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