WILL THE OFFICERS AND DIRECTORS OF MALTA'S PILATUS BANK NOW BE CHARGED ?

Pilatus Bank CEO Hamid Reza Ghambari

In the aftermath of the guilty verdict against Pilatus Bank owner and Director Ali Sadr Hasheminejad in the United States, we have been wondering why the Republic of Malta has neither investigated nor charged any of the principal Officers and Directors of the bank with criminal conduct, especially regarding money laundering and corruption. Since this has not occurred,  Malta's reputation as a jurisdiction within the European Union will further deteriorate. It is fast acquiring status as Europe's emerging "banana republic," where corruption and disrespect for the Rule of Law have become commonplace.

In the event that neither Malta nor the United States fails to bring the Pilatus players to justice, we name them here for the benefit of compliance officers at financial institutions in the European Union (EU), who will want to consider whether to label them as high-risk, due to their potential exposure to civil, as well as criminal liability for Pilatus Bank's actions, as the legal principle "directors must direct" is confers strict liability upon all directors.

(1)  Chief Executive Officer HAMID REZA GHANBARI, who has a CBI passport from the Commonwealth of Dominica. ( photo above)

(2) COO, Secretary and Director  LUIS FELIPE RIVERA, listed as an American citizen.

Luis Felipe Rivera

(3) Director MUSTAFA CETINEL, a citizen of the Republic of Turkey.

(4) Owner and Director SEYED ALI SADR HASHEMINEJAD, who holds a St Kitts & Nevis CBI Passport.

Seyed Ali Sadr Hasheminejad

(5) Director ROBERT LEWIS KLNGENSMITH, listed as an American citizen.

(6) Director CLAUDE-ANNE SANT FOURNIER, a citizen of Malta.

Claude-Anne Sant Fournier

(7)  Former Director JOHANNES HELMUT BAUER, a citizen of Germany.

(8) Former Director ARMIN ECKERMANN, a citizen of Germany.

Armin Eckermann

(9) Former Director JOSEPH JERRY LIOW-YUNE-JOY, a citizen of the United Kingdom.

(10) Former Director PHILIP MERCIECA, a citizen of Malta.

Philip Mercieca

RAISE COUNTRY RISK ON GUINEA, AFTER GOVERNMENT PLOY TO EXTEND PRESIDENTIAL TENURE ENDS IN VIOLENCE

Reports from Conakry indicate at least ten protestors dead at the hands of government forces, after a referendum which effectively extends the President Alpha Conde's ability to remain in office for a third term spawned widespread protests. Government shut down access to the Internet, and declared a State of Emergency. Whether there will be intervention by French military forces is not known. Prior mass protests in the country resulted in 31 dead.

Under the circumstances, compliance officers who assess Country Risk should increase it for Guinea at this time. 

CORONAVIRUS EMERGENCY: A PERFECT STORM FOR MONEY LAUNDERERS

If you are a fan of heist movies, you probably have seen the 1970 film Kelly's Heroes, a story about a group of soldiers in the US Army in 1944 in France who go AWOL to rob a shutered bank behind the German lines that is storing millions of dollars in gold ingots. Based upon a true story, it illustrates the old maxim "The best time to rob a bank is in the middle of a war."

Maney launderers working for international narcotics cartels are most likely working overtime this month, as they are fully aware that compliance officers at international banks in North America and in the European Union have their hands full with the stay-at-home orders from Government, personal fear about catching the Coronavirus, or their families catching it, and performing their duties at the bank. There have been requests to defer, for ninety days, any and all compliance with the Bank Secrecy Act, and all other AML/CFT regulations and obligations.

In short, individuals who are working in the financial community, who are preoccupied with mortal danger, as well as the practical difficulties they now encounter in operating a compliance division at anywhere near an effective level, are under siege, and money launderers, who are always looking for vulnerabilities and systemic weaknesses, are most certainly driving a financial truck, loaded with the proceeds of crime, right through the bank's front, and back, doors.

Look for online transfers of funds, payments that ordinarily would be quickly spotted as inconsistent with a trade or business, payments for phantom deliveries of goods that are most likely trade-based money laundering, and similar transfers that an alert, and physically present, compliance officer might interdict, if he or she was on duty. Money launderers thrive amidst chaos; expect them to be hard at work in the current emergency situation, plying their dark trade, and in your bank.

WILL ALI SADR HASHEMINEJAD FLEE THE US PRIOR TO SENTENCING, OR IS HE COOPERATING ?

If you read carefully, you might have noticed that Ali Sadr Hasheminejad, the recently-convicted Iranian sanctions evader, and money launderer, remains free pending his sentencing, but in addition to Home Confinement (House Arrest), Sadr was ordered to have a GPS tracking device attached to his person, to follow his every movement, and to assure the Court that he will not flee the jurisdiction, to cheat justice, prior to his upcoming sentencing date.

Unfortunately, a number of high-profile defendants encumbered with GPS equipment have disconnected the device and fled the United States., and given  Sadr's reputed wealth, and probable sentence ( up to 85 years potentially), he might decide not to wait around to receive his sentence.

There is one strange issue, though; a number of sealed documents filed in the court file,  since the trial  ended, could mean that he has made the decision to cooperate with the authorities. Has he executed a Plea Agreement, which is now under seal ? We cannot say, but we will be watching for any indications that  a deal is in the works.

SENIOR LEADERS OF VENEZUELA ARE ALL WANTED MEN IN USA

JUDGE IN HALKBANK CASE ORDERS LAW FIRM TO PROVE IT REPRESENTS THE BANK BEFORE THE ARRAIGNMENT

It appears that the District Judge in the money laundering and sanction evasion case against the Turkish state-owned bank, Halkbank, intends to insure that there is no way that the bank can later contest the outcome by asserting that counsel was not authorized to represent it. The Court issued an
order requiring bank counsel to provide written evidence that the law firm is authorized to represent it at the Arraignment, A copy of the Order appears below. Obviously,  having seen the prior tactics employed by counsel, the Court is taking no chances.

NIGERIAN BANKER WANTED FOR THEFT