OTHER THINGS YOU MAY HAVE MISSED – SEPTEMBER 19

Another case of monkeypox is reported here in Panama, making the total 13 to date. So far, the health ministry has not used the reported Chinese advice of “don’t touch foreigners”! This latest local case is said to be a 35-year-old local.

The massive Odebrecht corruption trial continues to lumber on…

It is reported that, so far this year, 102,000 people have crossed the Darien into Panama from Colombia (sooner them than me…), and that a staggering 67% are Venezuelan. Whereas stories in the past had emphasisied that the migrants came from all sorts of places, Africa and even Afghanistan, now the overwhelming majority are from closer to home. 76% of the migrants are men. According to L:a Estrella de Panama, in August, 31,055 migrants made the trip “through this border whose passage is on foot, in a journey that can take up to a week, exposed to inclement weather such as flooding of rivers and animal bites, but also to robberies, rapes and even murders of the armed and criminal groups that operate there”.

19 SEPTEMBER 2022

DETERRING CORPORATE CRIME: IMPLICATIONS OF EXPRESSIVE LAW AND EMPIRICAL PSYCHOLOGY FOR CORPORATE AND INDIVIDUAL LIABILITY FOR ORGANIZATIONAL MISCONDUCT

On 19 September, the Compliance & Enforcement blog from the Program on Corporate Compliance and Enforcement at the New York University School of Law published a post saying that a paper published by the School of Law will develop a framework based on empirical evidence that identifies the optimal structure of corporate and individual liability when laws can deter through 2 channels: their ability to set social and ethical norms that express social condemnation (“expressive channels”), as well as through formal sanctions.  The paper is said to show that show corporate liability is vital to the law’s ability to deter individuals from engaging in organisational misconduct through expressive channels; in order to deter through either channel, governments must ensure that they reliably detect and sanction most individuals and companies who commit crime; and countries should not exempt companies from corporate liability based solely on their adoption of an ostensibly effective compliance program.

https://wp.nyu.edu/compliance_enforcement/2022/09/18/deterring-corporate-crime-implications-of-expressive-law-and-empirical-psychology-for-corporate-and-individual-liability-for-organizational-misconduct/

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4152960

US: FEDERAL AUTHORITIES DROP CHARGES AGAINST “FAT LEONARD” CASE ADMIRAL

On 18 September, Marine Log reported that federal prosecutors in San Diego will not pursue a second trial of retired Rear Admiral Bruce Loveless, one of the high-ranking officials caught up in the US Navy “Fat Leonard” corruption scandal.  This follows a court failing to reach a verdict on charges brought against him in a case in which 4 other defendants were convicted on all counts of accepting bribes from foreign defence contractor Leonard Glenn Francis, the former CEO of Glenn Marine Defense Asia (GMDA).

https://www.marinelog.com/news/feds-drop-charges-against-fat-leonard-case-admiral/

PANAMA: SEIZURE OF MORE THAN A THOUSAND PACKAGES OF DRUGS DESTINED FOR FINLAND

On 18 September, La Prensa reported that the Public Ministry (MP) and the National Police of Panama had seized a total of 1,040 packages of an undetermined drug destined for Helsinki inside a container in a port in the province of Panama Oeste.

https://www.prensa.com/judiciales/panama-decomisa-mas-de-mil-paquetes-de-droga-con-destino-a-finlandia/

BYPASSING WESTERN SANCTIONS, RUSSIAN BANK OPENS RUPEE ACCOUNT WITH YES BANK TO FACILITATE TRADE WITH INDIA

On 19 September, Times Now News reported that the Petersburg Social Commercial Bank (PSCB), which is not among the banks sanctioned by the West, has opened a rupee account with nearly 3 dozen Russian companies settling payments for trades with India.

https://www.timesnownews.com/business-economy/economy/bypassing-western-sanctions-russia-pscb-opens-rupee-account-with-yes-bank-to-facilitate-trade-with-india-article-94298204

