OTHER THINGS YOU MAY HAVE MISSED – OCTOBER 14

The latest medical warning comes after an increase in severe acute respiratory symptoms in children, who have been hospitalised in Costa Rica with bronchiolitis.

Meanwhile, vaccinations of under 4-year-olds began on 10 October, as it has been reported that 3.4% of the cases of Covid-19 detected in Panama since March 2020 correspond to children between 6 months and 4 years old, as well as 3,845 to babies under 6 months.

14 OCTOBER 2022

ECONOMIC SANCTIONS AT THE NATIONAL AND INTERNATIONAL LEVEL AND THEIR IMPACT ON CHARITIES

On 12 October, an article from Withers advises that charities, like any other concern, when they are approached by a potential donor, select a grantee or look to pay funds (whether domestically or internationally), charities should conduct due diligence and be aware of potential restrictions deriving from sanctions laws.

https://www.withersworldwide.com/en-gb/insight/economic-sanctions-at-the-national-and-international-level-and-their-impact-on-charities

MALTA’S NEW START-UP RESIDENCE PERMIT 

On 14 October, Dixcart advised about a new visa will allow non-European nationals to relocate and live in Malta, by establishing an innovative start-up.  It allows founders/co-founders to apply for a 3-year residency permit, together with their immediate family, and the company to apply for 4 additional permits for Key Employees.  

https://mailchi.mp/dixcart/maltas-new-start-up-residence-permit?e=7aa3a50ea3

MEPs: BREXIT SANCTIONS MECHANISM NEEDED

On 14 October, EU Reporter reported that MEPs have warned that the EU intends to enforce its post-Brexit agreements with the UK and is strengthening the necessary legal tools to do so.  This would include a possible sanctions mechanism, under the EU-UK’s Withdrawal Agreement and Trade and Cooperation Agreement. 

https://www.eureporter.co/world/uk/brexit/2022/10/14/brexit-sanctions-mechanism-needed/

SOUTH KOREA IMPOSES FIRST UNILATERAL SANCTIONS ON NORTH KOREA SINCE 2017

On 14 October, NHK reported that the move is in response to repeated launching of missiles.  The sanctions target 15 individuals and 16 organisations. The individuals include senior officials at the North Korean military’s Second Academy of Nature Science who are believed to be in charge of the country’s nuclear and missile development. The designated organisations include the Ministry of Rocket Industry and its related trading companies.

https://www3.nhk.or.jp/nhkworld/en/news/20221014_16/

CANADA: MORE SANCTIONS ON IRAN OVER RIGHTS VIOLATIONS

On 13 October, Barron’s and others reported that Canada had announced more sanctions against Iran over human rights violations during the protests sweeping that country.  The sanctions target 3 Iranian entities and 17 individuals including Saeed Mortavazi, a prosecutor at the Iranian Revolutionary Court, former foreign minister Mohammad Javad Zarif, senior officials with state-run media, and a former defence minister.

https://www.barrons.com/news/canada-slaps-more-sanctions-on-iran-over-rights-violations-01665677108

https://www.nasdaq.com/articles/canada-imposes-new-iran-sanctions-over-human-rights-0

DOWNWARD TREND IN PIRACY CONTINUES IN THE GULF OF GUINEA

On 14 October, Defence Web reported that piracy appears to be on the decline with reported incidents in the Gulf of Guinea substantially down in the latest quarterly International Maritime Bureau (IMB) report.

https://www.defenceweb.co.za/featured/downward-trend-in-piracy-continues-in-the-gulf-of-guinea/

UK: TREAT OVERSEAS REGISTER REGIME ‘LIKE AML COMPLIANCE WITH BELLS ON’, SOLICITORS TOLD

On 14 October, the Law Society Gazette reported that solicitors have been advised to tread carefully if asked to help register foreign owners of UK property under government measures to crack down on money laundering.  The Economic Crime (Transparency and Enforcement) Act 2022 introduced a register of overseas entities, which came into force on 1 August, requiring anonymous foreign owners of UK property to reveal their identities. Overseas entities that already own UK property must register by 31 January.

https://www.lawgazette.co.uk/news/treat-overseas-register-regime-like-aml-compliance-with-bells-on-solicitors-told/5113969.article

EU AUTHORITIES TARGET LABOUR EXPLOITATION IN THE FIELDS

On 14 October, a news release from Europol advised that, between 14 and 21 September, Europol and the European Labour Authority supported Europe-wide coordinated action days against human trafficking for labour exploitation in the agricultural sector.  The operation was led by France and involved a wide range of law enforcement authorities, including police, immigration and border guards, labour inspectorates and tax authorities from 16 countries.  More than 6,000 officers from national authorities took part in operational activities on the ground.  There were 17 arrests in France, Spain, the UK and Ukraine.

