OTHER THINGS YOU MAY HAVE MISSED – AUGUST 4

With the teachers now back at work, the children in the state school around the corner from us can be seen, smartly dressed in uniforms, tunring up before 7 am. I don’t think you would see most British schoolchildren even awake at that time – certainly I would not have been up and out by then when I was their age.

Meanwhile, the talks on the other various disputes continue…

4 AUGUST 2022

ISLE OF MAN: CONSOLIDATED RUSSIAN SANCTIONS LEGISLATION

On 4 August, the Isle of Man authorities published a useful consolidated version of its Russian sanctions legislation (which mirrors that of the UK) to date.

https://www.gov.im/news/2022/aug/04/consolidate-legislation-russia/

ENTRY INTO THE UK: UPCOMING CHANGES – ELECTRONIC TRAVEL AUTHORISATION (ETA) SYSTEM

On 2 August, an article from Envoy Global Inc said that the UK has announced a new plan which outlines how the UK will digitise the immigration process and achieve a contactless border crossing plan by 2025.  This involves ETA, which, much like existing systems in the US (ESTA), Canada (ETA), Australia (eTA), and New Zealand (NZeTA), will be used for more visibility in tracking travel and to maintain new secure border crossing protocols, and for all visa-exempt travellers seeking to enter the UK.  Applicants for an ETA will be required to provide their biographic, biometric and contact details as well as answer a set of questions before approval can be granted.  Those seeking employment etc will need to additionally apply for a visa or other permission.

The EU, of course, is also due to introduce its equivalent in 2023.

https://www.mondaq.com/uk/work-visas/1217580/entry-into-the-united-kingdom-upcoming-changes

GUIDANCE NOTES ON COMPLYING WITH BENEFICIAL OWNERSHIP OBLIGATIONS IN THE CAYMAN ISLANDS

On 2 August, Appleby published an article which provides an overview of the Cayman Islands Beneficial Ownership Guidance Notes.

https://www.mondaq.com/caymanislands/corporate-and-company-law/1217620/guidance-notes-on-complying-with-beneficial-ownership-obligations-in-the-cayman-islands

UAE EXCHANGE HOUSE FINED $1.4 MILLION FOR INSUFFICIENT POLICY ON TERRORISM FINANCING

On 27 July, Alarabiya News reported that the UAE has issued a $1.4 million fine on an exchange house for not sufficiently following policy to prevent money laundering and financing terrorism.  The company was not named.

https://english.alarabiya.net/business/banking-and-finance/2022/07/27/UAE-exchange-house-fined-1-4-million-for-insufficient-policy-on-terrorism-financing

PHILIPPINES SUSPENDS CREWING AGENCY FOR ILLEGAL PRACTICES

On 4 August, Seatrade Maritime News reported that crewing agency Global Marine and Offshore Resources has had its licence suspended by the Filipino authorities for illegally charging placement fees and breaching seafarer contracts.  Allegations highlighted the illegal charging of placement fees to seafarers, as well as being placed on different vessels to those described in their contract, and failure to pay wages.

https://www.seatrade-maritime.com/crewing/philippines-suspends-crewing-agency-illegal-practices

NEW ZEALAND DECLARES PROUD BOYS AND THE BASE TERRORIST ORGANISATIONS

On 30 July, PBS reported that New Zealand’s government has declared US far-right groups the Proud Boys and The Base as being terrorist organisations, making it illegal in New Zealand to fund, recruit or participate in the groups, and obligating authorities to take action against them.  In the US, the State Department only lists foreign groups as terrorist entities, but the Proud Boys were last year named a terrorist group in Canada, while The Base has previously been declared a terrorist group in Britain, Canada and Australia.  New Zealand police issued a 29-page explanation of why the Proud Boys were designated.

https://www.pbs.org/newshour/politics/new-zealand-declares-proud-boys-a-terrorist-organization

https://www.police.govt.nz/sites/default/files/publications/statement-of-case-the-american-proud-boys-terrorist-entity-20-june-2022.pdf

