OTHER THINGS YOU MAY HAVE MISSED – FEBRUARY 12

12th February 2019

FRAUD, NON-EXISTENT GOODS AND SHIPPING INSURANCE

An article from Colin Biggers and Paisley on 21st January is concerned with a recent English High Court case involving a claim for a lost cargo of copper ingots that, in fact, never existed – fraudulent documents had been used.  The standard insurance cover clause invoked was held not to cover the loss.  The article says that the case is a warning to insurers and insured to ensure that their insurance cover really is entirely adequate.  It also serves as a reminder of the existence and risk of fraud in shipping of goods, and that the factor needs to be taken into account with changes such as the used of blockchain-based process are introduced.

https://www.cbp.com.au/insights/insights/2019/january/non-existent-goods-not-covered-by-marine-cargo-ins

EUROPE: DRUG DEALERS USED HAWALA, GOLD LAUNDERING TO MOVE MILLIONS MONTHLY

KYC 360 on 12th February carried an article saying that police in France and Italy have swooped in on suspected members of a gang that operated a ‘complex’ network which involved moving between €5 million and €7 million a month to Algeria.  They are said to have used the hawala system, and “gold laundering”, whereby part of the cash money collected was sent to Italy to buy gold from unscrupulous business intermediaries.

https://www.riskscreen.com/kyc360/news/europe-drug-dealers-used-hawala-gold-laundering-to-move-millions-monthly/

ANOTHER SUPERYACHT LINKED TO THE 1MDB CASE

The Edge Markets website on 11th February carried an article saying that, while much attention has been focused on the $250 million Equanimity that Jho Low bought with stolen 1MDB money, Malaysia may yet be able to make a claim on an even bigger super yacht — Topaz.  It says that close to $140 million that originated in 1MDB is believed to have been used to pay for the $400 million Topaz, which was built in 2012 for its beneficial owner, Sheikh Mansour bin Zayed Al Nahyan, the owner of Manchester City FC.  It says that Oceanus Maritime is the registered owner of Topaz and is a company set up in the Isle of Man.

http://www.theedgemarkets.com/article/topaz-and-sheikh-mansour-link-1mdb

EU COMMISSION WELCOMES THE AGREEMENT ON ENHANCED RULES TO FIGHT TERRORIST FINANCING

On 12th February, the EU said that the European Parliament and the Council had reached a political agreement on the Commission’s proposal to facilitate cross-border access to financial information by law enforcement authorities.  The new measures will allow police to quickly access crucial financial information for criminal investigations, boosting the EU’s response to terrorism and other serious crime.

http://europa.eu/rapid/press-release_IP-19-1049_en.htm

https://www.consilium.europa.eu/en/press/press-releases/2019/02/12/law-enforcement-access-to-financial-information-council-presidency-and-european-parliament-reach-provisional-agreement/

MICRONESIAN GOVERNMENT OFFICIAL ARRESTED IN MONEY LAUNDERING SCHEME INVOLVING FOREIGN BRIBERY

A US DoJ news release on 12th February reported that charges were unsealed against a Micronesian government official for his alleged participation in a money laundering scheme involving bribes made to corruptly secure engineering and project management contracts from the government of the Federated States of Micronesia (FSM).   In a related matter, in January, a US executive pleaded guilty for his role in a scheme to, among other things, bribe the Micronesian official in violation of the Foreign Corrupt Practices Act (FCPA).

https://www.justice.gov/opa/pr/micronesian-government-official-arrested-money-laundering-scheme-involving-foreign-bribery

MANHATTAN LUXURY CONDOS LINKED TO VENEZUELAN MONEY LAUNDERING

The Real Deal, which covers New York real estate, on 12th February said that there are allegedly 7 properties said to be linked to a currency exchange scam.  They are said to be worth more than $40 million.

https://therealdeal.com/2019/02/12/manhattan-luxury-condos-tied-to-alleged-venezuelan-money-laundering-scheme/

MALTA POLICE INVESTIGATION AND MAGISTERIAL INQUIRY INTO SPANISH TUNA COMPANY UNDERWAY

Malta Today on 12th February said that police have asked Europol for information that has surfaced in Spain on the Maltese director of fisheries, implicating the Maltese Andreina Fenech Farrugia in bribery.

