Weekly Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Europe, Russia and China join forces with a new mechanism to dodge Iran sanctions | CNBC

"In the latest sign of the growing divide between Washington and its allies, the European Union's foreign policy chief announced Monday that the bloc was creating a new payment mechanism to allow countries to transact with Iran while avoiding U.S. sanctions." (Click here for the article) - USA, Russia, China, European Union

China says US trying to force it to submit on trade as new tariffs kick in | Reuters

"The United States and China imposed fresh tariffs on each other’s goods on Monday as the world’s biggest economies showed no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth." (Click here for the article) - USA, China

Novartis links bonuses to ethics in bid to rebuild reputation | GAN Integrity Inc.

"Swiss drug maker Novartis has revealed its employees only get a bonus if they meet or exceed expectations for ethical behavior as it seeks to address past shortcomings that have damaged its reputation." (Click here for the article) - Switzerland, USA, South Korea, China

Japan mulls bilateral trade deal with U.S. | Reuters

"Japan is mulling a bilateral trade agreement with the United States that would lower tariffs on U.S. agriculture imports in exchange for avoiding higher tariffs on Japanese autos, the Nikkei newspaper said on Saturday." (Click here for the article) - Japan, USA

Potential NAFTA collapse poses major risk to Canada | Financial Post

"Canada’s economic growth could be pared by about a quarter next year if the North American Free Trade Agreement collapses, and the drag will be extended if an automobile trade war emerges, according to a new Conference Board forecast." (Click here for the article) - Canada, USA

British inquiry intensifies Danske Bank money laundering scandal | Reuters

"Danske Bank’s money laundering scandal spread on Friday to Britain where the National Crime Agency said it is investigating the use of UK-registered companies." (Click here for the article) - Finland, Denmark, Estonia, Russia, UK

BASF commits to complying with US sanctions on Iran | Politico

"German chemical giant BASF has made a firm commitment to comply with all U.S. sanctions against Iran, becoming the latest in a string of large European companies to back away from ambitious plans to invest in the Islamic Republic following Washington’s withdrawal from the Iran nuclear deal." (Click here for the article) - Germany, Iran, USA

US Sanctions Russia and China-based IT companies for connections to DPRK | WorldECR

"The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has sanctioned a Chinese IT company, its Russian counterpart and its North Korean CEO, targeting revenue repatriated to North Korea (‘DPRK’) through overseas IT workers." (Click here for the article) - Russia, China, North Korea, USA

Weekly Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

US President signs miscellaneous tariff bill - eliminates tariffs | crowell moring

"On September 13, 2018, President Trump signed the Miscellaneous Tariff Bill (MTB) Act of 2018, which temporarily reduces or eliminates import duties on specified raw materials and intermediate products used in manufacturing that are not produced or available domestically." (Click here for the article) - USA

Danske Bank CEO quits over $234 billion money laundering scandal | Reuters

"Danske Bank’s chief executive Thomas Borgen resigned on Wednesday after an investigation revealed payments totaling 200 billion euros ($234 billion) through its small Estonian branch, many of which the bank said were suspicious." (Click here for the article) - Estonia, Russia, Denmark, European Union

U.S.’s Ross says China must decide on trade talks | CNBC

"It is up to Beijing to take the next steps on trade talks, U.S. Commerce Secretary Wilbur Ross said on Tuesday as China vowed to retaliate after U.S. President Donald Trump imposed initial duties on $200 billion worth of Chinese goods." (Click here for the article) - China, USA

US Legislation Gives BIS Greater Powers | WorldECR

"The US Department of Commerce’s Bureau of Industry and Security (‘BIS’) has been given statutory authority under the Export Control Reform Act (‘ECRA’), to control certain exports. The act was signed into law by President Trump on 13 August." (Click here for the article) - USA

Europe Moves to Target Money Laundering in Response to Scandals | WSJ

"Europe threw a one-two punch to fight money laundering on Wednesday, with the European Commission proposing enhanced powers for a regulator and lawmakers passing a package of new rules." (Click here for the article) - European Union

Foreign Bribery Rages Unchecked in over half of Global Trade | Transparency International

"Transparency International’s new report, Exporting Corruption, finds that only 11 major exporting countries - accounting for about a third of world exports - have active or moderate law enforcement against companies bribing abroad in order to gain mining rights, contracts for major construction projects, purchases of planes and other deals." (Click here for the article) - Global