FOCUS ON VICTIMS’ RIGHTS LEADS TO INVESTOR PAY-OUTS IN CREDIT SUISSE CASE

On 4 August, the Wall Street Journal reported that earlier this year the DoJ said it would place an increased emphasis on compensating the victims of white-collar crime.  For 2 decades, federal prosecutors have aggressively prosecuted companies and executives that pay bribes to win business overseas, most often through use of the FCPA, but rarely have they sought to identify specific victims of corruption – but this is changing and companies like Credit Suisse are paying closer attention to the possibility of restitution claims made by victims when negotiating settlements over criminal wrongdoing.  As part its restitution deal, Credit Suisse AG agreed to a pay-out to a group of investment firms, pension funds and money managers that helped finance the project.

https://www.wsj.com/articles/a-focus-on-victims-rights-leads-to-investor-payouts-in-credit-suisse-case-11659605402

GUERNSEY’S NEW CHARITIES LAW: KEY POINTS FOR TRUST AND CORPORATE SERVICE PROVIDERS

On 1 August, an article from Ogier said that Guernsey had introduced new charities legislation on 29 April, redefining charities and non-profit organisations under Guernsey law, setting out criteria to determine which of them are required to be registered on the Register of Charities and other Non Profit Organisations, and laying out the governance and risk mitigation measures that such organisations are required to implement.

https://www.ogier.com/publications/guernseys-new-charities-law-key-points-for-guernsey-trust-and-corporate-service-providers

More information is available at: http://www.guernseyregistry.com/

NEW ZEALAND ADDS 61 ENTITIES TO ITS RUSSIA SANCTIONS LIST

On 4 August, the EU Sanctions blog reported that New Zealand adopted an autonomous sanctions framework an Act which received Royal assent on 11 March.

https://www.europeansanctions.com/2022/08/new-zealand-adds-61-entities-to-russia-sanctions-list-2/

ARTISANAL GOLD MINING IN SOUTH AFRICA IS OUT OF CONTROL

On 4 August, Defence Web reported that recent incidents point to a spike in the scale of illegal activity, conflict and criminality.  It explains that artisanal mining is a labour-intensive form of mining that uses rudimentary tools and technologies.  It has been estimated that approximately 30,000 illegal miners produce over $8 million worth gold per annum, and the UAE and Switzerland have been identified as the primary export destinations.

https://www.defenceweb.co.za/security/civil-security/artisanal-gold-mining-in-south-africa-is-out-of-control/

DECHERT TO MAKE A £20 MILLION INTERIM PAYMENT TO FORMER CLIENT EURASIAN NATURAL RESOURCES CORPORATION (ENRC) AFTER DEFEAT IN THE HIGH COURT

On 4 August, the Law Society Gazette reported that the law firm was to make the payment after it was found that the firm’s former co-head of white-collar crime Neil Gerrard, 67, deliberately leaked ENRC’s confidential information to the press and the Serious Fraud Office.

https://www.lawgazette.co.uk/news/dechert-agrees-20m-interim-payment-to-enrc/5113334.article

NIGERIA: PENTECOSTAL CHURCHES COMPLICIT IN HUMAN TRAFFICKING

On 3 August, OCCRP reported claims by an Italian investigative body that throughout Nigeria, Pentecostal churches act as a gateway for criminal organisations to traffic young girls across Europe and coerce them into the world of prostitution.  It is alleged that women linked to the churches recruit young girls with the promise of work in Europe; in exchange for organising the logistics, they demand that their victims repay them through various employment opportunities, all of which turn out to be prostitution.

https://www.occrp.org/en/daily/16640-nigeria-pentecostal-churches-complicit-in-human-trafficking

HAMAS AS IRAN’S AGENT

On 2 August, an analysis published by Eurasia Review said that, since the late 1980s, the Islamic Republic of Iran has been plying the Hamas terrorist group with cash and weapons while also teaching it how to be self-sufficient.  However, it says, Iran’s role is often overlooked when assessing the performance of Hamas in its multiple armed confrontations with Israel.  It says that history shows that Iran has played a major part, and that with continued Iranian assistance, Hamas can only be expected to grow in sophistication and lethality.

