The special services of several countries will be ensuring security at the upcoming Olympic Games in China, and football European championships in 2008 and 2012. The decision was made at an international security conference in the Siberian city of Khanty-Manseeisk.

Russian special forces have shown off their skills to foreign colleagues practicing various anti-terrorism operations.

The drills included storming a building where militants held hostages and releasing people in a bus hijacked by terrorists.

It is the seventh International Security Conference, hosted annually by Russia.

On the agenda were cyber terrorism, transport security and countering the financing of terrorism.

Security officials also discussed plans for an international terrorist database all countries would be free to use and update.

http://www.amlosphere.com/asia/cft/international-terrorist-database-planned.html

High-profile Miami attorney Ben Kuehne has thrown two haymakers at the government's case charging he laundered drug proceeds while vetting $5.3 million in defense fees for convicted trafficker Fabio Ochoa Vasquez. In two pleadings, Kuehne's legal team accuses the government of manufacturing the complaint by ignoring a 1988 exception that Congress carved out to protect defense attorneys.

Another motion argues for dismissal of an obstruction of justice charge, claiming it is not sufficiently backed up with specific actions by Kuehne.

A motion for a bill of particulars filed March 10 puts it on the table: The government is trying to chill the defense bar and violate the Sixth Amendment right to counsel of choice.

"If lawyers are at risk of criminal prosecution and jail sentences whenever it later turns out that their fees were tainted, lawyers will be deterred from representing even defendants who have clean funds," the motion said.

Steve Chaykin, a former federal prosecutor who co-chairs Akerman Senterfitt's white-collar crime division in Miami, agreed: "This is clearly designed to prevent those under investigation from obtaining competent counsel of their choice."

The case against Kuehne, accountant Gloria Flores Velez and Colombian lawyer Oscar Saldarriaga Ochoa is scheduled for a status conference today in front of U.S. District Judge Marcia Cooke. The government has yet to respond to Kuehne's motions but may indicate its stand in court.

Kuehne represented Vice President Al Gore in the 2000 presidential election challenge and other high-profile clients, many on a pro bono basis. He also served as a federal prosecutor and an assistant attorney general in Florida.

He was paid about $200,000 for his work on the Ochoa case, checking for illicit funds in the money bound for lead defense attorney Roy Black of Black Srebnick Kornspan & Stumpf.

Kuehne concluded the money was clean, but prosecutors said they watched some of the funds pass through monitored transactions tied to launderers.

Kuehne's legal team is led by Miami attorney Jane Moscowitz of Moscowitz and Moscowitz and Washington attorney John Nields of the Howrey law firm.

The team has decided to make no comments outside court on the case.

The defense motion states anti-money laundering laws do not fit the case because Kuehne was not trying to conceal or hide anything from the court.

His team wants Cooke to order prosecutors to state how money transfers from Kuehne's trust account to Black were done "to conceal or disguise the source of funds, or indeed anything else."

The defense claims prosecutors have willfully ignored a 1984 law amended in 1988 to protect attorneys trying to sort bad money from good. "It is not that Congress thought it proper for a lawyer knowingly to receive proceeds of crime as payment for fees," the pleading said. "The problem is that there is often uncertainty whether fees are clean."

The government is "openly hostile" to the exemption, Moscowitz and Nields wrote. In what appears to be a preview of the trial defense, the pleading notes the 11th U.S. Circuit Court of Appeals has found that the government must establish laundered "funds are more concealed after the transaction is completed than before."

Kuehne, along with his co-defendants, undertook the task of vetting money attributed to the Ochoa family's horse and cattle holdings. He reported back to Black, who defended Ochoa before U.S. District Judge K. Michael Moore.

"Kuehne's role in vetting the fees was known to the court handling the Ochoa case and to the prosecutors who were responsible for it," the pleading reads. "It is simply not apparent in what manner this movement of funds concealed anything."

Chaykin sees trouble ahead for prosecutors.

"They are going to have a very difficult time," he said. "He had been engaged to do this and had a real target on his back, a real bull's eye, because of the controversial nature of his client as well as the defense attorney."

Miami criminal defense attorney Milton Hirsch adds: "What we have here are two highly regarded attorneys in Roy and Ben who went the extra mile to make sure that however bad defendants may have been, the money was good, and as a reward for their extra efforts Ben is indicted."

He notes the government is seeking to forfeit $5 million from the defendants even though they were paid considerably less and the money went to Black.

"I'm very troubled by this prosecution," Hirsch said. "This prosecution boldly goes where none has gone before." The indictment unsealed Feb. 6 alleges Kuehne and his co-defendants "knew that the funds used by Ochoa consisted of or were at least commingled with proceeds of drug trafficking." Initially, the co-defendants were charged with four counts of money laundering, one count of money laundering conspiracy and one count of obstruction of justice.

Two counts of money laundering have been dismissed against Saldarriaga and Flores because the statute of limitations ran out on the indictment issued under seal in 2005. Kuehne failed to have those two charges thrown out because he was in active negotiations with the government before a superseding indictment was unsealed last month, sources say.

The key prosecution witness may be Hernando Saravia, who was under indictment for money laundering in New York.

Kuehne provided an opinion letter that provided correspondence from Saravia stating he owned flower and jewelry businesses and sold a Miami home to help pay Ochoa's legal fees, prosecutors said.

Investigators said the letter was part of a sting operation. Saravia never drafted the letter, and the businesses were undercover fronts for U.S. law enforcement. About $1 million in drug money from five federal undercover operations was tracked through Kuehne's trust account and onto Black, according to the indictment.

The lead prosecutor, Assistant U.S. Attorney John Sellers in Washington, could not be reached for comment Monday. The U.S. Attorney's Office in Miami had declared a conflict in the case, sending it to Washington.

Chaykin said funneling dirty money through Saravia during the vetting process is "treacherously close to invading the defense camp." The government is going to have to show Kuehne knew the money was dirty to win convictions.

The former prosecutor said forcing prosecutors to provide a bill of particulars would ensure that the government doesn't try to pursue other avenues to prove its case. He said it's not surprising the obstruction of justice charge is vague because grand jury indictments allow prosecutors room to maneuver. The count alleges only that the defendants tried to influence, obstruct and impede the grand jury investigation. It does not state whether this was by influencing witnesses, influencing a grand juror or through false testimony, according to the dismissal motion.

"It fails completely to inform the defendants of the nature and cause of the accusation against them as expressly required by the Sixth Amendment," the motion reads.

http://www.law.com/jsp/article.jsp?id=1206357953887

Lawyers for two mosque leaders convicted on money laundering charges in a fake missile plot argued that the government unfairly entrapped their clients, but a prosecutor said the men knew what they were doing when they committed their crimes.

A three-judge panel of the 2nd U.S. Circuit Court of Appeals listened to arguments Monday on behalf of Yassin Aref, imam at an Albany mosque, and Mohammed Hossain, a pizzeria owner who attended the mosque, but did not immediately rule.

The mosque was raided by the FBI in August 2004 after a yearlong investigation.

The men were convicted of laundering money through fake loans from 2003 to 2004 for a Pakistani businessman and FBI informant posing as an arms dealer. Each was sentenced last year to 15 years in prison.

Lawyers for both men said the government unfairly targeted their clients in a rush to build terrorism cases after the Sept. 11, 2001, attacks.

Aref's lawyer, Terence Kindlon, said his client became a target of the U.S. government when a word before his name on a slip of paper in an Iraqi training camp for militants was thought to mean "commander" when it actually was an innocuous term equivalent to "Mr."

He said the FBI relied on an informant who delivered an "improbable story badly told."

Hossain's lawyer, Kevin Luibrand, said his client never tried to hide the money because he was not laundering it.

Assistant U.S. Attorney William Pericek said the sting was successful because Hossain was motivated by greed and Aref was motivated by sympathy for those willing to carry out terrorist acts.

He said Aref knew the plot involved plans to use a shoulder-fired missile in New York City. The plot was a fictional part of the sting operation.


http://www.iht.com/articles/ap/2008/03/24/america/NA-GEN-US-Mosque-Raid.php

QATAR has taken adequate precautions to combat money laundering and terrorism financing, according to Qatar Central Bank Governor HE Sheikh Abdullah bin Saud al-Thani.