Canada returning to NAFTA talks earlier than expected | CBC

"NAFTA talks are resuming at the decision-maker level sooner than expected, with Canada's foreign affairs minister set to return to Washington on Tuesday." (Click here for the article) - Canada, USA, Mexico

US - South Korea Free Trade Agreement Changes Published

/ Global Compliance Solutions Group LLC/

Details on the changes made to the US - Korea free trade agreement have now been published.(1)  The renegotiated agreement covers areas such as automobiles, customs processes, and investment, as well as the recent US steel and aluminum tariffs.  Some of the key new outcomes include(2):

  • Korea will extend the phase out of the 25% US tariff on trucks until 2041
  • Korea will double the number of US automobile exports, to 50,000 cars per manufacturer per year, that can meet US safety standards and enter the Korean market without further modification
  • US gasoline engine vehicle exports will be able to show compliance with Korea's emission standards using the same tests they conduct to show compliance with US regulations
  • Korea will recognize US standards for auto parts necessary to service US vehicles and reduce labeling burdens for parts
  • Agreement was reached on conducting verification of origin of exports under KORUS

Click here for the document that provides the KORUS text change details.  

References: 

Singapore Makes Changes to their Strategic Goods Control List

/ Global Compliance Solutions Group LLC/

On September 4, 2018 Singapore Customs announced they have modified their Strategic Goods Control List.(1)  The changes, when they come into effect, will bring Singapore's strategic goods control list up to date with the 2017 Wassenaar Arrangement's Munitions List (2), and the 2017 European Union's List of Dual-Use Items.(3)  

The amendments include new controls, removal of controls, and other minor editorial changes.  Singapore Customs published a document with the changes noted in detail.(4)

The changes will become effective on November 1, 2018.

References:

Weekly Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Retaliatory tariffs on US chem exports to China threaten $18Bn in economic harm | ICIS

"The $11Bn worth of tariffs on US chemical exports enacted by China put almost $18Bn in domestic activity at risk along with nearly 55,000 US jobs..." (Click here for the article) - USA, China

New Sanctions Against Russia Have Unfavorable Impact on Defense Sector | BakerHostetler

"the U.S. State Department published new sanctions against Russia based on the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 after determining that the government of Russia had used chemical weapons in violation of international law..." (Click here for the article) - USA, Russia

Trump Rejects EU Offer to Remove Tariffs on Industrial Goods | ST&R Trade Report

"President Trump said Aug. 30 that a European Union offer to remove all tariffs on two-way trade in automobiles and other industrial goods is "not good enough."  (Click here for the article) - USA, European Union

'Urgency' for Asia Pacific mega trade deal | CNBC

"While the administration of U.S. President Donald Trump is considering slapping another $200 billion in tariffs on Chinese goods, 16 economies in Asia Pacific are racing to conclude a mega trade deal that would become the largest trading bloc in the world." (Click here for the article) - 10 ASEAN nations plus China, Japan, South Korea, India, Australia, New Zealand, 

EU lifts five-year old restrictions on solar panels from China | South China Morning Post

"The European Union will end its five-year-old restrictions on solar panel imports from China, officials said on Monday, as Brussels and Beijing increase their own trade cooperation in the face of protectionist steps from the United States." (Click here for the article) - EU, China

Kim struggles to revive North Korean economy battered by sanctions | Nikkei Asian Review

"In the two and a half months since his historic summit with U.S. President Donald Trump, North Korean leader Kim Jong Un has temporarily shelved de-nuclearization talks in favor of inspecting farms and factories to underscore his focus on improving an economy hamstrung by years of sanctions." (Click here for the article) - USA, North Korea, South Korea

Trump reportedly wants to hit China with tariffs on $200Bn worth of goods | Business Insider

"Bloomberg reported Thursday that Trump had told aides that he wants to follow through on a threat to impose tariffs on another $200 billion worth of Chinese goods as early as next week. That would mean more than half of all Chinese imports would be subject to tariffs." (Click here for the article) - USA, China

China may soon regret slapping tariffs on US soybeans | CNN Money

"One of China's major moves in the trade war with the US is in danger of backfiring on its own farmers.  They're facing a potential shortage of soybeans, one of China's biggest imports from the United States, after Beijing slapped a 25% tariff on them last month in retaliation for US tariffs on a swath of Chinese goods." (Click here for the article) - USA, China

