Posts Tagged ‘Add new tag’
18.06.09 Taliban, Al Qaeda finances recovering
Posted by: BTC in General News & Cases on June 22nd, 2009
Investigation shows Taliban in Afghanistan and Pakistan get money from extortion, crime and drugs.Taliban refer to extortion money as tolls, taxes or zakat
PESHAWAR: For the Taliban in Afghanistan and Pakistan, money is coming mostly from extortion, crime and drugs, an AP investigation claims
Funding for the Al Qaeda is more diverse and included money from new recruits, donations from sympathisers, and a cut of profits from honey dealers in Yemen and Pakistan.
“With respect to the Taliban, the narco-dollars are a major, if not majority, of their funding sources, and I think add in there as well extortion and kidnapping,” said Juan Carlos, a former US National Security Council adviser on terrorism who now works at the Centre for Strategic and International Studies in Washington.
Afghanistan produces more opium than any other country in the world. The Taliban charge drug kingpins to move the opium through their territory. The United Nations estimates their annual cut to be more than $300 million.
‘Taxes’: The Taliban refer to extortion money as tolls, taxes or zakat. Money from drugs and criminal gangs makes up roughly 85 to 90 percent of Taliban revenue, estimates John Solomon of the US Military Academy’s Counter Terrorism Centre. In Pakistan, the NWFP governor puts the Taliban’s annual earnings at roughly Rs 4 billion.
Taliban soldiers are paid nearly $100 a month, more than the average Pakistani policeman. A Taliban commander gets more than $350 a month.
The informal money transfer system known as hawala or hundi is flourishing in Pakistan and Afghanistan as well as the US. Former prime minister Shaukat Aziz said more than $5 billion went out of Pakistan every year through this system, which operates without regulation.
In three of the last five years, the top source of money transfer into Pakistan through hawala has been the US, a security official said.
After September 11, 2001, the financial crackdown closed some of Al Qaeda’s sources of funding. But with the help of the hawala system, it has since re-established its money line.
Over the last two years, it has turned up the call for donations, told new recruits to bring money with them, and shown signs of being more frugal. This can either mean that it is saving up for another 9/11-style attack, or that the crackdown has curbed its fundraising ability.
Estimates of Al Qaeda’s annual spending vary wildly from $300 million to as low as $10 million.
Carlos said its main expenses were payments to families; food and shelter to maintain operations; travel and logistics; money for cells engaged in plots; bribes, and expenses for long-term plans like anthrax research.
Some charities with alleged Al Qaeda connections have renamed themselves. In Kuwait, the Revival Islamic Heritage Society, believed by the US to be heavily financing Al Qaeda, is still operating.
Because of demands from the International Monetary Fund, Pakistan has removed restrictions on the amount of money that can be brought into the country. It has limited to $10,000 the money that can leave the country, cracking down on some of the biggest hawala dealers.
“Once the money is inside the country, it is difficult to locate it. Smugglers and transporters help finance the Taliban either out of sympathy for their cause or because they are being forced to give a share,” said a security official.
A cartel of honey dealers is back in business, laundering money and moving drugs but the scale is smaller than in 2001.
A former fighter with Gulbuddin Hekmatyar told AP honey is sent from Pakistan with an inflated price tag to markets in the Middle East and the profits sent by courier to Al Qaeda.
Honey dealers in Peshawar said that there was no Al Qaeda link to their sales. But one honey dealer said the outlawed Al Shifa Honey Press was still operating in Punjab. He said he knew of no Al Qaeda affiliation
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14.04.09 Crime Pays: Cops Given £5.5m Of Seized Assets
Posted by: BTC in General News & Cases, SOCA - Latest News on April 14th, 2009
More than £5m of assets seized from criminals is to be handed to police across England and Wales, the Home Office has announced.
Half of the a total of £31.8m in criminal assets, confiscated between October and December last year, will be shared between police, prosecutors, courts and other bodies. Under an incentive scheme introduced in 2006, police and recovery agencies can keep half of the cash they seize from criminals.
The amount to be given to English and Welsh police forces is £5.5m, up from £5.14m during the same quarter in 2008. The remainder of the £15.9m will be shared by HM Revenue and Customs, the Serious Organised Crime Agency, the Crown Prosecution Service, the courts service and other local authorities.
More than £530m has been seized since 2003, when the Proceeds of Crime Act came into effect. Over £135m was recovered in the financial year 2007-2008.
Home Office Minister Vernon Coaker said the scheme “makes crime far less profitable” for criminals and helps the police force to fight crime.
He added: “Recovering more than £31m from criminals in the space of three months is a great achievement”.
“I want to thank the police and other partners for their hard work in seizing the money and undermining criminal gangs.”