https://www.europol.europa.eu/media-press/newsroom/news/eu-authorities-target-labour-exploitation-in-fields

UK: FCA FINES GATEHOUSE BANK £1.5 MILLION FOR POOR AML CHECKS

On 14 October, a release on Mondo Visione advised that the FCA has fined Gatehouse Bank Plc £1,584,100 for significant weakness in its financial crime systems and controls.  Between June 2014 and July 2017 Gatehouse failed to conduct sufficient checks on its customers based in countries with a higher risk of money laundering and terrorist financing. Gatehouse also failed to undertake the correct checks when some of the customers were classed as Politically Exposed Persons (PEP).

https://mondovisione.com/media-and-resources/news/uk-financial-conduct-authority-fines-gatehouse-bank-15m-for-poor-anti-money-la/

ILLEGAL, UNREPORTED AND UNREGULATED (IUU) FISHING

On 14 October, a briefing paper from the EU Parliament Research service published an update to a 2017 paper saying that the EU has set up a thorough control system, in particular the IUU Regulation, which remains a landmark piece of fisheries legislation worldwide.  Intended to prevent the import of IUU-caught products into the EU, the IUU Regulation is structured around market-related measures, such as a catch certification scheme, which was the first unilateral scheme of this type, and a ‘carding’ system for non-cooperating third countries that may lead to trade sanctions.  A broad range of complementary measures reinforces this approach.  Action to combat IUU fishing is now a key topic on the EU international ocean governance agenda.

https://www.europarl.europa.eu/RegData/etudes/BRIE/2017/614598/EPRS_BRI(2017)614598_EN.pdf

LUKASHENKO’S SERBIAN ASSOCIATES EVADE WESTERN SANCTIONS

On 12 October, EurActiv reported that relations between a Serbian oligarch under Western sanctions and the leader of Belarus, Alexander Lukashenko, and schemes to evade sanctions via EU-member Cyprus are exposed in a new report.  It says that the report contains extensive details and documents attesting to the properties owned by the Serbian Karić family, as well as connections to Lukashenko.

https://www.euractiv.com/section/europe-s-east/news/investigation-lukashenkos-serbian-associates-evade-western-sanctions/

PAKISTANI COURT ACQUITS PM AND SON IN MONEY LAUNDERING CASE

On 12 October, Al Jazeera reported that Prime Minister Shahbaz Sharif and his son Hamza had been accused of laundering.  Sharif and his son Hamza, the former chief minister of Punjab province, were charged during the administration of former Prime Minister Imran Khan. 

https://www.aljazeera.com/news/2022/10/12/pakistani-court-acquits-pm-son-in-money-laundering-case

MEDICAL REHABILITATION CENTRE IN ROMANIA: BUSINESSMAN AND COMPANY INDICTED FOR FRAUD AND MONEY LAUNDERING, DAMAGES OF OVER €3 MILLION IN EU FUNDS

A news release from the European Public Prosecutor’s Office (EPPO) on 10 October announced that a Romanian businessman and a company he represented were indicted for fraudulently obtaining over €3 million in EU funds for the development of RECUMED, a research-development centre in medical recovery and bio reconstruction.

https://www.eppo.europa.eu/en/news/medical-rehabilitation-centre-romania-businessman-and-company-indicted-fraud-and-money

LAOS: AML/CFT MUTUAL EVALUATION ON-SITE VISIT

On 14 October, FATF-style regional body APG advised that the first APG mutual evaluation onsite visit since the start of the COVID-19 pandemic has taken place with an onsite visit held from 12 September 2022 to 23 September in Vientiane.

http://www.apgml.org/news/details.aspx?pcPage=1&n=4191

https://www.linkedin.com/posts/baptisteforestierlinkcy_compliance-financialcrime-moneylaundering-activity-6986568679521984512-WMzt

US: A NEW STUDY DETAILS COSTS AND DRIVERS OF FINANCIAL CRIME COMPLIANCE

On 13 October, the ABA Banking Journal reported that the cost of financial crime compliance in North America for 2022 is estimated at $56.7 billion, up 13.6% from 2021, according to a new study from Lexis Nexis Risk Solutions that surveyed institutions in the US and Canada.

https://bankingjournal.aba.com/2022/10/new-study-details-costs-drivers-of-financial-crime-compliance/

https://bankingjournal.aba.com/wp-content/uploads/2022/10/LNRS_2022-True-Cost-of-Financial-Crime-Compliance-Study.pdf

TAXATION OF THE DIGITALIZED ECONOMY

On 14 October, KPMG published its latest update of this regular publication.

