Bahrain Accuses Activists of Terror, Subversion .

Bahrain accused 23 Shiite activists, including political leaders and prominent clerics, of promoting terrorism and plotting to overthrow the monarchy, a move expected to add to sectarian tensions ahead of elections in the small Gulf Arab nation.

The accusations come after a wave of arrests last month of members of the country's majority Shiite community, which has long complained of discrimination by Bahrain's Sunni leadership, despite political overhauls ushered in by King Hamad bin Isa al Khalifa. Activists say the arrests and charges against respected leaders of the community could further alienate disaffected Shiites.

Bahrain's experiment with limited democracy is often viewed as a barometer of political and sectarian tensions in the wider region, where Sunni regimes fear an expansionistic Iran and the growing clout of Shiites in Middle East affairs. Saudi Arabia, in particular, fears that instability among Bahrain's Shiites could prove a trigger point for that country's own restive Shiite minority, who live close to Bahrain in Saudi Arabia's main oil-producing region.

Bahrain is home to the U.S. Fifth Fleet, which is responsible for U.S. naval forces in the Mideast and off the coast of East Africa. Political unrest is unlikely to affect the status of the base.

On Saturday, state prosecutors announced charges against 23 men, including the heads of two splinter political groups and prominent Shiite clerics, including plotting against the king, terrorist financing, arson and sabotage.

"This sophisticated terrorist network with operations inside and outside Bahrain has undertaken and planned a systematic and layered campaign of violence and subversion aimed squarely at undermining the national security of Bahrain," said Abdulrahman al Sayed, an official at the Public Prosecutors office, in a statement.

Lawyers for the charged men weren't available for comment.

The Bahraini authorities have issued a gag order on local media about the case. They also recently banned opposition websites in the kingdom, including the site run by largest Shiite political organization in Bahrain, the Islamic National Accord Association, known as al Wefaq, which controls 17 of the 40 seats in the lower house of parliament.

In the 1990s, Bahrain, an island city-state, was plagued by widespread civil unrest by Shiites fighting Sunni-dominated security forces. Tensions calmed after King Hamad took over in 1999, instituted constitutional changes and allowed Shiite political organizations to participate in elections for the lower house of parliament, which helps shape laws in conjunction with a second body whose members are handpicked by the king.

Local human-rights activists said the crackdown was part of a wider strategy by the government to undermine an increasingly effective political opposition ahead of national elections scheduled for Oct. 23.

"The opposition is divided between participation and opposing participation in the vote. When you arrest one side of the debate, it makes it harder for the other supporters to vote without appearing to be puppets of the regime," said Nabeel Rajab, the vice president of the Bahrain Center for Human Rights, whose website has been banned in the kingdom.

On Sunday, King Hamad said in a national address that the recent arrests were necessary for national security and didn't signal a reversal of civil rights.

The government has released few details about the alleged terrorist network, and Western diplomats based in Bahrain said they didn't know what evidence the government had to support the charges.

The crackdown began with the Aug. 13 arrest of Abduljalil Al-Singace when he returned from a trip to London. Mr. Singace, named by prosecutors as a leader of the alleged terrorist network, and most of the 23 men charged with terrorism offenses, are members of Haq, or the Movement of Liberties and Democracy, a splinter group of al Wefaq.

Late-night clashes between security forces and young Shiite protesters, many of whom are unemployed and affiliated with Haq, are a frequent occurrence in Bahrain. Security forces face gangs burning tires and armed with crude Molotov cocktails.

Haq leaders said last month that they would boycott the upcoming October elections, as they did with polls held in 2006.

Last month, al Wefaq leader Sheikh Ali Salman warned that the uptick in arrests among Shiites would lead to more protests.

Colleagues of the men charged with terrorism go a step further, saying that the arrests will strengthen the extremist edge of the Shiite opposition movement. "Calling [the detained leaders] terrorists, this is something that no one believes here in Bahrain. This move shows that government does not tolerate any opposition," says Mr. Rajab, the activist. "This branch of opposition, those outside the mainstream, will now become stronger."

Write to Margaret Coker at margaret.coker@wsj.com

Source: The Wall Street Journal

Terror Groups Hijack Charity Cash

Exclusive unsuspecting members of the public are being duped into donating cash to charities that are fronts for terror groups. Europol, an arm of the European Union that gathers information from national police forces, says “substantial” amounts of money innocently donated to apparently good causes is ending up in the pockets of terrorists.

