CREDIT SUISSE BANKER PLEADS GUILTY IN NEW YORK TO MASSIVE MONEY LAUNDERING

Datelina Subeva, A former Credit Suisse Group AG banker, entered a guilty plea this week,  in US District Court in New York, to assisting in a massive $2bn money laundering and kickback scheme in Mozambique. Subeva, a Bulgarian national who says she is a Princeton graduate, pled to one count of Conspiracy to Commit Money Laundering.

According to published reports, there was a $372m loan to state-owned entities in Mozambique, with a $1m kickback, $200m of which she laundered through her own bank account. There are seven other defendants in the case, including two other Credit Suisse bankers, (who are fighting extradition from the UK) and the former Finance Minister of Mozambique. Subeva came voluntarily to the United States; she has been released on bail, which is a good indication that she intends to cooperate with the authorities.

This case, and previous matters that we have reported on, causes us to ask the question: is there a culture of corruption and the facilitation of money laundering at Credit Suisse, in its London office ?  

Contributed by Kenneth Rijock - Financial Crime Consultant

Chronicles of Monte Friesner - Financial Crime Analyst  

IRAN EVADING SANCTIONS BY USING SYRIANS WITH CARIBBEAN ISLAND OF ANTIGUA CITIZEN BY INVESTMENT (CBI) PASSPORTS OPERATING IN THE EAST CARIBBEAN STATES

The Islamic Republic of Iran, which is scrambling to create new covert financial pipelines to defeat and evade US sanctions, is apparently building one in Antigua & Barbuda, with the able assistance of Syrian agents. What you see above is a Citizenship by Investment (CBI/CIP) passport, issued by Antigua, to a Syrian national. According to our sources, Mohamad Ayad Ghazal, the passport holder,  used forged documents in support of his CBI application in Antigua. Also, the passport was among those listed as "stolen" by Antiguan authorities, but shows up as a government-issued document.

Mohamaf Ayad Ghazal is the Director of Operations for Syria's national railway system, though he is operating from, and a resident of, Dubai in the United Arab Emirates (UAE). Obviously, he has a part-time residence in the primary jurisdiction used to accomplish the forwarding of goods, where end users ostensibly in the UAE, ship the goods inwaes ultimately to Iran, thus making an end run around sanctions, is no accident. He's no railway executive, but an operative in Iran's global sanctions evasion scheme. 

Reliable sources in Antigua have reported that a number of Syrian nationals have obtained Antigua CBI passports; they have been observed conducting business, of an unknown nature, in Antigua.

Additionally, several Iranian nationals have recently filed CBI applications; it is not known whether  passports have already been issued to them. Most East Caribbean states have blacklisted Iran and other high-risk jurisdictions from their CBI programs. The fact that Antigua, whose program only allows expats living outside the sanctioned jurisdiction, violates its own policies, in issuing a CBI passport to Ghazal. This individual is a PEP, politically Exposed Person; he works for the Iranian government, which makes him a santcioned individual by definition. It appears that Antigua's CIP program performs little or no compliance on applicants.

Antigua PM Gaston Browne and mentor Castro

Why is Antigua allowing itself to become a center for Iranian sanctions evasion activity ? Perhaps you might want to ask the country's leader, Prime Minister Gaston Browne, a left-of-center candidate with ties to the Governments of both Cuba and Venezuela. We wonder whether he understands that short-term financial gains, due to the additional CBI passport income, and international trade transactions being conducted by the new "Syrian" Antiguans, will not be worth the exposure to sanctions violations or terrorist financing charges by the United States, especially Antigua's banks.

Contributed by Kenneth Rijock - Financial Crime Consultant

Chronicles of Monte Friesner - Financial Crime Analyst  

FACE OF THE CRIMINAL LEADER OF ORGANIZED CRIME IN BRITISH COLUMBIA ?

KWOK CHUNG TAM is the alleged kingpin of a Chinese organized crime cartel operating a narcotics trafficking ring in British Columbia, a transnational organized crime syndicate that sells heroin and fentanyl in Canada. It is the laundering of narcotic profits in BC that has drawn the attention of Canada's press.

Kwok has, thus far, avoided conviction for any serious crimes in Canada, but he remains a major target of law enforcement. His attorneys have a history of harassing Canadian media when they write about his alleged criminal activities.

This is a counterfeit passport seized by Canadian law enforcement. KWOK has never been a citizen of the Republic of China (Taiwan).

