Month: November 2022

Biggest Bribery Fines of 2022

Bribery, Corruption, Prosecutions, Regulatory Fines
Key bribery fines & settlements in 2022 Glencore – $1bn settlementFirstEnergy – $180m settlementTenaris – $78m settlementStericycle – $84m settlementK.T. Corporation – $6.3m settlementKPMG – £3.4m fineBoulting Group – £500k fineTritec and Electron – £70k fine each Whilst companies face multi-million settlement penalties, the consequences for individuals can include jail time. Biggest bribery fines in 2022 in detail The SFO’s investigation revealed that Glencore paid over $28m (£22.2m) in bribes through its employees and agents in exchange for preferential access to oil, including larger cargoes, more valuable oil grades, and preferred delivery dates. The firm gave the go-ahead for these…

£4.5bn Lost in 3 COVID Schemes as “Eat Out to Help Out” Scheme Recorded 9.5% Rate of Fraud

Fraud, Uncategorized
The revelation emerges during a hearing of the Treasury Committee, which hears the HMRC seized a non-fungible token cryptocurrency asset and is “ahead of the game” compared to “most other tax authorities” on the potential use of cryptocurrencies for tax evasion, according to CEO Jim Harra. The total value of fraud in three COVID-19 schemes totalled £4.5bn, of which the taxpayer is only going to get £1.1bn back, the head of HM Revenue and Customs (HMRC) has told MPs. Speaking at the Treasury Committee on Wednesday, HMRC chief executive Jim Harra said the £4.5bn was lost to fraud in the…

UNODC Launch Manual to Tackle Underreported Crime of Organ Trade

Financial Crime, Trafficking
The United Nations Office on Drugs and Crime (UNODC) has launched a new toolkit on how to effectively investigate and prosecute the trafficking of people for the purpose of organ removal – a form of trafficking that has been persistently left in the dark, yet is detected in many countries around the world. Driven largely by the global shortage of organs available for transplant, it is estimated that ethical transplants cover less than 10% of the global need. This disparity has resulted in sick patients seeking out organs from the black market, a process facilitated by criminal groups who engage…

OFAC Sanctions Internet-based Suppliers of Illicit Fentanyl and Other Synthetic Drugs

Digital Currencies, Drug Trafficking, Sanctions
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned three individuals and nine entities associated with darknet marketplaces and research chemicals sites under the Illicit Drugs Executive Order (EO 14059) for supplying illicit synthetic substances to U.S. markets through internet sales and a host of shell companies. Today’s action marks the first time this EO has been used to designate activities related to online and darknet market illicit drug sales. Two individuals, Alex Adrianus Martinus Peijnenburg (Peijnenburg) and Martinus Pterus Henri De Koning (De Koning) began their business selling illicit fentanyl, synthetic stimulants, cannabinoids, and…

Cross-Border Cybercrime Raid Nabs Scam Call Centers Exposed By OCCRP

Fraud, Prosecutions
European authorities this month launched a coordinated action against hundreds of suspects accused of running a massive investment fraud network that was exposed by OCCRP in a 2020 investigation, Eurojust and Europol announced. Police and prosecutors from Albania, Bulgaria, Finland, Georgia, Germany, Latvia, North Macedonia, Spain, Sweden, and Ukraine worked together on an “unprecedented” cross-border investigation that culminated in the arrests of five suspects and confiscation of hundreds of thousands of euros’ worth of cash, as well as cryptocurrency wallets, properties, and bank accounts, according to Eurojust. The joint team, which Eurojust, the EU agency for judicial cooperation, coordinated and…

Hochul Signs Partial Cryptocurrency Mining Nan into New York Law

Digital Currencies, Regulation
New York’s nation-leading Climate Leadership and Community Protection Act, the most aggressive climate and clean energy law in the nation, while also continuing our steadfast efforts to support economic development and job creation in upstate New York.” The new law will also trigger a study by state Department of Environmental Conservation to study the impacts of the cryptocurrency mining industry on the environment. The measure was hotly debated in the halls of the state Capitol this year, with environmental groups pushing lawmakers and Hochul to support the bill and the industry urging Hochul to reject it. “Thank you, Governor Hochul,…

