REDEMPTIONS TO INVESTORS FROM COLLAPSED FRAUDULENT INVESTMENT FUNDS

Conyers has published a briefing saying that the collapse of an investment fund affected by a fraud will often lead to disputes between the investors who were paid out before the discovery of the fraud, the investors who gave notice to redeem prior to the discovery of the fraud, and the investors remaining in the fund when it collapsed.  In the light of a recent Privy Council case, the article says, it is an appropriate time to review the law in this area alongside earlier decisions of the Privy Council given in the context of investment funds affected by fraud.  The article says that there are 3 principles can usefully be highlighted from the decisions reviewed.

https://conyers-cdn.scdn5.secure.raxcdn.com/wp-content/uploads/2019/09/2019-09-Article-Redemptions-from-Fraudulent-Investment-Funds.pdf

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

US GOVERNMENT PUBLISHES DRAFT GUIDANCE ON EXPORT OF SURVEILLANCE KIT

World ECR has published an article about detailed new guidance published by the US State Department on the export of such equipment, which includes, inter alia, a checklist of due diligence considerations, red flags, and resources for assessing the human rights records of potential export markets – and a note that exporters should ‘include human rights safeguards language in contracts’.

https://www.worldecr.com/news/us-government-publishes-draft-guidance-on-export-of-surveillance-kit/

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

DUBAI: STANDARD CHARTERED BANK COULDN’T TELL REGULATOR HOW SOME RICH CLIENTS GOT RICH

On 16th September, KYC 360 reported that a previously unpublished Dubai regulatory review from 2 years ago found that the private bank didn’t have documentation to show the sources of some clients’ wealth and in some cases lacked even basic data such as current addresses and phone numbers, according to people familiar with the situation.  Similar failings have been identified at major hubs including Singapore, Hong Kong and London, it is reported.  The article mentions that the private bank has some $65 billion of assets and accounted for about 4% of the operating income of the firm in the first half, and that there is no evidence the bank was involved in wrongdoing.  The Dubai FSA ordered the bank to bring in external consultants to act as an independent check on the clean-up, and it brought in Deloitte LLP.

https://www.riskscreen.com/kyc360/news/stanchart-couldnt-tell-regulator-how-some-rich-clients-got-rich/

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

OTHER THINGS YOU MAY HAVE MISSED – SEPTEMBER 15

15th September 2019

0

https://www.linkedin.com/company/the-cyber-security-hub/

55142500-66a0-46a9-8931-56e9d2ab36a5

https://www.statista.com/chart/15628/un-budget-who-has-paid-their-dues/

SENIOR YUKOM BINARY OPTIONS EXECUTIVE ARRESTED IN HUNGARY

Finance Magnates on 15th September reported that, according to several news sources, a 28 year old person a of dual Israeli-French citizenship and reportedly the company’s served as the company’s VP for marketing, and a 44 year old person with US citizenship were arrested by the Hungarian Police.   It is said that they are suspected of involvement of binary options fraud through the activity of call centres operated in Ukraine and Mauritius.  The arrests follow the indictment of co-owners of Yukom, Lee Elbaz and Lisa Mel, both Israeli nationals, in the US where Mel was convicted and 5 of 15 other defendants pleaded guilty.

https://www.financemagnates.com/binary-options/brokers/exclusive-senior-yukom-executive-arrested-in-hungary/

DR CONGO EX-MINISTER ACCUSED OF $4.3 MILLION EMBEZZLEMENT OF EBOLA FUNDS

The Daily Mail on 15th September reported that detained former DR Congo health minister Oly Ilunga, 59, has been accused of embezzling $4.3 million of public funds raised to tackle the Ebola epidemic.  He resigned as health minister in July after being removed as head of the country’s Ebola response team.

https://www.dailymail.co.uk/wires/afp/article-7465933/DR-Congo-ex-minister-accused-4-3-million-embezzlement.html

GOVERNMENT PROSECUTORS IN PANAMA HAVE APPEALED THE MARTINELLI NOT GUILTY JUDGMENT

On 15th September, Kenneth Rijock in his blog reported an appeal, brought by Organized Crime prosecutors to the Superior Court of Appeals, as an attempt to overturn the findings of fact, including that the government failed to prove that the electronic surveillance was not authorised by a judicial body.

http://rijock.blogspot.com/2019/09/prosecutors-appeal-seeks-to-nullify.html

DOJ

GIBRALTAR POLICE CO-OPERATES WITH GUARDIA CIVIL IN CRACKDOWN ON MAJOR DRUG SMUGGLING GANG

The Gibraltar Chronicle on 15th September reported that on an operation resulted in 78 arrests and the seizure of over 6 tonnes of cannabis resin, as well 5 rigid-hulled inflatable boats, 6 firearms, 17 vehicles and nearly half a million euros in cash.  It began in February after 3 men were rescued by Spanish maritime rescue services from a vessel that was in danger of sinking near Gibraltar, and the vessel was later recovered by the RGP along with 84 bales of cannabis resin weighing 2.5 tonnes.  A major crackdown on 2 networks saw searches in 25 properties in Cadiz, Seville and Malaga provinces and 20 bank accounts frozen.  Investigators also closed down a boatyard that specialised in building and maintaining large RHIBs of the sort used by smugglers to carry drug shipments from Morocco to Spain.