Former DP World Manager must pay Dh5 million fine over bribe plot | The National UAE

"A former DP World manager who sought bribes from two companies in exchange for helping them win lucrative construction projects has had her 18-month jail term upheld – and been told she must still pay a fine of nearly Dh5 million." (Click here for the article) - UAE

Wells Fargo bankers fired after falsifying dinner receipts | Fox Business

"Yet another scandal has reportedly broken out at Wells Fargo.  The bank has fired or suspended at least a dozen employees at its investment bank - Wells Fargo Securities - over allegations these individuals doctored after-hours dinner receipts..." (Click here for the article) - USA

An overview of the Danske Bank money laundering scandal | Berlingske Business

"Berlingske has spent more than a year investigating the extensive money laundering at Danske Bank. Here is an overview of the case – with links to the most important articles (some are in Danish)...For years, large and deeply suspicious money flows were channelled unhindered through Danske Bank’s branch in Estonia – in what experts say was in breach of anti-money laundering laws." (Click here for the article) - Denmark, Estonia, Russia

 

US Trade Representative Issues Trade Fact Sheet on US-MX Trade Agreement

/ Global Compliance Solutions Group LLC/

The Office of the United States Trade Representative (USTR) recently published a fact sheet detailing the key components of the recently agreed upon US-Mexico Trade Agreement.  Some of the key changes proposed in the rule include:

  • Auto sector: At least 75% of a vehicle must have been built in either the US or Mexico in order for the vehicle to sell in the US without tariffs.  The original NAFTA agreement only required 62.5%.
  • Intellectual property: The agreement extends US copyright protection into Mexico and strengthens the patent protections in the pharmaceutical and agricultural sectors.  It also addresses digital trade, something that was not covered under NAFTA.
  • Labor and Environmental: The agreement requires companies to "prohibit the importation of goods produced by forced labor, to address violence against workers exercising their labor rights, and to ensure that migrant workers are protected under labor laws.".  It also addresses air quality issues.
  • Duty free limits: The agreement raises the "de minimis" level from $50 to $100 for duty free entry from the US into Mexico for Mexican citizens.  U.S. citizens are allowed to import up to $800 worth of goods duty free.
  • Sunset Clause: The pact, if agreed upon would run for 16 years.  After 6 years both sides would met and decide if they wanted to renew for another 16 years.      

The deal requires approval from the US Congress before it can become law.  The Administration intends to submit the paperwork to get the process started in Congress as early as Friday.  This timeline potentially gives Canada only a week to sign-on to the deal.  

Click here for the full Fact Sheet.  

Key Link(s):

Weekly Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Cyber Crooks Hit British Law Firms, Steal Over 20 million pounds of client money | KYC360

"UK law firms are increasingly coming under attack from cyber criminals, with attacks costing law firms millions..." (Click here for the article) - UK

US State Department Imposes Sanctions on Russia for Use of Chemical Weapons | Baker McKenzie

"On August 24, 2018, the US State Department gave notice of new sanctions on Russia under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (the “CBW Act”) after determining that the Russian Government has used chemical weapons in violation of international law or chemical or biological weapons against its own nationals." (Click here for the article) - USA, Russia

Microsoft Hit With US Bribery Probe Over Deals in Hungary | WSJ

"Microsoft Corp. is being investigated by U.S. authorities over potential bribery and corruption related to software sales in Hungary, according to people familiar with the matter." (Click here for the article) - Hungary, USA

Company expelled from program for abuse, non-compliance | The Fiji Times

"A RENOWNED automotive company in Fiji has been stripped off from the Revenue and Customs’ Gold Card Services Program for abuse and non-compliance to Customs laws on numerous occasions." (Click here for the article) - Fiji

Nearly Half of Responding Organizations Plan to Modernize Compliance in Year Ahead | Corporate Compliance Insights

"Almost half (48.3 percent) of risk and compliance, internal audit, C-suite executive and board professionals plan to modernize their compliance functions by changing core compliance execution practices during the next 12 months, according to a recent Deloitte poll." (Click here for the article) - Global

Treasury blacklists firms, individuals accused of violating North Korean sanctions | WSJ

