Kenneth Rijock

Kenneth Rijock

Sunday, July 15, 2018

PAKISTAN'S UNITED BANK LIMITED SIGNS AGREEMENT WITH NEW YORK FED ON BSA/AML DEFICIENCIES


 
Readers who have clients doing business in Pakistan should review the complete text of the Agreement between the Federal Reserve Bank of New York  and Karachi branches of United Bank Limited, regarding the remediation of serious BSA/AML deficiencies. You can access the Agreement here.

Saturday, July 14, 2018

WILL THE LAW SOCIETY OF UPPER CANADA NOW INVESTIGATE LAWYER FOR ST KITTS CORRUPTION ALLEGATIONS ?

The High Court in St Kitts & Nevis this week dismissed the civil suit, filed by a constituant against Opposition leader Dr. Denzel Douglas, in the Dominica diplomatic passport case. The Court, speaking through Justice Trevor Ward QC, ruled that the case constituted Abuse of Process. This means that it was improper to bring the action against Dr. Douglas.

The Court held that the action musrt be dismissed pursuant to the Common Law doctrine prohibiting Multiplicity of Actions, as the Attorney General had previously filed an identical action action "relying upon the same grounds and facts." Costs may be taxed later against the plaintiff, Cuthbert Mills. Whether the attorney's failure to adequately research the law prior to filing the suit, which should never have been filed, is professional negligence, also known as malpractice, is an issue that should be addressed in the appropriate forum.

The matter became an issue of great public interest in St Kitts, when reliable sources within the government alleged that a private agreement between senior Kittitian officials, and the Canadian attorney retained to bring the action, E. Anthony Ross, required Ross to secretly kick back a substantial portion of his reputed multi-million dollar attorneys' fees, to them. Official corruption has been a major topic of conversation in St Kitts of late, especially after the Asot Michael scandal broke in Antigua, which included allegations of illegal payments sought by St Kitts officials.

Canadian law in the Province of Ontario, where attorney Ross maintains his law office, prohibits attorneys from paying any portion of their professional fees to non-lawyers. The Law Society of Upper Canada, which regulates the conduct of the legal profession in that province, should open an investigation, and inquire into the circumstances surrounding any payments of fees received by Ross in the St Kitts case to third parties.

Friday, July 13, 2018

CONSULTANCY: CBI APPLICANTS ARE MOSTLY FROM HIGH-RISK COUNTRIES


The principal of a major CBI consultancy in the United Arab Emirates (UAE) has noted, in a recent interview, that the country which represents the largest number of their CBI applicants is Pakistan. The executive also named the other nations whose nationals have been his firm's CBI clients.

Here is the list that was published in the article:

(1) Syria
(2) Lebanon
(3) Egypt
(4) Palestinian Arabs
(5) Jordan
(6) Iran
(7) Iraq
(8) UAE

The consultancy stated that it matches up applicants with the two CBI jurisadictions in Europe (Malta and Cyprus), and the three located in the East Caribbean (St Kitts & Nevis, Dominica and St Lucia). These are principally countries that are not democracies, and which have Specially Designated Global Terrorist organizations operating within their borders. Assuming that the CBI applicants from these countries present clean and authentic alias identification, sanctions violators, terrorist financiers or foreign intelligence agents, such as Pakistan's ISI, could obtain CBI passports, allowing them to enter the Schengen Zone, visa-free, seriously raising risk-levels.

It is issues like this that keep counter-terrorist agencies up at night. CBI passports allow both criminal, as well as terrorist, elements, to successfully enter, and operate, inside Western democracies. That is why jurisdictions that sell economic passports become high-risk targets for foreign law enforcement and intelligence agencies, and anyone that holds a passport from such jurisdictions are regarded as suspects. This is the unintended consequence of all that CBI cashflow.

READ THE INDICTMENT AGAINST THE 12 RUSSIAN INTELLIGENCE OFFICERS FOR CYBERCRIME




If you want to read the Indictment, filed today in US District Court in DC against a dozen Russian intelligence officers from the GRU, the complete text may be accessed here. The Style of the case is United States vs. Viktor Borisovich Netyksho, et al. 

EXECUTIVES WHO HAD THEIR SECRETARIES DO THEIR COMPLIANCE TRAINING IN THEIR PLACE RECEIVE A PROPER PUNISHMENT



You've gotta love those people at FINRA, the regulator for the securities industry. When a number of executives at Credit Suisse Securities had their secretaries do their required compliance training for them,  FINRA ruled that they had to give back a portion of their bonuses, as a penalty.  As we always say, let the punishment fit the crime. Imposing a financial penalty, individually, for failure to participate in compliance training, is just that.

Readers who wish to review the complete text of the FINRA Letter of Acceptqnce, Waiver and Consent may access it here.

Thursday, July 12, 2018

FUGITIVE MASTER MALAYSIAN FRAUDSTER FLEES USING HIS ST KITTS CBI PASSPORT



Low Taek Jho, also known as Jho Low, a Malaysian financier alleged to have siphoned off billions of dollars from 1MDB, the Malaysian development fund, is a fugitive from justice, whose Malaysian passport was cancelled. How is he still at large, you ask ? Simple, he has a CBI (Citizenship by Investment) passport from St Kitts & Nevis, one of a long list of accused criminals who possess SKN CBI passports, and use them to evade justice elsewhere.

Low is alleged to have stolen $700m from the 1MDB, which he had access to;  he is on the run, and has reportedly been seen in Mainland China, Thailand, Taiwan, Hong Kong and Macau. Malaysian authorities believe he will eventually end up in St Kitts, as have a number of major white-collar criminals, who have sought refuge there. All you need is deep pockets and that prized CBI passport. If the government of St Kitts was wondering why visa restrictions, imposed by the US & Canada are not being lifted, this case should serve as a reminder.


THE MOST HIGH-RISK COUNTRY IN EUROPE INITIATES A CBI PROGRAM


 The Republic of Moldova, a country where widespread money laundering scandals and billion dollar frauds are rampant and uncontrolled, has announced that it is creating the Moldovan Citizenship by Investment Program (MCBI). While neither a member of the EU or the Schengen Zone, Moldovan nationals have visa-free access to Europe through a treaty, making a Moldovan passport attractive for citizens from high-risk or sanctioned jursidictions.

Unfortunately, the visa-free privileges come at a high personal cost, as Moldova's image as a center for organized crime more or less paints a red bull's eye on the back of any foreign national who presents a Moldovan passport at an international port of entry. CBI consultancies generally never inform their clients about the specific negative aspects of acquiring the passports of certain CBI countries, including whether you will draw unwanted international law enforcement attention with your new passport. Though the Schengen Zone access is tempting, any foreign investor who chooses to purchase a Moldovan passport is probably asking for more trouble than they bargained for. Nobody wants their banks accounts checked out by law enforcement, just because their passport states where they come from, but it is the logical outcome. Do you really want to be under a legal microscope ?

Lengthy interrogation by customs officers, strip searches, and extensive bags and baggage inspection most likely lay ahead for the Moldovan CBI passpot holders. Some might even call it guilt by association. while the  CBI programs of Cyprus and Malta are more expensive, they will come with a lower level of risk. As always, before making any important decision, prospective applicants for CBI passports are advised to seek the advice of a qualified attorney., but in my humble opinion, rule out Moldova for the reasons listed above.