OTHER THINGS YOU MAY HAVE MISSED – AUGUST 19

19 August 2022

JAPAN PLANS CYBERSECURITY TAX BREAK FOR DEFENCE CONTRACTORS

On 19 August, Nikkei Asia reported that Japan will consider offering tax incentives to defence contractors that bolster cybersecurity, aiming to better guard sensitive information from state-supported actors.  Many suppliers, including the smaller ones, could qualify if they adopt effective antivirus software, 2-step authorisation to access sensitive information and other safeguards.

https://asia.nikkei.com/Business/Aerospace-Defense/Japan-plans-cybersecurity-tax-break-for-defense-contractors

SOLAR PANELS PILING UP AT US BORDER BECAUSE OF XINJIANG FORCED LABOUR LAW

On 14 August, Bloomberg reported that this follows the passing of a law targeting forced labour in China’s Xinjiang region.  It says that modules with capacity of more than 3 gigawatts have been held by US Customs since June, when the US Uyghur Forced Labor Prevention Act came into effect. 

https://www.bloomberg.com/news/articles/2022-08-15/solar-panels-piling-up-at-us-border-on-xinjiang-forced-labor-law

RUSSIAN ACCUSED OF MONEY LAUNDERING TIED TO RYUK RANSOMWARE GANG EXTRADITED TO US

On 18 August, the Wall Street Journal reported on the case of Denis Dubnikov, a 29-year-old Russian who has been extradited from the Netherlands.  It is alleged that he and his co-conspirators laundered bitcoin extracted from victims of Ryuk ransomware attacks through financial transactions, in both crypto and fiat currencies, to conceal the source of the funds.  He has pleaded not guilty in federal court.  At least 12 more individuals are facing charges in the case but prosecutors and court documents did not name his alleged co-conspirators.  Identified in 2018, Ryuk is a type of ransomware that encrypts files and attempts to delete any system back-ups on a computer or network.  The accused are said to have directed victims to pay in bitcoin and provided them with a wallet address to make the ransom payments.

https://www.wsj.com/articles/u-s-extradited-russian-accused-of-money-laundering-tied-to-ryuk-ransomware-gang-11660851002

UK: COURT OF APPEAL’S DECISION MEANS THAT THERE MAY BE A RISE IN THE NUMBER OF MALICIOUS FALSEHOOD CLAIMS

On 17 August, Walker Morris LLP reported on a recent case in which the Court of Appeal held that a claimant did not need to demonstrate actual monetary loss as a matter of fact.  Instead, it was satisfied that the claimant would only have to show that, when viewed objectively when the malicious statement was published, monetary losses would likely follow in the normal course of things.  The article warns that the decision means that there may be a rise in the number of malicious falsehood claims being issued by prospective claimants.

https://www.walkermorris.co.uk/in-brief/malicious-falsehood-claims/

AUSTRALIA: ACMA BLOCKS ANOTHER 6 OFFSHORE GAMBLING AND AFFILIATE MARKETING WEBSITES

On 18 August, iGB reported that the latest action means that, since the Australian Communications and Media Authority (ACMA) made its first blocking request to ISP in November 2019, some 568 illegal gambling and affiliate websites have been blocked.  In addition, over 170 illegal services have also pulled out of the Australian market since the ACMA started enforcing new illegal offshore gambling rules in 2017.

https://igamingbusiness.com/legal-compliance/acma-blocks-another-six-offshore-gambling-and-affiliate-marketing-websites

Meanwhile, on 18 August, iGB also reported that the Colombian regulator Coljuegos blocked 1,577 websites during the first half of 2022.

https://igamingbusiness.com/gaming/coljuegos-shuts-down-1577-unlicensed-sites

PANAMA: GUIDELINES AND REQUIREMENTS AIMED AT PROFESSIONALS WHO CARRY OUT THE ACTIVITIES SUBJECT TO SUPERVISION

On 19 August, La Estrella de Panama reported that Panama has updated the guidelines and guidelines aimed at professionals who carry out the activities subject to supervision, in order to raise the level of compliance with a risk-based approach, and strengthen the money laundering prevention system. 

https://www.laestrella.com.pa/nacional/220819/panama-fortalece-sistema-prevencion-blanqueo

