A fifth case of monkey pox has been reported, described as a Panamanian, 57, who resides abroad, and entered Panama on 11 August.
in other news, the Superintendency of Non-Financial Subjects has established guidelines and guidelines on the obligations for the prevention of money laundering and financing of terrorism for lawyers and accountants. It doesn’t seem to be on the website (yet): https://ssnf.gob.pa/
18 AUGUST 2022
US: ART DEALERS, OTHER NON-BANK ENTITIES SUBJECT OF NEW BANK SECRECY ACT AMENDMENT
On 9 August, Barnes & Thornberg LLP published an article about the ENABLERS Act, passed by the House of Representatives in July, that would regulate professional services firms, art dealers, trust companies, and other market intermediaries as “financial institutions” under the Bank Secrecy Act (BSA) and requires them to report client information to the US Government. This is described as the most significant update to US AML regulations since the PATRIOT Act was passed in 2001. It says that, if the Act is enacted market participants, including accountants, attorneys, trust companies, art dealers, and others will face heightened reporting, client screening, along with other BSA provisions traditionally applicable to banks and other financial institutions.
US: DEFENDING RICO CLAIMS IN THE BUSINESS CONTEXT
On 17 August, Brownstein Hyatt Farber Schreck LLP published Part 3 of its series of articles on RICO claims. Part 1 described why a plan to defend against potential claims under the Racketeer Influenced and Corrupt Organizations Act should be in every business’s toolkit; and Part 2 explained that one of the best tools businesses have in that toolkit is moving to dismiss a RICO claim early because the plaintiff failed to allege that his purported injuries are sufficient to convey what is known as “RICO standing. In Part 3 the firm reminded businesses to not forget individual state’s RICO laws.
BELGIUM: NEW AML REGULATION FOR REAL ESTATE AGENTS
On 12 August, Seeds of Law published an article saying that, on 1 July, a new regulation repealed the old 2013 AML regulation. It does not introduce many new changes but gives a clearer picture of how real estate agents must comply with the obligations under the Anti-Money Laundering Law of 2017 and addresses a number of aspects relating to due diligence. It also defines high risk factors that apply to customers ( and transactions and adds additional high risk factors to the list contained in an annex to the Law.
AUSTRALIA TO IMPOSE AN IMPORT BAN ON RUSSIAN-ORIGIN GOLD
On 18 August, the EU Sanctions blog reported that the Australian Department of Foreign Affairs and Trade had published draft legislation to impose an import ban on Russian-origin gold in unwrought, semi-manufactured or powder forms.
A TAX AVOIDANCE PROMOTER BASED IN THE SHARD HAS BEEN NAMED BY HMRC
On 18 August, HMRC named ContractorCare Ltd as a tax avoidance promoter, along with PAYEme Ltd, and Gateway Outsource Solutions Ltd. Customers are being urged to withdraw from the published schemes and contact HMRC as soon as possible.
REFLECTIONS ON THE UK’S ECONOMIC CRIME PLAN 2019–2022
On 18 August, a Commentary from RUSI says that the UK’s first Economic Crime Plan brought together the machinery of government, and that the second plan now needs to deliver the goods. It says that if the first ECP delivered some basic system maintenance in the form of legislative and policy reform, ECP2 needs to be about converting those reforms into tangible, real-world outcomes; and this won’t be easy and will require bigger systemic reforms.
UK: FRAUDSTER JAILED FOR FALSIFYING QUALIFICATIONS TO SECURE A TOP NHS JOB SHOULD HAVE TO PAY BACK SOME OF THE WAGES HE UNLAWFULLY RECEIVED
On 18 August, the Law Society Gazette reported on a hearing of the Supreme Court at which a POCA confiscation order for around £97,000 was made. It was said the case raised an important issue on the confiscation regime laid down by POCA 2002, and in particular what payments should be ordered against a so-called ‘CV fraudster’ who had nevertheless performed his job satisfactorily.
CJEU GIVES A WIDE DEFINITION OF WHAT CONSTITUTES PROCESSING OF SENSITIVE PERSONAL DATA
On 15 August, an article from Bird & Bird reported that on 1 August, the CJEU in Grand Chamber handed down a decision on the scope of Article 9 GDPR. Article 9 defines what constitutes “special categories of personal data”. The decision is said to have raised a few interesting points.
UK AMENDED RUSSIA SANCTIONS GENERAL LICENCE
On 17 August, the UK amended its General Licence which covers payments to and from insurers and designated persons.