EU Court of Justice Rolls Back Anti-Money Laundering Rules

Money Laundering, Regulation
In a stunning reversal, the Court of Justice of the European Union weakened an existing anti-money laundering rule on Tuesday, limiting use of one of the most potent tools against financial secrecy – access to beneficial ownership information. “Beneficial ownership” is the term for who, in reality, benefits from (or owns) a given company or corporate structure. Wealthy individuals, criminals and tax cheats are among those who routinely disguise ownership of such entities, often to hide their wealth from authorities. Organizations fighting for tax equity and reform immediately denounced the ruling. “By requiring corporations and offshore entities to publicly disclose…

NCA secures £50m identified by Barclays as the Proceeds of Crime

Money Laundering, Proceeds of Crime
The National Crime Agency (NCA) has obtained a ruling from the High Court that allows Barclays to hand over criminal funds to the NCA in a first-of-its-kind civil recovery case. The money – amounting to over £50m – was identified by the bank in a number of accounts and transferred to secure holding accounts. The civil recovery order means that for the first time, legal powers were used to recover the proceeds of crime where the account holders were not named in the court action. Adrian Searle, Director of the National Economic Crime Centre (NECC) in the NCA said: “Identifying…

JP Morgan, Deutsche Bank sued by Epstein accusers in New York

Regulatory Risk
(Bloomberg) — JPMorgan Chase & Co. and Deutsche Bank AG were accused of enabling the sexual abuse of Jeffrey Epstein in New York class action suits that allege the banks turned a blind eye in order to “churn profits.” The lawsuits, filed separately in a New York court, allege the banks had “knowingly benefited and received things of value for assisting, supporting, facilitating, and otherwise providing the most critical service for the Jeffrey Epstein sex trafficking organization.” JPMorgan was accused in the suit of “financially benefiting from participating” in the alleged sex trafficking through providing financial support from 1998 to…

Belgium has seized more cocaine than it can destroy

Drug Trafficking
The amount of cocaine being seized at the Belgian port of Antwerp is so massive that authorities are worried smugglers could steal it back because police can’t burn it fast enough. Officials said there is not enough incinerator capacity to cope with rising seizures of the drug at the port, creating what has been dubbed a “cocaine-berg”. As a result, Belgian port authorities and ministers are worried the backlog of cocaine being stored at secret depots near the port could be targeted by organised crime gangs, who are known to have corrupt police and port workers on their books. Antwerp…

Trace Releases 2022 Bribery Risk Matrix

Bribery, Corruption
ANNAPOLIS, MD, U.S.—15 November 2022—TRACE, a non-profit international business association dedicated to anti-bribery, compliance and good governance, has released the 2022 Bribery Risk Matrix, which measures business bribery risk in 194 jurisdictions. According to this year’s data, North Korea, Turkmenistan, Equatorial Guinea, Syria and Venezuela present the highest commercial bribery risk, while Norway, New Zealand, Sweden, Switzerland and Denmark present the lowest. Other notable findings: The United States ranked 16th and scored 19 out of 100. The enforcement environment hasn’t improved since a slump during the Trump administration, and the free press environment continues to decline.Ukraine ranked 103rd and scored…

Crypto Regulatory Affairs – Global Regulatory Response to FTX Collapse

Digital Currencies
The collapse of FTX – once one of the most dominant cryptoasset exchanges worldwide – has sparked concern from investors, consumers, industry participants and regulators alike. Previously, there were discussions – and a signed letter of intent – indicating that fellow crypto exchange Binance would be acquiring FTX. Shortly after, news broke that it would be walking away from the deal completely due to the severity of FTX’s internal mismanagement. A spokesperson from Binance told media outlets: “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations,…