Even raffles are being used to con people, Europol believes.

It is also highlighting an increasing trend by terrorists to use women. A spokesman for Europol told the Sunday Express: “Women are involved in propaganda, support and financial activities. Men are more likely to be involved in actually perpetrating violence.

“Women are also used as cash couriers and they sometimes smuggle documents and take care of administrative matters.”

In a report detailing trends in terrorism and extremism in the EU, Europol says Britain is the number one target for terrorists.

It identifies Islamic extremism as the biggest threat, with the growing power of radical youth groups of particular concern.

In trying to combat the threat, EU police forces want to cut the lifeline of illegal funds, which also come from organised crime. The EU Terrorism report for 2010 says: “Illegal sources for the financing of terrorism cover a wide range of criminal activities including fraud, counterfeit products, drug smuggling, kidnapping, human trafficking and extortion.

“Alongside criminal activities, funds can also be derived from legitimate sources. Charitable organisations continue to be misused by individuals who misappropriate voluntary contributions destined for genuine purposes to fund terrorist activities.”

Financing terrorism was one of the most common reasons for arrest in the EU-wide battle against extremism last year, according to the report.

Rob Wainwright, the British director of Europol, which the Sunday Express last week revealed could become an FBI-style force with the power of arrest, said: “In some cases it is difficult to differentiate between criminality and acts of terrorism. Terrorism is not an ideology but a set of criminal tactics which deny fundamental principles of democratic societies.”

Although Britain’s Charity Commission works with the Serious Organised Crime Agency if there is a suspicion of illegal activity, it admits being unable to monitor how individual charities’ funds are spent.

The problem is more acute if the cash is sent abroad. Last year, a trustee of a northern-based charity was arrested in Bangladesh after the country’s police found an arms cache in an Islamic school for which he had been raising funds.

A Charity Commission spokeswoman said yesterday: “We carry out risk-based monitoring where appropriate as part of our case work. Where allegations of criminality arise, these will be for the police and law enforcement agencies to assess.”

Meanwhile, Europol is also concerned about the rise of far-right extremism against Islam after it emerged last week that football hooligans have formed a group called the European Defence League.

Police fear it could hijack Champions League matches to stage its protests.

By Ted Jeory

Source: Express

Four Africans arrested in Japan for money-laundering

Police in Japan acting on an FBI request have arrested six people -- three Nigerians, one Ghanaian and two Japanese nationals -- in a money-laundering case, officials said Thursday.

The six are suspected of having received funds that were the proceeds of a crime, wired to them from a New York Citibank account in the name of the National Bank of Ethiopia, Japan's Metropolitan Police Department said.

Police said they had arrested a Nigerian citizen, Nyeche Obeneme, 36, living in Saitama, north of Tokyo, and two other Nigerian men as well as a Ghanaian man, and a Japanese man and woman.

Police suspect the six between them received up to 200 million yen (2.4 million dollars) in October 2008, allowing the money to be wired into their bank accounts in return for commissions.

The money is believed to be part of roughly 33 million dollars that were wired to accounts in seven countries, also including China, South Korea and Australia, Kyodo News reported.

"With the help of the FBI, we made the arrests on alleged violations of the organised crime law," the police spokesman said, referring to the US Federal Bureau of Investigation.

Source: Daily Notion

Germany: Money laundering to finance crime, terrorism grows

German police and financial authorities have warned of an increase in money laundering. The numbers have more than tripled in recent years and the methods are becoming ever more sophisticated.

Authorities in Germany have warned of a steady increase in money laundering. Recorded cases went up by 23 percent in 2009 with a total number of 9,046, according to figures presented by the financial market watchdog BaFin and the BKA federal police agency on Wednesday. The number of cases has tripled since 1995.

BKA head Joerg Ziercke said one of the main reasons for the increase was the rising number of financial intermediaries who offer their private bank accounts for money laundering. For an often small fee, individuals agree to send money abroad or to other financial intermediaries who then channel the money to foreign accounts.

Fake Internet purchases

"These people are being approached through the Internet," Ziercke said at a press conference on Wednesday. "They are asked to offer their accounts for transferring money for products allegedly bought on the Internet."

"The products are then not being delivered, and the owner of the account gets a commission. That way the money that's been transferred is channelled … into accounts outside of Europe."