UK CONFIRMS EORI NUMBER NOW MANDATORY FOR EXPORTS OF LICENSED GOODS ON SPIRE

On 18 August, the Institute of Export & International Trade said that the Export Control Joint Unit (ECJU) has confirmed that the use of EORI (Economic Operator Registration Identification) numbers will now be mandatory for licence registrations on SPIRE – the ECJU’s exporting licensing system for the control of military, paramilitary and dual-use goods.

https://www.export.org.uk/news/614490/Government-confirms-EORI-number-now-mandatory-for-exports-of-licensed-goods-on-SPIRE.htm

HOW RUSSIA IS DODGING WESTERN SANCTIONS WITH GREY-MARKET IMPORTS

On 18 August, Deutsche Welle reported that Russians continue to have access to such goods as iPhones and Zara dresses even months after their Western makers left Russia.  But, it asks, are these parallel imports even legal?  Parallel imports, or grey-market purchases, into Russia totalled $6 billion from May to July, Russia’s deputy prime minister and minister of industry and trade has said.  Parallel imports refer to goods that are imported into a market without their manufacturers’ consent, they are authentic goods, but they may be meant by the manufacturer to be sold in a different country or region.

https://www.dw.com/en/how-russia-is-dodging-western-sanctions-with-gray-market-imports/a-62850223

WORLD BANK AFFILIATE BACKS A BLOCKCHAIN-BASED PLATFORM TO TRADE CARBON OFFSETS

On 18 August, Finbold reported that the International Finance Corporation (IFC), a member of the World Bank Group that focuses on investing in less-developed nations, has formed a partnership with Chia Network, a blockchain platform with an emphasis on the energy industry, for the Carbon Opportunities Fund.

https://finbold.com/world-bank-affiliate-ifc-backs-a-blockchain-based-platform-to-trade-carbon-offsets/

UK: LESS THAN 62,000 OF 1 MILLION TRUSTS REGISTERED WITH HMRC JUST 2 WEEKS BEFORE DEADLINE

On 19 August, City AM reported that only a small proportion of those who own non-taxable trusts have registered them with HMRC Trust Registration Service (TRS), just weeks before the deadline on 1 September.

https://www.cityam.com/less-than-62000-of-uks-one-million-trusts-registered-with-hmrc-just-two-weeks-before-deadline/

US: NEW LAW REQUIRES MUSEUMS TO DISPLAY INFORMATION ABOUT NAZI ART LOOTING

On 18 August, an article from Sullivan and Worcester reported that the significance of this new rule is clear: New York is the centre of the art world, and its museums hold a unique place of prominence.  It warns of some unintended consequences may follow.  It says that the new law adopts important concepts that guide ethical behaviour, but in practice it remains to be seen whether the effect will come and go with the politicians’ announcements.

https://www.jdsupra.com/legalnews/new-law-requires-museums-in-new-york-to-2092990/

CHANGE TO PROCEDURE IN ENGLISH COURT COULD HELP VICTIMS OF CRYPTO FRAUD

On 19 August, an article from Out-Law says that cryptocurrency fraud claims have increased in volume significantly over the last 12 to 18 months, but procedural and jurisdictional difficulties leave many victims debating whether to pursue civil claims in England and Wales.  It reports on a new jurisdictional gateway that will be incorporated into the Civil Procedure Rules.

https://www.pinsentmasons.com/out-law/analysis/change-to-procedure-in-english-court-could-help-victims-of-crypto-fraud

UK: FCA CALLS ON VICTIMS OF RICHARD FAITHFULL TO COME FORWARD AHEAD OF CONFISCATION HEARING

On 19 August, a release on Mondo Visione reported that the Financial Conduct Authority has called on victims of Richard Faithfull to come forward by 12 September in order to ensure they be part of any claim for compensation.  The FCA is asking anyone who made payments to a number of bank accounts between 1 June 2017 and 1 August 2018 to contact it.

https://mondovisione.com/media-and-resources/news/uk-financial-conduct-authority-calls-on-victims-of-richard-faithfull-to-come-for/

RAZZLEKHAN AND DUTCH, BITCOIN’S BONNIE AND CLYDE

In its September issue, Vanity Fair reported on Heather “Razzlekhan” Morgan and Ilya “Dutch” Lichtenstein, whose social media antics disguised an alleged plot to abscond with billions in stolen crypto.  Ilya “Dutch” Lichtenstein, a Russian-born émigré, was an investor and part-time mentalist magician, and his wife, Heather “Razzlekhan” Morgan, who was from the US, was an entrepreneur, journalist, and rapper.

