Episode 248

8th May – 10th May 2026

Sanctions

US Expands Sanctions Targeting Foreign Corruption and Military Enterprises in Iraq and Cuba

The United States government has announced a series of new economic sanctions targeting specific officials and entities in Iraq and Cuba. These measures, led by the Department of the Treasury and the Department of State, are intended to address national security threats, financial corruption, and the illicit movement of assets.

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action against individuals and businesses accused of exploiting Iraq’s oil sector to benefit the Iranian regime. A primary target of this action is Ali Maarij Al-Bahadly, Iraq's Deputy Minister of Oil. According to the Treasury, Al-Bahadly abused his position to facilitate the diversion of oil to be sold for the benefit of Iran and its proxy militias.

In addition to Al-Bahadly, the US designated several leaders and companies associated with Iran-aligned militias: Mustafa Hashim Lazim Al-Behadili, an economic official for the militia Asa'ib Ahl Al-Haq, was designated along with four Iraqi oil sector companies he owns or controls. Senior officials from Kata'ib Sayyid al-Shuhada, including Ahmed Khudair Maksus Maksus and Mohammed Issa Kadhim al-Shuwaili, were also sanctioned for their roles within the militia and for collaborating on weapons purchases.

These actions are part of the broader "Economic Fury" campaign, which aims to disrupt Iran's ability to generate and repatriate funds through shadow banking and oil revenue.

Simultaneously, the Administration imposed sanctions on Cuban actors under Executive Order 14404, citing a comprehensive campaign to address security threats and repression. The designations focus on the Grupo de Administracion Empresarial S.A. (GAESA), a military-controlled umbrella enterprise estimated to control at least 40 percent of the Cuban economy.

The State Department also designated Ania Guillermina Lastres Morera, the Executive President of GAESA, for her role in managing the enterprise's international assets and Moa Nickel SA, a joint venture in the metals and mining sector. The administration stated these sanctions are designed to deprive the Cuban regime of access to illicit assets and to hold accountable those providing material or financial support to the government.

As a result of these designations, all property and interests in property of the identified persons and entities which are in the United States or under the control of US persons are blocked. Generally, US persons are prohibited from engaging in transactions involving the property of these blocked individuals unless authorised by OFAC.

Foreign financial institutions and non-US persons are also warned that engaging in significant transactions with the sanctioned parties could expose them to secondary sanctions or other enforcement actions. The US government noted that the ultimate objective of these sanctions is to foster a positive change in behaviour by the targeted actors.

Fraud

One in Eight UK Workers Admit Selling Company Logins as Insider Threat Attitudes Shift, Cifas Warns

A new Cifas study has revealed a sharp rise in the normalisation of insider‑enabled fraud, with one in eight employees (13%) admitting they have sold their company login details to a former colleague or know someone who has done so in the past year. The organisation warns that this growing acceptance of credential sharing is creating a significant vulnerability for businesses, offering criminals a trusted route into internal systems and increasing exposure to cyber and financial crime.

The Workplace Fraud Trends report also found that 13% of respondents believe selling access to company systems is “justifiable”, a view held by nearly a third of senior managers (32%) and more than a third of directors (36%). Among C‑suite executives, acceptance rose to 43%, while business owners were the outliers, with 81% saying the behaviour was justifiable.

With World Password Day on 7th May, Cifas says the findings highlight the need for stronger access governance, clearer organisational expectations, and regular fraud‑awareness training to counter complacency around internal controls. Cifas Director of Learning Rachael Tiffen warned that selling login details “can open the door to serious fraud and financial harm” and stressed the importance of building fraud‑aware cultures across all levels of an organisation. ACAMS’ Joby Carpenter added that the trend shows insider risk is becoming normalised in some workplaces, demonstrating the need for proportionate controls and targeted training.

Bribery and Corruption

GRECO Closes Slovenia Anti‑Corruption Review After Major Progress, but Gaps Remain

The Council of Europe’s anti‑corruption body GRECO has closed its fifth evaluation round on Slovenia, concluding that the country has satisfactorily implemented 12 of 15 recommendations aimed at reducing corruption risks in senior government roles and law‑enforcement agencies. All police‑related recommendations have been fully met, reflecting strengthened integrity and oversight within the force. Progress has also been made in government transparency and lobbying rules, though GRECO notes that key measures, particularly around financial disclosure, asset‑declaration checks, and conflict‑of‑interest safeguards, remain only partly implemented. Slovenia is encouraged to complete these reforms and improve verification systems fully to meet the remaining standards.