In almost one-third of investigations into organized crime, there are cases of money laundering, Ziercke said. Nearly 100 of the cases recorded in 2009 were linked to suspected financing of terrorism.

More international cooperation needed

The BKA said better international cooperation could help quell the problem.

Within Germany it's the job of financial market watchdog BaFin to be on the lookout for illegal transactions or money transfers that reek of money laundering. Increased international cooperation aside, BaFin also called for tougher fines and sentences.

"Compared to the authorities in the US or in London, it's almost a joke when you look at the fines that we can impose here in Germany," BaFin head Jochen Sanio said.

Fines in Germany are limited to a maximum of 100,000 euros ($128,000), while abroad, Sanio said, authorities can easily charge millions if they uncover a significant case.

Author: Andreas Illmer (AFP/AP/dpa)

Editor: Nancy Isenson

Source: Deutche Welle

Pakistan steps up anti-terror-financing measures

The Securities and Exchange Commission of Pakistan (SECP) has directed stock exchanges and financial companies to embrace anti-money laundering and anti-terror financing measures proposed by the multi-national Financial Action Task Force (FATF).

Through a circular issued August 30 to the Karachi, Lahore and Islamabad stock exchanges, National Commodity Exchange Limited and the National Clearing Company, the SECP said all listed companies should abide by the FATF’s instructions for fighting money laundering and terror financing. The instructions were not made available to the public.

The circular also discloses that the FATF had not received a commitment yet from the Iranian and South Korean governments to eliminate the possibility of misuse of their financial firms by unscrupulous elements.

The FATF has identified certain jurisdictions in which financial institutions need to apply measures against money laundering and terror funding and consider the risk associated with not complying, the SECP advised.

“On the advice of the SECP and the State Bank of Pakistan, we often verify the credentials of our customers to ensure that Al-Qaida or the Taliban could not use our banks for financial transactions,” Sirajuddin Aziz, CEO of the Bank Alfalah Limited, told Central Asia Online.

Pakistani banks have tough criteria to open accounts

The banks say they adopt tough criteria for opening the account of a charity organisation, a company or an individual.

“We don’t open a new bank account until we know that the customer is a genuine person and a taxpayer and that money laundering and terror financing are not his or her source of income,” said Mukhtar Ahmed, manager of the NIB Bank, West Wharf, Karachi.

The bank requires the depositor to sign a new account opening form, designed by the SECP and State Bank of Pakistan to provide maximum disclosure about the depositor, he said.

“The SECP directed more than 600 companies being traded on the stock markets to take further measures to eradicate the possibility of money laundering and terror financing through Pakistani financial companies,” Ahmed Nabil, COO of the JOVC financial services firm, told Central Asia Online August 31.

The SECP and FATF have asked Pakistani companies not to deal with dubious international companies that support money laundering and terror financing.

“We are monitoring our records on our clients and getting the National Tax Numbers (NTNs) and Computerised National Identity Cards (CNICs) to make sure that they are not involved,” Nabil said.

Pakistani business leaders vow to monitor suspicious practises

The CEOs and COOs of the Pakistani companies are also submitting affidavits to the SECP in which they vow to enhance monitoring and take additional measures to stamp out the targeted practises.

The SECP said it would take strict action against financial firms that did not patch the loopholes in their operations.

Pakistani banks, investment companies, leasing entities, stock brokerages and currency exchange companies already have adopted a number of measures, Nabil told Central Asia Online August 31.

However, the financial companies in Pakistan will have to enforce more measures suggested by the FATF, he said.

Nabil pointed out Pakistan had witnessed a substantial jump in the inflow of remittances in the last few years, mainly because enforcement of anti-money-laundering measures encouraged overseas Pakistanis and investors to use banking channels rather than the hawala (or hundi) informal cash transfer system that existed for decades.

The annual total soared from US $2 billion before 2001 to over US $8.5 billion in 2009-2010, he said.

Source: Central Asia Online

U.S. Expands N.Korea Sanctions

The Obama administration has stepped up sanctions against North Korea by freezing the assets of individuals, companies and organizations allegedly linked to support for Pyongyang's nuclear program.

According to an executive order posted on the U.S. Treasury Department's website on Monday, the U.S. will freeze the assets of four North Koreans, three of the country's companies and five government agencies suspected of "illicit and deceptive activities."

