FORMER INDIAN CHIEF MINISTER ACCUSED OF MONEY LAUNDERING

The Enforcement Directorate has reportedly issued an Enforcement Case Information Reportagainst a former chief minister to the Prevention of Money Laundering Act court in Ranchi. The Directorate has accused him of money laundering, diversion of state funds and making illegal investments abroad including the purchase of mines in Liberia. Three of his cabinet colleagues have also been booked in the same case. The former minister has denied the graft charges.

INDIAN AUTHORITIES INVESTIGATE CHAIRMAN'S ALLEGED MONEY LAUNDERING ABROAD

India's Central Bureau of Investigation is seeking evidence that the former chairman of a national computer company laundered funds through a number of foreign countries. The agency is dispatching teams to the US, UK, Mauritius, Singapore, Belgium and British Virgin Islands to record the statements of witnesses regarding the chairman's alleged fund trail. The CBI states that they would be filing additional charges after recording the statements of these witnesses. The CBI will also refer to reports submitted by other regulatory bodies, including Sebi and Icai.

Vincent Lacroix (UID 349482), the orchestrator of a multi-million dollar investment fraud, has been jailed for 13 years. In September Lacroix pleaded guilty to multiple charges of fraud, conspiracy to commit forgery and money laundering. Lacroix headed up the now bankrupt Norbourg Group. The fraud is reported to have topped $100 million. "The court is of the opinion that a clear and dissuasive message must be sent to the population," the judge wrote. "Economic crimes must be severely punished."

SPANISH AUTHORITIES DISMANTLE MONEY LAUNDERNG OPERATION

Authorities in Toledo, Spain, have arrested two individuals in connection with a money laundering operation linked to drug trafficking. The money was reportedly deposited in amounts of under 3 000 euro and sent to the countries where the narcotics originated, Colombia, Argentina and Brazil. The group allegedly used foreigners on a commission basis to send the money to recipients in their home countries.

TWO CONVICTED OF HEALTH CARE FRAUD

Rechart Garcia (UID 1146161) and Scarlet Duarte (UID 956286) were convicted of crimes associated to healthcare fraud. Garcia was convicted of conspiracy to commit health care fraud, health care fraud, conspiracy to pay health care kickbacks, conspiracy to launder money and money laundering, whereas Duarte was convicted of conspiracy to launder money and money laundering. The fraud involved purported treatment of Medicare beneficiaries at six clinics. The accused allegedly paid these individuals to pretend to receive treatment at the clinics, and then billed Medicare for treatment that was never provided. The clinics were reportedly paid out $21.1 million by Medicare on the fraudulent claims.

ISRAELI AUTHORITIES DISRUPT NARCOTICS TRAFFICKING RING

Israeli authorities claim to have broken up a major narcotics trafficking and money laundering syndicate that was reportedly run by an Israeli now living in Estonia. The syndicate is purported to have operated in Israel, Estonia and Japan. Reportedly the syndicate's drug profits were laundered in Israel, some of it through the operation of jewellery stalls. In addition officials stated that real estate was purchased abroad. World-Check's team of research analysts will be monitoring developments in the case and will update and add profiles accordingly.

FRANCE OPENS JUDICIAL ENQUIRY INTO 17 CHARITIES

The public prosecutor's office in Paris has opened an enquiry into a number of charities who they suspect are committing fraud and breach of trust. The names of some of the charities bear similarities to those of well respected organisation. According to reports the charities under investigation operate out of the USA. Direct marketing firms charged with writing and sending the letters asking for donations are suspected of keeping as much as 90% of the money collected.

Just when it appeared that Syria might be moderating its support for designated global terrorist groups operating in the Middle East, a German-registered merchant vessel carrying weapons, reportedly en route from Iran to Syria, was interdicted in Malta this week, and its illegal cargo seized. It has been reported that a terrorist group was to be the end user. …read more

At the recently held 78th general assembly of the global police agency Interpol in Singapore, delegates called for a concerted global action to strike at the financial assets of terror groups and organised crime. "Strong asset forfeiture and money laundering laws are central buttons to deprive criminals of their ill-gotten gains, to seize the instrumentalities of their trade and to use the power of asset forfeiture to destroy their illegal enterprises," stated US Deputy Attorney General David Ogden.

US TREASURY PROPOSES STRONGER AML LEGISLATION FOR MORTGAGE LENDERS

The US Treasury Department is proposing that non-bank owned mortgage lenders adopt new rules to prevent money laundering. FinCEN asked for public comment on how to define "persons engaged in non-residential mortgage lending or origination," how anti-money laundering requirements should be structured, and whether mortgage lending arms should be subject to the Suspicious Activity Report, among other topics. That process ended in August.

HM TREASURY CALL FOR EVIDENCE ON AML POLICY AND PROCEDURES

The Call is designed to help inform a review of the Money Laundering Regulations 2007 and other UK AML policies and procedures. HM Treasury will look at how effective and proportionate the UK’s Anti-Money Laundering rules are. The Call for Evidence is in two parts; one for money laundering experts and practitioners, such as regulated businesses, the second is focused on private individuals and business customers. You may read the full text of the Call for Evidence : clicking here The Call for Evidence will run until 11 December 2009.

EVENTS

Alerting all compliance professionals in North America. In November World-Check will host a number of FCPA focused seminars in the United States.
Starting on 2 November in Miami, then heading north to New York on 3 November and visiting Washington DC on 4 November, before rounding off in Chicago on 5 November.
The full itineraries with details of speakers and topics is now available on our Seminars page. Please contact our events team at events@world-check.com to reserve your place, in order to avoid disappointment. In addition contact us if you would like more information regarding upcoming seminars, we will be happy to assist you.

Delivered by experts in their respective fields World-Check Seminars offer compliance professionals across all industries the opportunity to get insight into topical and relevant issues.

World-Check financial crime consultant Kenneth Rijock has featured a number of alerts to lower or raise country risk in his From a Different Angle column. If you are interested in finding out more about country risk you can read about our jurisdictional risk index Country-Check on the website by clicking here or alternatively visit Country-Check for a more comprehensive overview.

For information and frequently asked questions please visit our website by clicking here.