Foremost among them was the Law No. 28 of 2002 for Combating Money Laundering which was subsequently amended by the Law No. 21 of 2003.

“These laws provided the legislative structure for all measures and precautions taken in combating money laundering and terrorism financing. These are designed to protect our financial institutions and sectors from the risks posed by money laundering and terrorism financing,” he said in a report published by the National Anti-Money Laundering & Terrorism Financing Committee.

The report was distributed at the QCB conference on ‘Tackling money laundering’ at the
Sheraton yesterday. Pursuant to Article 8 of the above law, the National Committee for Combating Money Laundering and Terrorism Financing was created in November 2002 under the QCB deputy governor.

“This committee has been carrying out its tasks and responsibilities as laid down by the law and made significant achievements in combating money laundering and terrorism financing. Its effort was instrumental in Qatar qualifying to join several international and regional organisations in the field such as the Middle East and North Africa Financial Action Task Force (MENA FATF) and Egmont Group,” Sheikh Abdullah said.

Qatar Central Bank (QCB) has set up the Financial Information Unit (FIU) which is the body presently in charge of supervising the measures taken to combat money laundering and terrorism financing. Since the 90s, QCB has been taking measures to combat these. “To this end, we have issued several instructions to financial institutions in Qatar, laying down all procedures that should be observed as well as guidelines or work manuals that enable institutions to identify criminal acts and tackle them,” the QCB governor said.

Money laundering combating efforts should not be regarded as task for the law enforcement authorities only. They must be treated as issues that threaten the financial stability of the whole economy, Sheikh Abdullah said.

He added the importance of this aspect was felt more strongly during the last few years following the huge increase in money laundering, particularly those through the global financial and banking system.

“During the last few years it has become painfully clear to all countries that the threat of money laundering and terrorism financing is not just limited to the economic system of one particular nation. It has grown to enormous proportions that place the stability of the entire global financial and banking system at greater risks,” Sheikh Abdullah noted.

Similarly, money laundering has “devastating” effect on the macro economy as it weakens the ability of the authorities to implement their policies because of the “low credibility” of the economic data and statistics available in an environment where it is not possible to measure and forecast the size of these activities.

Furthermore, the sharp fluctuation in the movement of funds, deposits and cash flows accompanying money laundering adversely affect the stability of the monetary and foreign exchange markets.

Sheikh Abdullah warned that the failure to observe the international standards set for combating money laundering resulted in huge economic costs and other risks.

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=209149&version=1&template_id=36&parent_id=16

According to the Miami-Dade Police Department, Rulx "Ringo" Cayard, the founder and director of the Haitian-American Foundation, Inc. (HAFI), was arrested and charged with 22 counts of felonies, including racketeering, theft and money laundering.

Some of the charges against the 54-year-old stem from HAFI's 2005 sale of land the organization had purchased in 2002 using money it received from the city of Miami and Miami-Dade County. The land was originally intended to be the site of a Creole Market Place, but it was never built, police said.

Police alleged that Cayard personally profited from the sale and that the sale itself defrauded local, state and federal authorities. Cayard is also accused of providing false audit reports and federal tax returns through HAFI.

Cayard went to bond court on Friday afternoon. Throughout the proceedings, he stayed quiet with his head hung low.

Family and friends that showed up to court denied the allegations that he created fake records, stole money and misused money from his organization that was meant to help the Haitian community.

"I know he's innocent," Cayard's son, Kevin, said.

The arrest came after a nearly three-year investigation by the Miami-Dade Police Department and the Miami-Dade State Attorney's Office.

In 2007, NBC 6 reported on alleged money abuse by Cayard's organization.

A judge placed Cayard's bond at $300,000. If that bond is posted, he will be placed under house arrest until a hearing date can be set.

http://www.nbc6.net/news/15667150/detail.html

The US government has placed the UK alongside Afghanistan, Colombia and Russia on a list of countries that need to do more to crack down on money laundering, it emerged yesterday.

According to the US state department's international narcotics control strategy report, Britain is one of more than 50 "major money-laundering countries", thanks largely to its role as a leading global financial centre.

The report highlights figures from the UK's Serious Organised Crime Agency (Soca) which show that £15bn of dirty money is laundered in the UK each year. Although it praises the UK's high street banks for tightening their anti-laundering controls, the report warns that criminals are increasingly turning to card fraud, cash-smuggling and bureaux de change to process the proceeds of their activities.

"Because cash is the mainstay of the drugs trade, traffickers make extensive use of money transmission agents, cash smuggling, and informal value transfer systems (underground banking) to remove cash from the UK," it says. While heroin proceeds from the UK are often laundered through Dubai before reaching traffickers in Pakistan or Turkey, UK cocaine proceeds find their way back to South America through Jamaica or Panama.

"As money laundering laws become stricter, money laundering becomes more difficult. Because dealers in the UK generally collect sterling, most traffickers are left with excess small currency (usually £10 notes). This has created cash smuggling operations to move large sums of sterling out of the country. The Soca analysis suggests that more sterling has exited the UK in recent years than entered due to the relative ease of converting sterling in other countries."

While Britain's overall anti-money laundering strategy is judged to be sound, the report recommends the government brings in new rules to help it keep a closer eye on transactions made by "politically exposed persons" who may use banks to help fund foreign regimes.

The study notes: "The United Kingdom has a comprehensive anti-money laundering/counter-terrorist financing regime. However ... there are areas that should be further addressed by the authorities." It calls on the government to find out whether the Serious Organised Crime and Policing Act (Socap) 2005 exempts cases of money laundering from British legal controls if the transactions are not deemed illegal in the relevant foreign jurisdiction. The report also recommends changes to the Gambling Act 2005 to make it harder for criminals to launder money through gaming. Outlets ranging from solicitors and estate agents to jewellers or car dealers are subject to formal "suspicious activity reporting" requirements in the UK but some sectors of the betting and gaming industry are not, the report says.

"The 2005 Gambling Act should be amended to require the gaming industry to be covered in the same manner as the financial and designated non-financial businesses and professions," it urges.

" Authorities should track and examine the effects of the Socap change regarding acts and assets in or from foreign jurisdictions ... to determine whether it has been effective, or whether it has enabled exploitation." A spokesman for the government said yesterday: "The UK government takes the issue of money laundering and financial crime very seriously, and we are working both domestically and internationally to combat it."

In its first annual report on suspicious activity reporting last November, Soca said that progress had been made, adding: "Targeting the money is vital in the fight against criminal and terrorist activity. By following the movements of illegal finance we build a knowledge of criminal organisations and hit them where it hurts."

The international narcotics control strategy report is an annual briefing for the US Congress on the efforts key countries make to tackle the international drug trade. It also focuses on ancillary crimes such as money laundering and financial crimes.

http://www.guardian.co.uk/world/2008/mar/22/internationalcrime

The Spanish authorities say there is scant cooperation coming from the Rock in money laundering investigations.
Spain is to ask that Gibraltar be placed back on the black list of financial havens, with the Spanish tax authority, Hacienda, considering that the Rock is not cooperating in the fight against money laundering.

Spain is to ask the OECD, the Organisation for Economic Cooperation and Development, to list Gibraltar as ‘uncooperative’, with a Hacienda spokesman saying that no advances have been made in collaboration over fiscal and tax matters, and that Gibraltar remains opaque, inaccessible and impenetrable.

El País carries a two page report today, Sunday, saying that the information received by the Agencia Tributaria is ‘scant and hardly useful’. For example, the Spanish Government claims that Gibraltar is not helping at all in the Ballena Blanca operation against money laundering based in nearby Marbella.

Hacienda says that other territories, such as Jersey, those based in the Caribbean and even Andorra, are supplying greater information to them in the fight against money laundering.

There are 28,000 active companies on the rock, in addition to an unknown number of foundations and trusts. 115 lawyers and 28 lawyers offices are based there, engaged, according to El País, in activities which are outside the control of the financial authorities. 19 banks and 10 branches of international banks have offices on the 6.5 square kilometres of the peñon.

The newspaper says the Gibraltar Government, led by First Minister, Peter Caruana, has declined to comment on a set of questions sent to him by the paper. Other bodies such as the FSC, Financial Services Commission, or the Gibraltar Financial Intelligence Unit, both referred the paper to ask the Government spokesman.