The move includes a new executive order issued by President Barack Obama as well as sanctions against a North Korean intelligence agency and an office of the North Korean Workers' Party which the Treasury says is involved in the trade of methamphetamine and heroin.

The Treasury added that those on the blacklist have bought luxury goods on behalf of the regime and are suspected of drug trafficking, money laundering and currency counterfeiting.

Source: The Chosun Ilbo

Singapore to Strengthen Anti-Money Laundering Rules

by Mary Swire, Tax-News.com, Hong Kong

During a recent speech for the Wealth Management Institute, the Managing Director of the Monetary Authority of Singapore (MAS), Ravi Menon, said that Singapore welcomed legitimate funds from Europe, or anywhere else, seeking to be managed out of Singapore, but not illicit funds seeking shelter from scrutiny.

He considered that Singapore is seen to be the ideal base for the intermediation of that growing Asian wealth due to its political and economic stability, transparency in governance, and sound and predictable regulation, together with strong capabilities in asset management, foreign exchange and derivatives trading, coupled with deep and liquid capital markets.

However, Menon stressed that the financial sector must be kept clean.

“While cross-border crimes have become increasingly sophisticated, Singapore is vulnerable to being used as a conduit for illicit funds,” he added. “We need to guard against financial flows relating to corruption, terrorism, politically exposed persons, and weapons proliferation. More recently, efforts by various governments to strengthen tax enforcement have increased the risk of undeclared monies flowing to Singapore.”

Menon confirmed that MAS is fully committed to safeguarding the integrity and reputation of Singapore as a clean financial centre, and already has a strong legal and regulatory framework on anti-money laundering (AML) and counter financing of terrorism (CFT), in line with international standards; and a rigorous regime of supervision to monitor compliance by financial institutions.

Having reviewed Singapore’s regulations and supervisory and enforcement actions, the Financial Action Task Force assessors concluded: “Singapore’s AML/CFT sanctions regime is effective, proportionate, and dissuasive.”

Nevertheless, Singapore is now considering a tougher penalty regime for violations of AML/CFT; intends to make criminal the laundering of proceeds from tax offences to send a clear message that it neither wants nor will tolerate illicit inflows; and will step up its enforcement resources to deal with suspicious transactions reported by financial institutions.

It will also strengthen cross-border co-operation to fight trans-national financial crime, and will step up vigilance against suspicious flows of funds arising from external developments.

With regard to the latter, Menon was sceptical that Singapore is benefiting from an inflow of hot monies, “especially from Europe, supposedly following the adoption of enhanced exchange of information provisions among European Union countries,” as tales of large inflows of funds from Europe into Singapore are “vastly exaggerated.”

He pointed out that, “according to the Boston Consulting Group, European wealth is estimated at just 10% of the USD900 billion offshore assets under management in Singapore and Hong Kong. … As one banker puts it, the emergence of Singapore and Hong Kong as wealth management hubs has to do with more Asian wealth being retained in Asia rather than a flight of new funds to Asia.”

Nonetheless, he concluded that Singapore “must remain vigilant against potential negative spill-overs of illicit funds triggered by external developments. Recently, when Switzerland signed bilateral treaties with the United Kingdom and Germany on tax-related matters, MAS issued a set of guidelines as a pre-emptive step to guard against any potential inflows of illicit funds.”

MAS guidelines reminded financial institutions that they have a key role to play in preserving the integrity of our financial system, and safeguarding it from being used as a haven for illegitimate funds or as a conduit to disguise the flow of such funds. “This vigilance,” he emphasized, “should be extended to all forms of suspicious flows, be they from tax evasion or corruption.”

Source: Tax News

FATF Public Statement - 28 October 2011

The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT). In order to protect the international financial system from ML/FT risks and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.

Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdictions*.

Iran

Democratic People's Republic of Korea (DPRK)

Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies**. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.

Cuba**

Bolivia

Ethiopia

Kenya

Myanmar

Nigeria

São Tomé and Príncipe

Sri Lanka

Syria

Turkey

* The FATF has previously issued public statements calling for counter-measures on Iran and DPRK. Those statements are updated below.

**Cuba has not engaged with the FATF in the process.

Iran

The FATF, with a renewed urgency, is particularly and exceptionally concerned about Iran’s failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system, despite Iran’s engagement with the FATF.

