Kenneth Rijock

Kenneth Rijock

Wednesday, November 14, 2018

CANADA CONSIDERS MAJOR REVISIONS TO ITS ANTI-MONEY LAUNDERING LAWS



Canada's House of Commons Standing Committee on Finance has issued a major white paper, making thirty-two recommendations for modifying Canada's AML laws. The subjects covered are:

(1) Beneficial Ownership
(2) Politically Exposed Persons
(3) Expanding PEP and Beneficial Ownership Requirements
(4) White Label ATM Services and Armored Cars
(5) Real Estate Sector
(6) Structuring
(7) Luxury Goods Sector
(8) Casino Sector
(9) Crypto-currency
(10) Suspicious Activity Reporting
(11) Information Sharing

The report, entitled Confronting Money Laundering and Terrorist Financing: Moving Canada Forward can be accessed here.

JAWAD NASRALLAH, SON OF HEZBOLLAH LEADER, SANCTIONED BY STATE DEPARTMENT

Hassan Nasrallah and Jawad Nasrallah.
 Jawad Nasrallah, the son of Secretary-General Hassan Nasrallah, has been named as a Specially Designated Global Terrorist (SDGT), as a foreign national who has committed acts of terrorism that threaten national security and foreign policy. He was sanctioned by the Department of State, pursuant to Executive Order 13224.


The younger Nasrallah has been responsible for a number of failed terrorist actions in the West Bank.

Tuesday, November 13, 2018

WILL MORE CHEATED CBI CITIZENS NOW SUE THE GOVERNMENT OFFICIAL WHO TOOK THEIR MILLIONS ?

The news that the Indian fugitive Mehul Choksi has filed a lawsuit in Antigua, where he is a CBI citizen, against the Minister of Foreign Affairs, and the Prime Minister, has, thanks to the Internet, circled the globe. Legitimate citizens of the East Caribbean states where CBI programs exist are now openly worrying about the potential of large numbers of CBI and diplomatic passport purchasers demanding their money back, due to the abrupt, and probably illegal, cancellation of their citizenship rights by local officials.

These same corrupt ministers and prime ministers, who have accepted large cash bribes, in addition to the normal CBI fees intended as contributions to the national treasury, must fear public exposure of their misdeeds, as well as the possibility that attorneys for the claimants might seize government assets, to recover for their clients, with possible Foreign Corrupt Practices Act or UK Bribery Act violations as added consequences.

An additional issue, which must keep the East Caribbean ministers up at night, is the distinct possibility that a court of competent jurisdiction might hold that the cancellation of a passport is a criminal act, outside the scope of authority of the official who executes that act, or that it subjects him to personal liability. What about the real estate in North America or Europe purchased by the corrupt Caribbean minister ? It would them be subject to levy, seizure and forfeiture by the minister's judgment creditors.

Will the CBI and diplomatic passport sales world implode ?  We cannot say, but we will be watching.

 

SERBIA MUST IMPROVE TO GET OFF THE FATF BLACKLIST OF HIGH-RISK COUNTRIES


 Serbia has failed to fully implement FATF's most recent recommendations on the prevention of money laundering, and the financing of terrorism.  The shortcomings include:

(1) The work of law firms is not properly supervised.
(2) Government agencies do not have complete and updated information on company ownership.
(3) A lack of monitoring of the financial transactions of Politically Exposed Persons (PEPs).
(4) Inadequate control of wire transfers.

Please keep these facts in mind when reviewing any transactions that affect Serbian banks, corporations, nationals, or companies.




OFAC-SANCTIONED LEBANESE MONEY LAUNDERER FOR HEZBOLLAH GOES ON TRIAL IN PARIS


  
Mohamad Noureddine, a Lebanese businessman and money launderer who moves criminal proceeds for Hezbollah, goes on trial on drug trafficking and money laundering charges in Paris this week, charged with operating a sophisticated cocaine and heroin trafficking ring that used its profits to purchase weapons for Hezbollah's Syrian operations. Noureddine, who is a principal money launderer for Hezbollah's so-called "Business Affairs" component, was perviously sanctioned by the US Treasury, together with several of his front companies; He was arrested in France in 2016.