"Three South Koreans illegally imported North Korean coal and iron via Russia in violation of sanctions, South Korean customs officials said, exposing a crack in the US-led campaign to cut off trade with the Pyongyang regime." (Click here for the article) - North Korea, Russia, USA

SEC Charges Citigroup for Internal Controls Failure | CFO

"Citigroup agreed to an SEC enforcement action on Thursday that charged the bank with inadequate controls that failed to detect “fraudulently-induced” loans made by a Mexican subsidiary. The failure ultimately resulted in $475 million of losses reported by Citigroup.." (Click here for the article) - Mexico, USA

Oil giant Total has pulled out of Iran and giant gas project | CNBC

"French oil giant Total has officially left Iran and abandoned its deal to develop a giant natural gas field in the country, Iran's oil minister reportedly told state television Monday, leaving the isolated republic to look for a replacement." (Click here for the article) - France, Iran, USA

UK Government to publish no-deal Brexit advice | BBC News

"Three South Koreans illegally imported North Korean coal and iron via Russia in violation of sanctions, South Korean customs officials said, exposing a crack in the US-led campaign to cut off trade with the Pyongyang regime." (Click here for the article) - UK, EU

Freight forwarding and logistics firms to withdraw from business with Iran

/ Global Compliance Solutions Group LLC/

According to Lloyd's Loading List, some logistics service providers have decided to halt business in Iran as a result of the re-imposition of US sanctions.  Others are taking a wait and see approach.  In addition, several major container lines such as CMA, CGM, Maersk, and MSC have withdrawn from Iran.(2)  

"Thomas Cullen, a senior analyst at logistics consulting firm Transport Intelligence, said the re-imposition of US sanctions “seems likely to be at least as brutal as the sanctions pursued for the decade prior to the JCPOA, with the US now pressing for Iran to be excluded from the SWIFT banking transaction system”."(1)

Cullen noted: “With the announcement last week that Renault was ceasing operations, something that Peugeot-Citroen decided last month, the CKD related container traffic will fall heavily. Possibly the Chinese VMs may increase inputs to compensate, but they are much weaker in this market.”(1)

Cullen added: “The leading western container lines have effectively withdrawn from services into Iran, presumably leaving shippers to arrange their own feeder services from Dubai. Once again, the Chinese carriers may be the only option.”(1)

References:

Changes to U.S. In-Bond Process - Now in Effect

/ Global Compliance Solutions Group LLC/

On September, 28, 2017 the U.S. Customs and Border Protection (CBP) published a final rule(1) implementing changes to the In-Bond Process.  The final rule adopts, with changes, proposed amendments originally published on February 22, 2012.  

The in-bond process allows imported merchandise to be entered into the U.S. at one port of entry without payment of duties and then transported by a bonded carrier to another U.S. port of entry.  The merchandise is then either entered or exported.  

The changes to the rule will enhance CBP's ability to track in-bond merchandise and ensure it is properly entered or exported.  The rule became effective on November 27, 2017 but several key changes did not become effective until 2018.  Key changes include:

July 2, 2018

  • All in-bond move requests, by a carrier, must be filed electronically.  The paper 7512 form for truck shipments traveling through the US from Canada is eliminated. 

August 6, 2018

  • Carriers are required to electronically report the arrival and location of the in-bond merchandise within 48 hours of arrival at the port of destination or port of exportation;
  • Carriers are required to electronically report the export of the in-bond merchandise within 48 hours of export; and
  • Carriers are required to electronically request and receive permission from CBP before diverting in-bond merchandise from its intended destination port to another port.

Definitions:

  • Bonded Carrier - a carrier of merchandise whose bond under 113.63 of this title is obligated for the transportation and delivery of merchandise.(1)

References:

Indian Customs makes key arrival and departure manifest changes

/

On May 11, 2018, India's Central Board of Indirect Taxes and Customs (CBIT) released a notification(1), that outlines new sea cargo manifest and transshipment regulations. 

