HAVE YOU SEEN THIS MAN IN WASHINGTON D.C.?

Joseph Muscat

This is the disgraced former Maltese Prime Minister, JOSEPH MUSCAT. Accompanied by his attorney, PAWLU LIA, he traveled to Washington DC around two weeks ago, and he has neither returned to his native Malta, nor has he been seen in public in the United States. Muscat, who is reportedly under criminal investigation in the United States for violations of the Foreign Corrupt Practises Act (FCPA) and money laundering, has missed two court appointments in Malta.

Some court observers in Malta believe that Muscat is meeting secretly with the Iranian national and owner of the shuttered Pilatus Bank, ALI SADR HASHEMINEJAD, who has brought a private case against the Republic of Malta, previously covered in detail on this blog. Members of Malta's judiciary are using that case to call a halt to any and all criminal proceedings against the officers of Pilatus for money laundering. Ali Sadr lives in the Metropolitan Washington area. The two may be coordinating their efforts to delay and ultimately deny justice in the Malta criminal case.

Muscat is usually accompanied by armed bodyguards; therefore, do not approach him. Report any sighting here: miamicompliance@gmail.com

 

SSSSSS

ANTIGUA RECEIVES YET ANOTHER BLACK EYE FOR ITS ASSOCIATION WITH FTX AND SBF

SWIFT Code: CUNBAGAG ABA Routing # 021000018

Whilst senior government officials in Antigua practise damage control, and seek to disassociate themselves with the failed  cryptocurrency exchange FTX, they cannot quite extricate themselves from the scandal.  FTX Trading Limited is a corporation organized and existing under the laws of Antigua and barbuda. Although its principal headquarters was in the Bahamas, it did maintain an office in St. John's, the island nation's capital. More ominously, there were links between FTX's now discredited leader and owner, SBF, as he prefers to be called, and the country's Prime Minister, GASTON BROWNE, who is no stranger to allegations of the receipt of bribes and kickbacks.

PM Browne

According to reliable sources in Antigua, Browne traveled to a meeting with SBG in the Bahamas, on a private jet, in the company of an unidentified Syrian national. We are not aware of the subject of his visit to FTX headquarters, but have inquiries pending Although FTX was not licensed to transact cyber business in Antigua, its attorney there was ARTHUR G.B. THOMAS, then the head of the local Caribbean securities regulator, (who has now resigned) which raises the presumption that there were operations in the East Caribbean states at least being contemplated, if now completed. Thomas' title as Chairman of the Board of Government-owned and controlled CARIBBEAN UNION BANK, at that time, also caused us to question whether the bank was involved, and if so,  to what extent.

Attorney Thomas

Whether FTX's implosion as little more than a House of Cards, whose cupboard was nearly bare, will now expose any substantial Antiguan connections previously hidden from view, is one of the challenges now facing the individual now assigned to assembling whatever assets it can accumulate, for creditors. Can bribes paid in Antigua be tracked and traced, and can a court of competent jurisdiction compel that they be disgorged? Stay tuned. 

 

DAN FRIEDBERG, DODGY CHIEF REGULATORY OFFICER AT FTX HAD A DARK HISTORY WITH MALTA, DIRECTED THE CRYPTO TRADING PLATFORM INTO VALLETTA

 

FTX CRO Daniel S. Friedberg, Esq.

This is Seattle attorney DAN FRIEDBERG, who until very recently was the Chief Regulatory Officer at FTX, although operating remotely from his State of Washington law office. He also, at least part of the time, also held the position of Chief Counsel at the firm. He apparently has declined to respond to questions from the media, regarding why FTX violated so many rules, laws, regulations, accounting principles, and just normal corporate checks and balances, whilst he was supposed to be guiding and managing the company's compliance. We are certain that a number of American law enforcement and regulatory agencies want to interview him, with good reason. He presided over a crypto exchange that not only broke all the rules and regs, it obliterated them.

Malta readers may know that FTX set up two local companies for crypto trading, but had not, fortunately, commenced operations, for if it has, there would be a lot of crocodile tears shed in Valletta this week. The two entities are:

(1) FTX MALTA GAMING LIMITED.

(2) FTX MALTA HOLDINGS LIMITED.

If you were wondering why FTX curiously also registered a gaming company, be advised that Friedberg has a dark history advising a fraudulent Malta-based online poker gaming company. Who remembers EXCAPSA and ULTIMATE BET, where there were massive allegations of cheating? According to the information revealed at the time, certain insider/players were given access to their opponents' poker hands during play, enabling them to consistently win. Friedberg was recorded advising his clients to blame there misconduct upon a consultant, to escape accountability.

Obviously, attorney Friedberg had intentions of again working within Malta's gaming industry, with FTX involved somehow, as well as most likely expanding the company's crypto business into the country. Malta should count its blessings that he did not have the opportunity. Should you encounter Attorney Friedberg, do not approach him; contact law enforcement, as there may be a reward.

FDIC Cease and Desist Letter to Friedberg as CRO

WAS FTX INVOLVED IN MONEY LAUNDERING?

