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Minggu, 01 Juli 2012

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.

Kamis, 28 Juni 2012

NZ firms linked to money laundering

by MICHAEL FIELD

Criminals are using shell companies set up under New Zealand's lax company laws to launder money.

Companies created by an Auckland firm operating out of Queen St have been linked to Russian crime, a Mexican drug cartel and Romanian extortion.

A 16-month Fairfax Media investigation has also tied companies created by Geoffrey Taylor and his sons Ian and Michael, who work out of 363 Queen St, to a company that smuggled arms out of North Korea.

The government admits there is a problem but says it has had other priorities.

The Taylor operation is not illegal, but the companies they create are connected to serious crimes in a number of countries.

They set up a shell company, Bristoll Export Ltd, that helped move part of the proceeds of a $245 million Russian tax fraud out of Moscow and into Swiss bank accounts. London-based Hermitage Capital Management hired a lawyer to find out what happened, but he died in a Moscow jail.

Hermitage chief executive Bill Browder told the Sunday Star-Times he was "highly motivated to make sure all aspects of this story see the light of day", and that he had a "treasure trove of information" about New Zealand companies' ties to the scandal.

The Taylors set up complex webs of companies, and one of them, linked to Russians in Cyprus, is administered out of a home in Albany near Auckland.

A United States Justice Department investigation into the banking giant Wachovia, also tied Taylor-linked companies to the movement of drug money. Wachovia was fined more than $202m for helping disguise the illegal origins of up to $479 billion for Mexican drug lords, predominantly the murderous Sinaloa cartel. Four Taylor companies "filtered" $50m in drug money through banks in Latvia and on to Wachovia. Each of the companies had just one director – Stella Port-Louis, 32, of the Seychelles, until recently a director of around 300 New Zealand companies.

Canada's Financial Transactions and Reports Analysis Centre, which assessed Wachovia, identified the "exploitation of New Zealand's weak company registration laws" as a problem.

International expert Martin Woods said shell companies were "ideal vehicles for money launderers, tax evaders and arms traffickers".

In 2009, a Georgia-registered cargo plane flew from North Korea to Bangkok and was found to have 35 tonnes of arms on it. The plane was chartered by SP Trading Ltd, a company set up by the Taylors.

The company's director was a Burger King cook named Lu Zhang, 29, who was later convicted of 75 breaches of the Companies Act for giving false addresses on registration forms, something she described in court as "one little mistake".

She is also a director of companies linked to Romanian Lorenzo Kiss, who is under arrest over an alleged $14.5m embezzlement.

Ian Taylor told the Sunday Star-Times media reports connected dots that weren't there.

PricewaterhouseCoopers Auckland's forensic services director Alex Tan said using company service providers had become common here.

"The money-laundering and even terrorist financing risks associated with them are high, particularly considering they can be set up over the internet."

FATF Public Statement

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.

Bolivia
Cuba**
Ethiopia
Kenya
Myanmar
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 remains concerned by Iran’s failure to meaningfully address the on-going and substantial deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The FATF remains particularly 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. The FATF urges Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular by criminalising terrorist financing and effectively implementing suspicious transaction reporting (STR) requirements.

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. If Iran fails to take concrete steps to improve its AML/CFT regime, the FATF will consider calling on its members and urging all jurisdictions to strengthen counter-measures in October 2011.

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

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, including by continuing to work on its AML/CFT legislation.

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 operationalising the new AML Advisory Board.

Myanmar

Myanmar has taken steps towards improving its AML/CFT regime, including by clarifying the scope of the ML offence. 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.

Sri Lanka

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 money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); 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 steps towards improving its AML/CFT regime, including by improving the ML and TF offences. 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 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 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 working on CFT legislation. 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

Sabtu, 16 Juni 2012

US diplomats to hold talks in Seoul on Iran sanctions


A delegation of senior U.S. diplomats is scheduled to arrive in Seoul on Monday for consultations on anti-Iran sanctions expected to focus on how much Korea should cut its crude oil imports from the Middle Eastern nation.