BELGIAN PRIME MINISTER REMAINS OPPOSED TO DIAMOND SANCTIONS ON RUSSIA

On 19 September, the Israeli Diamond Industry reported that, at a conference in Antwerp, Belgium’s prime minister Alexander De Croo reiterated his country’s opposition to sanctions on Russian diamonds. 

https://en.israelidiamond.co.il/news/world/belgian-diamond-sanctions-russia/

See also –

RUSSIA’S SECRET GEM SALES ARE DIVIDING THE DIAMOND WORLD

On 17 September, Bloomberg reported that the secretive sale of Russian diamonds, worth hundreds of millions of dollars every month, is fracturing the global trade that stretches from cutting factories in Mumbai to luxury stores on New York’s Fifth Avenue, with a handful of Indian and Belgian buyers who are snapping up large volumes.

https://www.bloomberg.com/news/articles/2022-09-17/russia-s-secret-gem-sales-are-dividing-the-diamond-world

2 MEN ARRESTED WHILE TRYING TO SMUGGLE 40 TONNES OF LITHIUM ORE TO SOUTH AFRICA

On 19 September, Pindula in Zimbabwe reported that 2 men have been arrested after they allegedly tried to smuggle 40 tonnes of lithium ore out of the country using a South African-registered truck.

https://news.pindula.co.zw/2022/09/19/two-men-arrested-while-trying-to-smuggle-40-tonnes-of-lithium-ore-to-south-africa/

43 TONNES OF SMUGGLED PORK SEIZED IN 3 MONTHS BY THAI CUSTOMS OFFICIALS

On 19 September, Thai PBS reported that Thai customs officials have seized more than 43 tonnes of smuggled pork during the past 3 months, including about 35 tonnes in September alone.  This is during a crackdown on frozen pork and pig carcasses being smuggled into the country through various border crossings to prevent the spread of African swine fever.

https://www.thaipbsworld.com/43-tonnes-of-smuggled-pork-seized-in-three-months-by-thai-customs-officials/

PHILIPPINES: BSP ORDERS BANKS TO IMPROVE TARGETED FINANCIAL SANCTIONS FRAMEWORK

On 19 September, Comply Advantage reported that, in a new thematic review, the Bangko Sentral ng Pilipinas (BSP) has directed banks and financial institutions to improve their targeted financial sanctions framework amid evolving terrorism and proliferation financing risks. This is said to be part of efforts to be removed from the FATF grey list.

https://complyadvantage.com/insights/bsp-orders-banks-to-improve-targeted-financial-sanctions-framework-new-report/

EU: SECOND ANNUAL REPORT ON FDI SCREENING HIGHLIGHTS IMPORTANCE IN M&A TRANSACTIONS

On 16 September, an article from Hogan Lovells considers the second Annual Report on the screening of foreign direct investment (FDI) into the EU, the EU Commission takes stock of the FDI screening rules at both EU and Member State level. Today, 25 out of 27 Member States either have a screening mechanism in place or are in the process of setting one up.

https://www.engage.hoganlovells.com/knowledgeservices/

ILO: NUMBER OF PEOPLE IN MODERN SLAVERY INCREASING

On 16 September, OCCRP reported that, according to the International Labor Organization (ILO), between 2016 and 2021, the number of people exposed to forced labour increased by nearly 3 million in part due to economic insecurity brought about by the coronavirus pandemic.  This brings the number of people in situations of forced labour to 27.6 million on any given day.

https://www.occrp.org/en/daily/16776-ilo-number-of-people-in-modern-slavery-increasing

https://www.ilo.org/wcmsp5/groups/public/—ed_norm/—ipec/documents/publication/wcms_854733.pdf

UK: THE VARIOUS DANGERS THAT PUBLIC BODIES COULD FACE BY ALLOWING STAFF TO COMMUNICATE VIA WHATSAPP AND OTHER SOCIAL MEDIA