Buried in the extremely complex bankruptcy filing of assets, real, phantom and virtual, of the billion dollar cryptocurrency trading platform FTX TRADING LTD., is a surprising listing: a large, perhaps even controlling, interest in an obscure, regional and extremely small Washington State bank. The numerous backstories now afoot about FTX raise these issues:

1. Why and how did Federal and state regulators ever approve a major investment in a regional bank by a company, incorporated in the offshore financial centre of Antigua & Barbuda, and headquartered in the Bahamas ? Was there are due diligence performed on the purchaser, and if so, we need to see it forthwith. What was extent of the relationship with the controversial Antigua PM Gaston Browne and certain lawyers close to his government? 

2. The New Age digital bank, MOONSTONE Bank, which was to be created out of the small Washington bank, FARMINGTON STATE BANK, which has literally three employees, which means most likely zero compliance at that bank, and which recently picked up three very large million dollar depositors; is this a money laundering machine in formation? What are the names and addresses of those new mega-depositors? I frankly don't care about their rights to confidentiality under BSA; they must be identified by law enforcement to rule out financial crime.

3. The links and connection between Farmington and FTX, and the opaque offshore bank located in Nassau. Bahamas, DELTEC BANK AND TRUST LTD., must be investigated, as reportedly there is joint ownership of the Washington bank and the Bahamian bank. Journalists who have approached Deltec state that their queries have not been responded to by the bank.

4. If we take as fact the diversion of literally billions of dollars, from customer accounts in FTX, diverted to their associated hedger fund, ALAMEDA RESEARCH, how can we be sure that FTX won't also loot Farmington if it needs capital? 

5. WTF are FTX compliance officers in all this? They may have run off, but US law enforcement needs to locate and interview them.

This scandal could be masking massive money laundering; who is going to do a deep dive from a money laundering perspective?

ALI SADR'S MEDIATION AGAINST MALTA IS FATALLY FLAWED, BUT LABOUR SEIZES UPON IT ANYWAY TO INTERFERE WITH JUSTICE

 

The private lawsuit brought by Pilatus Bank'a owner and Chairman, the Iranian national ALI SADR HASHEMINEJAD (who used his St.Kitts CBI passport to disguise his true nationality with the ECB) is fatally flawed, although the Government of Malta, which is the defendant in the Alpena civil action, is intentionally not raising these two important issues in an effort to dismiss the case.

Here are the two issues, either of which is dispositive, and  legally sufficient to cause the cse to be thrown out and dismissed:

(1) The suit, which was brought in the ICSID, which is a private court established to settle disputes between countries, is based upon an agreement between Malta and China, and therefore is NOT available for a closely-held private company that just happen to be incorporated in Hong Kong, a part of the PRC.

(2) The agreement between the two countries mandating such a lawsuit requires Exhaustion of Remedies before bringing an action under its provisions. Ali Sadr has NOT ever brought any form of litigation in the Maltese courts, which must be brought and concluded before any such private action can be brought.

Any lawyer will tell you that a motion to dismiss should have been presented forthwith when the case was filed and served. The Attorney General of Malta,, in failing to take such action, is guilty of legal malpractise, and Malfeasance in Office. It is not being done because Malta's law enforcement community, under the iron hand of ex-PM Joseph Muscat, the de facto strongman of the country, will not allow it, as he and others would be incriminated if the Pilatus case was to move forward. he's trying to save his soul, as well as his freedom.

We are certain that officials in the European Commission fully understand what is really going on here is  the deliberately inept defence of the case by the Government of Malta, so as to delay, and ultimately deny, justice, so that Muscat and his Merry Mafia Men of the Labour Party will escape accountability for their money laundering and official corruption. Malta has become a Pariah State and the Sick Man of Europe.

PILATUS BANK OFFICER ATTEMPTS TO ILLEGALLY INTERFERE WITH CRIMINAL PROSECUTION IN HER CASE

Thieves in the Night: Gauci and Hasheminejad caught in the act by the press

Attorneys for former Pilatus Bank executive officer ANTONIELLA GAUCI have arrogantly and improperly filed a motion to intervene in the pending suit filed by the civil society REPUBBLIKA to force Malta's Attorney General Victoria Buttigieg to set aside her nonpublic decision to refrain from prosecuting her, and other officers, notwithstanding the arrest warrants ordered executed by a magistrate in 2021. Gauci held a number of senior positions at the now-shuttered bank, whose charter was revoked by the European Central Bank, including Chief Risk Officer, Accounting Officer and for a portion of the time, Acting Money Laundering Reporting Officer (MLRO).

Gauci's attorneys have requested that they be authorised by the Court to intervene in the proceedings, even though a number of legal experts and observers have opined that not only does she not have proper legal standing to intervene, due to the fact she is a  subject of one of five arrest warrants, her application to intervene may constitute a crime under Maltese law. According to reliable sources within the ruling Labour Party, Gauci, who was known to be privy to secret information regarding the conclusions of the magisterial inquiry, before Repubblika filed this action, and enter into an illegal arrangement with former PM Joseph Muscat and Labour, to keep silent whilst the AG filed the Nolle Prosse to drop the charges against her and others. She allegedly received a large sum of money from Labour to allow her to retire in style. Her actions at Pilatus have rendered her unemployable in the financial services sector, both in Malta as well as abroad, according to our Malta sources.

Gauci was caught red-handed, and filmed by Maltese media, acting with the banks' Iranian owner and chairman of the board of directors, ALI SADR HASHEMINEJAD, removing books and records of the institution in the middle of the night, after the bank's illicit money laundering and corruption activities became public knowledge. She literally ran for her car with the documents, which allegedly included the "smoking gun," (EGRANT) evidence of Michelle Muscat's offshore accounts. The failure of the Police and the Attorney General to arrest her, pursuant to the magisterial order, has further embarrassed Malta within Members the European Union, as a country where official corruption always trumps the Rule of law.