The three-day visit by the U.S. delegation, led by Robert Einhorn, the State Department's special adviser for nonproliferation and arms control, comes amid mounting global tensions over Iran's nuclear ambitions. 

Late last month, U.S. President Barack Obama signed into law a bill that imposes tough sanctions against financial institutions dealing with the central bank of Iran accused of seeking a nuclear weapons program.

The new U.S. sanctions, however, have placed South Korea in a difficult position, as Seoul imports some 10 percent of its crude oil needs from Tehran. 

Einhorn, who last visited South Korea early last month, will be accompanied by Daniel Glaser, the U.S. Treasury's deputy assistant secretary for terrorist financing and financial crimes, Seoul's foreign ministry said. 

South Korean officials said that Seoul has not yet made a decision on how much to cut its crude oil imports from Iran. 

In a statement, the foreign ministry said South Korea will "actively request that the U.S. help minimize potential adverse effects that the new U.S. sanctions could exert on South Korean companies in the course of their implementation." 

During his visit to Seoul last month, Einhorn denied that he specifically asked Korea to stop purchases of crude oil from Iran, but said the U.S. would welcome such a decision by Seoul.

Iranian crude oil accounted for 8.3 percent of total imports by South Korea in 2010, but the ratio rose to 9.6 percent in the first 11 months of last year. 

Currently, Korea is dealing with Iran's central bank to make payments for its crude oil imports. 

In an apparent move to minimize fallout from the U.S. sanctions against Iran, Korean Prime Minister Kim Hwang-sik is currently on a tour of two Middle East nations, Oman and the United Arab Emirates. (Yonhap)

Kamis, 14 Juni 2012

Apple Global Supply Manager Accused of Accepting $1 Million in Kickbacks

A mid-level Apple manager faces twenty-three counts of a federal grand jury indictment alleging that the 37-year-old Paul Shin Devine, a global supply manager, is guilty of wire fraud, money laundering, and kickbacks related to his position at the company. Andrew Ang, of Singapore, faces the same charges as well.

And if that's not bad enough, Apple itself has filed a separate civil suit against Devine, alleging that the Sunnyvale, CA-based (former) employee accepted more than $1 million in bribes and kickbacks from countries including China, South Korea, Taiwan, and Singapore.

According to the indictment, Devine allegedly used his position at Apple to acquire various bits of confidential information about the company. He would turn around and sell this information to more than a half-dozen Apple suppliers—including the aforementioned Ang—and both would receive payments for their efforts. Using the confidential knowledge, said suppliers would be able to better position themselves to bid for and receive Apple contracts.

The San Jose Mercury News reports that the companies in the indictment remained unnamed, but they're said to be involved in supplying materials for Apple's iPods and iPhones.

"Apple is committed to the highest ethical standards in the way we do business," said Apple spokesman Steve Dowling in a statement. "We have zero tolerance for dishonest behavior inside or outside the company."

The somewhat-complicated scheme, reads the indictment, involved a number of U.S. and foreign bank accounts, as well as the falsified company "CPK Engineering," to process the payments. Devine allegedly attempted to conceal the money transfers using code words as to not clue his employer into what was actually transpiring, and would even go so far as to open the foreign bank accounts in his wife's name.

The Internal Revenue Service reports that Devine is currently in the custody of U.S. Marshals, awaiting a 1:30 p.m. court appearance this coming Monday in the U.S. Northern District Court in San Jose.

Source: PC Mag

Senin, 11 Juni 2012

The New UN Sanctions Resolution Against Iran

The UN Security Council approved a resolution on June 9th imposing a fourth round of sanctions on Iran in response to its continued nuclear enrichment program in violation of prior Security Council resolutions. The vote was 12 in favor, 2 against (Brazil and Turkey) and 1 abstention (Lebanon).

The new resolution imposes new financial restrictions on Iran, expands an existing arms embargo, and authorizes greater stop and search of Iranian cargo ships. Targeted sanctions on specific individuals and entities were expanded. The resolution also includes measures directed against Iran’s Revolutionary Guard.