European media, who are referring to the case as the "Lebanese Connection," are stating that a conviction of Noureddine will blacken Hezbollah's reputation as a strict, pious organization back in Lebanon. Nureddine denies that the Source of Funds he was moving were narcotics profits, and further denies that the money's ultimate destination was Hezbollah. Another suspected Hezbollah narcotics trafficker, affiliated with Noureddine, was also sanctioned by OFAC in 2016. His name is Hamdi Zaher El Dine.



The trial is scheduled to commence today, and run until November 28.

Monday, November 12, 2018

CBI PASSPORT HOLDER CHOKSI SUES ANTIGUA OFFICIALS OVER EXTRADITION

Mehul Choksi, India's Most Wanted Man

It was bound to happen, sooner or later, according to attorneys and experts who claim the Citizenship by Investment (CBI) programs administered by five East Caribbean states are fatally flawed. The grantor jurisdictions, after receiving large payments for citizenship, many in the millions of dollars, have summarily revoked those rights of nationality and citizenship, which is inconsistent with Western concept that such rights are permanent, and obligate the grantor to protect the recipient.

Antigua PM Gaston Browne

A CBI passport holder, in this case the billionaire Indian fugitive Mehul Choksi, has brought a civil suit against Charles Fernandez, the Minister of Foreign Affairs, and Prime Minister Gaston Browne, who holds the portfolio of the Citizenship by Investment Unit (CIU). These two individuals are responsible for the awarding of Antiguan citizenship via the CBI program, and for entering orders of extradition.

(Image courtesy India Today)


While the details of the new lawsuit have not yet been made public, attorneys for Choksi have obtained an expedited hearing on the matter; it has been set for November 14, 2018, before a High Court Judge. The Deputy Solicitor General has notified the Prime Minister, according to the memorandum appearing above. Is Choksi demanding that Antigua refuse to extradite him to face criminal charges in India ? Is he seeking damages ? We cannot say at this point, but given that the hearing is in two days, we may soon learn more about Choksi's claim. He fears that Antigua will allow his extradition to India, and may revoke his citizenship and Antigua passport(s).

 Citizenship is permanent and irrevocable, unless the individual engages in treason, or takes up arms with an enemy country. If a court of competent jurisdiction in the Caribbean holds that a CBI passport holder's rights cannot be terminated, then the whole CBI house of cards may come tumbling down, and applicants, fearing the temporary nature of CBI, will stop coming. Without CBI money to pump up their treasuries, the East Caribbean states might run out of money to pay the salaries of their government officials and staff.

We will be closely monitoring all developments in this case, as they occur, and report them back to our readers on this blog. 

FATF PUBLISHES WHITE PAPER ON AML/CFT RISK IN THE INSURANCE INDUSTRY


 The Financial Action Task Force (FASF) has issued a white paper entitled Guidance for a Risk-Based Approach for the Life Insurance industry. Given the risks, threats and vulnerabilities of life insurance products to both money laundering and terrorist financing, we welcome the publication of this 64-page Guidance. It details the issues in a financial sector that has historically failed to acquire sufficient AML technology to combat ongoing problems, where remote clients can access their products, often without sufficient Customer Identification Procedures, since the local agents, commission-driven, are part of the problem.

Far too many insurance companies and their local agents fail to maintain effective AML//CFT programs, resulting in the placement and laundering of illicit capital. This is mainly due to their inability to detect suspicious transactions, and to act as gatekeepers.

The insurance industry, including the smallest component, the field agents/sales staff, must maintain effective compliance programs, at the level of banking best practices, if it is ever to block enterprising and clever money launderers and terrorist financiers, who seek to hide their illicit assets within their investment products, and in the process, launder them in an industry that has been traditionally ignored by law enforcement investigators.

Readers who wish to review the Guidance may access the complete text here.