An article from Local Government Lawyer on 16 September says that the use of social media platforms and applications can have overwhelmingly positive benefits for public bodies.  However, it says, regulatory action recently taken by the Information Commissioner, disciplinary cases brought against staff and professionals who misuse social media, and judicial review challenges to central government have highlighted the various pitfalls that public bodies should seek to avoid if allowing staff to use social media as a communication tool.  A lack of clear controls and a rapid increase in the use of messaging apps had the potential to lead to important information being lost or insecurely handled. 

https://www.localgovernmentlawyer.co.uk/governance/314-governance-a-risk-articles/51610-avoiding-the-pitfalls-of-whatsapp

THE RARE PSYCHOACTIVE DRUGS ENTERING CHILE

On 16 September, an article from Insight Crime reported that Chilean authorities have seized a cluster of new psychoactive substances (NPS) rarely seen in Latin America in recent months, highlighting the increasingly diverse nature of the country’s drug markets.  Recent seizures included 40 kg of kratom powder, a psychoactive substance extracted from the leaves of the SE Asian kratom tree.

https://insightcrime.org/news/kratom-to-bath-salts-the-rare-psychoactive-drugs-entering-chile/

KAZAKHSTAN: NAZARBAEV’S NEPHEW GOES ON TRIAL IN ASTANA

On 19 September, Rferl reported that Qairat Satybaldy, a nephew of Kazakhstan’s former President Nursultan Nazarbaev, has gone on trial on charges of fraud and embezzlement.  Kazakhstan’s Anti-Corruption Agency has said that Satybaldy and 4 other unnamed individuals are suspected of embezzling an unspecified amount of money from the Kazakhtelecom and Transport Service Center companies.  It also mentions that, after unprecedented anti-government protests in early January, the Kazakh government began quietly targeting Nazarbaev, his family, and other allies — many of whom held powerful or influential posts in government, security agencies, and profitable energy companies.

https://www.rferl.org/a/nazarbaev-nephew-goes-on-trial-in-astana/32041133.html

RUSSIANS’ MIR CREDIT CARDS REPORTEDLY REJECTED IN TURKISH HOTELS

On 15 September, Middle East Eye reported that some Turkish hotels have stopped accepting some credit cards using the Mir payment system, according to Russian media and telegram channels.  It is said that there is a possibility that some Turkish banks that process the payments might be afraid of being subjected to secondary sanctions imposed by the US and EU against Russian financial institutions.  Others speculated that some of the hotels could have foreign investors who don’t want to be subjected to sanctions.

https://www.middleeasteye.net/news/russia-turkey-mir-cards-rejected-hotels-west-pressure

METH IS TURNING FIJI FROM A TROPICAL PARADISE INTO A NARCO’S PLAYGROUND

On 15 September, a report from Vice News says that the island has become collateral damage in the global drug trade, as an influx of meth fuels a rise in sex work, poverty and corruption.

https://www.vice.com/en/article/pkgze8/meth-fiji-drugs

AUSTRALIAN FEDERAL POLICE (AFP) FORGING DIRECT PARTNERSHIPS WITH AUSTRALIA’S “BIG FOUR” BANKS

On 16 September, Thomson Reuters reported that the AFP has developed a “bilateral” information-sharing model where banks are able to feed it intelligence on suspected criminal groups.  This unprecedented level of engagement is in addition to the financial intelligence reports the banks already send to the Australian Transaction Reports and Analysis Centre (AUSTRAC).

https://insight.thomsonreuters.com.au/business/posts/analysis-australian-police-forging-direct-ties-with-major-banks-to-combat-laundering

UK: CHAOS AS LOCAL COUNCIL TRIES TO DEAL WITH BACKLASH OVER INVESTMENT SCANDAL

On 15 September, the Bureau of Investigative Journalists provided an update of the case involving Thurrock Council in England involving a major Bureau investigation which prompted the government to intervene directly in Thurrock.  The Bureau had raised serious questions over at least £138 million of public money that had been handed over to companies run by the controversial businessman, Liam Kavanagh.