In the event that Gauci's ill-considered petition to intervene, to seek to stop the AG from cancelling the Nolle Prosse, and therefore reinstating her exposure to arrest and prosecution, is granted, she will be subject to cross-examination, and further exposure for arrest for perjury, should she fail to truthfully answer the questions propounded to her. This case has now become a matter of great public interest, in Valletta, as well as in  Brussels.

EMERGING TECHNOLOGY WILL TAKE A BITE OUT OF MONEY LAUNDERING

Having spent the better part of the last four decades on both sides of the problem, in my humble opinion the money launderers have consistently been winning the battle. They effortlessly adapt to defeat the continuing efforts of compliance to interdict their operations in real time, and have always been several chess moves ahead of AML/CFT technology. 

Now, however, there are clear signs that, in both the customer identification procedure and transaction monitoring challenges, technological advances have appeared to provide effective and efficient solutions for frontline compliance officers.

CUSTOMER IDENTIFICATION PROCEDURE: Rampant official corruption and Citizenship by Investment (CBI) programmers have combined to give money launderers and transnational financial criminals  willing to pay for them legal and clean identification documents, including under aliases, which will defeat all efforts to learn there actual identity of the holder. This has made the use of traditional CIP methods, such as databases of high-risk individuals, sanctions lists, and even enhanced due diligence investigations, doomed to failure. Now however, the advent of next-generation facial recognition software platforms, when paired with adequate image databases from official sources can identify your new customer, notwithstanding his or her absolutely clean passport and supporting identity documents (1).

TRANSACTION MONITORING: Traditional transaction monitoring software, which relies upon suspicious event, aberrant transactions, transactions inconsistent with a customer's trade or business, and a number of other Red Flags, fails to catch the clever and innovative money launderer who can fly below the rdar of such programmes, appearing to be low risk, and not worthy of being caught in the act, whilst actually moving funds between the lines of the platform, and therefore not identified. New Artificial Intelligence (AI) systems, which are able to literally and successfully separate the wheat from the chaff, when legacy programmes cannot, are a game changer. They will find dodgy transactions, and conduct, that your previous platform cannot identify, because of its limitations. AI is the answer to the strategies and tactics of the crafty money launderer (2).

These tools, and others are they emerge in the marketplace. will level the playing field, and supply compliance officers with the means of being an effective gatekeeper, as well as catching laundrymen in the act, through transaction monitoring that actually works.

______________________________________________________

(1) e.g. Facepoint https://www.facepoint.co

(2) e.g. SymphonyAI Sensa https://symphonysensa.com

 

HAPPY THANKSGIVING FROM THE MAGIC CITY

 

FORMER BVI PREMIER PLEADS NOT GUILTY TO NEW RACKETEERING CHARGE; A BIG MISTAKE?

ANDREW FAHIE, the former Premier of the British Virgin Islands (BVI), who is under house arrest in Miami whilst the money laundering and drug teafficking corruption case against him moves forward in District Court here, has entered a plea of not guilty this week to the new Racketeering charge that appeared in a Superseding Indictment filed recently against him.

Most court observers have assumed that Fahie would be changing his plea to the first two charges to guilty, and executing a plea agreement, after it became widely known that he was reportedly interested in mitigating his exposure by cooperating against other East Caribbean leaders who also engaged in facilitating northbound narcotics shipments through their territory, bound for the United States, but no new arrests have been made, to confirm that theory. Now, with the addition of a Racketeering charge, which not only raises the stakes against the defendant and his co-defendants, but could have a negative impact upon any jury hearing Fahie's case, his situation seems to have further deteriorated.

 Was the additional charge filed to convince him to begin to cooperate in earnest, and to be realistic about the end result ? Fahie may have demanded that any Substantial Assistance that he rendered was to be in exchange for zero person time, but such a position is not a reasonable expectation, given the seriousness of his crimes, which involve public corruption Are the rumours of his arrogance true?

It appears that this case is going to trial; Andrew Fahie may later wish he had accepted the plea deal originally offered to him.

TURKEY FLOODS THE U.S. SUPREME COURT WITH AMUCUS CURIAE BRIEFS IN SUPPORT OF THE HALKBANK FOREIGN SOVEREIGN IMMUNITY CASE

	Main DocumentCertificate of Word CountProof of Service
Nov 21 2022	Amicus brief of Republic of Azerbaijan, Islamic State of Pakistan, and State of Qatar submitted.
	Main DocumentCertificate of Word CountProof of Service
Nov 21 2022	Amicus brief of Professors Ingrid (Wuerth) Brunk and William S. Dodge submitted.
	Main DocumentCertificate of Word CountProof of Service
Nov 21 2022	Amicus brief of Lord Daniel Brennan KC submitted.
	Main DocumentCertificate of Word CountProof of Service
Nov 21 2022	Amicus brief of Republic of Türkiye submitted.
	Main DocumentCertificate of Word CountProof of Service

Several Amicus Curiae (Friend of the Court) briefs have been submitted, in support of the Turkish government-owned HALKBANK's pending Certiorari Petition. Considering that they all appear to have been filed on the same date, the logical conclusion is that they are part of a concerted effort by Turkey to convince the High Court that the Commercial Activities Exception to the Foreign Sovereign Immunities Act is either not applicable, or should be disregarded, in their consideration of whether to hold that the bank is, or is not, immune from criminal prosecution.