Meanwhile over the border on the Costa del Sol the whole subject of money laundering and the activities of the UDYCO specialist National Police unit has been highlighted in the news following the arrest of the four police chiefs from the unit who have been accused of corrupt activity themselves. Two of the four were remanded to prison without bail on Friday.

http://www.amlosphere.com/europe/legislation/spain-wants-gibraltar-to-be-placed-on-oecd-black-list.html

The Central Bank of Bahrain, which has already received 300 million Bahraini dinars worth of all-new-look currency notes, will issue the first of the new currency through the monetary supply chain starting tomorrow, a senior official at the central bank said yesterday.

Dr. Abdul Rahman Saif, executive director banking operations, at the CBB told a Press conference that the CBB had new currency notes worth 300 million Bahraini dinars and the new notes contained security features. The CBB official dismissed speculations behind the CBB move to issue new notes and said that the issuance of new currency was in line with new law changing Bahrain Monetary Agency (BMA) into Central Bank of Bahrain (CBB).

Bahrain as the regional financial centre, Dr. Saif said, has implemented the highest standards of transparency backed by a stringent regulatory regime making it impossible for counterfeit or money laundering businesses.

He added: "Bahrain has never witnessed any major operation of money laundering and obviously the new currency notes with six security features will minimize the chances of counterfeit money business. The latest security features used in new currency has made the Bahraini Dinars the first in the GCC to have those features including for the blind or brail users."

He also announced that new Bahrain banknotes in all denominations will come into circulation from tomorrow.

The new banknotes are being issued in the existing denominations of 20, 10, 5, 1 and BD1/2. No change is being made to the coins in circulation.

The existing banknotes will remain a legal tender until further notice from the CBB. The new banknotes and the existing banknotes will co-circulate for a period of time, to allow for all existing banknotes to be returned to the CBB in the normal course of business. Earlier, the CBB began working with Bahrain's retail banks to coordinate the process of introducing the new banknotes, to enable banks to prepare automated teller machines (ATMs) to begin dispensing the new banknotes from 12.01 a.m. tomorrow.

All five denominations of banknotes are of uniform size (measuring 154mm x 74mm), which is slightly larger than the existing banknotes.

"The change to the new currency was necessitated by the enactment of the Central Bank of Bahrain and Financial Institutions Law (CBB Law) in September 2006," said Dr. Saif.

"The new currency reflects this significant change and each denomination of new banknotes bears the name of the Central Bank of Bahrain."

He stressed that the existing currency will remain a legal tender for a period of time and until further notice from the CBB.

"People do not need to rush out and exchange existing currency for the new. The existing banknotes will continue to be accepted as money for at least one year, and they will remain redeemable by the CBB for a further period of time after being withdrawn from circulation," he said.

"The new banknotes also incorporate enhancements to the security features, as well as some new features. This is designed to make the new currency easier to authenticate, harder to duplicate and more secure than ever before," said Dr. Saif.

In addition to the security features, the new banknotes also incorporate, for the first time, a feature to enable the visually-impaired to easily recognize the value of each note. The feature comprises a series of short, raised lines, which appear at the top right on the front face of the note. The BD1/2 has one line; BD1 has two lines and so on, up to BD20, with five lines.

"The CBB has been working with Bahrain's retail banks, money changers and other relevant Government and private organizations, to ensure a smooth and efficient changeover to the new banknotes," said Dr. Saif.

A CBB helpline will also be activated tomorrow, to receive any inquiries regarding the new banknotes. The CBB helpline numbers are 17547700 and 17547707, 17547711 and 17547703.

http://www.amlosphere.com/asia/legislation/bahrain-to-issue-new-bills-on-march-17.html

Police have arrested and charged two men of Nadi for allegedly managing to launder $147,000 from a Hotel in Nadi into their accounts, between December last year and end of February this year.

One of the accused a 38 year old Mechanic of Malolo, Nadi is charged with 9 counts of Uttering Forged Documents, 7 counts of receiving Money on Forged Documents and one count of Money Laundering.

The second man a 25 year old Purchasing officer of Nadovi, Nadi has been charged with two counts of Larceny and one count of Money Laundering.

It is alleged that the two along with a Former Accountant of the Hotel fraudulently obtained the Money and brought vehicles, Computers and other valuables.

Police managed to recover two vehicles and some valuable items as proceeds of crime while the hunt still continues for the former accountant.

The two were arrested by the Police strike back team and the Police Money Laundering Unit. The two will appear in the court on 20th of this month.

http://www.amlosphere.com/australia/aml/two-charged-for-laundering-in-fiji.html

Kevin J. O'Connor, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an Indictment charging HASSAN ABUZAITOUN, 35, and MOHAMMAD ALAZZAM, 33, both naturalized U.S. citizens from Jordan residing in Yonkers , New York , with conspiracy to commit money laundering and conspiracy to smuggle bulk cash from the United States .

Kevin J. O’Connor, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an Indictment charging HASSAN ABUZAITOUN, 35, and MOHAMMAD ALAZZAM, 33, both naturalized U.S. citizens from Jordan residing in Yonkers , New York , with conspiracy to commit money laundering and conspiracy to smuggle bulk cash from the United States . ABUZAITOUN also is charged with making false statements to federal law enforcement officers. The three-count Indictment was returned on February 26.

The Indictment alleges that ABUZAITOUN and ALAZZAM engaged in transferring bulk quantities of cash from the United States to Jordan , for the purpose of concealing the true ownership of the funds and evading the United States ’ cash reporting requirements. The Indictment further alleges that ABUZAITOUN, ALAZZAM and others then conspired to attempt to smuggle $500,000 in cash from the United States to Jordan , which cash was represented to be the fruits of a credit card fraud scheme.

Finally, the Indictment alleges that, on February 18, 2008 , ABUZAITOUN made false statements to federal law enforcement officers investigating this alleged money laundering and cash smuggling scheme.

ABUZAITOUN and ALAZZAM have been detained since their arrest on February 18, 2008 .

The charge of conspiracy to commit money laundering carries a maximum term of imprisonment of 20 years and a fine of up to $500,000. The charge of conspiracy to smuggle bulk cash carries a maximum term of imprisonment of five years and a fine of up to $250,000. The charge of making a false statement carries a maximum term of imprisonment of five years and a fine of up to $250,000.

U.S. Attorney O’Connor stressed that an indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial at which it is the Government’s burden to prove guilt beyond a reasonable doubt.

This case is being investigated by the United States Secret Service; the Federal Bureau of Investigation; the Internal Revenue Service—Criminal Investigation Division, and U.S. Immigration and Custom Enforcement. The case is being prosecuted by Assistant United States Attorney David A. Ring.

http://www.amlosphere.com/america/aml/ny-residents-indicted-on-federal-money-laundering-cash-smuggling-charges.html

The U.S. government organized a workshop in Jordan to teach officials from the Arab countries how to detect and investigate the smuggling of money.

The U.S. has been working with Jordan and other Arab countries to ensure that banking institutions are subject to appropriate oversight and that they have effective programs in place to prevent money-laundering and terrorist financing.

Participants, including representatives from Jordan, Algeria, Egypt, Kuwait, Lebanon, Mauritania, Morocco, Oman, the Palestinian Authority, Qatar, Tunisia and Yemen, examined anti-money laundering standards used by the Financial Action Task Force, a Paris-based inter-government body set up in 1989 by the Group of Eight industrialized nations.

This week, U.S. federal prosecutors said two NY residents were indicted on charges of trying to smuggle $500,000 (euro323,000) from the U.S. to Jordan.

Authorities said a grand jury in Hartford, Connecticut returned an indictment charging 35-year-old Hassan Abuzaitoun and 33-year-old Mohammad Alazzam with conspiracy to commit money laundering and conspiracy to smuggle bulk cash from the United States. Both are naturalized U.S. citizens from Jordan residing in Yonkers, New York.

Jordanian authorities have often asserted that Jordan was free of money laundering because of its strict monetary regulations and practices.