Contributed by Kenneth Rijock - Financial Crime Consultant

Chronicles of Monte Friesner - Financial Crime Analyst  

MONTE FRIESNER & KENNETH RIJOCK EXPOSE M0NEY LAUNDERING THROUGH LUXURY CAR PURCHASES IN BRITISH COLUMBIA CONTINUES UNCHECKED

Reports from the Canadian Province of British Columbia about rampant money laundering raise the question: when, if even, will Ottawa step in and bring it under control ? whether it is the forty-two million dollars of dirty money laundered through real estate purchases, or the out-of-control casino money laundering, something definitely need to be done at the Federal level. Blame rests with the policies of the Liberal Party government in Canada's capital, as well as in British Columbia, for failure to act decisively to check Chinese organized crime.

One verified story, about a buyer paying CAD$240,000, all in cash, to purchase a high-end luxury car at a local new car dealership, demonstrates the abject failure of government, and indeed law enforcement, to suppress money laundering through automobile purchases. One source said the cash was taken to the dealer's bank by several staff members, as they were concerned about a robbery. Are businesses in BC so fearless of law enforcement that they so openly cooperate with money launderers ? Perhaps it is because many known convicted felons own auto sales companies.

Another note stated that foreign purchasers of automobiles, straw men obviously, using Chinese drivers' licenses as identifications, export the vehicles abroad, and and received $85m in sales tax rebates over the last six years. What's wrong with this picture ?

Apparently, the current Federal Government in power in Ottawa failed last year, to impose mandatory reporting, to FINTRAC, of cash sales of high-end vehicles. Did industry lobbyists stop the legislation under consideration ? Someone in Canada needs to step up and clean up BC, before all the other provinces become similarly infected. 

Contributed by Kenneth Rijock - Financial Crime Consultant
Chronicles of Monte Friesner - Financial Crime Analyst  

DENMARK CHARGES HENDRICK RAMLAU-HANSEN FORMER FINANCIAL REGULATOR WITH MONEY LAUNDERING IN DANSKE BANK SCANDAL

Prosecutors in Denmark have charged Hendrik Ramlau-Hansen, the former head of the country's Financial Supervisory Authority, with money laundering, for his role in the Danske Bank scandal. Ramlau-Hansen was previously the CFO at Danske Bank, during the years when an estimated €200bn in Russian criminal proceeds was laundered through Dansk's Estonian branch.

He was directly responsible for AML/CFT compliance at Danske Bank while CFO, and there are allegations that he ignored red flags of money laundering activity, even after suspicious activities had been brought to his attention.

Coming shortly after the former head of Danske Bank's arrest, the involvement of one of the country's most respected and senior banking leaders, in the multi-billion Euro scandal, has caused compliance officers around the world to take a hard look at Scandinavian banking in general, which had previously been judged low risk, especially Swedish banking. Investigators at the US Department of Justice are reportedly directly involved; whether this is because the laundering involved the proceeds of crime exiting Russia is not known, but the ultimate destination of laundered criminal profits from Russian organized crime should be a concern to all banks located in the West. 

Contributed by Kenneth Rijock - Financial Crime Consultant

Chronicles of Monte Friesner - Financial Crime Analyst  

DANSKE BANK OFFICERS INCLUDING CEO, CHARGED WITH MONEY LAUNDERING

Multiple reports from Denmark confirm that the CEO of Danske Bank, and two other unnamed officers, have been charged with money laundering, regarding the bank's alleged involvement in laundering €220 Billion through its Estonian branch. 

Former CEO Thomas Borgen, who was the head of the bank's international department during the period in which the money laundering allegedly occurred, was charged, as were two other executives of the banks who have not yet been named.

Contibuted by Kenneth Rijock - Financial Crime Consultant

Chronicles of Monte Friesner - Financial Crime Analyst  

ISRAEL TARGETS AND ASSASSINATES PALESTINIAN TERRORIST FINANCIER SUPPORTED BY IRAN

Hamed Ahmed Khudari, a Palestinian terrorist financier who is reportedly the principal individual responsible for transferring funds from Iran to Hamas and the Palestinian Islamic Jihad in the Gaza Strip,was killed this week when his motor vehicle was attacked by Israeli military forces operating in Gaza. Khudari, who was killed in a targeted assassination, was said to be a significant factor in the transfer of funds from Iran to designated terrorist organizations conducting rocket attacks upon civilians this week, which resulted in multiple civilian injuries and deaths.

Khudari operated a money service business known as Hamed llasrapa//Alupak, which was sanctioned by Israel as a terrorist organization in June 2018. The only country which is engaged in killing money launderers is the Peoples' Republic of China; this military action may be an indicator that Israel, which has very specific Rules of Engagement for its military, now considers terrorist financiers to represent an existential threat to the country.