The Amicus brief of the Republic of Turkey, which we find representative of the parties' positions makes these points:

(1) Halkbank was created to fulfill a Constitutional mandate and cary out sovereign functions.

(2) Turkey is Halkbank's owner, and controls the bank.

(3) Turkey has always owned Halkbank

(4) Turkey directs the management of Halkbank.

(5) Turkey does not prosecute foreign sovereigns.

MASSACHUSETTS ATTORNEY GENERAL HITS FAY SERVICER HARD : $3.2m SETTLEMENT AGAINST THE MORTGAGE SERVICER FOR MASSIVE DECEPTIVE PRACTICES

 

The Attorney General of the Commonwealth of Masschusetts has hit the Chicago-based dodgy mortgage servicer, FAY SERVICING, with a $3.2m penalty, for multiple violations of state laws on unnecessary foreclosures. Fay failed to make a good faith effort to assist borrowers saddled with unfair loan terms. It intentionally and deliberately prevented borrowers from obtaining needed loan modifications, resulting in foreclosures that never should have been filed.

We have previously documented case after case where Fay's conduct with respect to borrowers whose accounts were assigned to it for servicing, was conducted in bad faith. with the obvious intent of foreclosing upon homeowners, many of whom then lost heir homes through Fay's misconduct. 

Fay must now:

(1) Pay Massachusetts a $500,000 civil penalty.

(2) Homeowners affected by Fay Servicing misconduct will receive $2.7m forgiveness of principal for eligible loans.

(3) Make major changes to its business practices.

Readers who wish to review the complete 27-page Assurance of Continuance may email me for a copy of the pdf document at: miamicompliance@gmail.com

Readers who have not read our previous 14 articles on Fay Servicing here on Kenneth Rijock's Financial Crime Blog,  may access them at:   https://rijock.blogspot.com  Use the white search box at the top of the website enter enter Fay Servicing  to see all the articles. 

WILL COMPLIANCE OFFICERS AT CRYPTOCURRENCY COMPANIES NOW GO TO PRISON FOR WILLFUL BLINDNESS?

Compliance Officer at Cryptocurrency Firm

  

If you looked closely, all the major executives at FTX, save one, fled the Bahamas headquarters when the sh-t hit the fan, and the company became instantly insolvent. It was, we now know, a house of cards, a virtual Potemkin village. What if you were the Director of Compliance at that company, dealing with regulatory matters? I don't know about you, but if it was yours truly, I would be at the U.S. Attorney's Office in D.C., with competent counsel, seeking immunity from prosecution, because I would anticipate being accused, sooner or later, of Willful Blindness. You can't say you didn't know something was amiss. Do you really want to be indicted?

The very nature of the cryptocurrency industry renders it a nightmare for compliance. Its very structure poses unsurmountable challenges on several fronts, leading me to ask, which compliance officers are brave (or foolhardy) enough to risk potential Federal Prison time to serve a client. I do not make that allegation lightly; the opaque nature of crypto, as demonstrated by secrets within secrets at FTX, even to the point where they were not known to insiders operating the company, dictates that creating an effective compliance program, at the banking best practices level, might be an impossibility. 

Until and unless there are effective means of auditing, controlling and gatekeeping the cryptocurrency industry, I must at this time recommend to my fellow compliance officers that they avoid what I deem to be an extraordinary level of personal risk, should they take on the compliance functions for any crypto company. Federal Prison, even for those with a thick skin, is not fun; I've been there, and even with the Vietnam War in my resume, I found it painful.

COLOMBIAN ATTORNEY SENTENCED TO 90 MONTHS IN US FOR DESIGNATING WANTED DRUG TRAFFICKERS AS FORMER FARC TO EVADE EXTRADITION

If you remember the Baruch Vega case, the Department of Justice takes a dim view of private individuals who richly profit from setting up favorable plea agreements with narcotics traffickers that allow them to cheat justice. Colombian attorney MARITZA CLAUDIA FERNANDA LORZA RAMIREZ was recently sentenced by a Federal District Judge in Texas to 90 months' imprisonment for doing just that. Lorza collected nearly $3m, from drug traffickers wanted in Texas and Florida, to corruptly place them upon the official Colombian list identifying them former FARC soldiers, who are exempt from extradition to the US, pursuant to the terms of the Peace Agreement the FARC signed with the Government of Colombia.

The problem is, none of the individuals she named to the FRC list were ever FARC members or soldiers; her actions constituted Obstruction of Justice and Aiding and Abetting. After her extradition from Colombia, Lorza sought to have the charges dismissed, due to extensive delays in her removal after a Colombian court approved that action, but the US trial judge denied her motion. She is presently serving her sentence at FCI Aliceville, which is located in in Alabama.

HALKBANK FILES ITS BRIEF WITH THE U.S. SUPREME COURT

Turkish government-owned and controlled HALKBANK has filed its Brief for Petitioner with the United States Supreme  Court, which agreed to hear the issue of whether the US Government can use the Commercial Activities Exception to the Foreign Sovereign Immunities Act (FISA), to bring a money laundering case against the bank, which was involved in evading sanctions against Iran. The case is part of the SDNY action against REZA ZARRAB and others,

The points raised by the bank's counsel in the Brief:

(1) The FSIA confers "absolute criminal immunity."