https://www.eurasiareview.com/02082022-hamas-as-tehrans-agent-analysis/

THE WAY FORWARD FOR BETTER REGULATION IN THE EU – BETTER FOCUS, SYNERGIES, DATA AND TECHNOLOGY

On 4 August, a briefing paper from the EU Parliament Research Service looks at the use of data for the purpose of regulatory assessment/evaluation.  The author finds that data is needed to support evidence-based regulation, that information technologies, and in particular AI, can enable a more extensive and beneficial use of data, and that the use of data in ex-post evaluations can improve the regulatory process.  The in-depth analysis offers policy recommendations.

https://www.europarl.europa.eu/RegData/etudes/IDAN/2022/736129/IPOL_IDA(2022)736129_EN.pdf

HONG KONG: SFC SEEKS TO INCREASE ENFORCEMENT POWERS

On 4 August, Eversheds Sutherland reported that the Securities and Futures Commission in Hong Kong was consulting the market on proposed changes to the existing enforcement regime under the Securities and Futures Ordinance.  It would like to to expand the SFC’s disciplinary power in respect of the breach of its codes and guidelines by a regulated person, clarify the professional investor exemption to the prohibition on the issue of advertisements, and the territorial scope of the insider dealing provisions of the Ordinance.

https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/global/Hong-Kong/SFC_Seeks_to_Widen_Its_Enforcement_Power

ITALIAN TAX POLICE SEIZE PROPERTY OF ARCHITECT WHO DESIGNED ‘PUTIN’S PALACE’

On 4 August, Rferl reported that tax police in Italy have seized assets worth more than €141 million said to belong to an architect who designed a luxury estate dubbed “Putin’s Palace” by opponents of the Russian President.  Reuters said the assets belonged to Lanfranco Cirillo.  Authorities said that a “well-known professional” failed to pay taxes from 2013 to 2019. 

https://www.rferl.org/a/russia-italian-architect-putin-palace-cirillo-assets-seized/31973158.html

UKRAINE CALLS ON LEBANON TO RECONSIDER DECISION TO ALLOW TRANSPORTATION OF SHIP WITH ‘STOLEN’ GRAIN

On 4 August, Refrl reported that Ukraine has called on Lebanon to reconsider a court decision to allow a seized Syrian ship, the Syrian-flagged Laodicea, carrying what it says is stolen Ukrainian grain to sail. 

https://www.rferl.org/a/ukraine-stolen-grain-lebanon-russia-laodicea/31973585.html

VIETNAMESE GARMENT MANUFACTURERS STRUGGLE TO COMPLY WITH US BAN ON XINJIANG COTTON

On 4 August, RFA reported that Vietnam’s heavy reliance on cotton imports from China could lead it to fall foul of a US ban on cotton produced by forced labour in Xinjiang province.  Vietnamese manufacturers say it is hard to prove where the fabric in their garments comes from.  The move has reportedly led fashion chains such as Japan’s United Arrows to stop selling clothes made from Xinjiang cotton.  Countries such as Vietnam and Bangladesh, the world’s second and third largest garment exporters, still depend heavily on imports of Chinese fabric and yarn, particularly high-end materials.

https://www.rfa.org/english/news/vietnam/vietnamese-garment-manufacturers-struggle-08042022002121.html

AUSTRALIA: REPORTS OF HUMAN TRAFFICKING AND SLAVERY TO THE AFP HAVE INCREASED TO THE HIGHEST-EVER LEVEL

On 30 July, a news release from the Australian Federal Police advised that 294 reports of human trafficking or slavery made to the AFP in the last financial year the 5 most reported crime types were:

https://www.afp.gov.au/news-media/media-releases/reports-human-trafficking-and-slavery-afp-reach-new-high

