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Money Laundering

AUSTRAC has released a consultation paper relating to counter-money laundering regulations in the securities sector.

BIScom Subsection: 

The news that judges, in London, have been charged with fraud is just part of a much larger problem. Alongside them are solicitors. The Metropolitan Police have been investigating what they describe as a "complex fraud team investigation." The case started after a court clerk reported suspicions of suspicious claims for state-funded payments under the Legal Aid Scheme. However, legal aid fraud has been a long-running problem in the legal system in England and Wales with criminal and immigration practitioners being most commonly reported.

If there's one thing more certain in Formula One than that there will be in-fighting between the teams, it's that every few years some kind of financial scandal will engulf at least some aspect of the sport. And if there's an allegation of cheating, there's always an Italian aspect to it. Put the two things together and you get the worst-kept secret in the sport, but one that could not be openly told because of the way the investigation is conducted: the Italian authorities have been investigating financial affairs connected to the Italian Grand Prix at Monza for more than five years.

The news that Australia is to be the latest country to limit, in some circumstances, cash transactions above a certain financial limit has raised some questions. WMLR takes a critical look at some comments.

For the past week, all the news in Australia has been about the huge give-aways planned for today's budget. Every single news broadcast since Thursday has had the story up front and pushed a message that for the first time in years, there is money in the kitty and the government intends to spend it. But the big stories are about tax reform and measures against tax evasion including banning large cash transactions. That's the headline. It's not quite the reality and, as always, a budget speech is a declaration of intent not fully reasoned legislation. Even so - it's a significant move. (edited)

This is more than a little bit scary. A criminal, exactly what kind isn't clear, has been reading the major Australian employment website Seek.com.au - and then he (it's almost always a "he") is sending invitations to become involved in money laundering or, possibly, to be a victim of a long-established scheme to defraud his victims. The scam letter is a collection of so many currently trendy phrases that it might be convincing - especially to someone who is in awe of cryptocurrencies, blockchain (as they call it) and so many other trigger words. Oh, and there's an interesting twist to the old version of this crime.

FCRO Subsection: 

The single over-riding principle that makes cryptocurrency accounts attractive to criminals is not the supposed anonymity (that argument is a done deal except for those who don't know what they are talking about) but the fact that, by design, there is, literally, no single body or person with regulatory authority.

What that means is that, while governments and courts (at the behest of victims) can make Asset Recovery Orders, or, as the US government is trying to do with its listing on OFAC of crypto-currency accounts that it claims it has reasonably identified as connected to listed persons, these are after the fact restrictions and to try to enforce them is, by reason of the essence of the distributed ledger, only ad hoc.

There is another way....

FCRO Subsection: 

For the second time recently, a matter before the Solicitors' Disciplinary Tribunal in England and Wales has considered the use of a firm's clients' account for the provision of quasi-banking services. The SDT is starting to impose more substantial penalties and has clearly had enough of solicitors who fail to comply with their obligations under counter-money laundering laws and regulations. Like in the first case, the solicitor concerned is elderly and one might say that he might be considered as having carried on long-standing practices in the face of changing practice requirements and culture.

The days of Easy Rider are numbered. Around the world, gangs of criminals on motorbikes (colloquially but (usually) legally incorrectly called Outlaw Motorcycle Gangs) have, quite simply, gone too far and as they have become the face of organised crime, usually in large, sparsely populated countries, they are being targeted. While the Hell's Angels have been held up as a model, the gangs are rarely truly members. But while, these days, many Hells Angels groups are filled with ageing lawyers, bankers and wannabe bad boys, the current crop have taken over the worst traits - and business practices, investing in businesses, property and with a raft of professional advisers on retainer. One regulator has had enough and put metaphorical chains on the doors of a law firm.

It might take a stretch of the imagination to join the UK's departure from the EU and the wife-murdering, perhaps syphilitic, definitely unstable, ferociously misogynistic Tudor monarch who is, arguably, the UK's most famous king. But there is a certain logic and the admirably named Lord Judge has applied his considerable legal knowledge and intellect to make that connection and to rightly harry those responsible for the poor legal drafting that plagues English law and, in particular, that relating to the not-admirably named "Brexit." At the heart of his concerns are a major constitutional issue now known as "Henry VIII powers." This month, Parliament is making much of that while debating Sanctions and Anti-Money Laundering Bill.

CoNet Section: 

When one looks at investigations into money laundering in Australia, there is a factor that crops up over and over and over again. The money came from, or has a connection to, Malaysia. And it's not the connection the rest of the world expects.

Titled "PROPOSED CHANGES TO THE DFSA’S ANTI MONEY LAUNDERING, COUNTER-TERRORIST FINANCING AND SANCTIONS REGIME," the consultation paper was issued on 18 February 2018 and the consultation period ends on 24th March 2018.

Notes by Nigel Morris-Cotterill, The Anti Money Laundering Network

BIScom Subsection: 

Do the terms of access to your company's website contain provisions as to what may be accessed and for what purposes? Do you, for example, point out that domain names and e-mail addresses are terms of art and therefore protected under copyright legislation? Do you say that, as a result, harvesting that data, and other information that may be subject to data protection, is illegal? Do you say that anyone who accesses your website intending to breach the terms of access is unauthorised and that unauthorised access is a criminal offence?

Meet Raj Yadav. He wants you to pay him to do all of those things. If you use him, or his company, then you are conspiring to commit those offences and, even though he's apparently in a jurisdiction where he might be difficult to reach, the chances are you are not. Now: where did your latest mailing list data come from?

CoNet Section: 

Andrew Janssen, a 37 year old man from Garland, Texas in the USA is hoping someone will stump up his USD50,000 bail. He can't do it himself after he was held on Wichita Falls on charges of money laundering and his stash of cash seized.

A report in the Vancouver Sun details the amazing failure of a project called "Statistical Analysis Software", currently in its fourth year and so far costing CND7.3 million, to design and implement money laundering risk identification and assessment software at the British Columbia Lottery Corporation's casino business which is deeply embroiled in money laundering investigations by the RCMP. It's a case study in how to stuff up = and now questions relating to the software and its failure are being added to the investigation.

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