(2) Congressional Intent bars criminal jurisdiction over foreign sovereigns.

(3) The facts do not support the Commercial Activities Exception to FISA.

(4) Even if the Exception is applicable, the case does not satisfy that Exception.

Readers who have been following the case through the Federal Court system know that both the District Court and the Second Circuit found that there was sufficient commercial activity in the US, on the part of the bank, to apply the Exception. They case also had political aspects; two of Donald Trump's prominent lawyers, the former Attorney General (Mukasey) and the former head of SDNY (Giuliani), represented the bank and sought to influence the prosecution by DOJ, With Trump's support. Whether they acted in violation of the Foreign Agents Registration Act (FARA) remains an open question.

THERE IS ZERO COMPLIANCE BEING PERFORMED BY CYBERCURRENCY OTC OPERATORS UPON CUSTOMERS

With rare exceptions, OTF vendors of cyber currency are performing zero effective compliance on their new customers; they are actually using Google to vet new clients, and calling this act due diligence is not only gross negligence, it is a recipe for disaster. It is widely known that organised crime, especially drug trafficking networks, are involved in moving the proceeds of crime through crypto, with impunity, given the ongoing American regulatory dispute over precisely which agency has jurisdiction, what controls should be implemented.

A routine due diligence check of a new six-figure client by an outside compliance officer confirmed the sad situation. The individual was identified as a narcotics trafficker based in Malta, and who was on the OFAC list. it gets worse; we have previously detailed how a Specially Designated Global Terrorist organisation, HAMAS, not only openly advertised that they wanted financing through crypto, they  actually published the pipeline supporters could use to funnel wealth to them. We are aware that one of the jurisdictions where such funding is in progress today is Malta.  See As Cryptocurrency Flows to HAMAS increase, how much is Coming from Malta? (July 2, 2021).

Until and unless there are actual mandatory due diligence regulations, on the same level as banking best practises, this loophole for money laundering, and transnational delivery of criminal profits will continue unabated. Cybersales companies need a designated compliance officer performing his duties, with a written compliance manual, a training regime for frontline sales staff, and a periodic audit of the aerogramme, to confirm that it is truly being followed. Anything less means that the laundrymen will still be able tomavail themselves of this opportunity to move dirty money without any controls. 

AMERICA'S REPUBLICAN PARTY IS BLOCKING CRITICAL ANTI-MONEY LAUNDERING LEGISLATION IN CONGRESS, DUE TO FINANCIAL SUPPORT FROM AMERICAN BAR ASSOCIATION AND OTHER SPECIAL FINANCIAL INTERESTS

Long before 9/11, this blogger was privileged to testify publicly three times, before committees of the U.S. Congress, supporting several pending effective anti-money laundering bills. None of the five bills I supported with my testimony ever became law, largely because of the financial support given by America's banking lobby, including but not limited to our most greedy banker, SIR ALLEN STANFORD, knighted by avaricious government leaders in Antigua & Barbuda, who wanted their offshore jurisdiction to keep raking in that Ponzi scheme money. As the direct result of the efforts of the banking lobby, who wanted to avoid new reporting requirements, the funding for the 9/11 hijackers went unnoticed.

Now, history may be repeating itself; Republicans in the United States Senate are blocking the progress of the ENABLERS ACT, which would require attorneys, financial consultants and other who handle large cash payments from abroad to perform adequate disuse diligence on their new clients before allowing them to access the US financial structure with their professional advice, including the use of shell companies to place the funds.

Two particular Senators are reportedly blocking the legislation, which is opposed by the AMERICAN BAR ASSOCIATION, whose leadership claims the reporting requirements would pose a problem for their attorney members, and also be a breach of the attorney-client privilege, which confers confidentiality upon their relationship with their clients. For the benefit of the non-lawyers in the audience, the crime or fraud exception to the privilege is the appropriate response to their objection, which has no legal merit; I should know, being a former lawyer with a decade of criminal experience.

If the United States cannot rein in its attorneys, we will continue to lose the War on Money Laundering; it's high time to out the Senators who are taking millions from the Special Interests, and blocking effective legislation that would stop dirty money from entering the American financial structure, through its attorneys and financial professionals. 

AUSTRIAN BANK CEO WHO MOVED BRIBES THROUGH ANTIGUAN BANK FIGHTS EXTRADITION TO THE UNITED STATES IN LONDON

PETER WEINZIERL, the former CEO of Austria's MEINL BANK, is contesting his extradition to the United States in a London courtroom; he was arrested in the UK last year. Weinzierl is accused of being the central figure in a $170m global bribery scheme, conducted for there Brazilian international construction giant, ODEBRECHT S.A., employing a bank located in Antigua & Barbuda, MEINL BANK (Antigua) Ltd., where he was on the board of directors.

The defendant faces three counts:

1. Conspiracy to Commit Money Laundering.

2. International Promotional Money Laundering. 

3. Engaging in a Transaction in Criminally-Derived Property.

Weinzierl worked through Odebrecht's covert wing, The Division of Structured Operations, which paid huge bribes to get lucrative government construction contracts abroad. he faces 70 years inn Federal Prison, which amounts to a  Life Sentence, as he is 55 years old.