In 2004, three different groups of families of suicide bombing victims in Israel filed suits in a Brooklyn, N.Y. federal court against Jordan's largest financial institution _ Arab Bank _ alleging that it moved donations from Saudi Arabia to militant Palestinian groups, including Hamas and Islamic Jihad.

The bank denied the allegation. It later decided to close down its New York branch saying it was pursuing its strategy to focus on operations in the Arab world and Europe.

http://www.amlosphere.com/america/legislation/us-workshop-in-jordan-builds-support-to-battle-money-laundering.html

The Yemeni parliament is locked in a stand-off over a proposed new law that would crack down on money laundering and terrorist financing by merging the two crimes into one law.

A draft of the bill was introduced by Yemeni government to the parliament saying that the current laws of money laundering and financing terrorism are outdated and full of shortcomings dating back to 2003.

Opposition to the bill in the parliament contend that it would result in stifling charitable businesses and legal resistance by occupied Arab people. Members of parliament did, however, demand application of money laundering reform or amendments of the bill to be applied without merging the terrorism financing issue in the same bill.

“The existing legislation is sufficient,” said Member of Parliament, Sakher al-Wajeeh. “If the current law has deficiencies, it can be amended.”

The majority opposition in parliament says the proposed bill would restrict the work of charities and non-governmental organizations (NGO’s), causing more harm in fighting terrorism.

In Yemen, support of resistances in the Occupied Palestinian Territories are deemed to be legal ad justified actions, however most western states consider it to be terrorism, and the United Nations still cannot agree on a unified definition of terrorism. Al-Wajeeh suspects that the enemies of Islam link the religion with terrorism and claim by fighting Islam, they combat terroristic acts.

“There is no logical link of merging terrorism financing and money laundering because there is no unified definition of terrorism,” said Dr. Salah al-Sanabani, a member of parliament, adding, “the government should define terrorism according to our religion.”

According to the bill’s opposition, supporting this law to combat terrorism harms charitable and self-defense works by Islamic associations, especially resistance and charities in Palestine.

“Money laundering is still a problem in Yemen but has a very limited scope,” said Ahmed Ghalib, the head of the Committee for Combating Money Laundering and Funding Terrorism in Yemen. “Money laundering is possible due to loopholes and weaknesses in the banking system and from regulatory weaknesses. The line becomes blurred as illicit funds are recycled through legitimate business enterprises.”

The new law, according to supporters, aims to supplement the existing law from 2003. The old law did not include the rules of disclosure and dissemination found in the Council Security tracking and lists of terrorism financing crimes. The new law uses the definition terrorism from Arab Convention for Combating Terrorism ratified by the Yemeni Parliament.

By defining terrorism, supporters say that charitable funds can still make their way to causes supported by Yemenis without being accused of supporting it.

According to Ghalib, the new measures will introduce an element of conformity with international principles and standards. The bill was prepared by the Committee for Combating Money Laundering and Terrorism Funding in conjunction with the World Bank and the UN Office of Drugs and Crime, as well as consulting with representatives from the financial community. This was a recommendation by the Financial Action Task Force (FATF) and Arab and international conventions, as well as UN Security Council resolutions.

Mustafa Saif, head of the Money Laundering task force at the Central Bank of Yemen, said that the new draft law limits the amount of money that can be transferred from one bank account to another and international transfers. The law also calls for better monitoring of money transfers through corporations or other authorities. Previous laws did not include these measures.

The bill also says that any person who is found guilty of money laundering or financing terrorism may face imprisonment up to seven years and confiscation of the money to the public treasury.

At the end of the session, the parliament decided to form a committee to offer recommendations in terms of separating or merging financing terrorism with money laundering.

http://www.amlosphere.com/asia/legislation/terrorist-finance-bill-dead-locked-in-parliament.html

A federal grand jury and the Securities and Exchange Commission have been investigating the anti-money laundering practices of Fidelity Investments, according to a report in the Boston Business Journal.

The publication said the investigation by the SEC was launched last summer after a former employee alleged in a wrongful termination lawsuit that Fidelity's anti-money laundering unit failed to act after discovering a client used a Fidelity account to move questionable amounts of money to Iran and other countries.

Asked by the Journal if Fidelity was being investigated by the SEC over irregularities in its anti-money laundering unit, Fidelity spokeswoman Anne Crowley said: "Fidelity operates in a highly regulated industry. The SEC often -- indeed many times -- is conducting inquiries and examinations of business practices. That is part and parcel of being in a business that is highly regulated."

Crowley added: "We have no enforcement actions whatsoever by the SEC ... regarding our anti-money laundering unit."

Crowley said she had no knowledge of any federal grand jury probe.

http://www.amlosphere.com/america/aml/fidelity-anti-money-laundering-unit-probed.html

Switzerland's anti-money laundering authority said it investigated fewer cases in 2007, with 317 new proceedings launched compared to 507 in 2006.

'A trend relating to fewer financial intermediaries openly operating illegally in the financial centre is emerging,' it said.

'This may be seen as a success,' it added in its annual report.

The report was published as Switzerland's status as a global financial centre came under renewed scrutiny after neighbouring principality Liechtenstein's entanglement in a German tax evasion scandal.

http://www.amlosphere.com/europe/aml/switzerland-probes-fewer-money-laundering-cases-in-2007.html

December's anti-money laundering regulations are still not being implemented within legal firms, according to TM Group Holdings.

Research conducted by TM showed that 36 out of 40 legal firms were still relying on 'traditional' photo identification and bills to verify client identity, posing a significant security risk through possible forgeries.

Only 10 per cent of these firms had implemented the appropriate Client Due Diligence systems into their working practices.

Indeed the failings leave firms wide open to the possibility of facing a potential fine or imprisonment for non-compliance.

To help protect against the risks posed by money-laundering, TM has launched a fully-compliant Client Validation Check to specifically target conveyancing firms and property professionals.

The service will cross-check client details with over 20 independent data sets to verify identity, and includes a risk indicator which will place the client into one of four specific categories.

John Carolan, managing director of TM, said that traditional practices still abounded in part due to the extra workload the regulatory compliant procedures demanded.

"Manual verification techniques are labour intensive and involve a lot of paperwork and such a time consuming process can have an adverse effect on client experience and may not comply with current guidelines," he said.

"Practices are increasingly aware of their responsibilities but are concerned about the time and cost implications of the new regulations."

http://www.amlosphere.com/europe/aml/money-laundering-still-key-issue-for-conveyancers.html

Five former executives of failed health care financing company National Century Financial Enterprises, based in Dublin, Ohio, were convicted of all charges in a 27-count indictment Thursday. The executives and the charges they faced:

-- Donald Ayers, vice chairman, chief operating officer, director and owner: conspiracy, securities fraud, money laundering conspiracy, concealment of money laundering (nine total counts).

-- Rebecca Parrett, vice chairman, secretary, treasurer, director and owner: conspiracy, securities fraud, wire fraud, money laundering conspiracy (10 total counts).

-- Randy Speer, chief financial officer: conspiracy, securities fraud, wire fraud, concealment of money laundering (11 total counts).

-- Roger Faulkenberry, director and vice president of securitizations and later executive vice president for client development: conspiracy, securities fraud, wire fraud, money laundering conspiracy, concealment of money laundering (nine total counts).

-- James Dierker, associate director of marketing and later vice president of client development: conspiracy, money laundering conspiracy, concealment of money laundering (four total counts).

Judges from the English-speaking West African countries have been advised to unite in the fight against money laundering and all forms of economic crimes in the sub-region.

Chief Justice of Nigeria, Idris Kutigi, gave this advice at the opening of a three-day workshop for the judges, saying only a united effort can stop the laundering of illegally acquired money in the sub-region.

He warned that unless judges and the judiciary rid themselves of corruption, the evil consequences of money laundering, terrorist financing and other financial crimes will continue to ravage Nigeria and the West African sub-region.

Represented by Justice Francis Tabai of the Supreme Court, Kutigi in his keynote address at the event organized by the Intergovernmental Action Group against Money Laundering in West Africa (GIABA) said, judges' role in the efforts to combat terrorist financing, corruption and money laundering, which have far-reaching impact on the economy and political stability of countries where the cartels or syndicates operate cannot be overemphasized.