IRAN IN ADVANCED STAGE OF TALKS TO JOIN RUSSIA’S MIR PAYMENT SYSTEM
On 17 August, Eurasia Review reported that Iran is in a very advanced stage of talks to join Russia’s Mir payment system. Russia established Mir, which means both “peace” and “world” in Russian, in 2017 as an alternative to international financial services like Visa and Mastercard. Several countries have seen use of the system, including Cuba, South Korea, some former Soviet republics and Turkey, and reports have suggested that the UAE also plans to join Mir.
HMRC REVEALS ALMOST HALF OF THOSE FALLING FOUL OF AML REGULATIONS ARE PROPERTY COMPANIES
On 17 August, Estate Agent Today reported that HMRC recently published a list of businesses that have received penalty notices for failure to meet their AML obligations, and almost half were in the property sector. Of 79 businesses that had breached AML regulations between April and December last year, more than 30 were estate agents, commercial property firms, valuers and auction houses.
4 MORE PEOPLE IN SINGAPORE CHARGED OVER WIRECARD CASE, TAKING TOTAL TO 7
On 17 August, Channel News Asia reported that the arrests come after investigations by the Singapore Police Force’s Commercial Affairs Department into the activities of 2 Singapore subsidiaries of the German company Wirecard AG. The 4 people allegedly conspired to dishonestly misappropriate money from the company.
INSIDER TRADING SAID TO OCCUR IN 10% TO 25% OF CRYPTOCURRENCY LISTINGS
On 17 August, Coin Telegraph reported that a study had found abnormal levels of return in a sample of tokens just before their listing announcement on Coinbase.
NETHERLANDS EXTRADITES RUSSIAN CRYPTO MONEY LAUNDERING SUSPECT TO US
On 18 August. NL Times reported that Denis Mihaqlovic Dubnikov, 29, is accused with others of laundering money obtained as the result of ransomware attacks in the US and elsewhere.
UKRAINE WAR MAKES A SLEEPY GREEK PORT A US ARMS HUB
On 18 August, the New York Times reported that the flow of US military supplies through Alexandroupoli in north-eastern Greece has angered Russia and Turkey. Now, companies with ties to Russia and the US are competing for control of the port.
UK: MUSEUM REPATRIATES OVER 70 BENIN ARTEFACTS TO NIGERIA
On 18 August, Art Law & More from Boodle Hatfield reported that the Horniman Museum and gardens will transfer the ownership of 72 objects to the Nigerian government, including its collection of Benin bronzes. The Nigerian government made a request for the objects in January 2022. In February 1897, about 10,000 objects were stolen during a military incursion into Benin City.
US TREASURY SANCTIONS TORNADO CASH AND TURNS UP HEAT ON MIXERS
On 17 August, Crowell Moring reported that, although OFAC’s action marks the second instance it has sanctioned a virtual currency mixer — it sanctioned Blender.io in May 2022 — this is the first time that OFAC has designated a non-entity software protocol. Tornado Cash is a “smart contract” that allows users to anonymise the origins, destinations, and counterparties for virtual currency transactions.
NORTH KOREAN SANCTIONS EVASION – THE MOVIE
The RAND Corporation has produced an hour-long video documentary in which experts chronicle the historical background and rationale for the sanctions, which aimed to constrain or alter North Korea’s proliferation activities, and discuss the threats posed by North Korean proliferation. Experts also describe the importance of sanctions enforcement and the tactics, techniques, procedures, and entities that North Korea has used to evade sanctions. A 2-minute trailer is also available online.
SOUTH KOREA’S AML WATCHDOG GOES AFTER 16 CRYPTO EXCHANGES OPERATING WITHOUT REGISTRATION
On 18 August, ZyCrypto reported that South Korea’s AML authority, the Korea Financial Intelligence Unit (KoFIU), part of South Korea’s Financial Services Commission, is taking action against over a dozen crypto exchanges from overseas that have been doing business in the country without proper registration. South Korea’s efforts to clamp down on the crypto industry have escalated following the May collapse of the Terra ecosystem, founded by Korean-born Do Kwon.
BINANCE ADDRESSES ALLEGED COMPLIANCE NEGLECT AND SAYS KYC EFFORTS COST THE EXCHANGE BILLIONS
On 18 August, ZyCrypto reported that, after a Reuters report allegedly linked Binance to money laundering schemes involving the top darknet and hacking groups, some members of Binance’s compliance team are said to have cleared the air on the allegations, highlighting some extra efforts put into compliance exercise and how this high scrutiny has also cost the exchange a fortune.
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