The FATF reaffirms its call on members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, the FATF reaffirms its 25 February 2009 call on its members and urges all jurisdictions to apply effective counter-measures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from Iran. FATF continues to urge jurisdictions to protect against correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices and to take into account ML/FT risks when considering requests by Iranian financial institutions to open branches and subsidiaries in their jurisdiction. Due to the continuing terrorist financing threat emanating from Iran, jurisdictions should consider the steps already taken and possible additional safeguards or strengthen existing ones.

The FATF urges Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular by criminalising terrorist financing and effectively implementing suspicious transactions reporting (STR) requirements. If Iran fails to take concrete steps to improve its CFT regime, the FATF will consider calling on its members and urging all jurisdictions to strengthen counter-measures in February 2012.

Democratic People's Republic of Korea (DPRK)

The FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime and the serious threat this poses to the integrity of the international financial system. The FATF urges the DPRK to immediately and meaningfully address its AML/CFT deficiencies.

The FATF reaffirms its call on its members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with the DPRK, including DPRK companies and financial institutions. In addition to enhanced scrutiny, the FATF further calls on its members and urges all jurisdictions to apply effective counter-measures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from the DPRK. Jurisdictions should also protect against correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices, and take into account ML/FT risks when considering requests by DPRK financial institutions to open branches and subsidiaries in their jurisdiction.

The FATF remains prepared to engage directly in assisting the DPRK to address its AML/CFT deficiencies, including through the FATF Secretariat.

________________________

Cuba

Cuba has not committed to the AML/CFT international standards, nor has it constructively engaged with the FATF. The FATF has identified Cuba as having strategic AML/CFT deficiencies that pose a risk to the international financial system. The FATF urges Cuba to develop an AML/CFT regime in line with international standards, and is ready to work with the Cuban authorities to this end.

________________________

Bolivia

Bolivia has taken steps towards improving its AML/CFT regime, including by enacting new CFT legislation. However, despite Bolivia’s high-level political commitment to work with the FATF and GAFISUD to address its strategic AML/CFT deficiencies, Bolivia has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Bolivia should work on addressing these deficiencies including by: (1) ensuring adequate criminalisation of money laundering (Recommendation 1); (2) adequately criminalising terrorist financing (Special Recommendation II); (3) establishing and implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III); and (4) establishing a fully operational and effective Financial Intelligence Unit (Recommendation 26). The FATF encourages Bolivia to address its remaining deficiencies and continue the process of implementing its action plan.

Ethiopia

Despite Ethiopia’s high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies, Ethiopia has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Ethiopia should work on addressing these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing an adequate legal framework and procedures to identify and freeze terrorist assets (Special Recommendation III); (3) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (4) raising awareness of AML/CFT issues within the law enforcement community (Recommendation 27); and (5) implementing effective, proportionate and dissuasive sanctions in order to deal with natural or legal persons that do not comply with the national AML/CFT requirements (Recommendation 17). The FATF encourages Ethiopia to address its remaining deficiencies and continue the process of implementing its action plan.

Kenya

Despite Kenya’s high-level political commitment to work with the FATF and ESAAMLG to address its strategic AML/CFT deficiencies, Kenya has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Kenya should work on addressing these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); (2) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (3) establishing and implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III); (4) raising awareness of AML/CFT issues within the law enforcement community (Recommendation 27); and (5) implementing effective, proportionate and dissuasive sanctions in order to deal with natural or legal persons that do not comply with the national AML/CFT requirements (Recommendation 17). The FATF encourages Kenya to address its remaining deficiencies and continue the process of implementing its action plan, including by implementing the AML legislation and setting up its FIU.

Myanmar

Despite Myanmar’s high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies, Myanmar has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Myanmar should work on addressing these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) further strengthening the extradition framework in relation to terrorist financing (Recommendation 35 and Special Recommendation I); (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (5) enhancing financial transparency (Recommendation 4); and (6) strengthening customer due diligence measures (Recommendation 5). The FATF encourages Myanmar to address its remaining deficiencies and continue the process of implementing its action plan.

