Episode 141

20th January – 26th January 2025

Sanctions

The sanctions news this week starts and ends in the US, where the Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has sanctioned Yin Kecheng, ‘a Shanghai-based cyber actor who was involved with the recent Department of the Treasury network compromise’ and Sichuan Juxinhe Network Technology Co Ltd, ‘a Sichuan-based cybersecurity company with direct involvement in the Salt Typhoon cyber group, which recently compromised the network infrastructure of multiple major U.S. telecommunication and internet service provider companies’. Secondly, it also sanctioned ‘five individuals and one entity that facilitate Republika Srpska President Milorad Dodik and his family’s efforts to enrich themselves at the public’s expense’. The action also targeted ‘eight individuals who, at Dodik’s direction, organized and executed the commemoration of “Republika Srpska Day” in January 2024, in contravention to the principles of the Dayton Peace Agreement and which the Bosnia and Herzegovina Constitutional Court ruled unconstitutional.’ Finally, OFAC also sanctioned the ‘Yemen-based Yemen Kuwait Bank for Trade and Investment Y.S.C for its financial support to Ansarallah, commonly known as the Houthis.’

Finally, on sanctions this week, one of the early acts of President Trump was the signing of a slew of Executive Orders, one of which revoked an earlier order of President Biden designating certain settlers in the West Bank concerned in human rights abuses.

Bribery and corruption

On bribery and corruption news this week, in Namibia, the European Union Delegation to Namibia, the United Nations Development Programme, and the Namibian government ‘held an official signing ceremony to inaugurate the “Good Governance” programme. This initiative aims to enhance transparency, accountability, and sustainable development in Namibia. The programme will span 40 months, from 2025 to 2028, and is a vital component of the bilateral cooperation portfolio between the Republic of Namibia and the European Union.’

Money Laundering

On money laundering news this week, the Crown Prosecution Service in the UK has obtained a confiscation order requiring three ‘convicted money launderers, responsible for illegally obtaining Australian dollars and laundering them through cryptocurrency,… to pay a total of £23,629,031….’

And finally on money laundering this week, the Financial Conduct Authority in the UK has announced, following review, that ‘wholesale brokers need to enhance their systems, controls, risk awareness and training to guard against money laundering.’

Market Abuse

The market abuse news this week comes from Norway, where the Financial Services Supervisor (‘Finanstilsynet’) has issued Danske Bank with a kr50m (€4.2m) fine for market manipulation in relation to the issuance of Norwegian government bonds in February 2023.

Other Financial Crime News

In other financial crime news this week, the focus is on recovery of assets. First, in the UK, the Serious Fraud Office has secured its first ‘Unexplained Wealth Order (UWO), as it seeks to recover a Lake District property believed to have been purchased with the proceeds of a £100 million fraud. The property is valued at around £1.5 million and is owned by Claire Schools, the ex-wife of the convicted solicitor Timothy Schools, who was sentenced to 14 years in prison in 2022. The SFO successfully secured an order today to freeze the property to ensure that, if sold, the proceeds are secured. Ms Schools has also been ordered to produce information about how the property was obtained within 28 days. The SFO may use this information to bring a case to seize the house at a later date.’ A commentary on the case by global law firm, White and Case, can be found here.

In Europe, Europol has hosted experts from around the world ‘to participate in Project A.S.S.E.T. (Asset Search & Seize Enforcement Taskforce), a unique initiative aimed at enhancing the number of criminal assets seized globally. In total, 43 law enforcement agencies from 28 countries joined the operation, as well as authorities from international organisations, including Eurojust and Interpol.’

Finally on other financial crime news this week, the US Department of Justice has published information on its focus for promoting corporate criminal accountability for 2021 – 2025.

Cyber Crime

On cybercrime news this week, in the US, the ‘the Department of Energy Office of Cybersecurity, Energy Security, & Emergency Response has published a draft Interim Implementation Guidance that will assist states, utilities, and other distribution system owners and operators in adopting the Cybersecurity Baselines to further strengthen industry’s defense against cyber-attacks targeting critical infrastructure.’

And finally on cybercrime news this week, global law firm, Pinsent Masons, is hosting its Annual Cyber Report Recap covering: ‘an analysis of the matters the team has handled during the previous 12 months; third party risk: the ongoing challenges and exposures for businesses; and, the global cyber regulatory landscape.’ Registration is required for this online event taking place on 4th February 2025, 0830 – 0930 (GMT).