us-updated-list-of-foreign-produced-commercial-aircraft-exported-to-russia-in-apparent-violation-of-export-controls.html

https://www.statista.com/chart/27892/share-of-food-imports-by-country-affected-by-by-food-export-bans

ISLE OF MAN NOTES CHANGES FOR VENEZUELA, RUSSIA AND NORTH KOREA SANCTIONS REGIMES

On 2 August, 3 news releases advised that the Isle of Man noted the various changes notified by HM Treasury earlier that day, and which also have effect in the Island.

https://www.gov.im/news/2022/aug/02/financial-sanctions-democratic-peoples-republic-of-korea/

https://www.gov.im/news/2022/aug/02/financial-sanctions-russia/

https://www.gov.im/news/2022/aug/02/financial-sanctions-venezuela/

WHO IS VIKTOR BOUT, ARMS DEALER LINKED TO SWAP FOR AMERICANS HELD BY MOSCOW?

On 2 August, EurActiv provided a profile of the jailed arms dealer.  Although previously used by the UN and others to move materials, Bout, 55, became one of the world’s most wanted men prior to his 2008 arrest on multiple charges related to arms trafficking following a DEA sting in Thailand.

https://www.euractiv.com/section/global-europe/news/who-is-viktor-bout-arms-dealer-linked-to-swap-for-americans-held-by-moscow/

UK: OFFSHORE CRYPTOCURRENCY EXCHANGE OBTAINS CLARITY FROM HIGH COURT ON OWNERSHIP AND CONTROL OF TRADING ACCOUNT

On 2 August, an article from White & Case LLP reported that the High Court in London had considered the entitlement to a cryptocurrency trading account, and the ownership of its contents, in proceedings brought by the operator of a cryptocurrency exchange.  This was in a stakeholder application, which are used as a means of determining entitlement to money or goods held by an entity that does not itself have a claim to the money or goods.

https://www.whitecase.com/publications/alert/offshore-cryptocurrency-exchange-obtains-clarity-english-high-court-ownership

US: $30 MILLION PENALTY ON ROBINHOOD CRYPTO FOR SIGNIFICANT AML, CYBERSECURITY & CONSUMER PROTECTION VIOLATIONS 

On 2 August, a release on Mondo Visione advised that the New York Department of Financial Services had fined Robinhood Crypto LLC for significant failures in the areas of bank secrecy act/AML obligations and cybersecurity.  The firm will also be required, as part of the settlement, to retain an independent consultant that will perform a comprehensive evaluation of its compliance with the Department’s regulations and its remediation efforts with respect to the identified deficiencies and violations.  

https://mondovisione.com/media-and-resources/news/new-york-department-of-financial-services-superintendent-harris-announces-30-mi/

SECURITIES COMMISSION MALAYSIA SEEKS PUBLIC HELP TO LOCATE 6 INDIVIDUALS CONNECTED TO MONEY LAUNDERING-RELATED OFFENCES

A release on Mondo Visione on 2 August advised that the Commission is seeking assistance from members of the public for information towards locating the whereabouts of 6 individuals, who are being investigated for having allegedly received illegal proceeds via their bank accounts. 

https://mondovisione.com/media-and-resources/news/securities-commission-malaysia-seeks-public-help-to-locate-six-individuals-conne/

CHINA’S BELT AND ROAD GRAPPLES WITH MOUNTING DEBT CRISIS, IMPACTING CENTRAL ASIA, PAKISTAN, AND BEYOND

On 2 August, Rferl reported that shortly before the Sri Lankan president fled the country amid growing protests triggered by its debt-laden economy’s default and financial crisis, a top Kyrgyz official issued a warning about his country’s own dire forecast as the turmoil unfolded.  Both took on billions worth of loans over the last decade from China’s Export-Import Bank for a series of infrastructure plans under the Belt and Road Initiative.  The warning comes as sovereign-debt distress spreads in several countries along the BRI, prompting China’s first overseas debt crisis as it grapples with a mounting pile of nonperforming loans and increased scrutiny of how Chinese lending has exacerbated economic pressures on vulnerable governments.

https://www.rferl.org/a/china-debt-crisis-belt-road-initiative-kyrgyzstan-pakistan-/31970756.html

THE RISE OF MONEY LAUNDERING IN INSURANCE

On 2 August, an article in Finextra contends that the insurance industry might not have the obvious routes for laundering cash that banks present, but there are still many opportunities; and furthermore, insurers are seemingly an easier target because fewer counter measures are in place.  It argues that insurance companies need to become as wise to the threat of money laundering as their banking cousins -and fast.

https://www.finextra.com/blogposting/22671/combatting-the-rise-of-money-laundering-in-insurance

Any modest contributions for my time and ongoing expenses are welcomed!  At Buy me a Coffee one-off contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

NOTE THAT THE ABOVE LINK IS NOW CORRECTED AND WORKS!

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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