https://tax.kpmg.us/content/dam/tax/en/pdfs/2022/digitalized-economy-taxation-developments-summary.pdf

US REMOVES GUATEMALAN NATIONAL WANTED FOR FINANCIAL CRIMES IN HOME COUNTRY

A news release from US Immigration & Customs Enforcement on 14 October advised that Manuel Antonio Baldizon, 52, was convicted in the US of conspiracy to commit money laundering and is wanted by law enforcement authorities in his home country for criminal conspiracy, passive bribery, and laundering of money or other assets.

https://www.ice.gov/news/releases/ero-removes-guatemalan-national-wanted-financial-crimes-home-country

THIRD COUNTRIES ALIGNED WITH EU COUNCIL DECISIONS WHICH CONSTITUTE PART OF THE EU EIGHTH PACKAGE OF RUSSIA SANCTIONS

On 14 October, the EU Sanctions blog reported that North Macedonia, Montenegro, Albania, Ukraine, Bosnia and Herzegovina, Georgia, Iceland, Liechtenstein and Norway had aligned with one Council Decision; and North Macedonia, Montenegro, Albania, Ukraine, Bosnia and Herzegovina, Iceland, Liechtenstein and Norway with 2 others.

https://www.europeansanctions.com/2022/10/third-countries-align-with-eus-8th-package-of-russia-sanctions/

LEADER OF FAKE US MILITARY CLOTHING SCHEME GETS PRISON TIME

On 14 October, the Mail Online reported that Ramin Kohanbash, 52, who ran a scheme that sold $20 million worth of substandard counterfeit Chinese-made clothing and gear to the US military – potentially putting active-duty service members in danger – has been sentenced to more than 3 years in prison.

https://www.dailymail.co.uk/wires/ap/article-11316303/Leader-fake-US-military-clothing-scheme-gets-prison-time.html

GARDAÍ AND INTERPOL SEARCH PREMISES IN DUBLIN AND CLARE IN MAJOR ONLINE FRAUD INVESTIGATION

On 14 October, The Journal reported that, since mid-August, an effort to target the laundering of proceeds from crimes such as international business email compromise, invoice re-direction fraud and romance fraud resulted in 62 charges of money laundering and 3 organised crime offences.  Officers searched 9 premises in Dublin and Clare and arrested 23 people.  It is reported that that the organisation involved is the Black AXE, a criminal organisation formed in West Africa in the mid-1970s.

https://www.thejournal.ie/money-laundering-operation-jackal-5893906-Oct2022/

IRELAND: ARMY OF 4,000 IRISH MONEY MULES HELP CRIMINAL ORGANISATION LAUNDER €64 MILLION

On 14 October, the Irish Examiner claimed that an army of 4,000-plus people in Ireland are laundering money for a notorious west African-based criminal organisation, with an estimated €64 million cleaned through the accounts to date.  It says that action in Ireland is part of Interpol’s Operation Jackal — spanning 14 countries in a week of action that started on 26 September.

https://www.irishexaminer.com/news/arid-40984004.html

WOMAN, 75, HELD IN GERMANY ACCUSED OF LEADING FAR-RIGHT TERROR PLOT

On 14 October, the Guardian reported that a pensioner believed to be the ringleader of a terrorist group planning to launch attacks on German politicians and power infrastructure has been remanded in custody.  The 75-year-old retired teacher from the eastern state of Saxony is suspected of having been what investigators have called the “ideological brains” behind the far-right group.

https://www.theguardian.com/world/2022/oct/14/woman-75-held-germany-accused-ringleader-far-right-terror-group

https://twitter.com/PatrickMcGarve5/status/1580971569924706304?s=20&t=pW9nBjNxVAFbb5hSNUtLsQ

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

ECONOMIC CRIME (TRANSPARENCY AND ENFORCEMENT) ACT 2022 (COMMENCEMENT No. 4) REGULATIONS 2022 – REGISTRATION OF OVERSEAS ENTITIES

These Regulations bring into force in the UK Part 1 – re the registration of overseas entities (aside from sections 7 and 8, which are concerned with updating the information) of, and the Schedules to, the Economic Crime (Transparency and Enforcement) Act 2022 that are not already in force, with effect from 12 October.  Sections 7 and 8 of the Act are to come into force on 16 January.

https://www.legislation.gov.uk/uksi/2022/1039/contents/made

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

CORPORATE CRIMINAL LIABILITY IN ENGLAND & WALES: FORMER LORD CHANCELLOR SIGNALS THAT REFORM IS ON THE WAY

On 14 October, an article from McDermott Will & Emery provides a really useful summary of the current situation – as it looks at the current law, the calls for reform, and an Options Paper from the Law Commission in June (and the options that were dismissed).  The firm then comments, suggesting that while the Government mulls the Law Commission’s various options for reform, companies may wish to revisit their existing policies and procedures to ensure that they are fit for purpose according to the criteria set out in the guidance.

