Alert on possible sanctions against Eritrea

FROM A
DIFFERENT ANGLE by Kenneth Rijock

Financial Crime Consultant, for World-Check

27 July 2007

The US and EU may respond to Eritrea's massive shipments of arms to Islamic militants in Somalia by imposing sanctions. Several covert weapons deliveries to Mogadishu, which reportedly included surface-to-air missiles, are contributing to a major increase in violence in that troubled country in the Horn of Africa. It is believed that these weapons shipments have been received by Al-Shabab, a military element believed to be controlled by the radical Islamic Courts Union.

Advice for MLROs and compliance officers at international banks with clients that trade in Eritrea:

Ensure that no clients are covertly shipping arms to Eritrea for transshipment into Somalia, in violation of UN embargoes.

Review any ongoing commercial relationships with the country to protect against involvement in any of Eritrea's shipments to rebels located in the Ogaden region of Ethiopia.

Make sure that a contingency programme is put into place in the event that economic sanctions are imposed against Eritrea with little or no notice, so no clients, or the bank, are damaged.

Are you banking any Eritrean PEPs, and has their account activity undergone a major increase? Are they purchasing materiel or weapons? Any commercial activity between these PEPs and Eastern European manufacturers?

Is there any unusual activity taking place through your bank that involves Eritrea?

We shall monitor this rapidly developing story, and shall report back to our readers on all developments.

The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.

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