Given Austria's troubled history of money laundering scandals, and the issues regarding its bank secrecy laws, this particular criminal prosecution could deter the country's bankers from future involvement of international money laundering. The United States needs to use this case to make a point regarding the liability of Austrian bankers who facilitate international money laundering.

ATTORNEY GENERAL AND POLICE INTENTIONALLY AND DELIBERATELY LET THE STATUTE OF LIMITATIONS RUN OUT ON TWO CHARGES AGAINST MONEY LAUNDERING PILATUS BANK

The Statute of Limitations on two of the principal charges that senior Pilatus Bank officials were facing has lapsed, according to legal professionals in the Republic of Malta that are familiar with the case. Lawyers have accused the Attorney General and the Malta Police of intentionally, maliciously and deliberately allowing the clock to run out, making those criminal charges against Pilatus officers & directors time-barred, and as a result, there have been repeated calls for the resignation of the Police Commissioner for official misconduct.

The two charges are:

(1) Making a False Declaration.

(2) Criminal Association.

Both of the above, which have only a two-year period in which such charges must be filed, were to be filed against ALI SADR HASHEMINEJAD, HAMID GHANBARI, MEHMET TASLI, LUIS RIVERA, and ANTONIELLA GAUCI. Although the assigned magistrate ordered arrest warrants against all these individuals in 2011, there has been no action taken by Maltese law enforcement. The bank has been linked to former Malta Prime Minister, JOSEPH MUSCAT, who maintained accounts there, where he allegedly received bribes and kickbacks whilst in office.

Joseph Muscat by COSIMO

 It is not known what the response will be, once the fact that Malta allowed the Statute to run against Pilatus, become known to the Members of the European Union. The European Central Bank revoked Pilatus' charter in 2018.

WATCH THE NBC DOCUMENTARY ABOUT PANAMA AND THE TRUMP OCEAN CLUB THAT DONALD TRUMP WANTS TO DESTROY

Some of our readers have indicated that they want to see the documentary that alleges money laundering occurred at the Trump Ocean Club in Panama, that reportedly our sources assert Donald Trump's attorneys are attempting to remove from the Internet, so we are making it available here. If you didn't see yesterday's article we published on the subject, here it is: Donald Trump's Attorneys are Seeking to Have Network Program that Alleges Money Laundering at Trump's Panama Hotel Removed from Public View  

Note that the documentary, Trump Panama Building a Magnet for Dirty Money Laundering,  is moderated by the well-known investigative reporter Richard Engel from NBC News. Watch it and draw your own conclusions. It is on Youtube, so there will be a short ad before the program.

https://youtu.be/6v6o_MNzxHA

COURT ISSUES DETAILED EVIDENTIARY HEARING ORDER IN SAAB MORAN CASE

The trial judge, after conducting a status conference on the upcoming evidentiary hearing on the Motion to Dismiss, has issued a detailed order concerning the order of events, and the specific obligations of the parties.

To summarize the important points:

1. The hearing will take placed between December 12 and December 16.

2. Witness lists are due December 5,

3. Details about witnesses are restricted to lawyers only.

4. The Court get Witness and Exhibit lists by December 8.

5. Expert Witness disclosure due December 5.

6. Expert information with possible security issues will be restricted to lawyers only.

7. Witnesses testifying remotely are limited to the Swiss Embassy in Venezuela and the American Embassy in London.

8. Spanish and Portuguese interpreters will be furnished by the Court, Remote witnesses will connect with interpreters via telephone.

9. Any overflow of Oral Argument shall be continued ned to December 20.

10. The Government is to complete its Classified Information Procedures Act (CIPA) filing by December 2.

DONALD TRUMP'S ATTORNEYS ARE SEEKING TO HAVE NETWORK PROGRAM THAT ALLEGES MONEY LAUNDERING AT TRUMP'S PANAMA HOTEL REMOVED FROM PUBLIC VIEW

Trump at the opening of the Trump Ocean Club

One of our reliable Panama sources has reported that attorneys for American Presidential Candidate DONALD TRUMP are taking new steps to have a documentary program that alleges Trump and/or his adult children engaged in money laundering in the Republic of Panama, in connection with sales at Trump's former Panama hotel and residences, then known as Trump International Hotel and Tower Panama,  originally Trump Ocean Club, taken down from the 'Web.  The lawyers' reported efforts include removal of the program from the Internet. 

The building, which has subsequently been known as Bahia Grand Panama, and now JW Marriott Panama, which was built by a Colombian group, whose sales staff included a number of individuals later wanted by the Panamanian authorities on criminal charges, has a dark history, involving foreign purchasers of the Tower residences who employed bearer-share corporations to take title, rendering positive identification of Beneficial Owners difficult if not impossible to determine.

We are aware of which American network has been named as the producer of the program, but we are not reporting that information until more details about the matter surface. Given that the documentary appeared in 2017, there are questions regarding why Trump has waited until the present to more assertively object to the program, and to take steps to remove it from public view. He has sought to have it taken down in the past, but not to the extent we are seeing now. 

While we are not aware that the Department of Justice is aware of the existence of this program, and its content, the fact that, five years later, Trump is moving against it again, might be explained by an investigation involving financial crime in Panama that is not yet known to exist. We are following up with our sources to determine the reason for this activity, which appears to be in progress, as a current effort to quash the program.