"For the judiciary to be able to do this effectively, judges must imbibe the ethos of judicial integrity and judicial independence. The judiciary should conduct its activities with the highest sense of responsibility and accountability because accountability is the anchor of integrity."

Kutigi urged West African governments to provide better protection for judges, particularly those handling cases of economic crimes, because their perpetrators are often vicious and deadly. "Perpetrators will go to any length to not only cover their tracks but also get rid of anything, institution, or individuals that constitute impediments to them he said .

In her goodwill message, President of the ECOWAS Court of Justice, Aminata Sanogo, commended GIABA for the initiative of organizing the seminar , saying it is necessary to provide judges who handle economic crimes with relevant information available at the workshop.

She lamented that globalization has widened the scope and sophistication of financial crimes to West Africa, maintaining that "our sub-region cannot afford the havoc that white collar crimes can cause to our economies and to our image ."

Director-General of GIABA, Abdullahi Shehu, said the seminar was organized to bring together judges involved in adjudication of financial crimes for them to share knowledge and experience, engender better understanding of the impact of money laundering in the region and to sensitize judicial partners on international developments.

http://www.amlosphere.com/africa/aml/west-africa-judges-tasked-on-economic-crimes.html

Finland is taking steps to more effectively deal with terrorism and money laundering used to finance terrorist activities.

The government is to present Parliament with new legislation to prevent money laundering that can be more widely applied than present law.

Current laws require banks, insurance companies, pawn shops and real estate dealers, among others, to report any suspicions of money laundering.

New legislation will also include companies offering tax advisory and financial management services, as well as distrainers and bankruptcy ombudsmen. They will also be required to watch for any indications of money laundering or the financing of terrorism and to report to the proper authorities.

The same reporting requirement will apply to all merchants who accept more that 15,000 euros in cash payment from customers. Confidentiality regulations governing taxation will be eased so that tax officials can, if needed, report on all of the financial transactions of anyone suspected of money laundering.

The changes will bring Finnish law into line with an EU directive on money laundering. The draft legislation still requires passage by Parliament.

http://www.amlosphere.com/europe/legislation/finland-upgrading-anti-terrorism-and-aml-law.html

A father-and-daughter team accused of duping 15,000 mainly elderly British investors out of $70 million was arrested in Florida on Thursday and charged with a series of crimes, U.S. officials said.

Paul Robert Gunter, 58, of Odessa, Florida, and Zibiah Joy Gunter, 25, of Oldsmar, Florida, are suspected of hijacking the identities of dormant, publicly traded companies and selling fake stock in them to clients in Britain through high-pressure and misleading sales techniques.

The duo persuaded their victims to transfer more than $70 million into their bank accounts in Florida and elsewhere, the U.S. Immigration and Customs Enforcement (ICE) agency said in a statement.

"This is part of an ongoing investigation into a mass marketing crime scam known as boiler room fraud," said Deputy Chief Inspector Robert Wishart, head of the Money Laundering Unit at the City of London Police.

"Thousands of British people have fallen victim to this crime -- in this inquiry alone, we estimate that around 15,000 mostly elderly people have lost money," Wishart said in the statement issued by ICE.

Gunter and his daughter were charged with conspiring to commit and committing mail fraud, wire fraud, securities fraud, and money laundering.

The charges carry maximum penalties of five to 25 years in prison. The money laundering charge also carries a fine of twice the total gain to the defendants, or twice the total loss to victims, whichever is larger.

http://www.amlosphere.com/america/aml/u.s.-father-daughter-duo-charged-in-70-million-fraud.html

A top state Republican lawmaker said he would move to impeach Eliot Spitzer if the governor didn't resign soon over reports of his involvement in a prostitution ring.

In an interview with CNN, the state's Assembly Minority Leader James Tedisco said Mr. Spitzer has "breached his contract with the people of New York State, not only ethically but legally," and "has lost all the support" from the public and the leaders in Albany."

A person close to Mr. Spitzer said the governor was likely to step down, perhaps as early as today.

The resignation would effectively end Mr. Spitzer's political career just 16 months after he was elected New York's governor by a wide margin. "But first he's dealing with this personal tragedy at home," this person said.

Mr. Spitzer hired a prostitute in Washington on Feb. 13 and paid her $4,300, according to a federal complaint and two lawyers briefed on the case. The lawyers said Mr. Spitzer is one of the clients mentioned in a federal complaint unsealed last week charging four other people with managing an international prostitution ring. Still unclear is whether state or federal authorities will seek to prosecute him for his involvement.

Calls for Mr. Spitzer's resignation began immediately and intensified Tuesday with the New York Daily News, New York Post and Newsday all demanding that he step down.

"Hit the road, John ... and make it quick!" read the headline of the Daily News editorial, while the Post called him "NY's naked emperor."

Speaking on CNN, Mr. Tedisco said: "We have asked that the governor resign as soon as possible," adding that unless he quit within 24 to 48 hours, the Republicans would move forward with impeachment.

To get articles of impeachment to the floor, Mr. Tedisco would need support from the Democratic majority in the Assembly. If the measure passed there, it would still need at least two-thirds approval of the combined vote of the Republican-controlled Senate and the nine-member Court of Appeals to proceed to trial.

"We have to continue with governance here, and this is a total distraction," he said. "We have a budget we have to get in place within two weeks."

Mr. Tedisco said a resolution was being prepared, but added that they would give the governor time. "He may be making decisions or negotiations with the law enforcement officials in relationship to the legal aspects of this. I think we have to give at least some time to do that," Mr. Tedisco said.

If Mr. Spitzer resigns, the state constitution calls for the job to pass to his lieutenant governor and running mate, Lt. Gov. David A. Paterson, a legally blind former legislator. Mr. Paterson, who is as widely liked as Mr. Spitzer is controversial, would also become the state's first African-American governor.

Speaking to The New York Times, Mr. Paterson said he had not heard from the governor on Tuesday.

"The governor called me yesterday, he said he didn't resign for a number of reasons, and he didn't go into the reasons, and that's the last I've heard from him," he said, according to the newspaper. Asked whether preparations for a transition were under way, the lieutenant governor said: "No one has talked to me about his resignation and no one has talked to me about a transition."

As the news rocketed around trading desks and political offices yesterday, the 48-year-old governor made a brief appearance to apologize to his family and the public, without addressing specifics. "I have disappointed and failed to live up to the standard I expected of myself," he said, with his wife at his side. "I must now dedicate some time to regain the trust of my family."

It was an astounding fall for a man often mentioned as a future Democratic presidential contender. As New York's attorney general, he invoked moral absolutes as he pummeled Wall Street kingpins such as former American International Group Inc. Chief Executive Maurice "Hank" Greenberg.

In an advertisement during his gubernatorial campaign, Mr. Spitzer declared that as attorney general, "I had a simple rule. I never asked if a case was popular or unpopular. I never asked if it was big or small, hard or easy. I simply asked if it was right or wrong."

The description in the federal complaint of the activities of "Client-9" -- identified as Mr. Spitzer by the lawyers briefed on the case -- could hardly have offered a more jarring contrast to the governor's carefully crafted image.

Client-9 was captured on a wiretapped call telling an alleged prostitution ringleader that he would withdraw thousands of dollars from the bank to pay a call girl, according to the complaint. On the night of Feb. 13, the day before Valentine's Day, the woman went to a Washington hotel, identified as the Mayflower by a person familiar with the situation.

Fifth Avenue Address

Mr. Spitzer had registered under the name "George Fox," according to a person briefed on the situation, using his own Fifth Avenue Manhattan address. Mr. Fox, a hedge-fund consultant, is a longtime friend and supporter of the governor's. A person close to Mr. Spitzer said Mr. Fox had no involvement in the matter.

At around 9:30 p.m., the woman, who used the name Kristen, entered Room 871, as designated by the client, the complaint says. Shortly after midnight, Kristen reported to her boss that the appointment with Client-9 went well and she collected $4,300, partly as a deposit for future trysts, it says. "I'm here for a purpose. I know what my purpose is," it quotes Kristen as saying after the encounter.

Mr. Spitzer's opponents barely bothered to conceal their joy at his demise, saying the governor himself never showed sympathy for his targets.