https://www.maltatoday.com.mt/news/national/92936/malta_police_investigation_and_magisterial_inquiry_into_spanish_tuna_company_were_underway

RABOBANK FINED €1 MILLION FOR AML FAILINGS

NL Times on 12th February reported that the Dutch central bank, RNB, fined the bank for inadequacies with its customer files and not doing adequate checks on money flows.

https://nltimes.nl/2019/02/12/rabobank-fined-eu1-million-poor-money-laundering-checks

UK AID HELPS STOP 750 PIECES OF ILLEGAL IVORY BEING SMUGGLED FROM SOUTH SUDAN INTO UGANDA

On 12th February, a news release from the Department for International Development said that scanners funded by UK aid have helped the Ugandan Revenue Authority make one of the largest seizures of wildlife contraband the country has ever seen.  The technology, known as ‘mobile non-intrusive inspection scanners’, were able to show how logs had been hollowed out and filled with the illegal wildlife goods. The smugglers poured wax inside to make the logs appear hollow and resealed them.

https://www.gov.uk/government/news/uk-aid-helps-stop-750-pieces-of-illegal-ivory-being-smuggled-from-south-sudan-into-uganda–2

CBI FRAUD RACKET CLAIMS

CBI

On 11th February, Kenneth Rijock in his blog reported on an apparent scam by unscrupulous “consultants” in the Persian Gulf.

http://rijock.blogspot.com/2019/02/massive-cbi-fraud-alleged-by-gulf.html

NO ORDER FOR COSTS FOLLOWING WITHDRAWN POCA FORFEITURE APPLICATION

On 27th January, the UK Police Law Blog carried a post about a recent decision of the High Court that a district judge was correct to make no order for costs against the police after it withdrew its Proceeds of Crime Act 2002 application for cash forfeiture.  The starting point is that no order for costs should be made provided that the public authority has acted reasonably and properly, and reaffirms the high threshold faced by successful parties challenging a POCA forfeiture application.

http://www.ukpolicelawblog.com/index.php/9-blog/196-no-order-for-costs-following-withdrawn-forfeiture-application

LARGEST GOLD DEPOSIT IN ECUADOR IS IN THE HANDS OF ORGANISED CRIME

Insight Crime on 12th February reported that a gold vein was discovered in 2017 that experts say could be one of the largest in South America.  Within 24 hours, nearly 700 people were already illegally mining the gold, and there are now an estimated 3,000 people involved in mining in the area.  Criminals have moved in, including former FARC members.

https://www.insightcrime.org/news/analysis/large-deposit-brings-illegal-gold-rush-ecuador/

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RECORD SETTING 30-TONNE PANGOLIN SEIZURE IN SABAH AHEAD OF WORLD PANGOLIN DAY

The Traffic website on 11th February reported that, following large seizures of pangolin scales amounting to 10 tonnes in Viet Nam, Hong Kong and Uganda over the previous 2 weeks, authorities in Malaysia have announced the discovery of 2 major pangolin processing facilities stocked with thousands of boxes of pangolin meat in the state of Sabah. It is the biggest such bust Malaysia has seen to date.  The haul included about 1,800 boxes full of frozen pangolins stuffed inside 3 refrigerated containers, 572 more frozen pangolins in 6 freezers, 61 live pangolins in cages and in a car boot and 361 kg of pangolin scales.  2 bear paws and carcasses of 4 flying fox were also recovered.

https://www.traffic.org/news/record-setting-30-tonne-pangolin-seizure-in-sabah-ahead-of-world-pangolin-day/

WORLD FIRST AS COURT SAYS SHIP’S MALTA MORTGAGE OVERRIDES FOREIGN AUCTION

Hellenic Shipping News reported in an article dated 13th February that a ship has been arrested in Malta after a creditor obtained a Maltese court order claiming a judicial sale by auction of the ship in Jamaica was ignored.  The vessel got into financial distress whilst in Haiti and Jamaica and was arrested by a number of creditors in Jamaica.  The ship was subsequently sold and re-registered in Liberia.  Then the ship was arrested on the basis of the mortgage in June 2018 as it passed through Maltese territorial waters for bunkering.  The website says that this is a first case in the international scene where a vessel was arrested following a judicial sale by creditors on the basis of a mortgage registered prior to that judicial sale.