Contributed by Kenneth Rijock - Financial Crime Consultant

Chronicles of Monte Friesner - Financial Crime Analyst  

BRITISH COLUMBIA CREATES NEW LAWS TO TAKE A HUGE BITE OUT OF MONEY LAUNDERING ?

Officials in British Columbia, seeking to suppress the money laundering that is running rampant in the Province, are hoping that two new measures with combat the problem, which is resulting in a lack of available housing for local residents, as the proceeds of crime have been placed into CAD$42m in real estate, which are then left vacant by their owners.

BC's new Speculation and Vacancy Act requires that an annual 2% tax be paid on vacant residences; more importantly, it requires owners to disclose their dates of birth and social insurance (social security) numbers. The lack of a number, on the part of an owner, will allow law enforcement to focus on foreign nationals who are not paying taxes in Canada, and identify possible money laundering operations in British Columbia. Locals who own a second home can file for an exemption under certain circumstances.

Add to this the new proposed Beneficial Ownership disclosure law, which will require all corporations or other entities named their owners, and you have powerful investigative tools to uncover, identify, and interdict, the laundering of the proceeds of crime in BC. Let us sincerely hope that all these new measures will be quickly and efficiently exploited by Federal, as well as local, law enforcement officials, and the properties purchased with laundered drug cash seized and forfeited. 

Contributed by Kenneth Rijock - Financial Crime Consultant

Chronicles of Monte Friesner - Financial Crime Analyst  

MONTE FRIESNER EXPOSES HAMAS MONEY LAUNDERING MOVEMENT SCHEMES DETAILED IN REPORT

Hamas' methods of inserting funds into the West Bank (Judea & Samaria), to bankroll its terrorist operations were the subject recently of a public statement made by the Economic Warfare department of the Israel Defense Force Central Command. While a large portion of the funds reportedly went for support of local Hamas members, and the families of imprisoned or deceased members, much was used to fund active terrorist cells, and their operations.

To summarize the tradecraft:

(1) Gaza-grown vegetables and fish caught in the Med by commercial fisherman from Gaza are allowed to be sold in the West Bank for humanitarian reasons, as an exception to Israel's sanctions. What Hamas does is to purchase the vegetables & fish from those in Gaza who are selling it, and reselling it inside the West Bank, thereby creating funds inside that territory, which it can apply towards terrorists operations.

(2) Seriously ill Gaza residents who are allowed into Israel for medical and surgical purposes are forced to smuggle cash and other valuables, through their clothing, prescription boxes and inside the soles of their shoes. This cash is later picked up by West Bank-based Hamas operatives who have approved access to Israel.

(3) West Bank Palestinian businessmen who wanted to purchase goods abroad would pay local money changers, rather than foreign suppliers.; Hamas overseas would pay the sellers direct, Then, the money changer would remit the purchase money, less a commission, to Hamas inside the West Bank, to support its ongoing terrorist operations. The businessmen, for personal profit, opened their transactions to Hamas.  

A number of legitimate West Bank commercial businesses engaged in importing goods had arrangements that resulted in the diversion of a portion of the price they paid for goods to Hamas agents, though they still received funds that represented a profit. Several of these companies have been closed down by the IDF Economic Warfare Command, the Shin Bet, and the Border Police. 

Contributed by Kenneth Rijock - Financial Crime Consultant 

Chronicles of Monte Friesner - Financial Crime Analyst  

USA AND FIFTEEN COUNTRIES WILL DESIGNATE THE MUSLIM BROTHERHOOD AS A FOREIGN TERRORIST ORGANIZATION

Reports from Washington, Cairo and from State Department sources appear to suggest that the United States Government will soon sanction the Muslim Brotherhood* as a foreign terrorist organization. President Trump has reportedly made the decision to sanction the Brotherhood, notwithstanding opposition by forces that fear such as designation, though warranted, could cause push back in the Middle East. 

In truth and in fact, the violent history of Brotherhood, its direct influence upon the birth of Hamas, another designated terrorist organization, and its anti-democracy and anti-West agenda all serve to justify the imposition of US sanctions. Several countries, especially those in the Middle East, have previously designated the Brotherhood as a terrorist entity. It is high time that United States adds its counter-terrorism voice to this issue. 

* Also known as the Society of the Muslim Brothers.

Contributed by Kenneth Riojock - Financial Crime Consultant

Chronicles of Monte Friesner - Financial Crime Analyst