Mr. Spitzer spent yesterday afternoon in his New York City apartment with his wife, daughters and other family members. His brother, Daniel Spitzer, a neurosurgeon, said: "If men never succumbed to the attractions of women, then the human species would have died out a long time ago."

The account of Client-9's appointment is part of a larger case that broke last week when federal prosecutors in Manhattan charged four people with organizing and managing an international prostitution ring, known as the Emperors Club VIP.

According to the complaint and the sworn statement, the Emperors Club arranged connections between wealthy male clients and more than 50 prostitutes in locations from New York and Washington to Paris and London. The club's Web site showed photographs of prostitutes' bodies, with their heads hidden, and ranked the women with a "diamond" system. Fees varied by rank, from $1,000 an hour to more than $5,500 an hour.

The Federal Bureau of Investigation's inquiry began in October 2007, when it was triggered at least in part by a bank that filed "suspicious activity" reports on the New York governor with the Treasury Department's Financial Crimes Enforcement Network, according to a federal law-enforcement official and a lawyer involved in the matter. Suspicious activity reports are filed with the Internal Revenue Service when banks detect something unusual either through their tellers or software, including transfers of large amounts of cash, unknown counterparties, or the use of known tax havens and money-laundering centers.

The bank was concerned that Mr. Spitzer might have been engaged in "structuring," a money-laundering technique in which transactions are kept beneath $10,000 to avoid federal reporting rules, the official said. There has been a massive federal crackdown on money laundering in the wake of the 9/11 terrorist attacks, and banks have been extremely diligent in filing such reports. Those reports often include details of transactions done by innocent people.

The suspicious transactions by Mr. Spitzer are a major part of the investigation, the federal official said, confirming a report by ABC News. It isn't clear if federal investigators were engaged in a crackdown on the prostitution ring when Mr. Spitzer entered their sights as an alleged client of the ring, or whether Mr. Spitzer's transactions helped trigger a probe of the prostitution operation.

Prosecutors handling the case also relied on information from a prostitute who worked for the ring, numerous telephone calls, text messages and emails that were intercepted through court-authorized wiretaps and search warrants, and an undercover agent who posed as a potential client, according to the FBI agent's affidavit.

Clinton Backer

Mr. Spitzer has been a strong backer of Hillary Clinton and was mentioned as a possible cabinet member if she were elected president. Sen. Clinton declined to comment on the scandal. "I obviously send my best wishes to the governor and his family," she told reporters during a campaign stop in Old Forge, Pa.

Mr. Spitzer, a Clinton supporter, is a superdelegate, but remains so only as long as he is governor, according to Democratic National Committee rules. If he quits, he would not be replaced as a superdelegate. Mr. Paterson would become governor and he already supports Mrs. Clinton, meaning the New York senator would lose one superdelegate.

Mr. Spitzer's downfall is the highest-profile Democratic scandal in several years, following a series of prominent Republican sex scandals.

In 2006, veteran Florida Republican Rep. Mark Foley was accused of sending sexually explicit messages to former and current House pages, a matter widely cited as one reason his party lost control of Congress later that year. Last year, Idaho Sen. Larry Craig, a Republican, pleaded guilty to a misdemeanor after his arrest in the Minneapolis airport men's room as part of an undercover sting.

Congressional Republicans immediately jumped on Mr. Spitzer's problems. The campaign arm of House Republicans issued news releases calling on New York Democratic congressmen to return donations from Mr. Spitzer.

Democrats said they didn't think the fallout from the Spitzer scandal would tarnish the reformer image the party has sought to build nationally as it attacks Republicans over allegations of corruption in government.

"I think we've learned from a number of these instances that people make a distinction between public corruption and personal failures," said Democratic pollster Mark Mellman. "If I understand the facts, this is a case of personal failure."

As a prosecutor, Mr. Spitzer didn't hesitate to bully his targets. In December 2005, John C. Whitehead, the former chairman of Goldman Sachs Group Inc., recounted a phone call he received from Mr. Spitzer in response to an opinion piece Mr. Whitehead had published in The Wall Street Journal. Mr. Whitehead quoted the future governor as saying, "I will be coming after you. You will pay the price." Mr. Spitzer denied that he threatened Mr. Whitehead, saying it was a misunderstanding.

Clash With Legislators

When he became governor, his hardball approach didn't play well. Mr. Spitzer clashed with state legislators who found his style overbearing, and he was accused of ethical lapses in connection with an alleged plot to smear his chief Republican rival in the legislature.

The day after Client-9's encounter with the prostitute, Mr. Spitzer appeared before lawmakers in Washington to discuss problems facing the bond-insurance industry.

Emperors Club's Web site, which has been taken down, listed reservation phone numbers for the service in New York, Los Angeles and Miami, as well as numbers for London, Paris and Switzerland.

Payment to Front Companies

According to the complaint, Emperors Club received proceeds through bank accounts of front companies called "QAT Consulting Group, Inc." and "QAT International, Inc." The complaint said Client-9 sent a payment to Emperors Club that was enclosed in a package.

Lawyers said customers of prostitutes are rarely charged, although they didn't rule it out in this case. A century-old law known as the Mann Act prohibits the movement of prostitutes -- or women intended to participate in "immoral" acts -- between states or from the U.S. to a foreign country. The prostitute who served Client-9 traveled to Washington from New York.

The case is being handled by public-corruption prosecutors in the U.S. attorney's office in Manhattan. A spokeswoman for the office declined to comment on possible charges against Mr. Spitzer.

Michael Bachner, a former prosecutor in the Manhattan district attorney's office, said: "The Mann Act really was designed more towards those who get someone to travel against their will....If Spitzer gets indicted, it would seem to me he would be indicted based on who he is rather than what he's done."

As for possible state charges, Mr. Bachner said, "customers are rarely prosecuted in the state," and charges that are brought are typically disposed of with a plea to disorderly conduct, "which is akin to a traffic ticket."

http://online.wsj.com/article/SB120523741167127071.html?mod=googlenews_wsj

A Morecambe man has been convicted of laundering money stolen by his mum while she was working at a Carnforth store. Ian Bowman was found guilty at the end of a Preston Crown Court trial but the jury failed to reach a verdict in the case of his brother Mark Bowman and he now faces a possible retrial.

During the case, they were alleged to have benefited from their mother stealing ?350,000.

The jury had heard claims that it was "inconceivable" the sons did not know the money paid to them was the proceeds of crime.

Moira Bowman had abused the refund system for goods while a customer services manager at Booths.

Ian Bowman, aged thirty five, of Wentworth Crescent, Morecambe and his 33 year old brother of Burdock Walk, Morecambe, both denied money laundering.

Their defence was that they thought the money had come from her savings and family inheritances.

The trial had heard claims that the mother had given them nearly a quarter of a million pounds between them.Ian Bowman was alleged to have benefited to the tune of ?163,000 and his brother, ?84,000.

Ian Bowman told the court his mother had broken down and cried when she confessed to stealing the money. Up until then, he had no idea the money represented the proceeds of crime, he said.

Mark Bowman said he never thought his mother capable of stealing as she was an honest and decent woman. He said he was in shock when she told him what she had been doing.

The prosecution said Mrs Bowman of Grosvenor Place, Carnforth ,took at least around £350,000 over a five year period.

She and her son will be sentenced later.

http://www.lakelandecho.co.uk/31/Son-convicted-of-laundering-money.3866398.jp

The notice regards what the FSA warns is the lack of comprehensive anti-money laundering and combating terrorist financing systems in Uzbekistan, Iran, Pakistan, Turkmenistan, Sao Tome and Principe and the northern part of Cyprus.

The warning was issued by the Financial Action Task Force, an inter-governmental body established by the G7 countries in 1989. The UK is holder of the rotating FATF presidency until this summer.

A year ago the government published a document 'The financial challenge to crime and terrorism'. It set out its approach to using financial tools to deter crime and terrorism; detect it when it happens; and, disrupt those responsible and hold them to account for their actions.

The FATF is recommending that all UK businesses within the financial sector factor this heightened risk into account and consider applying increased scrutiny and due diligence to any transactions associated with Uzbekistan, Iran, Pakistan, Turkmenistan, Sao Tome and Principe and the northern part of Cyprus.

Last autumn the FSA said it had identified areas where the practices of mortgage advisers could lead to an increased risk of fraud and money laundering.