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31.03.09 SOCA Issues Warning To Drug Traffickers
Posted by: BTC in General News & Cases, SOCA - Latest News on March 31st, 2009
The Serious Organised Crime Agency is warning drug traffickers they will face a long time behind bars if they attempt to import drugs into the United Kingdom.
Tobagonians Owen Alfred and Oswin Moore were jailed for 18 and 15 years respectively in London today for their roles in a cocaine trafficking conspiracy. Ten other members of the organised crime gang, which has been completely dismantled by SOCA, were previously sentenced to a total of 144 years.
Alfred and Moore were extradited from Trinidad and Tobago to the UK in June 2008 and were convicted of conspiracy to import controlled drugs following a six-week trial at Kingston Crown Court.
SOCA Executive Director Trevor Pearce said: “Drug trafficking causes misery to local communities and funds other criminal activity. SOCA and its partners are committed to using our global partnerships to tackle this problem.
“Today’s lengthy jail terms send a very clear message to criminals – if you come onto SOCA’s radar we will pursue you, track you down, and put you behind bars. Alfred and Moore have paid a heavy price for importing cocaine into the UK and are now in jail thousands of miles away from their family and friends. Targeting the UK is a high risk business and will not be tolerated.”
The court heard how gang members in the UK used a money transfer service to pay Alfred and Moore to supply drugs and provide documentation, accommodation, transportation and cover stories for drug mules. Officers identified 21 mules, who had each swallowed up to one kilo of cocaine. They have all been jailed separately either in Tobago or the UK.
Evidence including money transaction details, false letters and telephone bills enabled officers to prove approximately 140 kilos of cocaine had been sent to the UK between June 2002 and July 2005. The cocaine was being distributed by UK gang members to dealers in South London.
Both men were arrested on behalf of SOCA by officers from the Trinidad and Tobago Police Service’s Organised Crime, Narcotics and Firearms Bureau. They were extradited to the UK in June 2008 following a court hearing in the Port of Spain.
Trevor Pearce added: “The success of this investigation is down to the hard work and dedication of officers from both SOCA and the Trinidad and Tobago Police Service. Eight of their officers travelled to the UK to give evidence and I want to thank them for their assistance.
“By working in partnership with the TTPS and the Attorney General’s office we have successfully dismantled an organised crime gang responsible for causing harm to the public in both the UK and Trinidad and Tobago.”
As part of a different operation, the UK’s 120 year old extradition treaty with Colombia was used for the first time last week when a man was brought back to the UK by SOCA officers to face charges of money laundering linked to cocaine supply.
Sentencing details:
Kingston Crown Court, London – 31 March 2009
• Owen Alfred, DoB 30/6/68, of Idle Wild, Scarborough, Tobago – 18 years
• Oswin Moore, DoB 28/4/68, of Big George Junction, Orange Hill Road,
• Patience Hill, Tobago – 15 years
Kingston Crown Court, London – 20 July 2006
• Paul Williams, DoB 22/06/67, Harris House, Brixton, London – 22 years
• Delroy Gibson, DoB 19/06/67, Church Road, Gypsy Hill, London – 21 years
• Anson Charles, DoB 25/08/59, Alexander Drive, Gipsy Hill, London (T&T national) – 20 years
• Charles Gordon, DoB not known, Broadstone House, Kennington, London – 20 years
• Wayne Brown, DoB 20/04/65, Whitehorse Lane, Thornton Heath, London – 10 years
• Kerin Burris-Gordon, DoB 23/06/82, Broadstone House, Kennington – 10 years
• Derek Anthony, DoB 28/08/68, Roberts House, Tulse Hill, London – 15years
• Stephanie McQueenie, DoB 05/12/79, Lockwood Square, Rotherhithe, London – 13 years
• Stacy Burris, DoB 13/07/84, Alexander Drive, Gipsy Hill, London – 7 years
• Yvonne Anthony, DoB 03/09/75, Letchford Gardens, White City, London – 6 years
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16 March 2009 HM Treasury warns businesses of serious threats posed to the international financial system
Posted by: BTC in AML Legislation updates, General Information & FAQ's, HMRC News and Guidance on March 16th, 2009
The Financial Action Task Force (FATF) has announced that it remains concerned by Iran’s failure to meaningfully address the deficiencies in its Anti-Money Laundering and Combating Terrorist Financing (AML/CTF) regime, particularly in respect of terrorist financing and suspicious activity reporting.
The FATF has called on its members to consider effective countermeasures to protect their financial sectors from risks emanating from Iran, and to protect against the use of correspondent banking relationships to bypass or evade counter-measures and risk mitigation practices.
All UK businesses regulated under the Money Laundering Regulations 2007, whether Money Service Businesses or other regulated persons should treat transactions associated with Iran as situations that by their nature can present a higher risk of money laundering or terrorist financing, and which therefore require increased scrutiny, enhanced due diligence, and ongoing monitoring. In the light of the call for countermeasures the UK is, in addition, considering what further action is required.