FRAUDULENT CARIBBEAN RESORTS OWNER CONVICTED AFTER SFO INVESTIGATION

On 3 August, a news release from the SFO advised that it has successfully convicted the individual behind a £226 million fraud involving celebrity-endorsed luxury resorts in the Caribbean.  David Ames, 70, was found guilty by a jury at Southwark Crown Court on 2 counts of fraud by abuse of position.  He offered no evidence in his defence.  Ames deceived over 8,000 UK investors in the Harlequin Group, a hotel and resorts development venture.  Victims were led to believe they had a secure investment in property whereas, in reality, Harlequin Group was never operating as promised.

https://www.sfo.gov.uk/2022/08/03/fraudulent-caribbean-resorts-owner-convicted-after-sfo-investigation/

https://www.linkedin.com/posts/baptisteforestierlinkcy_bankingindustry-money-moneylaundering-activity-6960848477136297984-T4_f

US: BIOTECHNOLOGY COMPANY BIOGEN DISCLOSES $900 MILLION AGREEMENT IN WHISTLEBLOWER KICKBACK SUIT

On 21 July, Compliance Week reported that the Massachusetts-based biotechnology company reached an agreement in principle to resolve a False Claims Act lawsuit brought by a whistleblower alleging the payment of unlawful kickbacks to physicians.  The National law Review said that the claims were based on allegations that Biogen’s speaker and consultant programs were a façade for a scheme to pay doctors in exchange for prescribing Biogen drugs in violation of the Anti-Kickback Statute (AKS).  The latter source also says that applying the lessons of recent enforcement efforts and government statements about speaker programs may be the key to mitigating the risks inherent in such programs. 

https://www.complianceweek.com/anti-corruption/biogen-discloses-900m-agreement-in-whistleblower-kickback-suit

https://www.natlawreview.com/article/recent-900-million-fca-settlement-highlights-risks-speaker-programs

EUROPEAN DATA PROTECTION SUPERVISOR WARNS THAT UK GDPR REFORMS COULD CREATE FRICTION WITH EU

On 13 July, Compliance Week reported that the EDPS had said that the UK keenness to agree to its own data adequacy decisions with countries like the US could become a contentious issue with the EU.  The European Commission has concerns about how EU date sent to the UK is then transferred to third countries not considered to have the same level of data protection. The UK adequacy agreement with the EU is up for renewal in 2025.

https://www.complianceweek.com/data-privacy/edps-uk-gdpr-reforms-could-create-friction-with-eu/31851.article

https://www.jdsupra.com/legalnews/the-data-protection-and-digital-2683236/

INDIA SET TO IMPORT MORE RUSSIAN CRUDE IN JULY THAN CHINA

On 27 July, TradeWinds reported that India is set to overtake China as the top importer, as refiners rush to exploit cut-price sanctioned Russian oil.

https://www.tradewindsnews.com/tankers/india-set-to-import-more-russian-crude-in-july-than-china/2-1-1267386

https://elements.visualcapitalist.com/largest-producers-of-natural-gas/

US CONSIDERS CRACKDOWN ON MEMORY CHIP MAKERS IN CHINA

On 1 August, Reuters reported that the US is considering limiting shipments of US chipmaking equipment to memory chip makers in China including Yangtze Memory Technologies Co Ltd (YMTC), according to people familiar with the matter, part of a bid to halt China’s semiconductor sector advances and protect US companies.  This could also hurt South Korean memory chipmaker Samsung Electronics Co Ltd which has two big factories in China. 

https://www.reuters.com/technology/us-considers-crackdown-memory-chip-makers-china-2022-08-01

US ENFORCEMENT ACTION AGAINST VENEZUELAN CARGO AIRLINE FOR VIOLATION OF US EXPORT CONTROLS

On 2 August, a news release from the US Commerce Department’s Bureau of Industry and Security said it had suspended the export privileges of Venezuela-based cargo airline Empresa de Transporte Aéreocargo del Sur SA (aka Aerocargo del Sur Transportation Company, or EMTRASUR) for 180 days for acquiring custody or control of a US-origin Boeing 747 aircraft from Mahan Air of Iran in violation of US export controls and for engaging in further violations by operating that aircraft on flights between Venezuela, Iran, and Russia. The aircraft is currently detained in Argentina, according to media reports.