https://www.chronicle.gi/rgp-cooperates-with-guardia-civil-in-crackdown-on-major-drug-smuggling-gang/

 

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

POLICE ARREST WORKERS OF ISRAELI CYBER GROUP ABILITY ON SUSPICION THEY VIOLATED DEFENCE EXPORT LAW

Haaretz in Israel on 15th September reported that a number of suspects associated with 2 of the cyber group’s subsidiaries are facing charges of fraud, smuggling and money laundering.  However, a court imposed a gag order on the identity of the suspects and many of the details of the investigation.  The subsidiaries of Ability Inc under suspicion are Ability Computer & Software Industries and Ability Security Systems.  Earlier this year it was reported that subsidiaries of the group had broken the law by marketing and exporting eavesdropping and geolocation systems without an export licence and the Defense Ministry suspended the subsidiaries from the registry of defence export companies and their export licences.

https://www.haaretz.com/israel-news/business/.premium-workers-of-cyber-group-ability-arrested-on-suspicion-of-breaching-defense-export-law-1.7843577

https://www.jpost.com/Jpost-Tech/Two-Israeli-security-tech-firms-investigated-on-suspicion-of-fraud-601704

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

OTHER THINGS YOU MAY HAVE MISSED – SEPTEMBER 14

14th September 2019

MYANMAR STRUGGLES TO DEAL WITH MONEY LAUNDERING AND RELATED CRIME

On 14th September, Mizzima, which provides news on/from Myanmar, carried an article saying that one country that is struggling to deal effectively with decades-old criminal enterprises is Myanmar, due to a massive illegal drugs trade, criminal enterprises tied up with ethnic armed groups, terrorist elements, and allegations that members of the military and government are involved.  Corruption has its main roots in the decades-long ethnic conflicts and the successive military regimes that have held power in Myanmar from General Ne Win’s 1962 coup up until a change of guard in 2011 and beyond.  It says that it is no secret that the core problem lies in Myanmar’s illegal drug production and trafficking with the equivalent of billions of dollars being fed into the economy under a variety of guises.  Recently, the director-general of the Ministry of Home Affairs’ Bureau of Special Investigation told the media that 90% of money laundering cases his bureau investigates are tied to drugs.  No less than 32 types of drugs – made possible through the drug precursors illegally flowing over the border from China – worth millions of dollars including heroin, methamphetamine, ice and pseudoephedrine have been seized and destroyed by authorities in the last year.  The recent report by the relevant FATF-style regional body said that higher-risk money laundering predicate offences include drug production and trafficking, environmental crimes including illegal resource extraction including jade, wildlife smuggling and illegal logging, human trafficking, corruption and bribery.  The article examines some of the reasons for the failure to tackle the money laundering problems, including the fact that the Northern Shan state is described as a “narco state”, with problems dating back to the fleeing Chinese nationalists coming across the border in 1949 as it lost the civil war.  The article refers to laundering of criminal proceeds through casinos, mineral extractions, banana and rubber tree plantations, real estate development and infrastructure undertakings, and to profits from the drug trade that may remain largely within the country for reinvestment – although the sizeable amount in billions of dollars would be stashed in regional financial centres.  In particular, the article mentions casinos used to launder money, including one which has been designated by OFAC.  Also mentioned as a complication is the “hundi” informal money exchange system that remains popular in Myanmar and with Myanmar expatriates.  This operates like the better known “hawala” system.  Myanmar is also a producer of military weapons, from assault rifles to howitzers – much of Chinese origin, with allegations that such weapons have been supplied to insurgent forces.  The article remarks on impoverished border areas with China now appearing prosperous, fuelled (largely, it is claimed) by illegal trade and money laundering.

http://www.mizzima.com/article/myanmar-struggles-deal-money-laundering-and-related-crime

SOUTH KOREA: JUSTICE MINISTER’S COUSIN DETAINED FOR LINK TO SUSPICIOUS INVESTMENT

The Korea Times on 14th September reported that prosecutors have arrested a cousin of Justice Minister Cho Kuk at the centre of corruption allegations surrounding Cho and his family’s investment in a private equity fund.  He was arrested at Incheon International Airport on embezzlement charges, according to officials.  He is allegedly the de facto head of controversial private equity fund Co-Link PE.  Despite the allegations, Cho was sworn in as justice minister and said that he will not interfere with the ongoing probe.

http://www.koreatimes.co.kr/www/nation/2019/09/251_275540.html

NEW RULES FOR ONLINE SHOPPING IN EU TAKE EFFECT

On 13th September, EU Business reported on the new EU rules on online shopping, which came into force on 14th September, and which should make it easier and safer for consumers to pay for goods and services online and to manage their personal finances.  However, some stakeholders are still working to put these technological and practical changes in place, in line with a gradual approach suggested by the European Banking Authority.  Electronic payments will be even more secure thanks to the introduction of “strong customer authentication” (SCA) which will improve the means of tackling online payments fraud.