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11/03/09 Brown and tax havens – Treat ‘em mean
Posted by: BTC in General News & Cases on March 11th, 2009
Editorial: The Guardian
However slowly, however piecemeal, progress is being made in forcing tax havens to become less secretive. Yesterday it was the turn of Jersey to sign an agreement with the UK that it will share information about offshore tax payments. Gordon Brown has been sounding tougher too. In his address to US Congress last week was this remarkable sentence: “How much safer would everybody’s savings be if the whole world finally came together to outlaw offshore tax havens?”
An excellent question, even if the person raising it comes as rather a surprise. This is after all the same Gordon Brown who barely did anything about tax havens during his decade as chancellor. Indeed, while Mr Brown was in Number 11, the International Monetary Fund effectively branded Britain a tax haven on account of its lax rules on rich non-domiciles. Sinners can repent, of course, but to be truly convincing they must reform. And of that there is not yet enough evidence. The tax-information exchange agreement with Jersey may be less significant than it appears. Seasoned campaigner Richard Murphy observes that the Cayman Islands, which has a similar agreement with the US, only budgets for around 120 enquiries a year. That is a tiny number considering how much money flows between the US and the Caribbean tax haven. Nor are the UK authorities being quite as tough as they make out. When officials discuss the agenda for next month’s G20 summit, it is clear that they are relying on others – whether that be the US, Germany or France, or the rich-countries club of the OECD – to take the lead in the havens debate, with the UK following some way behind.
So any optimism must be heavily qualified – but there should still be optimism, for three reasons. The first is that the political climate is different. The US now has a president who is determined to crack down on tax havens, and the financial crisis has emboldened those European leaders who have long wanted action. Mr Brown has cover for his new-found radicalism. The second is that the financial crisis is helping to make the case against offshore tax dodging. As officials and expert outsiders are able to examine the detritus of the securitisation boom, they are finding strong evidence of how much of it was driven by the tax advantages of using offshore havens.
Finally, there is an economic imperative – governments are spending vast sums, even while their revenues are being hit by the recession. The search is on for more ways to raise cash, even if that means a shake-down of tax havens. A fairer tax system is not inevitable, but the conditions to create one could not be more propitious.
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25/02/09 India poised to have FATF entry approved
Posted by: BTC in International News on February 25th, 2009
New Delhi: A Bill aimed at effectively combating money-laundering, terror financing and cross-border economic offences was passed by Parliament on Tuesday, with the Lok Sabha approving the measure.
The Prevention of Money Laundering (Amendment) Bill, 2009, passed by the Rajya Sabha last week, seeks to ensure a legal framework to check such crimes. Winding up a discussion on the Bill in the Lok Sabha, minister of state for finance PK Bansal assured the House that the government would not be found wanting in taking action against those indulging in money-laundering. The new law seeks to check use of black money for financing terror activities.
Financial intermediaries like full-fledged money changer, money transfer service providers such as Western Union and International Payment gateways, including VISA and MasterCard have also been brought under the ambit of The Prevention of Money-Laundering Act.
Consequently, these intermediaries, as also casinos, will be brought under the reporting regime of the enforcement authorities. It would also check the misuse of promissory notes by FIIs, who would now be required to furnish all details of their source.
Bansal said the Act would check misuse of “proceeds of crime” be it from sale of banned narcotic substances or breach of the Unlawful Activities (Prevention) Act.
The passage of the Prevention of Money Laundering (Amendment) Bill, 2009 will enable India’s entry into Financial Action Task Force (FATF), an inter-governmental body that has the mandate to combat money laundering and terrorist financing.
The Bill, after becoming an Act, will address India’s international obligation and empower the enforcement directorate to search the premises immediately after the offences are committed and police have filed a report.
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25/02/09 Garda fraud officers continue Anglo probe
Posted by: BTC in General News & Cases, International News on February 25th, 2009
THE Garda Fraud Squad raid on the offices of Anglo Irish Bank was unprecedented and could lead to criminal prosecutions, according to legal experts.
On Monday, a judge in Dublin’s District Court granted officers from the Garda Fraud Squad permission to enter three separate premises of Anglo Irish Bank and take possession of any books or documents, including permission to preserve and prevent interference with any material information seized by up to 20 officers working with Ireland’s corporate enforcer.
It was the first time that the Office of the Director of Corporate Enforcement (ODCE) has ever sought permission from the courts to search the premises of a financial institution under investigation for possible breaches of company law.
The rarely used section 20 of the Companies Act 1990 has previously only been brought to bear against individuals.
Last night, the ODCE refused to disclose the reasons for its application to the District Court, citing “operational reasons”.
The warrant is valid for a month but gardai can retain any documents seized for an unlimited period of time, following changes in the law in 2005.
