Thursday, May 24, 2018

ANTIGUA MINISTER OF INVESTMENTS ASOT MICHAEL KNEW VIRDEE'S PARTNER WAS CONVICTED FRAUDSTER, BUT HID HIM FROM CABINET

THE GOVERNMENT OF ANTIGUA "HEARS NOTHING; SEES NOTHING & SPEAKS ONLY LIES & BULLSHIT"

Asot Michael, while Minister of Investment in Antigua, deliberately and intentionally hid from the Cabinet the fact that Peter Virdee's partner in PV Energy Ltd, Hans Dieter Trutschler, had a major criminal conviction on his record. Questions have been raised in Antigua whether this constitutes a criminal act and whether Michael should be charged, to demonstrate to prospective investors that Antigua will not brook this type of conduct from its elected officials.

Trutschler was "convicted of fraud related offences for illegally diverting $4.3m in legitimate payments from one company, from accounts he controlled," according to a United Nations report quoted in media. This occurred in Kosovo in 2002; He was working for the UN at the time, in a senior position.

All this information is publicly available, and Michael, as Investment Minister, and a longtime friend of Virdee, would have known about it, but he failed to give any of this information to his colleagues on the Antigua cabinet, especially due to the fact that Trutschle was sentenced to a prison term of three and one half years imprisonment, under the alias Johanns Dieter Trutschler.
ASOT MICHAEL OF ANTIGUA
Inasmuch as Michael's fellow ministers in the Cabinet were deceived about the true nature of the individuals behind PV Energy, and have to account to the people of Antigua, who elected them, they should consider their own civil action against Michael, for Malfeasance in Office, or another active Tort, if they are not reelected due to Michael's misconduct.


Wednesday, May 23, 2018

PANAMA INTENSIFIES MONEY LAUNDERING INVESTIGATION AGAINST MOSSACK FONSECA

The Second Office of the Prosecutor against Organized Crime reported that it ordered nine search proceedings, nine conductions and ten investigators who have been charged in the investigation being conducted against the Mossack & Fonsecalaw firm.
The accused have been charged with the presumed commission of the crime of money laundering due to the connection of the law firm with the handling of money from illicit origin abroad, specifically Brazil.
Up to this moment, the Public Prosecutor said, it has been possible to locate 8 of the 10 people linked to the crimes. The institution expects that with the support of the security agencies it will be possible to find the whereabouts of the other two defendants in case they were not at home.
The media leaked the names of some of the accused, including Sara Montenegro, Ramsés Owens, Rubén Hernández, Katia Solano, Maribel Robles and Sandra Cornejo.
Yesterday, the prosecutor's office presented Edison Teano, an employee of the law firm, who was in charge of the bank accounts of clients abroad.
The Public Ministry assured that its intention is to comply with the constitutional and legal mandate of prosecution of the crime and reaffirms that this investigation is supported by the international collaboration of the Federal Public Ministry of the Republic of Brazil.
The Public Ministry said that the investigation is not directed against legal professionals or the good practice of this profession. He added that it is the elements gathered in the file that marks the line of investigation.
"We act in accordance with the norm, without distinction of ethnicity, social position or of the profession to which those who act against the law are dedicated," he said.
THE CASE
The investigation could be related to a series of events that the Brazilian Federal Police listed and that show that Mossack Fonseca's office in that country conspired as a criminal organization, with strategies to hide the identity of the beneficiaries of the offshore companies, allowing that were used with impunity.
The office of the Federal Police of Brazil, described in the operation 'Lava Jato', relates the existence of a criminal organization dedicated to the laundering of capital through commercial, financial, real estate and offshore companies, among which Milzart stands out Overseas Holdings, incorporated by Renato de Souza, director of Petrobras services and domiciled in Mossack Fonseca Panama.
Chronicles of Monte Friesner – Financial Crime Analyst  


Tuesday, May 22, 2018

MYSTERIOUS ARRIVAL OF PRIVATE BANKER IN THE CARIBBEAN STATE OF DOMINICA IS NOTICED


Last night, Gabriel Sanz Gonzalez, the CEO of the low-profile offshore private financial institution, Zuma Bank, incorporated in the Commonwealth of Dominica,arrived in-country, on board the Venezuelan business jet YV-2961, which is a Learjet Type 55. The aircraft reportedly came indirectly from the British Virgin Islands, the corporate formation jurisdiction of choice for anyone who wants to obtain a corporation with beneficial ownership information that is totally and permanently opaque.
Sr. Sanz came to Roseau to see Claudius Lestrade, the director of Dominica's Financial Services Unit, which is part of the Ministry of Finance. We are not aware of the subject of his visit. Since its Dominica incorporation in 2015 (though the FSU states it was in 2012), there has been no significant information in the media, detailing Zuma Bank's operations or clientele.

Zuma Bank has no footprint in the global financial industry, though it holds itself out to be a private bank. Many of the Internet websites are in the Russian language, and it is therefore assumed that the bank's marketing is directed towards wealthy Russian nationals. What is in Zuma Bank's book of business and who are its clients? 