https://www.hellenicshippingnews.com/world-first-as-court-says-ships-malta-mortgage-overrides-foreign-auction/

CANADA INTRODUCES DEFERRED PROSECUTION AGREEMENTS

On 12th February, the FCPA Blog reported that Canada has joined a global trend in white collar and corporate crime law enforcement with the introduction of a Deferred Prosecution Agreement (DPA) regime.  Its Remediation Agreement Regime (RAR came into force in September 2018.

http://www.fcpablog.com/blog/2019/2/12/canadas-new-dpa-regime-comes-into-focus.html

 

AML/CFT MUTUAL EVALUATION REPORT ON PERU

On 12th February, GAFILAT, the regional FATF-style body, published its MER on Peru, which it had approved at a Plenary in December.  The on-site visit took place in May/June 2018.  It says that the AML/CFT regime of Peru has improved significantly since its last evaluation – but in some areas it requires considerable and fundamental improvements.

https://www.gafilat.org/index.php/es/biblioteca-virtual/miembros/peru/evaluaciones-mutuas-14/3199-mutual-evaluation-report-of-peru

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EU WARNS 6 STATES ON ‘HARMFUL’ TAX REGIMES

On 12th February, Lowtax reported that the EU Code of Conduct Group (Business Taxation) has notified authorities in Barbados, Belize, Curacao, Mauritius, Saint Lucia, and Seychelles that the group considers further changes are needed to their tax regimes to bring them into line with international standards.  It highlights the position of Barbados.

https://www.lowtax.net/news/EU-Warns-Six-States-On-Harmful-Tax-Regimes-97024.html

COUNTER-TERRORISM AND BORDER SECURITY ACT BECOMES LAW IN UK

On 12th February, the Home Office announced that this New Act had received Royal Assent.  The Home Office says the Act ensures sentencing for certain terrorism offences can properly reflect the severity of the crimes, as well as preventing re-offending and disrupting terrorist activity more rapidly; and in addition, the Act updates existing counter-terrorism legislation to reflect the digital age including the way in which people view content online.  Its provisions include –

  • a new power to stop, question, search and detain an individual at a port or border area to determine whether they are, or have been, involved in hostile state activity;
  • creating an offence of entering or remaining in an area outside the UK that has been designated by the Home Secretary if it is necessary for protecting the public from terrorism;
  • updating the offence of obtaining information likely to be useful to a terrorist to cover material that is only viewed or streamed, rather than downloaded to form a permanent record;
  • an increase to the maximum penalty for certain preparatory terrorism offences to 15 years’ imprisonment;
  • extending the offence of inviting support for a proscribed organisation; and
  • a requirement for terrorist offenders to provide additional information to the police in line with what registered sex offenders must provide.

https://www.gov.uk/government/news/counter-terrorism-and-border-security-bill-given-royal-assent

See factsheets at –

https://www.gov.uk/government/publications/counter-terrorism-and-border-security-bill-2018-factsheets

UK CRIME (OVERSEAS PRODUCTION ORDERS) ACT 2019 PUBLISHED

On 12th February, HMSO published this new Act which allows law enforcement agencies to apply for a UK court order to get stored electronic data directly from a company or person based outside the UK.  It creates a framework to enable law enforcement agencies and prosecutors to apply to a UK court for an ‘overseas production order’ requiring a person (in practice, generally a communications service provider or ‘CSP’) in a foreign jurisdiction to produce or grant access to electronic data for the purposes of investigating and prosecuting serious crime. An application would only be granted if the judge was satisfied that the data was likely to be of substantial value to the criminal proceedings or investigations for which it was sought, and that it would be in the public interest.

https://www.parliament.uk/business/news/2019/february/royal-assent-crime-overseas-production-orders-bill-signed-into-law/

https://www.gov.uk/government/news/crime-overseas-production-orders-bill-receives-royal-assent

BAHAMAS 2018 AML/CFT REPORT

Released on 8th February, this report is from the Group of Financial Services Regulators (GFSR) – comprising the Central Bank, the Compliance Commission, the Gaming Board, the Insurance Commission and the Securities Commission, and founded in 2002.    Its appendices include its FATF ratings and its comparison to other jurisdictions.