Nigeria

Nigeria has taken steps towards improving its AML/CFT regime, including by enacting AML/CFT legislation. However, despite Nigeria’s high-level political commitment to work with the FATF and GIABA to address its strategic AML/CFT deficiencies, Nigeria has not made sufficient progress in implementing its action plan, and certain strategic deficiencies remain. Nigeria should work on addressing these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) ensuring that relevant laws or regulations address deficiencies in customer due diligence requirements and that they apply to all financial institutions (Recommendation 5); and (4) continuing to improve the overall supervisory framework for AML/CFT (Recommendation 23). The FATF encourages Nigeria to address its remaining deficiencies and continue the process of implementing its action plan.

São Tomé and Príncipe

Despite São Tomé and Príncipe’s high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies, São Tomé and Príncipe has not made sufficient progress in implementing its action plan, and certain strategic deficiencies remain. São Tomé and Príncipe should work on addressing these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (3) ensuring that financial institutions and DNFBPs are subject to adequate AML/CFT regulation and supervision, and that a competent authority or competent authorities have been designated to ensure compliance with AML/CFT requirements (Recommendations 23, 24 and 29); (4) implementing effective, proportionate and dissuasive sanctions in order to deal with natural or legal persons that do not comply with the national AML/CFT requirements (Recommendation 17); and (5) taking the necessary action to gain membership of GIABA. The FATF encourages São Tomé and Príncipe to address its remaining deficiencies and continue the process of implementing its action plan.

Sri Lanka

Sri Lanka has taken steps towards improving its AML/CFT regime, including by enacting AML/CFT amendments. However, despite Sri Lanka’s high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies, Sri Lanka has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Sri Lanka should work on addressing these deficiencies, including by: (1) adequately criminalising terrorist financing and addressing the remaining deficiencies with regard to the criminalisation of money laundering (Special Recommendation II and Recommendation 1); and (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III). The FATF encourages Sri Lanka to address its remaining deficiencies and continue the process of implementing its action plan, including by continuing to work on its AML/CFT legislation.

Syria

Syria has taken significant steps towards improving its AML/CFT regime, including by improving the legal arrangements for freezing terrorist assets. However, despite Syria’s high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies, Syria has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Syria should work on addressing its deficiencies, including by: (1) adopting adequate measures to implement and enforce the 1999 International Convention for the Suppression of Financing of Terrorism (Special Recommendation I); (2) implementing adequate procedures for identifying and freezing terrorist assets (Special Recommendation III); (3) ensuring that financial institutions are aware of and comply with their obligations to file suspicious transaction reports in relation to ML and FT (Recommendation 13 and Special Recommendation IV); and (4) ensuring that appropriate laws and procedures are in place to provide mutual legal assistance (Recommendations 36-38, Special Recommendation V). The FATF encourages Syria to address its remaining deficiencies and continue the process of implementing its action plan.

Turkey

Turkey has taken steps towards improving its AML/CFT regime, including by submitting CFT legislation to Parliament. Despite Turkey’s high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies, Turkey has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Turkey should work on addressing these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); and (2) implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III). The FATF encourages Turkey to address its remaining deficiencies and continue the process of implementing its action plan.

Source: FATF

Mexican drug lord ‘La Barbie’ captured in Mexico

Major drug trafficker Edgar "La Barbie" Valdez is presented during a news conference at the federal police center in Mexico City

It has been reported that the drug kingpin, Edgar Valdez-Villarreal, also known as La Barbie, has been captured by the Mexican police.

Due to drug laundering and smuggling activities across Mexico, La Barbie was wanted in Laredo and Mexico.

A Laredo native, La Barbie got captured on Monday after a shootout with Mexican authorities.

Although, the exact location of his arrest is unknown, according to some sources, La Barbie got captured in Mexico.

The former United High School football star, La Barbie was considered as a hero by many in Mexico. For information leading to capture La Barbie, U.S. authorities had offered a prize money of $2 million.

During Atlanta trial, in 2008, powerful evidences were shown against La Barbie to prove him as a major person in moving kilos of cocaine through Laredo.

Along with drug smuggling, La Barbie was also accused of murder and money laundering.

Source: AllVoices

NIGERIA: CBN Ordered Account Update Ends Today

The one-month extension given by the Central Bank of Nigeria (CBN) to nation's banks and customers of other financial institutions to update their account information ends today.

Specifically, the apex bank had on 29th November, 2010 directed that all customers of banks and financial institutions in Nigeria should update their account information by 31st December, 2010 failing which the affected accounts would be suspended with effect from 1st January, 2010.

However due to series of complaints from customers, CBN before the expiration of the deadline, extended the time till January 31, 2010.