The arrival of Sanz is not the only recent arrival of private aircraft that has puzzled Dominicans; on another recent evening, Melville Hall Airport staff were dismissed at the end of the day's aviation operations, notwithstanding information about a late arrival. One member of the airport staff, having seen all the runway and airport lighting extinguished for the night, was driving by the field later that evening when he saw, to his amazement, that all the lights were back on, meaning that a significant arrival was in progress.


What's with all this frenzied activity involving Venezuela of late?  We note that the so-called Bolivarian Republic is now funding hurricane reconstruction, specifically single-family home construction, but given Venezuela's failing economy, is there another reason for this totally unexpected financing?  Remember also that the US has recently sanctioned Venezuelan officials, which might expose local contractors and vendors in Dominica to OFAC violations.

Finally, is Zuma Bank owned by Venezuelan or Russian interests, and who are its clients? We cannot say, but our inquiry into the bank's operations shall continue.  
Chronicles of Monte Friesner - Financial Crime Analyst  
Contributed by Kenneth Rijock - Financial Crime Consultant



Monday, May 21, 2018

HEZBOLLAH THREATENS AGAIN TO DESTROY ISRAEL & ISRAEL PROMISES TO DEMOLISH THE BANKING SYSTEM IN LEBANON FOREVER

The perfect storm for armed conflict in Lebanon, due to Hezbollah's new monopoly on political power, in the wake of recent elections there, and other factors, could result in a total disruption of the Beirut banking industry, the country's remaining significant asset.

The additional reasons for concern:

(1) The Trump Administration has just sanctioned the senior Hezbollah leadership, and America's total support of Israel has angered that specially designated global terrorist organization. Bellicose statements from the newly-sanctioned Nasrallah, against the US Embassy opening in Jerusalem, as well as Isreal, has increased.

(2) With the winding down of the anti-ISIS war in Syria, Hezbollah has combat-experienced fighters available to it, and they hold strategic positions close to the northern Israeli border.

(3) Israel's military has increased its readiness in its north, especially in the Golan Heights region. Hezbollah feels it is invincible, due to its Iranian missile inventory.

(4) A leading Israeli politician has bluntly warned that should Hezbollah initiate hostilities; his country will formally declare war on Lebanon, and not limit its response to the area under Hezbollah control, south of the Litani River. If the missiles fall on Israeli population centres, count on a massive aerial response, and since Israel can maintain air superiority, Beirut could end up looking like Berlin in 1945.
If the Beirut banking centre is attacked, even if alternate security arrangement has been carried out in advance, Middle East money will think twice before continuing to patronize the city's banks, and the massive capital flight is a distinct possibility.

This is probably a good time to reduce your risks regarding Lebanon, whether it be financial exposure, outstanding receivables, or pending matters. for war is not just possible, it is fast becoming probable.
Chronicles of Monte Friesner - Financial Crime Analyst 
Contributed by Kenneth Rijock - Financial Crime Consultant

Saturday, May 19, 2018

THE FOLLY OF EAST CARIBBEAN ISLANDS THAT SELL CITIZEN BY INVESTMENT PASSPORTS: ALLOWING APPLICANTS TO MAKE PAYMENT IN US DOLLARS

The issues that compliance officers at North American banks, and US & Canadian immigration officers, have with holders of Citizenship by Investment (CBI)passports have been reported in the financial press of late, but there is a more serious problem that the five East Caribbean CBI states are facing: the threat of criminal prosecution, by the US Department of Justice, for violations of money laundering laws by government leaders, notwithstanding that they operate these problems outside the United States.

The problems the EC states have is that US money laundering laws confer what is known as extraterritorial jurisdiction upon foreign nationals, and this is occurring because the Caribbean attorneys who created CBI legislation committed what some legal experts regard as a fatal error: they adopted provisions in their CBI laws that allowed CBI program managers to accept US Dollars (USD$) as payment for their economic citizenships. That has been judged to be a major error. 

Why is this now actually considered legal malpractice? Any attorney drafting legislation in his country should be aware of the possibility that the laws he is creating might increase specific risks in other jurisdictions, and carefully weigh the potential consequences with his client before recommending that they be enacted into law.

In this case, most attorneys in the Caribbean are aware of the Money Laundering Control Act of 1986 (18 USC §§1956-1957), which imposes a maximum penalty of twenty years for violations, plus a mega-fine. The lawyers drafting CBI legislation in the East Caribbean failed to research that statute in depth, for if they had they would have learned that it has extraterritorial jurisdiction.

This means that a foreign national could be charged if the US Dollars they accept, for any purpose, are the proceeds of what is referred to Specified Unlawful Activities, and any portion of the transaction has a connection (nexus) with the United States, such as being deposited in a US bank, or transiting the American financial system. The MLCA, which was strengthened by the USA PATRIOT Act of 2001, will reach out and touch foreign nationals (e.g Reza Zarrab), for acts that they committed totally outside the USA.

Therefore, any dodgy applicant, using criminal proceeds for his cash to purchase that CBI passport, which is later deposited in a dollar account, and ends up passing into, or through, a US financial institution, has implicated not only himself, but the CBI program, and the country's leadership, as well, under US law.