DOJ DILIGENTLY DELIVERS MORE DISCOVERY IN HIGH-PROFILE ANDREW FAHIE CASE

The US Attorneys Office in Miami (SDFL) has made what it entitled its Second Response, regarding Discovery, in former BVI Premier Andrew Fahie's money laundering and drug trafficking case.Readers who are closely following this case know that a Superseding Indictment against Fahie was recently filed, bringing with it a new Racketeering charge, possibly to compel him to fully cooperate, or enter into a plea agreement without further delay.  See United States files Superseding Indictment Against former BVI leader Andrew Fahie, adds RICO Count, November 12, 2022.

Apparently, there have been transcripts made of the incriminating audio recordings, reportedly where Fahie participates in the corrupt arrangement to allow narcotics shipments en route to the Continental United States,to be stored and to be allowed to pass through BVI maritime territorial waters under local protection supplied by Fahie's crew. those transcripts, together with video tapes have been supplied to defence counsel, according to the Response.

Given that the US Attorney specifically notes that his office is fully cognizant of its Due Process obligations under Brady (failure to disclose of exculpatory information), Giglio ( information about the credibility of witnesses0, and Napue ( Government eliciting false testimony ands failure to correct), there appears to be a concerted effort to insure that no actions that might lead to reversible error will occur. It is so rare that the US tries a leader of a foreign government, (e.g. Panama, Turks & Caicos) that we are sure there is enhanced supervision of the frontline prosecutors.

SSSSSS

OFAC SANCTIONS MALTA-BASED, RUSSIAN-OWNED AVIATION COMPANY AND ITS BIZJETS IN A DIRECT CHALLENGE TO MALTA'S PRO-RUSSIAN STANCE

 

Emperor Aviation (from its website)

The American financial sanctions regulator OFAC, the Office of Foreign Assets Control, has slapped sanctions upon a large. number of Russian nationals, as well as against EMPEROR AVIATION LTD. (Emperor Avieishn Ltd.) a Russian-owned and controlled business jet charter company based in Malta. Additionally, Emperor's fleet of aircraft, all of which are registered in the Republic of Malta, and therefore carry 9H tail numbers, which then appear to casual observers to be EU aircraft rather than aircraft with Russian owners, have also be designated by OFAC. Details on all these aircraft, including their Serial Numbers, appear at the end of this article. The company's website and contact information only shows its Malta's address; there is no mention of its Russian ownership and control.

Such a registration technique is generally regarded in the global aviation industry as an active scheme to conceal Beneficial Ownership. Emperor aircraft have been used, since the Russian invasion of the Ukraine, to transport individuals known to be Oligarchs to and from countries outside of Russia, most of whom have imposed sweeping sanctions upon Russia, its companies, and its nationals.

Malta, whose ruling Labour Party maintains a pro-Russia posture, whilst claiming neutrality, though approximately one-half of its IIM (Citizenship by Investment) passport sales have been to Russian nationals, giving them EU Schengen Zone visa-free access, is presently politically unstable, since calls for the country's allegedly corrupt Prime Minister, ROBERT ABELA, to resign have surfaced, after his longtime financial relationship with a Russian transportation Oligarch, alleged to have paid bribes, became public knowledge. 

This week's massive OFAC sanctions action, which demonstrates that the United States is paying close attention Russia's influence within Malta, could signal that the small Mediterranean nation's cosy relationship with Russia has come under the microscope of American law enforcement and regulatory agencies. Whether there will be more sanctions of Maltese front companies to follow we cannot predict, but compliance officers at international banks, who are advised to regularly review the Department of Treasury website for updates, may now want to focus on the notices on Russian entities to determine of any more are incorporated or based in Malta.

 ( Taken verbatim from the US Treasury website)

9H-AMN; Aircraft Manufacture Date 2006; Aircraft Model BD-700-1A11; Aircraft Manufacturer's Serial Number (MSN) 9324; Aircraft Tail Number 9H-AMN (aircraft) [RUSSIA-EO14024] (Linked To: EMPEROR AVIATION LTD). 

 
9H-ARK; Aircraft Manufacture Date 2019; Aircraft Model BD-700-1A10; Aircraft Manufacturer's Serial Number (MSN) 60011; Aircraft Tail Number 9H-ARK (aircraft) [RUSSIA-EO14024] (Linked To: EMPEROR AVIATION LTD). 
 
9H-EAA; Aircraft Manufacture Date 2014; Aircraft Model Citation XLS+; Aircraft Manufacturer's Serial Number (MSN) 560-6170; Aircraft Tail Number 9H-EAA (aircraft) [RUSSIA-EO14024] (Linked To: EMPEROR AVIATION LTD). 
 
9H-MAO; Aircraft Manufacture Date 2006; Aircraft Model BD-700-1A10; Aircraft Manufacturer's Serial Number (MSN) 9223; Aircraft Tail Number 9H-MAO (aircraft) [RUSSIA-EO14024] (Linked To: EMPEROR AVIATION LTD). 
 
9H-OKO; Aircraft Manufacture Date 2018; Aircraft Model G650; Aircraft Manufacturer's Serial Number (MSN) 6356; Aircraft Tail Number 9H-OKO (aircraft) [RUSSIA-EO14024] (Linked To: EMPEROR AVIATION LTD). 
 