It also mentions the publication in 2018 of 2 new guidance notes –

  • Guidance Note on the Sound Management of Risks Related to Financial Crimes in The Bahamas, and
  • Guidance Note on Proliferation and Proliferation Financing

https://www.centralbankbahamas.com/download/056332100.pdf

BAHAMAS 2

BAHAMAS 1

OTHER THINGS YOU MAY HAVE MISSED – FEBRUARY 11

11th February 2019

3D-GUN BLUEPRINT WEBSITE OWNER SUES NEW JERSEY ATTORNEY GENERAL

The Washington Times on 10th February reported that the website owner is challenging a law signed late last year that gun-rights advocates say criminalises their free speech rights to post the blueprints.  A coalition of gun-rights groups recently asked a federal court in New Jersey to block the Attorney General from enforcing the law and direct him to stop sending cease-and-desist messages over the online posting of the files.

https://www.washingtontimes.com/news/2019/feb/10/3d-printed-gun-blueprint-website-owner-sues-new-je/

JAILED ART DEALER DODGED TAX ON MILLION DOLLARS COMMISSION FOR PAINTING

KYC 360 on 11th February reported that New Jersey art dealer, Brian Gimelson made more than $1.2 million over the sale of a purportedly original painting by Caravaggio, but set up a company in his wife’s name to facilitate the deal.  He was jailed for 18 months and has to pay $432,456 in restitution.

https://www.riskscreen.com/kyc360/news/art-dealer-got-wife-to-open-bank-accounts-dodges-tax-on-1-2-million/

MRR

The Wall Street Journal Risk & Compliance Report said on 11th February that tipsters who blew the whistle on tax fraud in the US collected a record $312.2 million in awards during fiscal 2018.  The total was more than 6 times the average annual figure for the previous ten years, according to the IRS.

EU PHARMA STAKEHOLDERS TAKE ACTION TO TACKLE FAKE MEDICINES

An article on EurActiv on 11th February reported that a number of pharma stakeholders have announced the official launch of the European Medicines Verification System (EMVS), which will make use of new technologies to improve safety in the medicines’ supply chain against fake products.  The new system is part of the Falsified Medicines Directive and is managed by consortia of stakeholders, ranging from pharma manufacturers, both innovative and generic pharma industry, to wholesalers, community pharmacists, hospitals and hospital pharmacies.  Surveys suggest that the prevalence of counterfeit medicines in the legal supply chain in Europe is approximately 0.005%.  Manufacturers will serialise the packaging of prescription medicines with a Unique Identifier, which will then be uploaded by the manufacturer to the European Hub (the EMVS).

https://www.euractiv.com/section/health-consumers/news/eu-pharma-stakeholders-take-action-to-tackle-fake-medicines/

SOUTH AFRICA – AN EMERGING PLAYER IN THE GLOBAL UNMANNED MILITARY VEHICLE MARKET

Defence Web on 11th February reported that local company Milkor is now part of a handful of elite companies around the world producing armed unmanned aerial vehicles (UAV). Its first UAV weapon is a small-diameter laser-guided bomb.  The 12-metre wingspan MA380 will carry 2 of these weapons.  Milkor’s smaller MA80 may be able to carry 1 laser-guided bomb.  The company’s third UAV, the hand-launched MA18, is built for tactical surveillance and is unarmed.

https://www.defenceweb.co.za/industry/industry-industry/south-africa-an-emerging-player-in-the-global-unmanned-military-vehicle-market/

UK INDEPENDENT REVIEW OF DRUGS: TERMS OF REFERENCE

On 11th February, the Home Office announced the terms of reference for the major independent review of drug misuse announced in October, that would build on the work under way since the government’s drug strategy was published in 2017.

https://www.gov.uk/government/publications/independent-review-of-drugs-terms-of-reference