The new requirements require shipping lines to comply with the timelines and requirements of the cargo manifestation for exports from India and imports arriving in India.  The changes include:

  • Delivery of an Arrival Manifest - all authorised sea carriers carrying imported goods, export goods, or coastal goods, are required to file an electronic (unless it's not possible to file electronically) arrival manifest with Indian Customs prior to the vessel's departure from the last port of call before arriving in India; and
  • Delivery of a Departure Manifest - all authorised sea carriers carrying imported goods, export goods, coastal goods or goods meant for foreign transit or foreign transshipment, are required to file an electronic (unless it's not possible to file electronically) departure manifest Indian Customs prior to the vessel's departure from the Indian port. 

The effective date of the new regulations was August 1, 2018. 

Definitions:

  • Arrival Manifest - means an integrated declaration required to be delivered by an authorised carrier on arrival of the vessel or train or truck carrying imported goods, export goods and coastal goods.(1)  
  • Authorised carrier - means an authorised sea carrier, authorised train operator, shipping line or custodian registered under regulation 3.(1)
  • Authorised sea carrier - means the master of the vessel carrying imported goods, export goods and coastal goods or his agent.(1)
  • Coastal goods transited through a designated foreign route - means (i) coastal goods transported between an Indian port on east coast and another Indian port on west coast or vice versa, by a vessel through the territorial waters of Sri Lanka, whether or not calling any port in Sri Lanka in between and without change of vessel; and (ii) coastal goods transported between an Indian port on east coast and a river port in India or vice versa, by a vessel through a route passing through the Bangladeshi waters and without change of vessel.(1)
  • Departure Manifest - means integrated declaration required to be delivered by an authorised carrier before departure of a vessel or train or truck for imported goods, export goods and coastal goods.(1)

References:

Weekly Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Sanctions Busters Smuggled North Korean Coal, Iron to the South via Russia | WSJ

"Three South Koreans illegally imported North Korean coal and iron via Russia in violation of sanctions, South Korean customs officials said, exposing a crack in the US-led campaign to cut off trade with the Pyongyang regime." (Click here for the article) - North Korea, South Korea, Russia, USA

Iran Sanctions Wind-Down Period Ends and New Iran Executive Order | Baker McKenzie

"In conjunction with the New Iran EO, the US Treasury Department's Office of Foreign Assets Control issued extensive new guidance on the New Iran EO..." (Click here for the article) - Iran, USA, European Union

FIFA eliminates "corruption" from Code of Ethics | NBC Sports

"FIFA eliminated the word "corruption" from its revised code of ethics during "secret meetings"..." (Click here for the article) - Global

Petrobras recovers $274 million from corruption scandal | Yahoo News

"Brazil's state-owned oil major Petrobras said Thursday that it has recovered 1.034 billion reais ($274 million) in funds embezzled during a giant corruption scandal that badly damaged the company and upended Brazilian politics." (Click here for the article) - Brazil

Customs of Ukraine and Serbia will work together to fight corruption | The Bobr Times

"Ukraine and Serbia signed a document that concerns data interchange between the customs authorities of the two countries and should increase the efficiency of the fight against corruption." (Click here for the article) - Serbia, Ukraine

The Long-Term Impact of Brexit on the European Union | Seeking Alpha

"When the United Kingdom leaves the European Union, higher barriers to trade, capital flows, and labor mobility will affect output and jobs not only in the UK but also in the remaining 27 EU member states." (Click here for the article) - UK, European Union

There's a good chance to reach a NAFTA deal this month | BDP International

"The U.S., Mexico and Canada have a good opportunity to reach a NAFTA agreement this month, and getting there will depend on the political flexibility of the Trump administration, according to the top representative for Mexico's private sector." (Click here for the article) - Mexico, Canada, USA

US, China to resume Trade Talks as Tariffs Bite | WSJ

"The US and China reached a modest breakthrough in their trade dispute, saying they would hold lower-level talks later this month on the spiraling dispute." (Click here for the article) - China, USA

Venezuelan President implicated in US investigation of money laundering | Malta Independent

"Venezuelan President Nicolas Maduro has been implicated in an American investigation for having laundered some 160 million euros through an unnamed Maltese private investment firm..." (Click here for the article) - Malta, Venezuela, USA

Weekly Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

An illusion of choice: the conflicts that mire the audit world | Financial Times

"Most listed companies in Britain and the US use one of the Big Four auditing firms.  No fewer than 98 percent of FTSE 350 consituents have their books vetted by one of KPMG, EY, Deloitte or PwC...Conflicts are often hidden discreetly beneath the surface." (Click here for the article) - Global