While the United States, Great Britain and France were its strongest sponsors, China and Russia also expressed their verbal support along with their votes, although the Russian ambassador added a major caveat in his response to a reporter’s question about Russia’s prospective sale of a sophisticated anti-aircraft system to Iran.

Lebanon’s decision to abstain was a pleasant surprise, considering the influence of Iran-backed Hezbollah in the Lebanese government. However, Brazil and Turkey as expected opposed the new resolution on the grounds that it could undermine the proposed nuclear fuel swap agreed by the two countries with Iran last month. They seemed to forget that the European Union has been trying to negotiate with Iran since 2005 and the Obama administration waited 18 months while trying to engage Iran before seeking passage of this resolution. Only when new sanctions became a real possibility did Iran come around to the fuel swap concept that it had first agreed upon and then promptly reneged on last fall.

Rice’s Positive Spin
U.S. Ambassador Susan Rice told reporters after the vote that the “resolution is strong, it’s tough and it’s comprehensive. And it is something that Iran fought very hard to prevent passage today. The effort, the time, the money, and the poise that they employed, to try to prevent this resolution’s passage only underscores their understanding, that this is a major blow.”

Despite the ineffectiveness of the three prior resolutions, Ambassador Rice expressed confidence that the cumulative effect on Iran of all the resolutions is “harmful and hurtful.”

Iran’s Rebuke
Iran remains unbowed. Its representative told the Security Council after the vote that it had no intention of changing its present course. He accused the United States and Great Britain in particular of continuing a long pattern of interference in Iran’s affairs and displaying a double standard vis a vis Israel. Ambassador Rice told reporters that these comments were “reprehensible, offensive, and inaccurate.”

Stronger Resolution on Paper
On paper at least, the new resolution does appear to represent a significant move forward from the prior three. More specifically, the resolution prohibits Iran from investing in sensitive nuclear activities abroad, like uranium enrichment and reprocessing activities, as well as activities involving ballistic missiles capable of delivering nuclear weapons. The ban also applies to investment in uranium mining.

States are prohibited from selling or in any way transferring to Iran various categories of heavy weapons (battle tanks, armored combat vehicles, large caliber artillery systems, combat aircraft, attack helicopters, warships, and certain missiles or missile systems). States are similarly prohibited from providing technical or financial assistance for such systems, or spare parts.

The resolution also sets up a new cargo inspection framework. States are expected to inspect any vessel on their territory suspected of carrying prohibited cargo, including banned conventional arms or sensitive nuclear or missile items. States are also expected to cooperate in such inspections on the high seas.

States are called upon to prevent any financial service and freeze any asset that could contribute to Iran’s proliferation.

Resolution targets the Islamic Revolutionary Guard Corps
Most significantly, the resolution targets the Islamic Revolutionary Guard Corps (IRGC) for its role in proliferation and requires states to mandate that businesses exercise vigilance over all transactions involving the IRGC. Fifteen IRGC-related companies linked to proliferation will have their assets frozen. The IRGC is the major power center in Iran’s economic and military spheres as well as one of the government’s primary instruments for suppressing political dissent. Impairing the IRGC’s freedom of operations will be a significant accomplishment, if successful.

The Proof Will be in Enforcement
UN Security Council sanctions resolutions against Iraq, North Korea and Iran have had a bad track record in actual practice. The resolutions have been easy for the sanctioned countries to evade, through the use of multiple front entities, money laundering and trading partners unwilling to give up short term advantage for longer term peace and security.

Also, enforcement of the cargo inspection at sea will be a challenge if Iran, as expected, refuses to cooperate. When the French UN ambassador, for example, was asked what measures France would be willing to take in such a scenario, he refused to answer what he called a “hypothetical question.”