https://www.vanityfair.com/news/2022/08/the-ballad-of-razzlekhan-and-dutch-bitcoins-bonnie-and-clyde

CORRUPT POLITICIANS, MONEY LAUNDERING DRIVE RED-HOT BAGHDAD PROPERTY MARKET

On 19 August, The Media Line reported that real estate sales in Baghdad, are booming, especially in high-end areas, with prices in the Iraqi capital, exceeding those in several Arab and European capitals.  Experts attribute this phenomenon to money laundering operations and efforts by corrupt officials to keep their wealth in assets instead of banks.

https://themedialine.org/top-stories/corrupt-politicians-money-laundering-drive-red-hot-baghdad-property-market/

https://www.linkedin.com/posts/baptisteforestierlinkcy_bankingindustry-money-moneylaundering-activity-6966299421785387008-hxKz

https://www.linkedin.com/posts/nicolaspinto1_innovation-fintech-banking-activity-6966280122366599168-0EhX

BASEL COMMITTEE NEWSLETTER ADDRESSES CREDIT RISK IN REAL ESTATE AND LEVERAGED LENDING

On 5 August, the ABA Banking Journal reported that the Basel Committee on Banking Supervision has issued a newsletter focusing on credit risk, which has risen in recent months due to inflation and the COVID-19 pandemic.  It says that the newsletter also noted stresses in leveraged loan and collateralised loan obligations markets, and that “there is an increasing bifurcation between stronger and weaker credits, with the latter likely to struggle to service debt or refinance given higher interest rates and wider credit spreads”.

https://bankingjournal.aba.com/2022/08/basel-committee-newsletter-addresses-credit-risk-in-real-estate-leveraged-lending/

The newsletter is at –

https://www.bis.org/publ/bcbs_nl29.htm

THE WORLD’S MANUFACTURING SUPERPOWERS

On 19 August, Statista published a 1 minute 11 seconds video showing so-called racing bars that demonstrate how the league table of leading exporters has varied over the years 1990-2020.

https://www.statista.com/chart/28031/manufacturing-racing-bars/

UK: SAUDI SPYWARE CLAIM GOES AHEAD AS JUDGE DISMISSES SOVEREIGNTY IMMUNITY LOOPHOLE

On 19 August, Joshua Rosenberg in his blog reported that in a case involving a Saudi human rights activist and satirist who has lived in England since 2003 and was granted asylum in 2018.  He is seeking damages for personal injury. The Saudi government asked the court to throw out the claim on the basis that, as a state, it is immune from the jurisdiction of the UK courts.  The case revolves around NSO Group Pegasus spyware having been installed on his mobile phone.

https://rozenberg.substack.com/p/saudi-spyware-claim-goes-ahead

https://www.statista.com/chart/28026/latin-american-coal-soil-and-fertilizer-prices/

5 AML COMPLIANCE LESSONS FROM NEW YORK’S ACTION AGAINST ROBINHOOD CRYPTO

On 19 August, an article from Thomson Reuters follows an announcement that New York State’s financial regulator had fined the crypto arm of Robinhood Markets $30 million, largely due to alleged violations of AML regulations, and it highlights key compliance considerations, according to an industry expert.

https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/crypto-aml-compliance-robinhood/

With an updated version due shortly, it seems, this case digest from the UN Office of Drugs and Crime contains an analysis of cases of cyber organised crime. On the basis of more than 100 cases from more than 20 jurisdictions, observations are made about the ways in which cyber organised crime is identified in case law and how this illicit activity is investigated, prosecuted and adjudicated across jurisdictions. The case digest examines the structure and organisation of cyber organised criminal groups, tools used by perpetrators of cyber organised crime, types of cyber organised crime and procedural issues relating to the investigation, prosecution and adjudication of cyber organised crime cases. It contains summaries of relevant judicial proceedings concerning cyber organised crime, organised according to theme. The ultimate goals of the digest are to identify cases involving cyber organised crime and the manner in which such crime has been investigated, prosecuted and adjudicated in different areas of the world.  The digest concludes by identifying challenges to investigating, prosecuting and adjudicating cases involving cyber organised crime, as well as the lessons learned for criminal justice professionals, including some of the challenging aspects of criminal justice responses to such crime.

https://www.unodc.org/documents/organized-crime/tools_and_publications/21-05344_eBook_rev.pdf

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: