Author: gracechurchfcp

Treasury Targets Global Sanctions Evasion Network Supporting Russia’s Military-Industrial Complex

Sanctions
WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed full blocking sanctions against 22 individuals and entities across multiple countries related to a sanctions evasion network supporting Russia’s military-industrial complex. Today’s action, taken pursuant to Executive Order (E.O.) 14024, are part of the U.S. strategy to methodically and intensively target sanctions evasion efforts around the globe, close down key backfilling channels, expose facilitators and enablers, and limit Russia’s access to revenue needed to wage its brutal war in Ukraine. Over the last year, Treasury has sanctioned over 100 individuals and entities engaging in…

Experts warn UK businesses of imminent changes to anti-money laundering regulations

Money Laundering, Regulation
Legal experts have urged UK businesses to pay close attention to upcoming changes to the 2017 Money Laundering Regulations (MLRs) that will impose further compliance requirements on in-scope firms. In line with the 2022 Money Laundering and Terrorist Financing (Amendment) (No.2) Regulations, from 1 April 2023, businesses subject to the MLRs will have to comply with checks of the register of overseas entities (ROE) at Companies House for dealings with corporate entities. For dealings with trust entities, businesses subject to the MLRs will have to comply with checks of the trust registration service (TRS) that is maintained by HM Revenue…

Britain Sets Out Plans to Regulate Crypto Industry in Wake of FTX Collapse

Digital Currencies, Regulation
The U.K. formally laid out plans to regulate the cryptocurrency industry, with the government looking to rein in some of the reckless business practices that emerged over the past year and contributed to the demise of FTX. In a widely-anticipated industry consultation launched Tuesday, the government proposed a number of measures aimed at bringing regulation of crypto asset businesses in line with that of traditional financial firms. Among the proposals unveiled Tuesday was a move that would strengthen rules targeting financial intermediaries and custodians that store crypto on behalf of clients. A big theme that emerged in 2022 was the…

Police arrest 20 money launderers in Spanish probe into fake invoices, loans and luxury property to channel dirty money

Money Laundering
POLICE have arrested 20 suspected money launderers and drug traffickers and seized more than €5.5M in assets, it’s been announced. The operation was led by the Spanish Guardia Civil, with support from the Italian Central Directorate for Anti-Drugs Services (Direzione Centrale Servizi Antidroga), and resulted in the assets and more than 2 tons of drugs. Based in the South of Spain, the criminal network was composed of Albanian, Italian, Spanish and Moroccan nationals, and was led by Italian nationals who evaded capture using forged identity documents. The criminal network used a variety of money laundering methods to obfuscate their drug…

Man Extradited from Peru on International Money Laundering Charges

Money Laundering, Prosecutions
ALEXANDRIA, Va. – A Belize City, Belize, man was extradited to the United States Tuesday on charges of laundering tens of millions of dollars of drug proceeds on behalf of notorious international drug trafficking organizations. According to court documents, Jianxing Chen, 42, led and controlled a network of couriers who transported cash generated by the domestic sale of controlled substances. Some of the cash came from cocaine sales throughout the United States – including Chicago, Houston, Los Angeles, New York, Atlanta, as well as in the Eastern District of Virginia.  At Chen’s direction, couriers transported drug money across the country…

City fund managers sentenced to 12 years for $8m fraud

Fraud, Prosecutions
Three fund managers have been sentenced to a total of 12 years and 3 months following their conviction for a fraud which resulted in losses of $8.45 million to the Libyan Sovereign Wealth Fund. A seven year NCA investigation, which began after one of the fund managers, Frederic Marino, walked of a 2014 meeting with financial auditors and fled to Norway, found that Yoshika Ohmura, Aurelien Bessot and Marino had abused their positions to conduct fraudulent trades whilst managing the fund worth around 822m. Today, Marino and Ohmura were sentenced to 7 years 6 months and 3 years 6 months…

Handbook of good practices in the fight against corruption

Bribery, Corruption
The goal of this Handbook is to map a variety of anti-corruption practices in EU Member States (MS) that have proved to be useful in solving problems related to corruption, and which can inspire similar initiatives elsewhere. For this purpose, one good anti-corruption practice either established or innovative, with positive impact aspirations in each EU Member State was selected, and clustered into eight types of anti-corruption approaches. The Handbook is structured along these identified types. Each chapter consists of a theoretical part about the respective type of anti-corruption approach and is illustrated by corresponding case studies. To ensure transferability, analysis…

Fraud targeted thousands across UK and abroad

Fraud
More than 700 potential UK victims have been identified, among thousands worldwide targeted by a boiler room fraud that was run from Romania. National Crime Agency investigators believe the fraud, primarily offering false investments, was being carried out on a mass scale before it was closed down in September last year.Computer image web Three Romanian nationals were detained during a series of searches by NCA investigators and Romanian Police officers at apartments in north Bucharest. Since September, work has been underway to identify victims of the fraud. So far, a potential 700 plus UK victims have been identified and a…

No questions asked: money laundering thrives in Australia because of professionals willing to facilitate it

Money Laundering
Lawyers, accountants and real estate agents can face little scrutiny and there is as yet no action from government to increase regulation. Raids earlier this month by the Australian federal police provided a rare window into the shady world of international money laundering. Australia is far from a model global citizen when it comes to cracking down on money laundering – and property has become a favoured vehicle for organised crime to hide and transfer dirty money. The AFP arrested nine people, including the alleged head of the money-laundering organisation, Stephen Xin, at his Vaucluse home. They have now been…

Watchdog and West Yorkshire police raid crypto ATM operators in UK first

Digital Currencies
Authorities have raided several sites around Leeds as part of what is believed to be the UK’s first crackdown on illegally operated crypto ATMs. Evidence was gathered from multiple sites around the city that were suspected to be hosting machines allowing customers to buy or convert traditional currencies into cryptoassets including bitcoin. The raids follow a joint investigation between the Financial Conduct Authority and the West Yorkshire police force’s digital intelligence and investigation unit. “The FCA will review evidence gathered during these visits and consider further potential enforcement action,” the regulator said. While the FCA does not regulate cryptoassets, it…

US Investigators Subpoena Hedge Funds in Binance Money-Laundering Probe: Report

Money Laundering
Authorities have not brought charges against the company, which has faced intense scrutiny following competitor FTX’s collapse, the Washington Post reported. Federal prosecutors are investigating the relationship between Binance and U.S.-based hedge funds as part of a broader investigation into the cryptocurrency exchange’s possible skirting of money-laundering guardrails, according to a report by the Washington Post. Heading the investigation is the U.S. Attorney’s Office for the Western District of Washington in Seattle, which, in recent months, has sent subpoenas to firms requesting records of their dealings with Binance, the Post reported, citing two people who had reviewed one of the…

Most Criminal Cryptocurrency Funnels Through Just 5 Exchanges

Digital Currencies, Money Laundering
The crypto money-laundering market is tighter than at any time in the past decade, and the few big players are moving a “shocking” amount of currency. FOR YEARS, THE cryptocurrency economy has been rife with black market sales, theft, ransomware, and money laundering—despite the strange fact that in that economy, practically every transaction is written into a blockchain’s permanent, unchangeable ledger. But new evidence suggests that years of advancements in blockchain tracing and crackdowns on that illicit underworld may be having an effect—if not reducing the overall volume of crime, then at least cutting down on the number of laundering…

UK imposes further coordinated sanctions on Iranian regime officials

Sanctions
The UK is placing further sanctions on regime officials in Iran today, including on Deputy Prosecutor General Ahmad Fazelian. These sanctions, alongside designations by the European Union and the United States, demonstrate the international community’s unified condemnation of the horrific violence the Iranian regime is inflicting on its own people, including the execution of dual British-Iranian national Alireza Akbari. Alongside the Prosecutor General in Iran, whom the UK sanctioned last week, Fazelian is responsible for a judicial system characterised by unfair trials and egregious punishments, including use of the death penalty for political purposes. Last week Alireza Akbari tragically became a…

More MEPs could lose immunity in corruption probe, president says

Bribery, Corruption
The EU says it will launch proceedings to remove parliamentary immunity from two MEPs implicated in an ongoing corruption scandal. Parliamentary President Roberta Metsola said she had taken the move after a request from Belgian police. But her statement did not name the MEPs involved. The scandal erupted last month after one MEP and three others were arrested on charges of corruption and money-laundering. While authorities have not named the country behind the bribery network, numerous EU sources have accused Qatar of running the operation. But the Gulf state has strenuously denied any claims of misconduct as unfair and “gravely…

Mobile phone fraud: ‘They stole £22,500 using my banking app

Fraud
A pickpocket took Jacopo de Simone’s mobile phone and used his banking apps to steal £22,500. He said his bank investigated but found him liable for the losses so he is still fighting to get the money back. He is just one victim of the growing threat of mobile phone fraud and banks need to do more to tackle it, according to charity the Fraud Advisory Panel. UK Finance, which represents 300 banks, said the industry was constantly monitoring fraud threats. Criminals are stealing mobiles not for the device but to try to access finance apps to steal thousands of…

UK Treasury Considers Plan for Digital Pound

Digital Currencies
The government is considering introducing a “digital pound”, the economic secretary to the Treasury has told MPs. The UK was committed to becoming a world crypto hub, Andrew Griffith said. And the government was “a long way down the road… to establish a regime for the wholesale use, for payment purposes, of stablecoins”. Stablecoins are designed to have a predictable value linked to traditional currencies or assets such as gold. The currency, for use by households and businesses, would sit alongside cash and bank deposits, rather than replacing them. ‘Game-changing technology’A public consultation on the attributes of a digital pound…

U.S. to Designate Russia’s Wagner Group as “Transnational Criminal Organisation”

Sanctions
US will apply designation in the coming days, says national security council spokesman, imposing new sanctions on the group The US will designate the Russian mercenary group Wagner as a “significant transnational criminal organization”, imposing further sanctions on the military contractor which has been aiding Moscow in its invasion of Ukraine. The White House national security council spokesman, John Kirby, announced on Friday that the treasury will apply the new designation in the coming days, putting it in the same category as Italian mafia groups and Japanese and Russian organized crime. The designation will allow the wider application of sanctions…

Former L.A. Council Member Jose Huizar Pleads Guilty in Corruption Case

Corruption, Prosecutions
Former Los Angeles City Councilmember Jose Huizar pleaded guilty Friday to charges of racketeering and tax evasion, admitting that he extorted at least $1.5 million in bribes from real estate developers. Under a plea agreement filed Thursday in federal court in Los Angeles, Huizar acknowledged that sweeping corruption allegations that he has denied for years were true. “Are you pleading guilty because you’re in fact guilty?” Judge John F. Walter asked Huizar in court Friday morning. “Yes, your honor,” Huizar responded. Huizar’s unexpected capitulation caps a brutal downfall for a man who was born into poverty on a Mexican ranch,…

Fraudsters Sentenced for £21m Loss in Cryptocurrency

Digital Currencies, Fraud, Prosecutions
Four offenders were sentenced today (13 January 2023) for fraudulently obtaining and laundering Bitcoin and other cryptocurrency worth tens of millions of pounds from an Australia-based cryptocurrency exchange. Stephen William Boys, 58, Kelly Caton, 44, Jordan Kane Robinson, 23, and James Austin-Beddoes, 27, were found guilty of fraud, converting and transferring criminal property at Preston Crown Court and then sentenced to a total of 15 years. All four were associates of James Parker, who masterminded the conspiracy from his home in Blackpool over a three-month period between October 2017 and January 2018. James Parker identified and then exploited a loophole…

Thailand’s SEC issues rules on management of digital wallets for custody of digital assets and keys

Digital Currencies, Regulation
The Securities and Exchange Commission (SEC) has issued regulations requiring digital asset business operators that provide custody of clients’ digital assets to establish a digital wallet management system to accommodate efficient custody of digital assets and keys* and ensure safety of clients’ assets. The regulations cover the following requirements: (1) Policy and guidelines for overseeing risk management and management of digital wallets and keys as well as communication to clarify such policy, action plans and procedures, work supervision and internal control to ensure compliance with the policy; (2) Policy and procedures for designing, developing and managing digital wallets as well…

FCA penalises Al Rayan Bank PLC for anti-money laundering failures 

Money Laundering, Prosecutions
The Financial Conduct Authority (FCA) has fined Al Rayan Bank PLC (Al Rayan) £4,023,600 for failing to put in place adequate anti-money laundering (AML) controls. Between 1 April 2015 and 30 November 2017, Al Rayan allowed money to pass through the bank and be used within the UK without carrying out appropriate checks. The firm failed to adequately check its customers’ Source of Wealth and Source of Funds when it was required to make sure the money was not connected to financial crime.  The failings were made worse by the lack of proper training provided to staff about how to handle…

St. Louis Man Sentenced to 19+ Years for Money Laundering

Money Laundering, Prosecutions
A St. Louis man was sentenced to 19 years and seven months in prison after admitting to his involvement in a methamphetamine operation in southern Illinois. Terrence Thompson, 35, pled guilty to one count of conspiracy to launder monetary instruments. According to court records, Thompson conspired with the co-defendants to distribute more than 500 grams of methamphetamine in the Southern District of Illinois. Law enforcement conducted a search warrant on Thompson’s residence and recovered more than 10 kilograms of methamphetamine. Members of the conspiracy utilized various payment methods to deal the illegal narcotics, including CashApp, cashier’s checks, bank transfers and…

New York’s Financial Regulator Takes Aim at Firms Co-Mingling Crypto Funds

Digital Currencies, Regulation
New York’s chief financial regulator is set to release new guidance on Monday dictating that companies separate customers’ crypto assets from their own, after alleged co-mingling of funds at collapsed crypto exchange FTX and its affiliated trading firm Alameda Research led to hefty losses for clients. The New York State Department of Financial Services (NYDFS), which leads one of the few state agencies with a regulatory system in place for cryptocurrency companies, will also stipulate that state-regulated companies disclose to customers how they account for clients’ digital currency. The guidance is the latest in a series of crypto-related directives NYDFS…

UK Government Expands Enforcement Measures To Address Fraud and Money Laundering

Money Laundering
On 22 September 2022, the U.K. government introduced the Economic Crime and Corporate Transparency Act 2022. The new bill is currently navigating its way through the U.K. Parliament and is likely to receive royal assent in 2023. The bill seeks to build on the Economic Crime (Transparency and Enforcement) Act 2022 (ECA 2022), which took effect on 15 March 2022. (See our 26 April 2022 client alert “New UK Economic Crime and Transparency Laws Take Effect” to review the key provisions of the ECA 2022.) Since that update, the “Register of Overseas Entities” requirements came into force on 1 August…

UK crime agency arrests ‘wealthy Russian’ over money laundering

Money Laundering
Britain’s National Crime Agency (NCA) said on Saturday it had arrested a “wealthy Russian businessman” on suspicion of money laundering and other offences as part of a crackdown on corrupt oligarchs. The NCA said the 58-year-old was among three men arrested by officers from the Combatting Kleptocracy Cell (CKC) on Thursday at a “multi-million pound residence” in London. The Russian embassy in London has demanded information from Britain’s Foreign Office on the reasons and circumstances of the detention of the unidentified businessman and the conditions in which he was being held, Russian news agencies said. The man was detained on…

Fraud alert: Five bank scams to watch out for 2023

Fraud
As many of us wind down over the festive period into the New Year, fraudsters are busy at work luring in unsuspecting victims. The UK is currently in the grip of a fraud epidemic, from get-rich-quick schemes to unknown sellers tempting consumers with fake bargains. The rising cost of living is forcing many people to seek alternative ways to save and make money, and fraudsters are capitalising on it. They will often trick victims into making quick bank transfers rather than using other, more secure payment methods. UK consumer group Which? is warning against unwittingly handing over money and has…

Criminals are using the cost of living crisis to scam the public – don’t become a victim

Fraud
Law enforcement, government and private sectors partners are working together to encourage members of the public to be more vigilant against fraud, particularly about sharing their financial and personal information, as criminals seek to capitalise on the cost of living crisis. Criminals are experts at impersonating people, organisations and the police. Stop: Taking a moment to stop and think before parting with your money or information could keep you safe. Challenge: Could it be fake? It’s ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you. Protect: Contact your bank immediately if you…

Tax dodging and non-compliance during pandemic cost UK £9bn – NAO

Tax Evasion
Tax dodging and non-compliance during the pandemic cost the government £9bn, Whitehall’s spending watchdog has found. The loss to the public purse came as HM Revenue & Customs (HMRC) moved thousands of tax compliance staff to Covid support schemes, reducing its capacity to investigate people and businesses not paying the right amount, according to the National Audit Office. About 1,350 workers were redeployed to Covid schemes throughout 2020-2021, shrinking the number of those working on tax compliance by 12%, the NAO said. Before the pandemic, tax revenues from HMRC’s compliance work were on average 5.2% of its total revenues. This…

SEC Charges Danske Bank with Fraud for Misleading Investors about Its AML Compliance Failures in Estonia

Fraud, Money Laundering, Prosecutions, Regulatory Fines
The Securities and Exchange Commission today announced fraud charges against Danske Bank, a multinational financial services corporation headquartered in Denmark, for misleading investors about its anti-money laundering (AML) compliance program in its Estonian branch and failing to disclose the risks posed by the program’s significant deficiencies. Danske Bank agreed to pay $413 million to settle the SEC’s charges. According to the SEC’s complaint, when Danske Bank acquired its Estonian branch in 2007, it knew or should have known that a substantial portion of the branch’s customers were engaging in transactions that had a high risk of involving money laundering; that…

Santander Fined £108M for AML Failings

Money Laundering, Prosecutions, Regulatory Fines
BRITAIN’S Financial Conduct Authority (FCA) today announced it has fined Santander almost £108M for AML failures in its business banking division. The FCA ruled the UK division of the Spanish bank had failed to manage its anti-money laundering systems properly – affecting the way it dealt with 560,000 business customers. Between 2012 and 2017 the bank’s systems were not able to verify properly information provided by customers about their businesses. “Santander’s poor management of their anti-money laundering systems and their inadequate attempts to address the problems created a prolonged and severe risk of money laundering and financial crime,” said Mark…

Elizabeth Warren’s Tough-On-Crypto Bill is Taking Shape

Digital Currencies, Regulation
Sen. Elizabeth Warren, D-Mass. is working on a sweeping cryptocurrency bill that would hand the Securities and Exchange Commission most regulatory authority over the market, according to two people familiar with her efforts. While discussions are still early and details could change, Warren’s office is looking at a range of crypto-related issues, including regulations, taxation, climate, and national security. The senator has recently stepped up her criticism for the industry and demanded “comprehensive” new rules to govern it following the massive collapse of the crypto exchange FTX. (FTX founder Sam-Bankman Fried is an investor in Semafor.) Ideas on the table…

Former director in the Office of the Director General of Audit Sentenced to 4 Years in Bribery Case

Bribery, Prosecutions
A Paramasivan, former director (AMF-II) in the Office of Director General of Audit, Central Expenditure, New Delhi has been sentenced to four years of rigorous imprisonment and a fine of Rs 10,000 by the principal special judge for CBI Cases, Chennai (Tamil Nadu) in a bribery case. The Indian Audit and Accounts Service was sentenced along with Sivaram Thilagar, then Assistant Surgeon, Government Primary Health Centre,Kanchipuram (Tamil Nadu) in a bribery case. Sivaram has been sentenced to undergo three years rigorous imprisonment with fine of Rs 5000 in a bribery case. The CBI had registered a case against the accused…

Sanctions Targets Allowed up to £1m of Frozen Funds to Pay Jersey Legal Bills

Sanctions
Russian oligarchs and others facing sanctions can now access up to £1 million of their Jersey-based funds to pay outstanding bills to local lawyers. The island’s External Relations Minister has issued a new ‘general licence’, which allows legal firms who have represented clients facing international sanctions to be paid more easily. While people linked to the regimes in Russia have had their financial assets in Jersey frozen since the country invaded Ukraine in February, they have still been able to get legal advice or representation – but have not been able to pay their bills without an individual licence from…

The European Union’s Qatar Bribery Scandal

Bribery, Corruption
The European Union is embroiled in a scandal involving alleged influence peddling through a European Parliament vice president, literal bags of cash, a nonprofit organization called Fight Impunity, and a “Gulf State” widely reported to be Qatar, host of the 2022 FIFA World Cup. Nothing less than “Europe’s credibility is at stake” in the EU’s response, German Foreign Minister Annalena Baerbock said. Here’s what you need to know: Who was allegedly bribed to do what?Belgian police raided at least 20 sites across Brussels between Dec. 9 and Dec. 13, including inside European Parliament offices, arresting six people and seizing more…

Federal Court Orders Man to Pay More than $2.8 Million in Restitution for Virtual Currency Fraud

Fraud, Prosecutions
The Commodity Futures Trading Commission today announced the U. S. District Court for the Southern District of New York entered a consent order on November 29 for a permanent injunction, restitution, and equitable relief against Jeremy Spence of Bristol, Rhode Island. Spence, at times, conducted business as Coin Signals. The consent order resolves a CFTC action filed against Spence on January 26, 2021 alleging that he operated a virtual currency Ponzi scheme in which he fraudulently solicited individuals to invest in digital assets such as bitcoin and ether. [See CFTC Press Release No. 8356-21] The order requires Spence to pay…

Rabobank Investigated for Suspected Dutch Money Laundering Violations

Money Laundering
Dutch co-operative bank Rabobank (RABO.UL) on Wednesday said it is under investigation by public prosecutors in the Netherlands for suspected violations of national money laundering laws. The bank in a statement said it was cooperating with the investigation. The disclosure follows a 2021 warning by the bank that it had been instructed by the Dutch central bank (DNB) to fix its customer due diligence practices and that it was facing a “punitive enforcement procedure.” Rabobank is one of the Netherlands’ three largest banks. Competitors ING Group and ABN Amro incurred massive fines in similar situations, with ING docked $900 million…

Argentina Vice President Cristina Fernández de Kirchner Sentenced to 6 Years in Prison for Corruption

Fraud, Prosecutions
A federal court in Argentina sentenced the current Vice President Cristina Fernández de Kirchner to six years in prison and a life ban from public office after finding her guilty of corruption. The court found her guilty of fraudulent administration during her time as president from 2007 to 2015 in awarding public works contracts to friend and businessman Lázaro Báez, who was also given a six-year sentence as part of the same case. Last year, Báez was sentenced to 12 years in a separate case for money laundering. The prosecutors said that they found irregularities in multiple public work tenders…

Son of Former Mozambique President Sentenced to 12 Years in Prison for Fraud

Fraud, Prosecutions
The son of Mozambique’s ex-president was sentenced Wednesday to 12 years in prison for embezzlement and money laundering. Judge Efigenio Baptista said Armando Ndambi Guebuza defrauded the government of more than $2.7 million, and is responsible for crimes of money laundering, embezzlement of State funds; use of false documents; four crimes of forgery of other writings; blackmail, influence peddling and association to commit crime. Guebuza, the oldest son of former Mozambique president Armando Guebuza, was sentenced along with 10 other defendants including the former head of security and intelligence Gregorio Leao. The corruption case came after three newly state-owned companies…

Sanctions Forcing Russia’s Sberbank to Close UAE Office

Sanctions
Russia’s dominant lender Sberbank will be forced to close its office in the United Arab Emirates (UAE) early next year, First Deputy Chairman Alexander Vedyakhin said on Monday, blaming sanctions pressure. Sweeping Western sanctions targeted Russia’s financial system after Moscow sent tens of thousands of troops into Ukraine on Feb. 24. Sberbank is one of several major Russian banks to have been blocked from the international SWIFT payments system and some senior executives have been personally hit by sanctions. “Unfortunately, in the context of sanctions restrictions, we are facing serious constraints on our SberInvest Middle East office in Abu Dhabi…

Angolan Court orders Seizure of Dos Santos Assets

Money Laundering, Proceeds of Crime
Angola’s Supreme Court has ordered the “preventive” seizure of assets worth around $1 billion held by Isabel dos Santos, the daughter of the southern African country’s former president, Portugal’s Lusa news agency said on Tuesday. The court document cited by Lusa, dated Dec. 19, said authorities had evidence of alleged embezzlement and money laundering and ordered the seizure of the money dos Santos holds in “all banking institutions”. The seizure also includes all of dos Santos’s shares in Angolan company Embalvidro, as well as 100% of shares in Cape Verde’s telecom company Unitel T+ and Unitel STP in Sao Tome…