ICPC Boosts Internal Integrity with Asset‑Declaration Drive for Imo Officers

Nigeria’s Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a targeted sensitisation programme in Imo State to strengthen internal accountability by ensuring its own officers fully comply with constitutional asset‑declaration rules. Working with the Code of Conduct Bureau, the initiative reinforces the requirement for all public servants to declare assets and liabilities every four years and reflects the Commission’s message that anti‑corruption efforts must begin from within. ICPC leadership stressed that officers enforcing integrity standards must themselves be beyond reproach, while CCB officials guided staff through accurate disclosure procedures and addressed common compliance questions. The session highlighted ICPC’s commitment to transparency, positioning internal discipline and openness as essential foundations for credible nationwide anti‑corruption enforcement.

IMF Completes Governance and Corruption Diagnostic Mission as Nepal Pursues Major Reform Drive

An IMF team has concluded a comprehensive Governance and Corruption Diagnostic mission in Nepal, conducted from 20th April to 6th May 2026, at the government’s request, to identify macro‑critical governance weaknesses and corruption vulnerabilities across key state functions. The mission, which is part of Nepal’s broader reform agenda under its Extended Credit Facility, engaged extensively with government bodies, oversight institutions, civil society, and the private sector to assess challenges in public financial management, revenue administration, financial sector oversight, anti‑money‑laundering systems, and the rule of law. With a newly elected majority government providing a strong reform mandate, the IMF says Nepal has a unique opportunity to advance a transformative governance agenda aimed at strengthening accountability, transparency, and inclusive growth. A draft report with sequenced reform recommendations will be shared with authorities in the coming months before publication with their consent.

Market Abuse

SEC Charges 21 People in Alleged Global Insider‑Trading Network

The US Securities and Exchange Commission has charged 21 individuals in what it describes as a decade‑long, wide‑reaching insider‑trading scheme built on confidential deal information stolen from multiple global law firms. According to the complaint, Los Angeles M&A attorney Nicolo Nourafchan and partner Robert Yadgarov allegedly misappropriated non‑public details on more than a dozen corporate transactions between 2018 and 2024, tipping traders who kicked back profits or passed the information further down the chain. The SEC says the pair also recruited another corporate lawyer to supply additional deal intelligence. Civil charges have been filed in federal court in Massachusetts, and all defendants also face parallel criminal charges announced by the US Attorney’s Office, with assistance from regulators in the US, Europe, Africa, and Asia. There were 30 in total, as identified by the Department of Justice, but nine are unnamed in the press release. The SEC named 21 people because its civil case targets only the traders and tippers it can directly tie to securities‑law violations, while the DOJ’s broader criminal indictments include additional defendants charged with related crimes such as obstruction, false statements, and money laundering.

Deutsche Bank Rejects Ex‑Trader’s Claim It Trained Staff in Illegal ‘Spoofing’ Tactics

Deutsche Bank has firmly denied allegations that it trained employees to use unlawful market‑manipulation techniques, after former London‑based commodities trader James Vorley launched a £12m High Court claim asserting he was taught an illegal strategy which later led to his US conviction. The bank said it “rejects the claim” and maintains it had a clear market‑conduct policy warning staff that manipulation was both illegal and against internal rules. Vorley, who was found guilty of wire fraud in the US in 2020 for “spoofing” in precious‑metals futures trading between 2008 and 2013, argues he was directed by senior colleagues to trade in a way which exposed him to criminal liability without his knowledge. His lawyers claim the bank failed in its duty of care by not training him to avoid strategies which could amount to manipulation. Deutsche counters that Vorley received appropriate training and “knew or ought to have known” he should not commit fraud, adding that any improper techniques shown by senior staff were informal, not endorsed, and unknown to the bank. The case adds to a series of legal challenges facing the lender, which has paid more than €15bn in fines and settlements since 2012.

Cybercrime

WEF Warns “Target‑Rich, Cyber‑Poor” Sectors Face Rising Attacks Without Urgent Investment in Resilience

The World Economic Forum is warning that cyberattacks are accelerating against “target‑rich, cyber‑poor” sectors such as healthcare, education and NGOs, where limited budgets, outdated systems and high‑stakes services make disruption especially damaging. The Forum’s latest analysis shows cyber inequity widening, with more than half of NGOs lacking basic security resources and healthcare reporting the highest number of incidents across critical infrastructure. Recent attacks on hospitals in Delhi and an early‑years education provider in the UK highlight how ransomware and data breaches can halt essential services and expose sensitive information. The report argues that closing the resilience gap will require coordinated action, namely by combining AI‑enabled detection tools, capacity‑building, and public‑private partnerships, in order to ensure vulnerable sectors can defend themselves as threats grow more sophisticated.

Australian universities move to reassure students after massive global Canvas data breach

A major breach of Instructure’s Canvas learning management system has exposed identifying information for what the ShinyHunters extortion group claims are 275 million students, teachers and staff worldwide, prompting Australian universities and TAFEs to assess their exposure and warn users about likely phishing attempts. Institutions including UTS, RMIT, the University of Adelaide and others say systems remain operational and that no passwords or financial data appear compromised, but they are working with the vendor to confirm impacts and advise vigilance as investigations continue.