Deutsche Bank reports show chinks in money laundering armor | Reuters

"Most listed companies in Britain and the US use one of the Big Four auditing firms.  No fewer than 98 percent of FTSE 350 consituents have their books vetted by one of KPMG, EY, Deloitte or PwC...Conflicts are often hidden discreetly beneath the surface." (Click here for the article) - Germany, European Union, Russia, Ireland, Spain, Italy, South Africa

US unveils next round of Chinese imports to face tariffs | BDP International

"The Trump administration on Tuesday unveiled a list of roughly $16 billion worth of imports from China that will be hit with 25% tariffs." (Click here for the article) - China, USA

US guidance on trade sanctions being reimposed on Iran | KPMG

"The US Treasury Department's Office of Foreign Assets Control today announced the following guidance concerning an executive order reimposing sanctions with respect to Iran..." (Click here for the article) - Iran, USA

Fourth Circuit Agrees with Walmart on Privilege Issue Relevant to FCPA Inquiry | FCPA Professor

"Walmart and the government seem to be at an impasse regarding resolution of Walmar'ts FCPA scrutiny first disclosed in late 2011...In late June 2018 the Fourth Circuit, in this decision, agreed with Walmart's position." (Click here for the article) - USA

US slaps export controls on dozens of Chinese firms over threat to national security | South China Morning Post

"Washington has slapped restrictions on dozens of key Chinese companies - including state-owned developers of military-use technologies such as air defence and satellite systems - for reasons of national security." (Click here for the article) - China, USA

 

Saturday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Are CEOs Less Ethical Than in the Past? | Strategy + Business

"The job of a CEO at a large publicly held company may seem to be quite comfortable - high pay, excellent benefits, elevated social status, and access to private jets.  But the comfortable perch is increasingly becoming a hot seat, especially when CEOs and their employees cross red lines." (Click here for the article) - Global

What if BREXIT Happened Without an Exit Deal? | Stratfor

"Negotiators for the UK and the EU are racing the clock to reach agreements on a long list of remaining issues before the UK formally leaves the bloc..." (Click here for the article) - UK, European Union

Texas jury indicts Arkema, two executives over chemical releases | Reuters

"A Texas grand jury on Friday indicted chemicals manufacturer Arkema North America and two of its executives for releasing emissions that allegedly endangered the public after a 2017 hurricane." (Click here for the article) - USA

OFAC Sanctions Russian Bank for Moving North Korean Cash | RegTech Post

"The Office of Foreign Assets Control has named Russia's Commercial Bank Agrosoyuz as a Specially Designated National, for moving funds for a DPRK bank, and for two front companies acting for the North Korean Government." (Click here for the article) - Russia, North Korea, USA

US elevates India to most-important allies list  | The Economic Times

"In a big boost to India, the US has eased the export restrictions for high-technology product sales to India by designating it as a Strategic Trade Authorization-1 country, the only South Asian nation to be on the 36 countries list." (Click here for the article) - India, USA

EU Privacy Becomes Excuse to Withhold in US Bribery Probes | Bloomberg Law

"Companies are improperly using the European Union's fairly new privacy standards as the scapegoat for why they can't disclose documents to the US government during foreign bribery investigations..." (Click here for the article) - European Union, USA

CNPC refutes subsidiary's role in 1MDB money-laundering scandal | South China Morning Post

"China Petroleum Pipeline Engineering, a unit of China's state-owned oil and gas giant China National Petroleum Corp, had refuted a media report that money paid for its pipeline projects in Malaysia was diverted to third-party Cayman Islands companies involved in money laundering." (Click here for the article) - China, Malaysia, Cayman Islands, UAE

Wednesday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Wednesday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Texas Instruments CEO Resigns after Code of Conduct Violations | WSJ

"Texas Instruments Inc.'s Chief Executive Brian Crutcher has resigned over violations of the company's code of conduct..." (Click here for the article) - USA

US Tariffs are taxing for the whole world, not just China | South China Morning Post

"The United States' unilateral imposition of 25 per cent tariffs on Chinese products worth US$34 billion damages the global economy in the short term, and strategically threatens the economic well-being of numerous other countries." (Click here for the article) - China, USA