https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3110-2022-08-02-bis-press-release-emtrasur-tdo/file

RUSSIA’S OIL EXPORTS TO CHINA VIA ‘DARK’ SHIP-TO-SHIP TRANSFERS HAVE SURGED AS TRADING SECRECY GROWS

On 30 July, Market Insider reported that the amount of Russian oil involved in “dark” ship-to-ship (STS) transfers has risen sharply over the last few months, as Western sanctions lead to higher levels of secrecy in global crude markets and a redirection of supplies towards Asia.  It explains that, in a STS transfer, one vessel unloads its cargo into another while at sea.  When such a transfer is “dark”, it means at least one vessel has turned off the tracking signal that lets authorities see where it is.

https://markets.businessinsider.com/news/commodities/russian-oil-exports-china-dark-ship-transfers-rise-sanctions-ukraine-2022-7

ASSET TRANSFERS BY OWNERS OF RUSSIA’S ALFA-BANK TOTAL IN THE BILLIONS

On 2 August, Kharon reported that Russian oligarchs hit by US and EU sanctions have transferred assets worth billions of dollars to close business associates who do not appear on sanctions lists, in efforts to avoid asset freezes.  It goes on to say that the founders and directors of Alfa-Bank and its parent company Alfa Group — Mikhail Fridman, German Khan, and Alexei Kuzmichyov — have been sanctioned by Canada, the EU, and UK.  In March, they transferred their ownership interests in Luxembourg-based ABH Holdings SA to their business associate Andrei Kosogov, who has not been targeted by sanctions. 

https://brief.kharon.com/updates/asset-transfers-by-owners-of-russia-s-alfa-bank-total-in-the-billions

PROFESSIONAL’S GUIDE TO GENERATING BLACK MONEY IN INDIA

On 2 August, Newsinterpretation carried an article about “Black Money”, which is money which has evaded tax and provides one method by which accountants in India generate Black Money.  This uses fake invoices.

https://newsinterpretation.com/2022/08/02/black-money-cycle/#Black_Money_Generation_Process

SWITZERLAND PARTIALLY IMPLEMENTS SEVENTH EU SANCTIONS PACKAGE

On 4 August, Baker McKenzie reported that the Swiss Federal Council had decided on the partial implementation of the substantive amendments to the EU sanctions (i.e. the seventh sanctions package).  The measures include the ban on gold, gold products and services relating to them, and carve-outs for agricultural and food products and oil supplies.

https://sanctionsnews.bakermckenzie.com/switzerland-partially-implements-seventh-eu-sanctions-package/

CANADA: RUSSIA SANCTIONS – ADDITIONAL DESIGNATIONS ON 43 MILITARY OFFICIALS AND 17 DEFENCE SECTOR ENTITIES

On 4 August, a post from Baker McKenzie reported that, with effect from 29 July, Canada had designated an additional 43 individuals, which includes some individuals identified “as military officials involved in the Bucha massacre”.  In addition, it designated an additional 17 defence sector entities considered by the Government to be directly or indirectly supporting the Russian military.  

https://sanctionsnews.bakermckenzie.com/canada-introduces-additional-designations-on-43-military-officials-and-17-defense-sector-entities/

THE 4 BIG CHALLENGES OF EXPORTING SUCCESSFULLY: EXPLAINED AND ANSWERED

On 3 August, an article from the Global Trade Magazine identified the 4 areas of challenge as the Choice of Incoterms, logistics, import clearance, and getting paid.

https://www.globaltrademag.com/the-four-big-challenges-of-exporting-successfully-explained-and-answered/

TUNISIA: BACK TO SQUARE ONE

On 3 August, an article from the Carnegie Middle East Center asks, as Tunisia slips back into apparent autocracy, why did Tunisia change direction so abruptly, and what lies ahead for the birthplace of the Arab Spring?  It says that the major issue in Tunisia remains the ailing economy, and this may yet undermine President Qaïs Saied’s autocratic ambitions.

https://carnegie-mec.org/diwan/87620

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

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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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