9H-SIS; Aircraft Manufacture Date 2015; Aircraft Model CL-600-2B16 (604 Variant); Aircraft Manufacturer's Serial Number (MSN) 6050; Aircraft Tail Number 9H-SIS (aircraft) [RUSSIA-EO14024] (Linked To: EMPEROR AVIATION LTD). 
 
9H-SSK; Aircraft Manufacture Date 2016; Aircraft Model G650; Aircraft Manufacturer's Serial Number (MSN) 6195; Aircraft Tail Number 9H-SSK (aircraft) [RUSSIA-EO14024] (Linked To: EMPEROR AVIATION LTD). 
 
9H-TIO; Aircraft Manufacture Date 2018; Aircraft Model BD-700-1A11; Aircraft Manufacturer's Serial Number (MSN) 9813; Aircraft Tail Number 9H-TIO (aircraft) [RUSSIA-EO14024] (Linked To: EMPEROR AVIATION LTD). 

PARTIES IN SAAB MORAN MONEY LAUNDERING CASE REQUEST STATUS CONFERENCE FOR THIS WEEK

Both the US Attorney's Office in Miami and Saab Moran's defence team have requested a Status Conference for this week. The request, entitled Joint Motion to Set Status Conference,  asks for a telephonic meeting to discus resolving potential procedural problems surrounding the Diplomatic Immunity, classified information, and oral argument issues.   

The evidentiary hearing on the Diplomatic Immunity motion is scheduled for December 12th, and the Court's ruling on that issue has been eagerly anticipated since Saab's attorney's first asserted it, several months ago; expect an appeal from the losing party. 

WHAT PREPARES A COMPLIANCE OFFICER TO CONDUCT ENHANCED DUE DILIGENCE INVESTIGATIONS?

The most demanding, and interesting, compliance work that I have ever handled was a position that required me to investigate only high-risk potential clients, which called for Enhanced Due Diligence exclusively. As the gatekeeper, I was able to catch money launderers in real-time. My background, as a banking lawyer-turned career money launderer, equipped me with the tools necessary to catch people in the act. Unfortunately, most former money launderers want nothing to do with the financial world after they are released from prison, for fear that prior criminal clients who are still operating, may take offense, and do them harm.

If a bank cannot employ reformed money launderers, who then should they choose for the most difficult compliance tasks? Who can be trusted to identify the money launderers and transnational financial criminals?

There are a number of options, and I am going to run through them here:

(1) Lawyers: you may have noticed that most compliance directors at large banks are attorneys. Lawyers have a number of advantages as compliance officers; they have a prior undergraduate education before law school, meaning that it generally includes a Liberal Arts background, which is usually a well-rounded education, which is a must for enhanced due diligence, inasmuch as we want people with a large knowledge base, since their opponents are certainly well-educated. They also know about business entities, from their law school training, and most importantly, they learn Issue Perception, which is a critical skill in identifying normal appearing, yet inconsistent and suspicious transactions that others may miss.

2. Retired and former law enforcement officers, especially ex-white collar detectives or investigators: These individuals have serious experience in determining whether transactions are illegal; their skills can easily be adapted to inquiries regarding regulatory, as well as criminal money laundering, subjects. 

3. Former military, especially intelligence officers: These are problems solvers, used to working in environments with unknowns, and who often early transition over to AML/CFT positions. They bring significant relevant skills to the job, as well as maturity, there ability to work under pressure, and discipline.  

4. Graduates with business or other degrees, supplemented with CAMS and other vocational courses: these constitute a large segment of the compliance population. Whether they are competent to effectively handle Enhanced Due Diligence investigations depends upon the individual.  

Which category constitutes the class best able to ferret out the money launderers literally in the act ? What do you think? 

                                             (Originally appeared on LinkedIn)

UNITED STATES FILES SUPERSEDING INDICTMENT AGAINST FORMER BVI LEADER ANDREW FAHIE, ADDS RICO COUNT

Andrew Fahie in custody

The US Attorney's Office in Miami (SDFL) has filed a Superseding Incitement in the money laundering and narcotics trafficking case involving former BVI leader ANDREW FAHIE and two other defendants, who were the targets of a sting operation by US law enforcement, and agreed to facilitate the movement of narcotics through the British Virgin Islands, and be well compensated for their roles in this criminal activity.

 The new indictment, adds two counts to the case; Interstate and Foreign Travel in Aid of Racketeering. Count Four is against Andrew Fahie; Count Five on the same grounds is against co-defendant OLEANVINE PICKERING MAYNARD, who was also at the time of the alleged crime an officer in the BVI Government. The new charges appear at the end of this article.

Given that rumours have widely circulated to the effect that Fahie was, from the very beginning of the case, seeking to negotiate a plea agreement whereby he would mitigate his exposure by giving evidence against other Caribbean leaders who are engaged in facilitating narcotics smuggling into the Continental United States, but no such agreement has yet been filed, it appears that the Department of Justice has raised the stakes by adding a RICO count. Has he been delaying the conclusion of the entire matter unnecessarily, and these new charges are simply a Government tactic to move the case along? He does have a reputation for arrogance; did it backfire?

Racketeering alleges an unlawful business enterprise, which is more than a single violation. We trust that Mr. Fahie has taken due note that his exposure has not only increased the possible sentence that he will receive after conviction, it potentially sends a negative message to the judge and jury about repeated criminal conduct. His delay to promptly negotiate a deal have now exposed him further, and weakened his position. We shall be monitoring the case to see if he now executes a plea agreement.