The account update, CBN said was part of the Customer Due Diligence (CDD) which involves Know Your Customer (KYC) compliance which is accepted worldwide as a tool for the fight against money laundering and terrorism financing as well as protecting the interest of customers. All banks are required to ensure compliance.

A cross session of bank officials who spoke to Daily Trust at the weekend described the exercise as successful.

An official of United Bank for Africa (UBA) said in the last one week, the banking halls of the banks most especially in Lagos area have been very busy due to large turnout of customers who were trooping in to update their accounts in meeting the CBN's deadline.

He said the bank had also embarked on aggressive media campaign which has helped it in that direction.

Spring Bank's head of communication, Igwe U. Igwe said the turnout has been impressive so far and that today being the last day may also witnessed a large turnout.

He said one interesting thing about the exercise was that some Nigerians living abroad are calling, or sending mails to upgrade their accounts adding that the awareness created by the bank has helped.

A statement by the CBN said: "Having reviewed the progress made so far and the response of the banking public, the CBN has extended the deadline for the information update of bank accounts from December 31, 2010 to January 31, 2011."

The CBN had also threatened that customers who failed to comply with the directive would have their accounts suspended.

The account update is part of the Customer Due Diligence (CDD) which involves Know Your Customer (KYC) compliance which is accepted worldwide as a tool for the fight against money laundering and terrorism financing as well as protecting the interest of customers.

Our reporter observed Friday, last week that many bank account holders were making last minute efforts to update their accounts.

Source: All Africa

Central Bank in UAE gets 1,000s of SARs

Financial companies reported 55 per cent more suspicious money transfers to the UAE Central Bank last year compared to 2009, the head of the regulator's anti-money laundering unit said today.

The Central Bank received 2,711 tip-offs from insurers, banks, investment companies and other financial services firms last year, said Abdulrahim Mohamed al Awadi, an executive director and the head of the anti-money laundering and suspicious cases unit. That compared to 1,750 reports in 2009.

The rise "shows the effectiveness" of efforts to educate financial firms about their responsibilities to report suspicious financial activity, Mr al Awadi said. It was not clear, however, whether the rise was due to increased vigilance or an upturn in money-laundering activity.

Moves to track and prosecute money laundering propagated globally following the terrorist attacks on the US of September 11, 2001 as nations including the UAE enacted laws and increased monitoring of transactions suspected of financing terrorism. The UAE passed a Federal law in 2002 covering the detection and reporting of suspicious transactions.

"You all have a responsibility in partnership with the regulators in ensuring that the UAE financial system stays clean and protected from being abused by criminals, money launderers and terrorist financiers," he told a seminar for insurers and insurance brokers.

The seminar was the first of a series planned this year for the insurance, banking and investment sectors to update executives on developments in international money-laundering reporting rules. As part of the GCC, the UAE is a member of the FATF, a global body that aims to stamp out terrorist financing and money laundering.

Insurance companies in the UAE have long been identifying and reporting suspicious transactions, Mr al Awadi said, but "they have to understand further what are the obligations required under the best practices worldwide."

Source: The National

ISLE OF MAN: No safe haven for money laundering

The detective who led the Jenny Holt inquiry said the verdict would send a clear message that the island should not be seen as a safe haven for money laundering.

Detective Sergeant Lynne Skelly of the Isle of Man Police Financial Crime Unit, said: ‘It is one of the aims of the Financial Crime Unit to ensure the island is a safe place to do business.

‘The legal profession and trustees are key players in ensuring that the Isle of Man has a positive financial reputation.

‘This conviction sends out a strong message to the international financial community that the island will not be seen as a safe haven for money laundering. I am pleased that the case has resulted in a successful conclusion.’

Meanwhile, Trevor Baines has admitted five counts of theft in relation to £770,000 stolen from Hermitage Securities Limited and Euros 43,383.95 from Henry Charles Taylor.

His wife Wendy Nicolau De Almeida Baines has also pleading guilty to the theft of £400,000 from Hermitage Securities Limited.

Detective Sergeant Skelly said: ‘This was a serious breach of trust by Mr and Mrs Baines who stole considerable funds from client bank accounts under their control.

‘Trustees are key players in ensuring that the Isle of Man has a positive financial reputation. This conviction sends out a strong message to the international financial community that the island will not tolerate such criminal conduct.’

Source: IOM TODAY