Category: General News & Cases

Lastest news concerning AML from press releases and publications

  • 11/03/09 Brown and tax havens – Treat ’em mean

    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.

    Visit the BTC website for compliance help and support for firms in the regulated sector.

  • 25/02/09 Garda fraud officers continue Anglo probe

    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.

    Visit the BTC website for compliance help and support for firms in the regulated sector.

  • 12/02/2009 14,000 tax avoidance schemes and counting…

    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.

    Visit the BTC website for compliance help and support for firms in the regulated sector.

  • 04/02/09 Birmingham Anti-Money Laundering Conference

    Businesses in the Birmingham area are invited to a FREE one day conference to learn how to safeguard themselves against serious organised crime and money laundering.

    The event, run by ‘Payback’ and hosted by the UK Financial Intelligence Unit of SOCA, will be held on Thursday March 12 at the National Motorcycle Museum, Birmingham and is aimed at small and medium sized businesses that are covered by the Money Laundering Regulations.

    Such businesses – by their very nature – are vulnerable to abuse by those attempting to launder the proceeds of crime, and the aim of the conference is to make businesses more aware of their role in identifying any suspicious activity taking place during their day-to-day work, thereby making a difference in reducing harm caused to communities by serious organised crime and also protecting their business.

    The programme of event is specifically designed to reflect the needs of those within an organisation that have a working interest in combating money laundering, to ensure their business is compliant, to share ideas and help mitigate against the possibility of criminals using businesses to launder the proceeds of crime.

    The day will run from 9.30am ton 4.30pm and anyone interested should contact fiudialogue@soca.x.gsi.gov.uk for an application form. It is a first come, first served basis.

    Visit the BTC website for compliance help and support for firms in the regulated sector.

  • 31/01/2009 Human trafficker and Benefit Fraudster to payback £42K

    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.”

    Visit the BTC website for compliance help and support for firms in the regulated sector.

  • 23/12/2008 Confiscation order for Plymouth man

    At Plymouth Crown Court on 28 November 2008, the Plymouth Asset Recovery Unit secured a confiscation order in the sum of £37,085.00 against a local unemployed man.

    The man had previously pleaded guilty to disguising criminal property namely cash from the proceeds of trading in illegally imported tobacco. He also pleaded guilty to two offences of possession of class C drugs with intent to supply.

    A female associate had told the Court at a contested hearing that £30,000.00 of the money belonged to her and was given to the man to look after. Her evidence was discredited and the male did not give evidence in court.

    The Judge found this remarkable and agreed the benefit figure of £182,614.75 and granted the Order.

    Detective Sergeant Jim Hinchliffe in charge of the criminal investigation said: “This was an unemployed man making substantial amounts of money allowing him to indulge in gambling to the tune of £620,000.00. The Confiscation Order ensures that on his release from prison he could not enjoy the benefits of his criminality”. He added that ‘”The public can gain confidence that the police are working hard to remove criminal assets. This operation was conducted by the police and HMRC and is an excellent example of partnership law enforcement.”

    Visit the BTC website for compliance help and support for firms in the regulated sector.

  • FSA fines firm and MLRO for money laundering controls failings

    FSA fines firm and MLRO for money laundering controls failings

    The Financial Services Authority (FSA) has today fined Sindicatum Holdings Limited (SHL) £49,000 and its money laundering reporting officer (MLRO), Michael Wheelhouse, £17,500 for not having adequate anti-money laundering systems and controls in place for verifying and recording clients’ identities. This is the first time the FSA has fined a money laundering reporting officer.

    The FSA found a number of failings including:
    • the firm failed to implement adequate procedures for verifying the identity of its clients;
    • it failed to verify adequately the identity of a significant number of its clients;
    • it failed to keep adequate records with regard to the verification of the identity of its clients; and
    • Mr Wheelhouse failed to take reasonable steps to implement adequate procedures for controlling money laundering risk.

    William Amos, head of retail enforcement at the FSA, said:
    “It is vital to the integrity of the UK’s financial markets that regulated firms are not used by criminals to launder money. Senior management must implement and follow procedures that meet our requirements so that the risks their firms face are properly managed.”

    “This fine is a warning to firms and individuals about the importance of complying with our rules in this area and we will not hesitate to clamp down on failures, where necessary.”

    In deciding the penalty for SHL, the FSA took into account the limited financial resources of the firm and its ability to pay the fine. Had it not been for these factors the penalty would have been significantly larger.

    SHL and Mr Wheelhouse have taken robust steps to review and improve the firm’s systems and controls in relation to financial crime.

    The FSA did not find any evidence of money laundering at the firm.

    Visit the BTC website for compliance help and support for firms in the regulated sector.

  • financial criminals and disqualified directors in UK Companies House Register

    World-Check exposes terrorists, financial criminals and disqualified directors in UK Companies House Register  

    World-Check, in partnership with data quality specialist Datanomic, recently embarked on a project to screen the UK’s Companies House register of companies, company directors and secretaries against World-Check’s global database of high risk individuals and organisations.

    The underlying aim of the project was to identify the growing number of high risk individuals registering and operating businesses in the UK. Two articles appeared in The Times newspaper you can read them directly from the newspaper.

    The first article entitled ‘4000 company directors listed as global terror suspects and fraudsters’ and the second one ‘Buckinghamshire firm run by Croation war crimes suspect Ivan Cermak’.