We doubt that the Caribbean attorneys tasked with drafting their local CBI laws even bothered to look at the possible negative consequences of accepting US currency. They probably used the pioneering St Kitts & Nevis CBI program as a template. Unfortunately, that program became law back in 1984, two years before money laundering became a federal crime. Why didn't someone realize that using US Dollars might have consequences?

Should the CBI program directors, and their attorneys, have chosen the Pound Sterling, instead of the US Dollar ?  Probably so, given the extraterritoriality issue, as well as the fact that the USA has very broad conspiracy laws, unlike the UK, which adds to the undesirability of accepting US Dollars, unless you are completely sure of the Source of Funds, and of your applicant's bona fides.

We understand that the leaders of a number of the East Caribbean CBI States are feeling anxious of late; are they feeling a cold chill, perhaps coming from the possibility that the US Department of Justice might be investigating them ?   
Chronicles of Monte Friesner - Financial Crime Analyst 
Contributed by Kenneth Rijock - Finanacial Crime Consultant

DENZIL DOUGLAS FORMER PRIME MINISTER OF ST. KITTS LOSES VISA TO US

There has been much talk, in the five East Caribbean states operating a Citizenship by Investment (CBI) program, about reform, especially regarding the need to perform Enhanced Due Diligence upon all applicants, and lookbacks upon all existing CBI passport holders. For those prime ministers in those countries, you only need to look back to see what could happen to your own coveted US visa, should you fail to implement those reforms forthwith.

When the elected leaders of St Kitts & Nevis failed to clean up the many flaws in their CBI program, after a number of official complaints were lodged by the American Secretary of State, John Kerry, the US cancelled the US visa of the then St Kitts Prime Minister, Denzil Douglas. Additionally, FinCEN issued its now notorious Advisory, warning the financial world about US concerns regarding all St Kitts CBI passports. The lesson; there are consequences if you ignore your international compliance responsibilities after you are duly warned by Uncle Sam. Your prime minister might lose the right to shop in Miami or New York, and your voters will quickly tire of their long trips to the US Embassy in Barbados while applying for visas, and of you as their elected leader.

Even after Mr Douglas left office, in 2015, the United States has declined to reissue or reinstate his visa to enter the country, though we know that Douglas has requested his visa, as a private citizen. Also, Canada imposed visa entry requirements for all St Kitts passport holders.

For those CBI jurisdictions who keep repeating that the United States does not impose any sanctions for their continued failure to implement significant reforms, ask Denzil Douglas, who has not been in America for several years, and ask those Kittitian businessmen who must buy goods and equipment in repeated buying trips to the US, and now need submit to the tedious visa application process. We trust this has been instructive to the five sitting prime ministers in the EC CBI states.
Chronicles of Monte Friesner - Financial Crime Analyst  
Contributed by Kenneth Rijock - Financial Crime Consultant

Thursday, May 17, 2018

TURKEY DELIBERATELY BREACHED UNITED NATIONS SANCTIONS ON IRAN & SOLD ISRAELI BULT HI TECH ELECTRONICS TO IRAN

Turkey buys, sends Iran electronics manufactured in Jerusalem suitable for nukes: 'If shipment reached Iran, Turkish buyer cheated us.'
The United Nations has launched an investigation against Turkey for allegedly selling electronic equipment to Iran that appears on the list of banned materials for export to the Islamic Republic under UN Security Council Resolution 2231 of 2015, prohibiting transfer to Iran of nuclear-related products and technologies, Ynetand Yediot Ahronot reported. It also asked Israel to open an investigation after it became clear the manufacturer of the electronic equipment sent to Iran via Turkey was none other than an Israeli company based in Jerusalem and considered a large manufacturer of electronic capacitors.
The UAE government, which seized the shipment of electronic equipment from Turkey to Iran in July 2017, led the investigation. In the shipment, UAE security authorities identified electronic capacitors that should not have been transferred to Iran under the UN Security Council resolution.
In a letter sent by the UN Secretariat to Israel, it said the electronic products were manufactured in Israel by a company called Celem Power Capacitors, whose headquarters are based in Jerusalem. The UN Secretariat asked Israel to investigate the matter.
The confiscated shipment contained CSP 180/300 capacitors manufactured by the Israeli company. "We would be grateful if your government would provide relevant information on the matter soon," wrote the UN Secretariat, the body that is supposed to investigate Security Council resolution breaches.
The company is one of the largest in Israel to manufacture electronic capacitors. It said yesterday it had sold a consignment of capacitors to a Turkey company after conducting a reliability check and receiving all the money in advance.
In response, it was reported that the Celem company had no idea that the capacitors would be sent to Iran. "We will prove that we sold it to Turkey, to an orderly company. We don't sell to enemy countries. Most of our sales are to Europe and the US, but Turkey is not an enemy state and there is no reason not to trade with it. In any event, if the shipment actually arrived in Iran, the Turkish buyer cheated us," the company said.
Chronicles of Monte Friesner - Financial Crime Analyst