Most ominously, the Russian UN ambassador told reporters that Russia did not consider the sale of its sophisticated S-300 anti-aircraft system to Iran to be within the resolution’s scope. The S-300 missile defense system would no doubt be used by Iran to shield its nuclear sites against a potential air strike, should military force become necessary to stop Iran from producing nuclear bombs. The Russian ambassador is technically correct because the resolution’s ban on the transfer to Iran of certain missile systems is written in such a way that it creates a big loophole for Russia to walk through in delivering to Iran its ground-to-air missiles, including its S-300 anti-aircraft missiles and anti-missile interceptors.

The Obama administration will spin the latest sanctions resolution against Iran as a major diplomatic triumph and a significant obstacle in the way of Iran’s progress towards achieving a nuclear arms capability. I hope they are right. However, until the S-300 loophole is closed; until the U.S. and its allies figure out a way to effectively stop evasions of the sanctions; and until enough countries show that they are willing to enforce the cargo inspections, the Obama administration might want to wait before it celebrates.

Jumat, 25 Mei 2012

Korea: ACC sits on $7.5m money laundering evidence

A Korean citizen claims that an Anti-Corruption Commission (ACC) official has stopped proceedings of filing a case regarding laundering of about $7.5 million although National Coordination Committee (NCC) to combat serious crime and corruption has evidence.

Ok-Kyung Oh in a press conference at Jatiya Press Club yesterday said a taskforce team this year found evidence of laundering the amount to South Korea by her former husband Bo- Sun Park, chairman of TaeHung Packaging (BD) Ltd, and forwarded the matter to ACC for further action.

She alleged ACC did not make any probe into the matter for mysterious reasons except changing the enquiry officer three times.

Ok-Kyung Oh, who claims to have been removed from the post of managing director of the same company illegally in 2004, alleges that ACC Commissioner Abul Hasan Manzur Mannan is holding back the file regarding filing of the case.

"If an ACC commissioner is holding back a file like this, then who's going to fight against corruption?" Ok-Kyung Oh asks.

"If ACC cannot file this case even after having such documents, the commission cannot file any case regarding corruption," she adds.

Contacted, Mannan told The Daily Star, "The allegation is not true. May be she has misunderstood me. She might have said that Customs Bond Commissionerate did not scrutinise her allegations earlier."

On delay in ACC action regarding the matter, he said, "The officer entrusted with enquiry earlier collected all the information but did not take those into cognisance, especially those technically important for this case."

"I don't know why the officer did that," he said, adding, "As we have understood all aspects of the matter by now, it would be disposed of soon."

Mentioning the recent taskforce report regarding the matter, Ok-Kyung Oh told journalists $7.5 million amounts to Tk 52.35 crore was laundered from 2000 till 2007 through over invoice.

She also complains that two former committees formed by the Bangladesh Bank and Customs Bond Commissionerate could not conduct impartial investigation and were influenced by former communications minister Nazmul Huda and his wife Sigma Huda during tenure of the four-party alliance government.

Source: The Daily Star

Kamis, 17 Mei 2012

Romanian soccer investigated for tax evasion, embezzlement, money laundering

BUCHAREST, Romania (AP) - Anti-corruption prosecutors began an investigation Thursday into top soccer officials involving money laundering and tax evasion in the transfer of Romanian players to foreign clubs.

The prosecutors say the state should have received ¤1.7 million (US$2.5 million) in revenue and tax if the actual amounts of money received in the transfers
had been registered in the accounts of the clubs.

Romanian prosecutors pieced together information about finances related to soccer deals from countries such as the Netherlands, Spain, Italy, China and South Korea. They say 12 players were transferred to foreign clubs for bigger amounts of money than stated in the accounts.

Ten people are under investigation, including Rapid Bucharest chairman Gheorghe Copos and Dinamo chairman Cristi Borcea. The 10 are accused of diverting more than ¤10 million (US$14.6 million) to bank accounts of offshore companies from the Virgin Islands and the Netherlands to avoid paying the full tax.

Soccer is one of the most popular sports in Romania, but it has recently been marred by claims of corruption and match-fixing.

http://www.pr-inside.com/romanian-soccer-investigated-for-tax-r391755.htm