Japan's first corporate plea deal resolves overseas bribery case | The FCPA Blog

"Prosecutors in Tokyo used a plea bargain to resolve an overseas bribery case with a power plant maker under a new law adopted in June..." (Click here for the article) - Japan, Thailand

Lativia's Corruption Scandal is Getting Even Weirder | Bloomberg

"It's central bank chief has been charged with bribery.  A lawyer liquidating the bank that was accused of bribing him was killed in a hail of machine-gun fire.  And one of the banks' biggest lenders was shut down after U.S. allegations of money laundering and violations of sanctions on North Korea." (Click here for the article) - Latvia, USA, North Korea, Russia, Luxembourg, EU

Terrorists slipping through net thanks to anti-money laundering unit delays | Handelsblatt Global

"The Financial Intelligence Unit is overworked and understaffed, say police and prosecutors.  Staff only pass on tips six months after crimes are committed..." (Click here for the article) - Germany

OFAC Issues Global Magnitsky Sanctions Regulations

/ Global Compliance Solutions Group LLC/

On June 29, 2018 the Department of the Treasury's Office of Foreign Assets Control (OFAC) published a final rule (83 FR 30541-30548) that implements the Global Magnitsky Human Rights Accountability Act (the "Act") and Presidential Executive Order 13818 (the "EO").  

The Act authorizes the US President to impose sanctions on any foreign person determined to be responsible for extrajudicial killings, torture, or other gross violations of human rights, or a government official that is responsible for, complicit in, ordering, controlling, or otherwise directing acts of significant corruption.  The EO declared a national emergency to deal with the threat of serious human rights abuse and corruption around the world.  

The published regulations prohibit all transactions previously prohibited under the EO.

The rule is effective as of June 29, 2018.

Contact the experts at GCSG for more information.

E info@globalcompliancesg.com

References:

Wednesday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Wednesday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

India, South Korea sign agreements on trade and commerce | India Times

"India and South Korea will reduce duties on 11 tariff lines in a bid to expand bilateral trade..." (Click here for the article) - India, South Korea

HMRC doubles fines for breaking money laundering rules | Financial Times

"The UK tax authority almost doubled the fines it handed down for violations of money-laundering rules in the latest financial year..." (Click here for the article) - UK

Iran calls for EU help as shipping giant pulls out for fear of US sanctions | KYC360

"One of the world's biggest cargo shippers announced on Saturday it was pulling out of Iran for fear of becoming entangled in U.S. sanctions..." (Click here for the article) - EU, Britain, France, Germany, China, Russia, Iran, USA

China Implements New Tariffs on US Products | CNBC

"China immediately slapped retaliatory tariffs on US imports on Friday after the US imposed duties on $34 billion worth of Chinese products..." (Click here for the article) - China, USA

Pakistan's Former Prime Minister Found Guilty of Corruption | WSJ

"A Pakistani court found former Prime Minister Nawaz Sharif guilty of corruption in a verdict that will likely affect the country's election..." (Click here for the article) - Pakistan

US SEC Charges Credit Suisse with FCPA Violations | Securities and Exchange Commission Press Release

"The SEC today announced that Credit Suisse Group AG will pay approximately $30 million to resolve SEC charges that it obtained investment banking business in the Asia-Pacific region by corruptly influencing foreign officials in violation of the FCPA..." (Click here for the article) - Pakistan

OFAC Amends the Iranian Transactions and Sanctions Regulations

/ Global Compliance Solutions Group LLC/

On Thursday, June 28 the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) amended (1) the Iranian Transactions and Sanctions Regulations (2) in order to implement the President's May 8, 2018 decision (3) to end U.S. participation in the Joint Comprehensive Plan of Action (JCPOA).  The changes include, but are not limited to:

  • Amending the general licenses authorizing the importation into the US (4) of and dealings in, Iranian-origin carpets and foodstuffs, as well as related letters of credit and brokering services, to narrow the scope of the licenses and to allow for the wind down of these activities through August 6, 2018;
  • Adding a new general license to authorize the wind down, through August 6, 2018, of transactions related to the negotiation of contingent contracts for activities, previously approved under General License I (5), related to the export or re-export to Iran of commercial passenger aircraft and related parts and services; and 
  • Adding a new general license (6) to authorize the wind down, through November 4, 2018 of certain transactions, previously approved under General License H (7), related to foreign entities owned or controlled by a US Person (8).
    • Non-US entities that are owned or controlled by a US Person are still subject to the restrictions on US Person involvement during the wind down period (9).  