RCMP ARRESTS 15 PEOPLE, SEEK 4 OTHERS ALLEGEDLY TIED TO INTERNATIONAL MONEY LAUNDERING SCHEME

Canoe.com in Canada on 11th February reported that the RCMP, Canadian revenue Agency and other police forces in Canada involved in operation that saw the arrest of 15 people in a series of raids in Montreal and Toronto targeting what investigators say is an extensive international money laundering network with ties to organised crime.

https://canoe.com/news/national/rcmp-arrests-19-people-allegedly-tied-to-international-money-laundering-scheme

COURT ISSUES INTERNATIONAL ARREST WARRANT FOR ROMANIAN BUSINESSMAN

Romania Insider on 11th February reported that a Court has issued an arrest warrant for Romanian businessman Florian Walter in a case of tax evasion that damaged the state budget by €4.5 million.  He was also the main shareholder of FC Petrolul Ploiesti and Universitatea Cluj football clubs and, before that, he was one of the shareholders of Dinamo football club.

https://www.romania-insider.com/florian-walter-international-arrest-warrant

SINGAPORE: LAW PASSED TO TACKLE MONEY LAUNDERING AND TERROR FINANCING RISKS IN PRECIOUS STONES AND METALS SECTOR

The Straits Times on 11th February reported that dealers in precious stones and metals will have to register with the Law Ministry and carry out stricter checks on customers.  The Law Ministry will continue to work with dealers of precious stones and metals to help them comply with the new rules.

https://www.straitstimes.com/singapore/parliament-law-passed-to-tackle-money-laundering-and-terror-financing-risks-in-precious

GUERNSEY: IMMUNO BIOTECH FINANCE BOSS GUILTY OF MONEY LAUNDERING

On 11th February, the BBC reported that Peter Dawson-Ball, 64, the financial controller of a firm that sold an unlicensed blood product has been found guilty of money laundering.  He worked for David Noakes, who was jailed in November for manufacturing, supplying and selling unlicensed blood product GcMAF.

https://www.bbc.co.uk/news/world-europe-guernsey-47200876

SWITZERLAND INVESTIGATING VENEZUELA-LINKED CORRUPTION

Swissinfo on 11th February reported that Switzerland’s Attorney General has opened an investigation into a corruption case involving Venezuela.

https://www.swissinfo.ch/eng/money-laundering-_switzerland-investigating-venezuela-linked-corruption/44747888

PETROFAC FACES POTENTIAL £400 MILLION LAWSUIT FOLLOWING EX-EMPLOYEE’S BRIBERY CONVICTION

City AM on 11th February reported that the oil field services company is facing the lawsuit from angry investors after its shares crashed when former global head of sales at Petrofac, David Lufkin pleaded guilty to bribery and corruption charges.

http://www.cityam.com/273060/petrofac-faces-potential-400m-lawsuit-following-ex

CONFRONTING MONEY LAUNDERING AND TERRORIST FINANCING: MOVING CANADA FORWARD

On 11th February, an article from Dentons comments on the contents of a report from the Canadian Parliament’s Standing Committee on Finance.  Every 5 years the Committee reviews the country’s AML/CFT law.  This report noted that Canada’s AML policies are lax compared to the UK and the US.  The article summarises the overarching themes of the Report, emphasising beneficial ownership, exchange of information and privacy rights and virtual currency.

https://www.jdsupra.com/legalnews/confronting-money-laundering-and-81371/

Q&A – SUBSTANCE LEGISLATION: SCOPE, TESTS AND SANCTIONS

On 11th February, Ogier published an article which sets out an overview of substance legislation across jurisdictions – Jersey, Guernsey, BVI and Cayman (among others), with particular relevance to questions about how the law came about, the scope of the law, the definitions attached to the tests involved, and sanctions for non-compliance.

https://www.ogier.com/publications/qa-substance-legislation-scope-tests-and-sanctions