https://www.thebureauinvestigates.com/stories/2022-09-15/thurrock-chief-executive-to-be-suspended-over-investments-scandal

INDONESIA: PAPUA GOVERNOR ACCUSED OF CORRUPTION AND MONEY LAUNDERING

On 19 September, Asia News reported that, according to the Indonesian Financial Transaction Reports and Analysis Centre, Governor Lukas Enembe, 55, embezzled billions of public funds.  For the government it is “very serious court case”.  The governor’s lawyer rejects the charges while his supporters protest.  Since the investigation began on 5 September, he has been banned from leaving the country, despite medical treatment scheduled in Manila.

https://www.asianews.it/news-en/Papua-governor-accused-of-corruption-and-money-laundering-56687.html

https://jakartaglobe.id/news/authorities-say-papua-governor-has-spent-39m-on-casinos

MACAU GAMBLING BOSS DENIES ILLEGAL GAMBLING AND CRIMINAL SYNDICATE ALLEGATIONS

On 19 September, Reuters reported that Alvin Chau was chairman of Macau’s Suncity junket – which brokers the gambling activity of Chinese high rollers – until December 2021.  He faces charges accusing him of operating illegal gambling activities on the Chinese mainland.  Macau is the only city in China where citizens are legally permitted to gamble in casinos.

https://www.reuters.com/world/china/macau-gambling-boss-denies-illegal-gambling-criminal-syndicate-allegations-2022-09-19/?rpc=401&

THE NORWEGIAN TRANSPARENCY ACT IN THE MARITIME CONTEXT

On 16 September, Insurance Marine News provided a brief guide about the new act recently came into force in Norway which applies to larger enterprises.  The Act demands transparent due diligence to be carried out with regard to fundamental human rights and decent working conditions.

https://insurancemarinenews.com/insurance-marine-news/the-norwegian-transparency-act-in-the-maritime-context/

THE IMPORTANCE OF TERRORIST FOUNDERS AND THE ROLE OF SAFE HAVENS

On 18 September, a port on Lawfare says that many terrorist groups are small, and their initial leaders exert outsized influence on their future direction.  Drawing on their recent book, the authors examine the different ways founding leaders matter.  They argue that a safe haven is particularly important, enabling leaders to avoid counterterrorism pressure and, in so doing, more deeply imprint their ideas on the groups they lead.

https://www.lawfareblog.com/importance-terrorist-founders-and-role-safe-havens

UKRAINE IMPOSES NEW SET OF SANCTIONS

On 16 September, Baker McKenzie posted on its blog that, on 10 September, a new set of personal special economic and other restrictive measures (sanctions) became effective.  The measures impose extensive sanctions restrictions, including asset freezes, restriction on the exit of capital from Ukraine, suspension of the performance of economic and financial obligations, a ban on trade operations, prohibition of participation in privatisation and leasing of state property, cancellation of visas and licenses, entry bans, etc., upon 606 individuals — Russian politicians and officials.

https://sanctionsnews.bakermckenzie.com/ukraine-imposes-new-set-of-sanctions/

EXECUTIVE ORDER RAISES REGULATORY RISKS FOR FOREIGN INVESTMENT ACROSS US ECONOMY

A Client Alert from Wilmer Hale on 19 September says that the new Executive Order identifies economic sectors that merit special attention for review by the Committee on Foreign Investment in the United States (CFIUS).  While the EO does not change CFIUS’s jurisdiction to review foreign investments in US businesses, it marks the first time a US President has singled out particular factors that the Committee should use when evaluating whether a transaction presents a threat to US national security.  It directs CFIUS to undertake national security risk assessments with an eye toward the impact a transaction may have on supply chain security, US technology leadership, cybersecurity, access to sensitive personal data, and the impact of incremental investments over time.