In one of a series of reviews undertaken by the FSA it examined sales of self-cert mortgages. During the course of the review it found many serious failings, including readiness to proceed with arranging a mortgage despite doubting the accuracy of financial information customers were giving them.

Stephen Bland, director of small firms for the FSA, said: "During the reviews we saw a number of good advisers who are meeting the required standards and they are being undermined by the negligence or wilful non-compliance of others. We also saw some who despite having some way to go, were willing to engage with us and be helped to improve their performance, which is why we are providing so much guidance following these reviews. However there are still an unacceptable number of firms unwilling to change and they are damaging the rest of the industry.

"We found some firms willing to offer mortgages they know to be unaffordable and to accept self-cert business even where they had concerns that the financial information provided by the customer was implausible. These practices are completely inconsistent with treating customers fairly - hence the large number of enforcement referrals and other regulatory actions.

"Overall there is a need for a big improvement in senior management's use of management information to help achieve the fair treatment of their customers to achieve the progress we and the industry as a whole want to see."

The main areas identified in the reviews as needing improvement include the assessment of affordability, the collection of customer information to establish clients' needs supervision and assessment of advisers' competence and the use of management information. The reviews also identified areas where firms' practices could lead to an increased risk of fraud and money laundering."

http://ftadviser.com/MortgageAdviser/Mortgages/News/article/20080312/ae5a58c0-e9ed-11dc-a231-0015171400aa/Money-laundering-hotspots-could-see-advisers-get-burned.jsp

The U.S. Financial Crimes Enforcement Network (FinCEN) has issued additional guidance for the jewelry industry, intending to clarify the risk assessment to be performed by dealers in the jewelry industry. The information does not impose any additional requirements on dealers but is meant to help identify certain jurisdictional characteristics that would impact their exposure to risk.

At an ongoing anti-money laundering (AML) seminar series being conducted by the Jewelers Vigilance Committee (JVC), FinCEN Junior Director James H. Fries explained that in certain circumstances the risks of money laundering associated with purchases from a foreign source may not be greater than those associated with a domestic supplier.

He urged retailers to review the following factors among a longer list of possible risk factors:

1. The nature and scope of the regulatory efforts of the supplier’s jurisdiction to prevent money laundering and terrorist financing in its precious metals, precious stones and jewels industry;

2. The nature and scope of the regulatory efforts of the supplier’s jurisdiction to prevent money launderers’ and terrorist financers’ entrance into, or exploitation of, the industry and

3. The dealer’s relationship with the supplier.

Fries also stressed the need for dealers to develop procedures to make reasonable inquiries to determine whether a transaction involved money laundering. Examples include whether the transaction involved the use of unusual payment methods, such as the use of a large amount of cash, multiple money orders, traveler’s checks or payments from third parties.

JVC President, CEO and General Counsel Cecilia Gardner added, “Retailers should insure that their foreign sources of supply are themselves complying with their AML obligations.”

http://www.idexonline.com/portal_FullNews.asp?id=29787

One of the country’s leading financial institutions founded by Zimbabwean businessman Nigel Chanakira, Kingdom Bank has fired at least 22 workers for allegedly defrauding the bank of huge sums of money.

Kingdom Financial HoldingsA source says the Reserve Bank of Zimbabwe (RBZ) is expected to descend on the financial institution anytime from now, so as to launch wider investigations which cost Kingdom Bank an unconfirmed amount.

A Kingdom Bank source hints the scam had been taking place for years, but was unearthed recently after internal investigations. All the workers were based at various branches in Harare and include two people at the Westgate branch.

“The dismissed bank workers received letters confirming the immediate termination of employment late last week, on Friday the 7th of March.”

“Most of the fired employees were involved in foreign currency deals within the bank,” he said.

Kingdom Financial Holdings Limited (KFHL) is a Zimbabwe-based holding company of a group of businesses spanning a range of activities in the financial services industry.

Recently, a merger involving Kingdom Holdings, Meikles Africa and Tanganda took place resulting in the birth of Kingdom Meikles Africa- headed by Chanakira.

The source said the bank is still looking for more culprits within the financial institution.

“However, the bank indicated the fired employees are entitled to all their benefits and packages,” he said.


Recently, the RBZ Governor, Gideon Gono said banks, although fully apprised of the anti-money laundering laws, had not taken heed of appeals by the central bank to adhere to the guidelines.

He advised the financial sector to appeal to their good selves in which the central bank issued many circulars and guidelines on the subject of money-laundering and other undesirable banking practices

Some of the culprits were allegedly withdrawing money from accounts that did not belong to them, in which they used it for their own benefit, and did not return a single cent.

“A friend of mine (name supplied) was also caught up in the smoke. He phoned me Friday evening saying that he was shocked to learn of the developments.”

“We used to drink together every weekend but on Friday he indicated he is going straight home. Later that night, he phoned again and said he was stressed and could not eat,” said the source.

Late last year, during the cash crisis, many bank employees reportedly lost their jobs as they were involved in cash deals in which they would get bribes.

The workers would reactivate dormant accounts which they would use as channels to siphon money.

Another sacked employee referred to as Memory (who was based at the Westgate branch) is understood to have bought various properties with the allegedly ‘stolen’ funds.

“She is very talkative and went around town boasting about the illegal deals she was conducting.”

“The lady indicated she was caught unaware and is also not happy with her employer’s decision. She is also not answering her mobile phone,” he added.

http://www.zimbabwegazette.com/the-news/business/massive-fraud-at-kingdom-bank-20080310295.html

An Overland Park real estate appraiser whom federal prosecutors thought played a role in a larger $14 million mortgage fraud scheme pleaded guilty Monday to one count of conspiracy to commit money laundering.

Lydell Flowers, 32, entered a guilty plea in the federal district of Kansas, admitting to charges that he helped prepare inflated appraisals of Kansas City properties from which co-conspirators could skim the excess funds.

Eric Melgren, U.S. attorney for the federal district of Kansas, said in a written statement that Flowers' activities between 2002 and 2004 were tied to the loss of $2.5 million from lenders who paid out loans from the bogus appraisals.

Flowers' case is related to a federal indictment handed down Nov. 8 in Kansas in which prosecutors believe a scheme to lure risky borrowers into applying for real estate loans under false pretenses to lending companies netted the Kansas City-area conspirators $14 million.

Since the Nov. 8 indictment, two defendants pleaded guilty to their roles in the purported scheme; four more remain under federal charges.

For Flowers' part in the alleged scheme, he faces as much as 20 years in federal prison and as much as $500,000 in fines when he gets sentenced on June 9

http://www.bizjournals.com/kansascity/stories/2008/03/10/daily7.html

A Boston woman was charged yesterday in federal court with embezzlement from a federally insured financial institution.

United States Attorney Michael J. Sullivan and Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, announced today that PHYLLIS SHANNON, age 38, of 146 Readville Street in Readville, MA was charged in a one count indictment with embezzlement from a federally insured bank.

The indictment alleges that from October, 2003 through June, 2007 Shannon embezzled over $190,000 in funds from the Boston Private Bank and Trust Company where she worked as a supervisor in the accounts payable department. SHANNON embezzled the money by entering fraudulent travel and expense reimbursements and crediting her own personal accounts with these monies.

If convicted on these charges, SHANNON faces up to thirty (30) years imprisonment, to be followed by three (3) years of supervised release, and a $1 million fine.

The case was investigated by the Federal Bureau of Investigation and the Boston Police. It is being prosecuted by Assistant U.S. Attorney James P. Dowden of Sullivan's Economic Crimes Unit.

The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

SOURCE U.S. Attorney

Iran's minister of economic affairs and finance says enforcing the Anti-Money Laundering legislation does not require any new bylaws.

The directive issued by President Mahmoud Ahmadinejad is comprehensible and elucidates the necessary steps required to implement the new law, said Davoud Danesh-Jafari.

He added that the minister of intelligence and security, governor of the Central Bank of Iran (CBI) and several other ministers are among the members of the special council in charge of the campaign against money laundering.