US CUSTOMS AT JFK SEIZE $3.7 MILLION COUNTERFEIT WATCHES

On 11th February, US Customs and Border Protection reported that a routine inspection of a shipment from Hong Kong led to the discovery and seizure of counterfeit watches worth an estimated manufacturer suggested retail price of $3.7 million, had they been genuine.   The seized watches were infringing on the Michael Kors, Rolex, Piguet, Hublot, and Nike trademarks.

https://www.cbp.gov/newsroom/local-media-release/cbp-jfk-seizes-counterfeit-watches

CRYPTOCURRENCY FRAUD DISMANTLED IN ROMANIA BY POLICE AND US SECRET SERVICE

Baker McKenzie on 11th February reported that over 100 Romanian police officers and US Secret Service agents raided several addresses in Bucharest and 9 counties as part of a large-scale action to destroy a specialised computer fraud organisation that caused damages worth $34 million.

http://www.riskandcompliancehub.com/cryptocurrency-fraud-dismantled-in-romania-by-police-and-us-secret-service/

ISIL/DA’ESH CONTINUES EVOLUTION INTO COVERT GLOBAL NETWORK ENJOYING ACCESS TO MILLIONS OF DOLLARS

A news release from the UN on 11th February reported that a top anti-terrorism official addressed the UN Security Council.  The Counter-Terrorism Directorate Chief expressed concern that the group exploits mobile money payments, anonymity of blockchain technology.  This was in the light of the 8th “Report of the Secretary-General on the threat posed by ISIL to international peace and security and on the range of the United Nations’ efforts in support of Member States in countering the threat”.   He said the threat has been increased by the presence of returning, relocating or released foreign terrorist fighters.

https://www.un.org/press/en/2019/sc13697.doc.htm

CUTTING TRADITIONAL DRUGS WITH DANGEROUS NEW SYNTHETICS IS A PROFITABLE BUSINESS MODEL: EXPECT TO SEE MORE OF IT

On 11th February, Illicit Trade carried an article saying that a study published by the journal Drug and Alcohol Dependence revealed that just under 1% of US teenagers are knowingly consuming the synthetic cathinone flakka, a powerful stimulant.  It also says that it is now commonly being added by dealers to more traditional illicit substances such as ecstasy and cocaine.  Flakka, or alpha-Pyrrolidinopentiophenone, is part of a group of new psychoactive substances that has risen in popularity across the western world over recent years.  Flakka is routinely referred to as being similar to cocaine, but is in fact potentially far more dangerous.  The UK also sees the use of bath salts, or “monkey dust” as it referred to

https://www.illicit-trade.com/2019/02/cutting-traditional-drugs-with-dangerous-new-synthetics-is-a-profitable-business-model-expect-to-see-more-of-it/?utm_source=dlvr.it&utm_medium=twitter

BAHAMAS GAMING BOARD: WEB SHOPS FREE FROM MONEY LAUNDERING THREAT

On 11th February, the Nassau Guardian reported that the Gaming Board has determined that gaming houses are free from the threat of money laundering or terrorist financing, finding that most gaming house players have an average account balance of $5 and an average transaction amount of $60.  This information was released in the Group of Financial Services Regulators’ (GFSR) Bahamas 2018 AML/CFT Report, published on the website of the Central Bank of The Bahamas.

https://thenassauguardian.com/2019/02/11/gaming-board-web-shops-free-from-money-laundering-threat/

UNDERSTANDING TRADE BALANCES

A briefing paper from the EU Parliament Research Service seeks to easily explain trade balances, GDP, balance of payments and so on – and dispel some of the common misapprehensions.

http://www.europarl.europa.eu/RegData/etudes/ATAG/2019/633187/EPRS_ATA(2019)633187_EN.pdf

 MYANMAR GOVERNMENT ASKS COMPANIES TO TIGHTEN ANTI-GRAFT MEASURES

The Myanmar Times on 11th February said that companies in Myanmar are now required to establish mechanisms for employees to report suspected corrupt practices, according to the latest government announcement.  Last month, the Directorate of Investment and Companies Administration (DICA) updated the anti-corruption code of ethics for companies.

https://www.mmtimes.com/news/govt-asks-companies-tighten-anti-graft-measures.html