https://wilmerhalecommunications.com/26/5327/september-2022/executive-order-raises-regulatory-risks-for-foreign-investment-across-u.s.-economy.asp

US TREASURY SEEKS PUBLIC INPUT ON ILLICIT FINANCE, NATIONAL SECURITY RISKS POSED BY DIGITAL ASSETS

On 19 September, the US Treasury filed a Request for Comment (RFC) to seek feedback from the American people on the illicit finance and national security risks posed by digital assets, and which is open until 3 November.

https://www.federalregister.gov/public-inspection/2022-20279/ensuring-responsible-development-of-digital-assets

UAE COURTS TO ENFORCE JUDGMENTS AND ORDERS RENDERED BY THE ENGLISH COURTS

On 16 September, an Alert from Greenberg Traurig reported on a Directive which confirms that the principle of reciprocity, historically being one of the most difficult hurdles for the enforcement of a foreign judgment in the UAE, has been established as between the UAE and the UK.

https://www.gtlaw.com/-/media/files/insights/alerts/2022/09/gt-alert_claimants-seeking-to-enforce-english-judgments-in-uae-now-have-cause-to-celebrate.pdf?sc_lang=en

EU: A TRADEMARK OWNER THAT PUTS ITS TRADEMARK TO A PRODUCT SHOULD ALSO BE CONSIDERED A ”PRODUCER”RE LIABILITY FOR DEFECTIVE PRODUCTS

On 19 September, an Alert from Greenberg Traurig reported on a Finnish case before the European Court of Justice (ECJ), and involving a Philips product manufactured by a Romanian subsidiary.  The bottom line is that trademark owners are liable to consumers for a product defect and moreover, consumers should not have to figure out who is the actual producer of their defective product to claim damages. However, this does not mean the respective internal reciprocal liability between trademark owner and actual producer – or manufacturer – is the same.

https://www.gtlaw.com/-/media/files/insights/alerts/2022/09/gt-alerttrademark-owner-liable-to-consumer-for-product-defect-european-court-of-justice-rules.pdf?sc_lang=en

US CFTC: TO REQUIRE MORE DEFENDANTS TO ADMIT TO WRONGDOING IN SETTLEMENTS

On 19 September, a release on Mondo Visione advised that Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero has proposed a Heightened Enforcement Accountability And Transparency (HEAT) Test.  This would overturn the longstanding and routine practice of not seeking admissions of wrongdoing when settling the overwhelming majority of enforcement cases, which has resulted in routine civil settlements in which the defendant “neither admits nor denies” wrongdoing.

https://mondovisione.com/media-and-resources/news/statement-of-ftc-commissioner-christy-goldsmith-romero-proposal-for-a-heightene/

UK: BOTCHED CRYPTO MUGGING LANDS 3 MEN IN JAIL

A post from Krebs on Security on 16 September relates how 3 men in the UK were arrested this month for attempting to assault a local man and steal his virtual currencies.  It is said that this incident is the latest example of how certain cybercriminal communities are increasingly turning to physical violence to settle scores and disputes.

https://krebsonsecurity.com/2022/09/botched-crypto-mugging-lands-three-u-k-men-in-jail/

KINAHAN ENFORCER BECOMES SECOND MAN WITH LINKS TO THE CARTEL TO BE ARRESTED IN SPAIN

On 19 September, the Irish Independent reported that one of Ireland’s most feared criminals has become the second man with alleged links to the Kinahan cartel to be arrested in Spain in a week for money laundering offences.  Gerard Mackin, 39, was arrested by Spanish police under a European Arrest Warrant issued by Irish authorities.

https://www.independent.ie/irish-news/crime/kinahan-enforcer-gerard-mackin-39-becomes-second-man-with-cartel-links-to-be-arrested-in-spain-42002442.html

https://www.irishmirror.ie/news/irish-news/kinahan-thug-gerard-mackin-arrested-28033005

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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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