The Iranian Parliament (Majlis) passed the Anti-Money Laundering law on Jan. 22, 2008.
http://www.presstv.ir/detail.aspx?id=46710§ionid=351020102

Key members of an international prostitution and money laundering ring, known as the Emperors Club VIP, were arrested Thursday by IRS and FBI agents, prosecutors told WNBC.com.

Mark Brener, Cecil Suwal, Temeka Rachelle Lewis and Tanya Hollander have been charged with violating federal prostitution statutes. Brener and Suwal are also charged with laundering more than $1 million of the proceeds from the illegal operation, U.S. Attorney Michael Garcia said.

According to court documents obtained by WNBC.com, the Emperors Club was used to connect wealthy male clients with more than 50 prostitutes in New York, Washington, D.C., Los Angeles, Miami, London and Paris. Fees for the prostitutes ranged from $1,000 to more than $5,500 per hour, officials said.

Brener was the leader while Suwal ran the day-to-day operations of the Emperors Club, officials said. Lewis and Hollander booked clients, investigators told NewsChannel 4.

The criminal complaint states IRS agents discovered that clients made payments for services in cash, American Express charges, wire transfers and money orders beginning in 2004. The payments were made to U.S. banks in the names of front companies set up by Brener and Suwal, including two accounts named "QAT Consulting Group, Inc." and "QAT International, Inc."

Using a Web site to advertise its prostitution services, the Emperors Club displayed pictures of the prostitutes' bodies and ranked them using a scale of one to seven diamonds.

Some clients were offered a "buy-out clause" allowing them direct access to a prostitute without having to use the services of the club, court papers state.

Brener and Suwal face up to 25 years in jail while Lewis and Hollander face five years in jail if convicted, Garcia said.

http://www.wnbc.com/investigations/15515934/detail.html

Turkmenistan officials working to increase the country's involvement in combating terrorism financing recently hosted a two-day training workshop.

The aim of the workshop, held Tuesday and Wednesday in the capital city of Ashgabat, was to train Turkmenistan authorities on tactics to fight money-laundering and the financing of terrorism. The event was organized by the Organization for Security and Cooperation in Europe along with the World Bank, the U.N. Office on Drugs and Crime, the International Monetary Fund and the Eurasian Group on Combating Money Laundering and Financing of Terrorism, the OSCE reported.

"A single country alone is not capable of fighting money laundering and terrorism financing," Ambassador Ibrahim Djikic, the head of the OSCE Center in Ashgabat, said in a statement. "In our globalized world, borders are not an obstacle for organized crime groups and terrorists. Only coordinated actions by law enforcement agencies of different countries and assistance from the private and financial sectors can do the job."

Officials say the training included international standards on how to implement an effective anti- money-laundering and terrorism-financing system to protect the citizens of Turkmenistan.

The workshop is part of a larger effort by Turkmenistan to crack down on terrorism funds that are trafficked through the country. "Turkmenistan is in the process of drafting a new law to improve its national efforts to fight organized criminal activity and more effectively contribute to the global fight against money laundering and terrorist financing," the release said.

http://www.metimes.com/Security/2008/03/05/anti-terror_financing_workshop_held/8a7c/

Liechtenstein remains vulnerable to money-laundering despite efforts by authorities to tighten regulations, International Monetary Fund and Council of Europe experts said Wednesday.

The tiny Alpine principality, currently at the heart of an international tax evasion scandal, offers "discreet and flexible legal structures, strict bank secrecy and favourable tax arrangements," the IMF said in a report.

Around 90 percent of Liechtenstein's financial services business is provided to non-residents, it noted.

"By it's nature, Liechtenstein's financial sector business creates a particular money laundering risk," the IMF said.

The opaque and complex structure of the financial sector makes it very difficult to identify asset holders and thus "Liechtenstein is vulnerable, mainly in the layering phase of money laundering," the report said.

Liechtenstein recorded 616 economic crimes in 2006, more than half of the total 1,189 recorded crimes in the principality that year.

The IMF did not find any particular vulnerability to terrorist financing although it urged Liechtenstein to bring its legal definition of terrorism finance fully into line with international norms.

The Council of Europe's MONEYVAL committee (which monitors money-laundering and the financing of terrorism) also released its evaluation report Wednesday.

It concurred that Liechtenstein law makes it easier for money-laundering.

"The legal provisions may give excessive discretion to financial institutions when applying (Liechtenstein's) risk-based system," the authors said of client profiling regulations.

"Liechtenstein cannot provide mutual legal assistance relating to facts that are exclusively qualified as fiscal offences under Liechtenstein law.

"Serious organised fiscal fraud should be removed from the fiscal exemption," it concluded.

With just two prosecutions in Liechtenstein for money-laundering and no convictions, the practice of handing investigations over to foreign states where persons or organisations are registered also means Liechtenstein's judiciary lacks experience, the report said.

Liechtenstein's prime minister welcomed the IMF report and said it showed the correct policies were in place to avert abuses.

The IMF report "shows that we are on the right track with our reforms," Otmar Hasler told a press conference here.

"We have followed this path in a coherent manner so far and will continue to do so," he pledged.

Vaduz has been under scrutiny in recent weeks after Germany began investigating 600 of its citizens featuring on a client list of a Liechtenstein bank containing 1,400 names which it then made available to other nations.

The United States, Britain, Australia, Italy, France, Sweden, Canada, New Zealand, Greece and Spain have all said they too are hunting for taxpayers hiding their money in the tiny Alpine state.

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A Swiss bank dropped its lawsuit Wednesday against the whistle-blowers Web site Wikileaks after stirring up a free-speech furor over a judge's order, now rescinded, to shut down the site for allowing the posting of private bank documents.

Julius Baer & Co. filed a brief notice of dismissal in U.S. District Court in San Francisco, saying it reserves the right to pursue its case at a later date in the same court or elsewhere. The bank's lawyers had said after a hearing Friday that they were willing to refile the suit in a state court, but the bank gave no indication Wednesday that it had any such plans.

"We voluntarily backed out at this point but retained the right to pursue it further if the bank decides they want to do that," said Jenna Agins, spokeswoman at the public relations firm that represents Julius Baer.

The dismissal follows Friday's order by U.S. District Judge Jeffrey White withdrawing the injunction he had issued Feb. 15 requiring a Bay Area Internet registrar to disable the Wikileaks.org site and prevent the organization from transferring to another server.

White had ordered the shutdown after it was negotiated by Julius Baer and Dynadot, the San Mateo company that registered Wikileaks' use of the Web site. Julius Baer was reacting to the anonymous posting of bank documents purporting to show tax fraud and money-laundering by its customers in the Cayman Islands. The bank said the documents were stolen or forged and invaded its customers' privacy.

The injunction touched off a blizzard of protests from civil liberties groups and media advocates and owners, including Hearst Corp., which owns The Chronicle. They likened the order to a shutdown of a newspaper because of objections to a single article.

White said Friday that his injunction may have been a restraint on free speech, in violation of the First Amendment. He also rejected the bank's request to extend a restraining order, which expired Friday, requiring Wikileaks and Dynadot to remove the bank documents from the Web site.

The judge said any injunction against Internet posting was likely to be ineffective, because the documents had been publicly displayed and could be transferred to other sites. White said Julius Baer could keep its federal court suit alive, but he suggested that the bank "take a deep breath" and "consider whether there may be other ways to achieve the same goals."

Wikileaks, founded in 2006, invites government and corporate insiders to post documents showing high-level wrongdoing, and disclaims responsibility for the contents. It has a Web server in Sweden but no established headquarters, president or formal leadership structure, only an advisory board, according to its Web site. The bank documents remained available at other online locations during White's injunction.

Lawyers who opposed the suit said Wednesday that they hadn't been informed of the reasons for the dismissal but hoped the bank now realized its case was futile.

"I think they're in a legal pickle and there's no way out for them, and I hope this dismissal is a recognition of that - cut your losses and hope the story goes away," said Steven Mayer, attorney for an organization called the Project on Government Oversight.

A lawyer for John Shipman, who owns the Wikileaks.org domain name, said he didn't see how the bank could sue either Shipman or Wikileaks in federal or state court.

Shipman, an Australian living in Kenya, does no business in California and has no control over any documents posted on the Web site, attorney Roger Myers said.

"They'd have to come up with a theory about who they could sue, and why, in California," Myers said.

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