https://www.eubusiness.com/news-eu/online-payment.13dq

FORMER ANDERLECHT FOOTBALL CLUB EXECUTIVE CHARGED IN MONEY LAUNDERING CASE

The Daily Mail reported on 13th September that a former executive of the club, Herman Van Holsbeeck, 64, a former player and coach, had been charged with money laundering, forgery and conspiracy connected to corruption in the transfer of footballers.  It says that this new case is not linked to last years large-scale corruption case which saw raids across Europe.

https://www.dailymail.co.uk/wires/ap/article-7462155/Former-Anderlecht-executive-charged-money-laundering-case.html

INDIA: GOLDMAN SACHS EXECUTIVE EMBEZZLED MILLIONS TO PAY GAMBLING DEBTS

Calvin Ayre on 13th September reported that Goldman Sachs was trying to uncover how much damage may have been caused by a now former executive, Ashwani Jhunjhunwala, who was the VP of the company’s legal team in Bangalore, decided to use the company accounts as his personal piggy bank.  He is alleged to have stolen a minimum of $5.3 million from the company.

https://calvinayre.com/2019/09/13/business/goldman-sachs-exec-embezzles-millions-to-pay-off-gambling-debts/

A WTO REFORM AGENDA

The Brookings Institute in the US has produced a Working Paper saying that the WTO is in need of reform and developing e-commerce rules should be seen as part of WTO reform in 2 respects.  The development of such rules will allow the WTO to demonstrate a capacity to remain relevant to the challenges and opportunities governing international trade today.  Secondly, many of the issues that need to be addressed in a comprehensive outcome on e-commerce would contribute to broader WTO reform.  The Working Paper proposes, among other things, that the WTO become a platform that can enable increased regulatory cooperation and encourage good regulatory practice.  Such a result is needed to overcome many of the current barriers to e-commerce.  Success in the e-commerce context would also position the WTO to better address regulatory barriers to trade more broadly.   The Working Paper is focused on what is needed to support cross-border data flows, as well as the international regulatory cooperation and good regulatory practice that is required to provide an effective mechanism for digital trade governance, and envisions the WTO as a platform for addressing behind-the-border regulation that is an increasingly key barrier to digital trade.

https://www.brookings.edu/wp-content/uploads/2019/09/WTO-Reform-Agenda_final.pdf

BELGIAN FOREIGN MINISTER FACES CORRUPTION PROBE

On 14th September, Bloomberg reported a Financial Times story saying that Belgian Foreign Minister Didier Reynders, who is earmarked as the next EU Justice Commissioner, faces a probe on allegations over claims of corruption and money laundering in the Democratic Republic of Congo.

https://www.bnnbloomberg.ca/belgian-foreign-minister-reynders-faces-corruption-probe-ft-1.1316136

NORTH MACEDONIA PROSECUTOR DISMISSED OVER CORRUPTION SCANDAL

An AP report on 14th September says that lawmakers in North Macedonia have dismissed special prosecutor Katica Janeva, who was tasked with investigating high-level corruption after she was detained under suspicion of involvement in a high-profile graft scandal.

https://www.macon.com/news/nation-world/article235101922.html

CANADA: INTELLIGENCE COMMUNITY REELING AFTER RCMP DIRECTOR ACCUSED OF VIOLATING OFFICIAL SECRETS ACT

On 13th September, CBC reported that Cameron Ortis, a civilian director general at the RCMP, faces charges under both Security of Information Act and Criminal Code.  Federal departments across government are said to be conducting in-house damage assessments in the wake of his arrest.  Ortis had some of the highest access to classified and allied information within the RCMP during his career.

https://www.cbc.ca/news/politics/rcmp-security-charge-1.5280643

 

This blog is primarily for my own use, to keep informed and up to date.  However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

 

 

 

GATS IS COMING – A REVOLUTION IN AIRCRAFT TRADING

On 13th September, an article from Bryan Cave Leighton Paisner says that every aircraft owner, leasing company and airline should be looking into GATS (the new Global Aviation Trading System) and how it can (will) change the way in which they will acquire, own, lease and trade aircraft.  The firm says that it is a platform that not only has the potential to revolutionise the way aircraft are bought and sold but could realise that potential quite quickly, with significant advantages for aircraft lessors of the new platform – speed and cost of execution being the principal ones, and GATS has the potential to open up the trading of aircraft assets to a broader market.  The GATS platform is not yet fully operational but will be almost entirely virtual, as it is phased in.

https://www.jdsupra.com/legalnews/gats-is-coming-a-revolution-in-aircraft-48381/

More detailed information on GATS is available at –

http://www.awg.aero/projects/gats/

This says that the trading and financing of aircraft equipment subject to leases is an increasingly important part of the aviation industry, and inefficiencies are being addressed through development of the Global Aircraft Trading System (GATS), a system designed to modernise aircraft equipment trading and financing.  It also stresses that GATS will be a fully electronic system, with e-signatures, e-delivery of documents and use of a secure e-ledger to record transactions, and it will be a voluntary system open to all industry players.

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y