For more information contact your GCSG experts.

E  info@globalcompliancesg.com

References:

Tuesday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Tuesday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

European firms are increasingly tackling the scourge of bribery | The Economist

"Governments in Europe are catching up with America in pursuing corporate graft...A spate of scandals in Europe suggest that prosecutors, as well as the politicians who influence how much freedom judicial investigators enjoy, are becoming ever less tolerant of corporate corruption" (Click here for the article) - Europe, USA

Fraud biggest business risk to Middle East Businesses  | Gulf Digital News

"48% of Middle East businesses cited fraud and corruption as the greatest risk to their company, followed by cyber attacks (38%)..." (Click here for the article) - Middle East

Vietnam arrests oil refinery executives amid corruption crackdown  | Reuters

"Police in Vietnam arrested the chairman and the chief accountant of Binh Son Refining and Petrochemical Co. Ltd. on suspicion of embezzlement..." (Click here for the article) - Vietnam

UK Data Protection Act 2018  | Cordery Compliance

"The UK's new data protection legislation, the Data Protection Act 2018 (DPA 2018) received the Royal Assent..." (Click here for the article) - UK, Europe

Serious Fraud Office charges against Barclays dismissed  | Independent

"A court has dismissed charges brought by the Serious Fraud Office against Barclays relating to capital raisings that took place in 2008." (Click here for the article) - UK, Europe

 

 

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Malaysia proposes amendments to Anti-Corruption Act | GCSG

"On March 26, 2018 the Malaysian Anti-Corruption Commission Amendment Bill 2018 passed its first reading.  The amendments propose several changes to the Malaysian Anti-Corruption Commission Act of 2009." (Click here for the article) - Malaysia

EU Targets US Products in Retaliation of US Section 232 Tariffs | SIDLEY

"The EU has published its response to the US section 232 tariffs on EU steel and aluminum products." (Click here for the article) - USA, European Union

Europe faces limited options on US threat on Iran sanctions | Financial Times

"The EU faces a tough call on whether to hit back against a US squeeze on European companies' dealings with Iran - but history offers the bloc only small comfort that it can prevail." (Click here for the article) - USA, European Union

Russia Remains Chief Sanctions Risk for Companies, Banks | WSJ

"The risk of breaching Russian sanctions remains a top concern for European banks, corporations and wealthy individuals despite market tensions surrounding the US withdrawal from the Iran deal..." (Click here for the article) - USA, European Union, Russia

Novartis investigating $85 million bribery allegations in Turkey | Reuters

"An anonymous whistleblower has accused Swiss drugmaker Novartis of paying bribes in Turkey through a consulting firm to secure business advantages worth an estimated $85 million..." (Click here for the article) - USA, Turkey, UK, Switzerland

 

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

US considers tightening grip on China ties to Corporate America | CNBC

"The US government may start scrutinizing informal partnerships between American and Chinese companies in the field of artificial intelligence..." (Click here for the article) - USA, China

Laundering Scandal Exposes European Rift on Policing Banks | Bloomberg

"Europe is struggling to agree on how to tackle money laundering in the wake of high-profile scandals in the Baltic region." (Click here for the article) - EU, Latvia, Germany

Panasonic to Pay $280MM to End U.S. Corruption Probe | Bloomberg

"Panasonic Corp. will pay about $280 million to resolve U.S. allegations that executives at its in-flight-entertainment unit improperly hid payments to consultants in the Middle East and Asia, some did little or no work for the company." (Click here for the article) - Middle East, Asia, USA

New Customs Agreement between the EU and New Zealand | EU Commission News

"A new customs agreement between the EU and New Zealand will officially enter force on 1 May." (Click here for the article) - EU, New Zealand

EU considers using algorithms to detect anti-competitive acts | Reuters

"EU regulators may set up their own algorithms to find companies that use software to fix prices with peers or squeeze out their rivals..." (Click here for the article) - EU

Corruption at (Philippines) Customs now on lesser scale | Manila Bulletin

"EU regulators may set up their own algorithms to find companies that use software to fix prices with peers or squeeze out their rivals..." (Click here for the article) - Philippines