Breaches
Legal experts have said that a series of possible prosecutions could result from the ODCE investigation including charges relating to the failure to keep proper books of account and breaches of rules relating to directors’ loans. The ODCE can also investigate possible offences where an individual who is financially interested in the success or failure — or the apparent success or failure — of the bank, sought to influence the bank’s policy.
The investigation of ownership of shares or debentures, including their acquisition, disposal or transfer, may also constitute grounds for seeking a warrant.
The new acting chief executive of the Financial Regulator, Mary O’Dea, has been working closely with the ODCE and exchanging information on matters relating to Anglo Irish Bank.
This includes an investigation into all loans and other benefits provided by the nationalised bank to its directors and the unwinding of a major Contracts for Difference (CFD) position held by businessman Sean Quinn.
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12/02/2009 14,000 tax avoidance schemes and counting…
Posted by: BTC in General News & Cases, HMRC News and Guidance on February 12th, 2009
At the last count, since rules requiring the disclosure of tax avoidance arrangements to HMRC were introduced in 2004 there had been around 14,000 such schemes.
Or so we thought. Now it seems these might be far from the limit of the problem, as many “promoters” of schemes, such as accountants, lawyers and specialist “boutique” tax avoidance firms, are refusing to play the game.
A parliamentary answer obtained by Austin Mitchell MP, who has also tabled an early-day motion urging action on tax avoidance, reveals that no fewer than 90 promoters are under investigation for failing to disclose schemes. Presumably they were either hoping they wouldn’t be picked up or think they have found a loophole in the rules.
As promoters tend not to limit themselves to the odd scheme or two, the number of undeclared wheezes could be significant, especially if some of the bigger promoters think they have successfully found ways around disclosure. And that’s without considering any that are still beavering away unnoticed.
Ninety promoters not disclosing schemes is alarming, even with the reassurance that HMRC is onto them. At the very least it shows that, valuable as disclosure rules are, they are no guarantee of authorities getting on top of tax avoidance.
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31/01/2009 Human trafficker and Benefit Fraudster to payback £42K
Posted by: BTC in General News & Cases on January 26th, 2009
The first ever case of human trafficking in Cheshire ended on 23 January 2009, with the sentencing of Cai Hong Yang, 44, at Warrington Crown Court.
Yang received 16 months for the police charges against her, and an additional four months for charges of benefit fraud, brought against her by the Department of Work and Pensions. She also received a confiscation order for the sum of £42,095 for proceeds made from her business activities and cash obtained from state benefits.
On 11 December 2008, Yang, of Moorcot Court, Manchester, appeared before Judge David Hale at Chester Crown Court and pleaded guilty to four counts of managing a brothel, one count of controlling prostitution for gain and one count of trafficking a human being within the UK for sexual exploitation.
Cai Hong Yang, a Chinese national, was arrested as part of Cheshire’s response to Operation Pentameter, a national operation which aims to rescue and protect victims of trafficking for sexual exploitation. As well as aiming to identify and disrupt those involved in criminal activity, the operation is intended to increase the knowledge and understanding of human trafficking in the UK and raise awareness of the issue.Yang, who has operated under several aliases, including Nelly Yang and Tara Lee, used premises in Egerton Street, Albert Street and Sellar Street in Chester and Delamere Court in Crewe to conduct her activities.
Commenting on the case, DS Mark Fletcher said: “This is the first trafficking conviction ever in Cheshire and clearly shows our determination to deal with those who exploit others. The fact that Yang received a custodial sentence reflects the very serious nature of these offences and the tireless work that officers from Cheshire Police have undertaken over the past two years.”
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Ongoing Monitoring – What are the practical implementations for existing clients?
Posted by: BTC in General Information & FAQ's on January 3rd, 2009
Do the requirements to carry out ongoing monitoring of customer due diligence measures and client’s business relationships mean that you must obtain a passport and utility bill from your existing clients or that you must investigate all the business affairs of your clients?
For many existing clients which date from 1 March 2004 you will have obtained verification of their identity under the 2003 regulations. For those clients you will need to consider whether the information you hold is sufficient, based on your risk assessment of the client , to demonstrate your have taken appropriate steps to verify the identity of your client and whether anything has changed in the period to render that information out of date. For clients whose situation, address, name and business has not changed since you last considered their identity we would suggest you need do no more than commit your risk assessment and review to the file.
For clients where the situation has changed or who predate 2004 you may well have obtained official verification of matters such as name and address through correspondence with government offices, bank statements and similar official channels. It is suggested that you undertake these checks during the planning for the next engagement for the client.
The key issues are:
- Have you undertaken a risk assessment of the client ?
- Do you have information which supports your verification of the client’s identity and which is consistent with your risk assessment?
- Can you demonstrate what you have done if asked to evidence your customer due diligence measures?
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