AUSTRALIA: 2 MEN FACED COURT OVER A MAJOR $1.3 BILLION DRUG BUST LINKED TO A MEXICAN CARTEL 

The Sydney Morning Herald on 11th February reported that US federal agents had revealed that they had intercepted 1.7 tonnes of methamphetamine bound for Australia – the largest meth seizure ever recorded on US soil and the biggest intercepted drug haul bound for Australia.  The drugs were “artfully concealed” inside a shipment of loudspeakers on a ship in Los Angeles.  3 others charged, including 2 Americans – one a prominent figure in the audio equipment industry in California and ran a series of companies selling stereos, speakers, subwoofers and digital amplifiers.

https://www.smh.com.au/national/victoria/men-face-court-over-massive-ice-haul-as-bandidos-make-extraordinary-denial-20190211-p50x1a.html

THE NEW ENGLISH COURT DISCLOSURE PILOT, WHAT DOES IT MEAN FOR LITIGANTS?

HFW has issued a briefing which outlines the mandatory English High Court Disclosure Pilot (the Pilot) which from 1st January applies to most actions in the Business and Property Courts.  It says that this is a whole-scale change to disclosure process of which all users of the English High Court should be aware.  The Pilot is intended to reduce the scope and therefore the cost of disclosure by reference to a 2-stage disclosure process – “initial” and “extended” disclosure.

http://www.hfw.com/downloads/00942-HFW-Client-Guide-Disclosure-Pilot.pdf

THE BASICS: HOW TO WIND UP A CORPORATE DEBTOR

A briefing from Gowling WLG says when a company has debts and appears to be struggling, what can you do to try to get your debts settled?  Is applying for a winding up the answer?  The briefing considers what one needs to consider, and examines the key steps in the process.

https://gowlingwlg.com/en/insights-resources/articles/2019/how-to-wind-up-a-corporate-debtor/

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EU TO AMEND UNION GENERAL EXPORT AUTHORISATION (EXPORT LICENCE) IN THE EVENT OF A NO-DEAL BREXIT

On 1st February, Loyens & Loeff published an article about a proposal by the EU Commission to add the UK to the list of destinations covered by the Union General Export Authorisation (EU001) for the export of dual-use goods if there is a no deal Brexit on 29th March.  Presently, the “export” of dual-use goods from another EU state to the UK is, in general, not subject to licensing.  However, if the UK should leave the EU on 29th March without a deal, the export of dual-use goods to the UK will require an export licence.  Therefore, the Commission now seeks to add the UK to the destinations covered by licence EU001 (i.e., Australia, Canada, Japan, New Zealand, Norway, Switzerland (including Lichtenstein), and the USA).  It explains that such general licences require timely registration, usually at least 2 weeks before actual export takes place. They are not completely without administrative burden, however. Box 44 of the respective customs declarations needs to record use of the licence and national regulators will normally require periodical reports on the exports that have taken place under a general licence.

https://www.loyensloeff.com/en-us/news-events/news/eu-to-amend-union-general-export-authorization-in-the-event-of-a-no-deal-brexit

BREXIT AND THE UK TRADE IN ROUGH DIAMONDS

The FCO on 11th February issued a news release that provides information about what you may need to do to prepare for trading internationally in rough diamonds once the UK has left the EU, and implications on the UK’s participation in the Kimberley Process and therefore the UK trade in rough diamonds.

https://www.gov.uk/government/publications/brexit-and-the-uk-trade-in-rough-diamonds

MONEYVAL PUBLISHES REPORT ON CZECH REPUBLIC

On 11th February, the Council of Europe reported that its Moneyval body says that, despite progress in the Czech Republic to combat money laundering and terrorist financing, the authorities should take a more proactive approach with regard to laundering investigations.

https://search.coe.int/directorate_of_communications/Pages/result_details.aspx?ObjectId=090000168092cff6

The 5th Round Mutual Evaluation report is at –

https://rm.coe.int/committee-of-experts-on-the-evaluation-of-anti-money-laundering-measur/16809263d6

The on-site visit was made in March 2018.  As appears usual with such evaluations, based on the results of its evaluation, MONEYVAL decided to apply its enhanced follow-up procedure and invited the Czech Republic to report back in mid-2020.

czech