On 8 November, OFAC announced various changes to cyber sanctions lists and has published new Cyber-related FAQ 1095, and 3 amended Cyber-related FAQ.
https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20221108
Day: November 8, 2022
OFAC TARGETS MAJOR ARMS BROKER FOR BURMA’S MILITARY REGIME
On 8 November, OFAC announced that it has designated 1 individual and 1 entity that facilitate weapons purchases for Burma’s military regime. This action, which is in conjunction with newly-issued EU sanctions, marks the second anniversary of the last general election in Burma in November 2020, which was brutally overturned by a military coup in February 2021.
https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20221108
OFAC DESIGNATES DPRK WEAPONS REPRESENTATIVES AND REDESIGNATES TORNADO CASH
On 8 November, OFAC announced is that it had designated 2 individuals for engaging in transportation and procurement activities on behalf of the DPRK. These individuals have acted on behalf of Air Koryo, a designated entity operating in the transportation industry in the DPRK economy. OFAC also delisted and simultaneously redesignated Tornado Cash to take into account additional information and also includes an additional basis for the designation of Tornado Cash regarding its support for DPRK activities.
https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20221108
PANAMA AND THE U-BOATS
ISLE OF MAN TO AMEND ACT DEALING WITH BENEFICIAL OWNERSHIP FROM 31 DECEMBER
On 8 November, a news release advised that, subject to the necessary Order being approved at the December sitting of the island’s parliament, the Beneficial Ownership Act 2017 is to be amended, with effect from 31 December, to allow access by “obliged entities”, that is to say businesses in the financial and gambling sectors in the island which are carrying on “regulated activities”. Note that this still does not create a public register of any sort (for example, other legal entities, or a third party authorised by them, may only access the database to access beneficial ownership information in relation to that specific legal entity alone), and severe restrictions, including criminal penalties, exist on the unauthorised onward disclosure of information. Information may be supplied by the FIU to an external intelligence or law enforcement agency. The new section 26, with the proposed amendments in italics, is reproduced below.
26 Persons who may access the Database
(1) Each of the competent authorities may access the Database for a permitted purpose (see sections 3(1) and 15(3)).
(2) The following persons or bodies may access the Database —
(a) the Department [i.e. the Department of Economic Affairs, which controls the Companies registry etc], for the purpose of its functions under this Act;
(b) the Isle of Man Gambling Supervision Commission, for the purpose of the Commission’s functions under any other enactment;
(c) employees of the Government Technology Services Division of the Cabinet Office, for the purpose of maintaining the Database and the required website (see section 22(8));
(d) a legal entity to which this Act applies, for the purpose of accessing the beneficial ownership information submitted in relation to that legal entity; and
(e) a third party that is authorised by a legal entity, to access beneficial ownership information in relation to that legal entity to which the authorisation applies; and
(f) an obliged entity —
(i) carrying on a regulated activity, for the purposes of carrying out its functions in respect of Part 4 of the Anti-Money Laundering and Countering the Financing of Terrorism Code 2019 as it has effect from time to time and any instrument or enactment amending or replacing it; or
(ii) for the purpose of carrying out its functions in respect of Part 4 of the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Code 2019 as it has effect from time to time and any instrument or enactment amending or replacing it.
(3) To avoid doubt, for the purpose of subsection (2)(d), access to the Database by a legal entity includes access for the purpose of —
(a) viewing the beneficial ownership information in relation to that entity contained on the Database; and
(b) submitting information in relation to that entity in accordance with section 22 (beneficial ownership information to be submitted online). Section 27 Beneficial Ownership Act 2017 Page 28 AT 3 of 2017 c
(4) The Treasury may by order amend subsections (1) to (3).
(5) An order under subsection (4) must not come into operation unless it is approved by Tynwald.
An “obliged entity”, a new definition inserted into section 3 (Interpretation) of the 2017 Act, is defined as follows.
“obliged entity” means a person or body carrying on —
(a) a regulated activity for the purpose of the Financial Services Act 2008; or
(b) a business or activity to which the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Code 2019 applies in accordance with paragraph 2(11) of Schedule 4 to the Proceeds of Crime Act 2008.
https://www.gov.im/news/2022/nov/08/tynwald-to-consider-changes-to-beneficial-ownership-law/
https://www.tynwald.org.im/business/opqp/sittings/20212026/2022-SD-0293.pdf
https://www.buymeacoffee.com/KoIvM842y
ECUADOR: 7 EX-PETROECUADOR OFFICIALS ARRESTED IN A MULTI-MILLION DOLLAR BRIBERY SCHEME
On 7 November, OCCRP reported that police had arrested 7 people, including 4 former executives of the country’s oil company Petroecuador, suspected of participating in a multi-million dollar bribery and money laundering scheme that allegedly involved a friend of a former President. The suspects are business partners of Nilsen Arias – an accused money launderer and ally of Ecuadorian ex-President Rafael Correa.
EU: 19 INDIVIDUALS AND 1 ENTITY ADDED TO MYANMAR SANCTIONS
EU Regulation 2022/2177/EU of 8 November added 19 persons and 1 entity to the list of natural and legal persons, entities and bodies subject to restrictive measures set out in Annex IV to EU Regulation 401/2013.
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022R2177&from=EN
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