https://www.mwe.com/insights/corporate-criminal-liability-in-england-wales-former-lord-chancellor-signals-that-reform-is-on-the-way/

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

US GOVERNMENT ALERT: IMPACT OF SANCTIONS AND EXPORT CONTROLS ON RUSSIA’S MILITARY-INDUSTRIAL COMPLEX

On 14 October, the US Treasury, Commerce Department and State Department issued a joint Alert to inform the public of the impact of sanctions and export control restrictions targeting Russia’s defence capabilities and warn of the risks of supporting Russia’s military-industrial complex.

At the same time, OFAC issued a new FAQ 1092: Do non-US companies risk exposure to sanctions for providing ammunition or other military goods to Russia or for supporting Russia’s military-industrial complex? 

https://home.treasury.gov/system/files/126/20221014_russia_alert.pdf

https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1092

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

WORLD BANK GROUP ISSUES SANCTIONS SYSTEM ANNUAL REPORT

On 11 October, the World Bank published the report which documents how, in a time of increasingly complex global challenges and historic development support by the World Bank Group, the offices of the sanctions system worked in its fiscal year 22 to help ensure that the World Bank funds are used in a transparent and accountable manner and only for their intended.  The sanctions system addresses allegations of fraud, corruption, collusion, coercion, and obstruction by businesses and individuals, and is involved in investigating whether there is sufficient evidence of the allegations to seek sanctions; adjudicating whether there is sufficient evidence to sanction the business or individual and what the proper sanction should be; and engaging with businesses and individuals sanctioned with integrity compliance conditions to assist them and ultimately determine whether they have satisfied the conditions imposed for their release from sanction.

https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099015010072236926/bosib0e55589950540afa70abefa9afb38a

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

CANADIAN GOVERNMENT ENACTS A 2-YEAR BAN ON PURCHASES OF RESIDENTIAL REAL ESTATE BY NON-CANADIANS

On 13 October, Dentons reported that, from 1 January, non-Canadians will be prohibited from purchasing residential real estate in Canada for a period of 2 years under the newly enacted Prohibition on the Purchase of Residential Property by Non-Canadians Act.  The insight discusses these key points in greater detail and suggests the next steps for developers and vendors.

https://www.dentons.com/en/insights/articles/2022/october/12/canadian-government-enacts-a-two-year

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

EU AMENDS ENTRY FOR SERGEI IVANOVICH MENYAILO ON CHEMICAL WEAPONS SANCTIONS LIST

EU Regulation 2022/1936/EU advised that 1 entry on the list under the 2018 Regulation concerning restrictive measures against the proliferation and use of chemical weapons had been amended.

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2022.268.01.0007.01.ENG&toc=OJ%3AL%3A2022%3A268%3ATOC

https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=uriserv:OJ.L_.2022.268.01.0024.01.ENG&toc=OJ:L:2022:268:TOC

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

EU AMENDS 2 ENTRIES ON NICARAGUAN SANCTIONS LIST

EU Regulation 2022/1935/EU amended the details of 2 entries on the Nicaragua sanctions list.

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2022.268.01.0005.01.ENG&toc=OJ%3AL%3A2022%3A268%3ATOC

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2022.268.01.0022.01.ENG&toc=OJ%3AL%3A2022%3A268%3ATOC

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

MONEY LAUNDERING: VIRTUAL IBAN (INTERNATIONAL BANK ACCOUNT NUMBER)

On 8 October, a guest Insight in AML Intelligence included a brief note about a new money laundering technique identified by the Belgian Financial Information Processing Unit (CTIF). 

https://www.amlintelligence.com/2022/10/analysis-expert-insight-into-global-money-laundering-techniques/#sq_h6xw39xzvn

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y

EUROPEAN LAWYERS FOUNDATION (ELF) AND THE COUNCIL OF BARS AND LAW SOCIETIES OF EUROPE (CCBE) SANCTIONS GUIDANCE

On 14 October, the EU Sanctions blog advised that these organisations had published guidance covering various issues including deposits, asset recovery, the provision of and payment for legal services.

https://www.europeansanctions.com/2022/10/european-bar-groups-guidance-for-lawyers-on-eu-sanctions/

https://www.ccbe.eu/fileadmin/speciality_distribution/public/documents/Events/20220615_Webinar/EU-sanctions-Webinar-Report.pdf

Any modest contributions for my time and ongoing expenses are welcomed! 

At Buy me a Coffee single contributions start as low as $3, at

https://www.buymeacoffee.com/KoIvM842y