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GlobalKYC.com is crowd-sourced information for the financial crime risk management community.

Now here's a surprise: Australian regulator ASIC has charged (actually charged, as in criminal charges) three people with laundering the proceeds of an attempt to manipulate an insolvency. Other countries have long included insolvency offences as predicate offences for money laundering purposes: this is the first case we can think of where action has been taken.

Case Summary: 

A man convicted of conspiracy was sentenced to 18 months in federal prison for laundering the proceeds of a violent kidnapping organisation that held two dozen Mexican nationals hostage.

Type of conduct: 
Money Laundering

A report in Canadian media says that privately held Purdue Pharma LP, a pharmaceutical company registered in Connecticut, USA, is "exploring" the possibility of using what the USA calls "bankrupty" (a term it uses for both corporate and personal insolvency) to manage the risk of litigation arising from the drug OxyContin. But the company is not even a little bit insolvent. Using insolvency processes to manage risks in litigation is a strategy that isn't new.

CoNet Section: 

The UK and the USA have decided to revoke the citizenship of two women who went to the middle east to join a terrorist organisation. These are headline grabbing moves and the media is happy to co-operate because they are women and young. But they are a tiny fraction of an enormous global problem.

Hong Kong's Securities and Futures Commission has suspended the former responsible officer of China Merchants Securities (HK) Co., Limited for compliance failures.

BIScom Subsection: 

Someone's got to pay for the wall! The Internal Revenue Service yesterday reiterated its warning that taxpayers may not be able to renew a current passport or obtain a new passport if they owe federal taxes. To avoid delays in travel plans, taxpayers need to take prompt action to resolve their tax issues. Here is the official notice (verbatim).

The return, with increasing frequency, of internet domain name fraud, is usually at least accompanied by a form of what the fraudster hopes is a sufficient disclaimer to prevent prosecution. The latest iteration omits even that and resorts to blatant threats. Also, it seems that the criminals have obtained access to the domain sevenresortsnet.com to send mail and to present a landing page for those who click to respond to the demand.

CoNet Section: 

We'ld like to thank Mr Andrea Van for the opportunity to earn 10% of USD125,500,000. His email address, should you want to take him up on his offer, is mabutdengjok@gmail.com. So, not Andrea Van, then. And he's apparently sent from infor@inbox.com which hardly encourages faith in his bona fides and nor does the fact that he's spoofed that address: inbox.com does not authorise his IP address, 165.227.107.154, for sending mail. So, basically, every verifiable "fact" is a lie. And that's before we get onto what he's offering.

The European Union has issued a new blacklist for money laundering. The reaction from those appearing on the list, EU members and even the FATF has been rapid and forceful: the list is not acceptable. But there is more at play, including the imposition of direct control on those conducting business in the EU, by the EU without the filter of national parliaments. This example of federalism is not going down well in several large EU states. Also, the "war on dirty money" is a convenient diversion for governments who want the media to focus on that rather than something else. Also.. it might not happen.

The USA's Office of Foreign Assets Control has reached an agreement with a company from Connecticut over "apparent violations" of US sanctions against Iran.

Hang on... "apparent violations"? And the company has agreed to pay? It's time to abandon the linguistic and legal pussyfooting around.

Publication: 

The flood of sextortion e-mails demanding payment in bitcoin continues. However, while the body of the mails is increasingly standardised, the anti-avoidance methods used by the criminals is mutating, analysis of reports at GlobalKYC.com indicates.

CoNet Section: 

If you were going to launch a pump and dump spam-scam masquerading as legitimate share picks from a regulated stockbroker, you'd want to make sure your mail was at least opened, wouldn't you? So you'd layer one trigger word after another until you found the target's sweet spot and, all the while, you would have to avoid those pesky spam-filters. So you'd use current buzzwords so that the victim dare not ban them for fear of missing out. Want to see how it's done? PS: watch out for suspicious action on the US shares mentioned.

BIScom Subsection: 

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