E-Gold, Limited, an affiliated digital currency company, Gold & Silver Reserve, Inc., and their three principals, have been indicted in US District Court in Washington on money laundering and unlicensed money transmitting business charges. E-Gold, an alternative payment system allegedly backed by three tonnes of gold bars, allowed users to enroll without any customer identification, and to freely transfer their wealth, convertible to and from currency, on a global basis. The firm's services were allegedly used by investment fraudsters, in credit card scams, by identity fraudsters, and to facilitate sales of child pornography.

Last Friday, 27 October, the United Nations Security Council lifted its six-year ban on the export of "blood diamonds" from Liberia that was intended to halt the illicit sales, which have funded several wars in West Africa. Liberia, whose successive civil wars were in large part funded by the sale of precious gems illegally acquired by rebel groups who controlled the diamond-producing regions, is stabilised, and has now been accepted by the international community once again as a lawful diamond exporting nation. On 26 April, 2007, Liberia accepted the Kimberly Process Certification Scheme, whereby the origin of each gem is documented as being from sources free from armed conflict.

In our last segment reviewing the Macau government-sponsored audit of Banco Delta Asia, we compare the major FinCEN charges with the findings of fact and conclusions of the independent auditors. There are, save the counterfeit US currency issue, few surprises. What is important is the absolute lack of even the basic minimum documentation held by BDA on its North Korean customers. The lack of any meaningful due diligence constitutes compliance malpractice, in our humble opinion, and we await the judgment of Macau regulators on fines and penalties. Anyway, on with the allegations.

The leaders of the United States and Japan have mutually threatened the Democratic Peoples Republic of Korea, North Korea, with new sanctions unless it shuts down its main nuclear facility, a requirement that the DPRK failed to comply with on schedule two weeks ago. North Korea has argued that it will not act until it has access to the funds frozen in its accounts at Banco Delta Asia. Whatever its excuse, the US may now levy new sanctions.

One of the most important issues FinCEN pointed to in its allegations of Banco Delta Asia money laundering was movement of funds. Several of the indicia, or red flags, of money laundering pointed out by FinCEN involved this topic. Today we will see what the auditors concluded, what the bank's response was, and my own opinion of the facts, taken my viewpoint as a former money launderer examining the techniques exposed by the auditors. Are the BDA responses adequate? You be the judge.

Saudi Arabia's anti-terrorism campaign this past week, which resulted in the arrest of 172 reputed Islamic terrorists, and allegedly terminated a plot to attack Saudi oil refineries by air, also resulted in major seizures. Assault rifles. handguns, explosives, ammunition and $5.3m in currency were confiscated by Saudi police. Where did this cash come from, and what organisations were the sources of this terrorist capital? This issue seems to have been overlooked in the publicity surrounding the rounding up of extremists, who allegedly planned to attack public figures and military targets.

the government of Austria has instituted administrative proceedings against the country's fifth-largest bank, now owned by American interests, for seeking to close accounts prohibited under US law. BAWAG P.S.K., formerly known as Bank Fuer Arbeit und Wirtschaft AG, which was purchased late last year by an American organisation, served notice upon approximately 100 Cuban clients that it could no longer accept them as bank customers. The bank faces a possible fine of 73,000 Euros. Will this incident result in reputational damage?

United States authorities have announced that they captured Abd Al-Hadi Al-Iraqi, a senior Al-Qaeda leader reportedly close to Osama Bin Ladin, when he attempted to enter Iraq. Al-Hadi commanded A-Q operations in Pakistan, and was believed to be a member of the Shura umbrella organisation. It has been reported that Al-Hadi was captured in October 2006,. but this has not been verified.

The Federal Bureau of Investigation has arrested the head of the American branch of the LTTE Tamil Tigers in New York, on federal charges of providing material support to a foreign terrorist organisation. Kurunakaran Kandasamy, age 50, also known as "Karuna," who was taken into custody in Queens, New York, allegedly oversaw LTTE activities in the United States, including fundraising. He faces a maximum of fifteen years in federal prison. The Liberation Tigers of Tamil Eelam, more commonly known as the Tamil Tigers, are a designated terrorist group, and have engaged in suicide bombings, political assassinations, and other terrorist tactics.

Spanish prosecutors recently filed a lawsuit with the Supreme Court against the newly-formed Basque political party, Abertzale Sozialisten Batasuna, also known as ASB, alleging that it is merely a successor to the banned Batasuna, known to be a political wing of the designated terrorist organisation, ETA. ASB, whose name means Patriotic Socialist Union in English, actually registered for the purpose of advancing candidates for municipal elections. Spanish authorities allege that ASB is merely a continuation of Batasuna, which was rendered illegal through court action in 2003, and is designated as a terrorist organisation by the European Union.