INDIA ARREST ALLEGED MONEY LAUNDERER

An individual who is believed to run a multibillion dollar illicit financial network has been arrested by Indian authorities. According to the UKs Serious Fraud Office (SFO) he headed an organised crime syndicate which moved US$2.2bn a year across the globe. He is wanted in the UK, the Netherlands, Italy, Spain and the United Arab Emirates. A Serious Organised Crime Agency spokesperson described his associates and companies as having 'facilitated the collection and distribution of cash derived from a range of organised criminality'.

FORMER HEDGEFUND MANAGER PLEADS GUILTY TO FRAUD

This month James Nicholson (UID 731905), the former president of Westgate Capital Management, pleaded guilty to securities fraud, investment adviser fraud and wire fraud. Nicholson reportedly created fake account statements for more than 250 clients and overstated asset values by hundreds of millions of dollars. The fraud was discovered during investigations in the Madoff case. The estimated loss is reported to be around $133 million.

Two individuals in South Florida opened a company and operated a Ponzi scheme which promised investors returns of 90 - 100% on their investment. The estimated amount of money defrauded from investors in this way is reported to be approximately $12 million. The indictment says the defendants used some of the money to buy into night clubs, a cigar business and some were used for personal expenses including homes. The US Securities and Exchange Commission (SEC) is filing a civil complaint to help recover some of the investors' losses.

MEXICAN OFFICIALS TIPPED OFF DRUG TRAFFICKERS

Richard Padilla Cramer (UID 1137450), an Immigration and Customs Enforcement (ICE) agent who had been assigned to Guadalajara, Mexico, pleaded guilty last week in the Miami federal court to obstruction of justice. He was accused of conspiring to help two Mexican nationals evade capture on drug and money-laundering charges. You can read the full story on the hyperlinked sources on Cramer's profile Online.

NIGERIA'S FINANCIAL CRIMES COMMISSION ARRESTS TOP OFFICIALS

In an ongoing investigation into a former Governor of Sokota State Nigeria, the Economic and Financial Crimes Commission (EFFC) has arrested a further two ex-commissioners, three top level officials and an associate of the former governor. The case under investigation is reported to involve N15 billion.

AFRICA BECOMING A MAJOR CRIME HUB ACCORDING TO HEAD OF UNODC

The Head of the United Nations drug agency (UNODC) has warned that significant amounts of heroin and cocaine are being trafficked through East and West Africa by organised crime groups. "Drugs not only enrich organised crime... terrorists and anti-government forces in the Sahel extract resources from the drug trade to fund their operations, purchase equipment and pay foot-soldiers," he said. In addition he said that African countries should share information more effectively and create a trans-Saharan crime monitoring network. Remember World-Check's jurisdictional risk index Country-Check can give your company insight into the risk associated with any country that you would consider doing business with.

Pakistan's National Accountability Bureau (NAB)*, the country's anti-corruption agency, has reportedly reopened hundreds of corruption cases, and has requested the Interior Ministry to place 248 people on the Exit Control List, which effectively prevents them from leaving the country. The names have not been publicly released, but it reportedly includes government officials, including some at the highest level. Asset freezes are also said to be in process. Why is this news of major concern to international bankers? …read more

Adam Khatib (UID 482081), Nabeel Hussain (UID 482074), and Mohammed Shamin Uddin (UID 482088) have been convicted of terrorism offences and have been sentenced. Khatib was convicted of conspiring to detonate suicide bombs on airliners flying from London to North America. Khatib was sentenced to eighteen years in jail. The other two received lesser sentences with Hussein being jailed for eight years and Uddin for seven.

INDIAN GOVERNMENT TO FIX LOOPHOLES IN AML LEGISLATION

The Indian government is reportedly looking at all of its current economic laws to fix any loopholes that may allow dubious cross-border cash flow, terror funding and money laundering. This is so that the Indian legislation can fall in line with the global benchmark of preventing terror fuinding and money laundering as set down by the Financial Action Task Force (FATF).

IMF RELEASES CAYMAN ISLANDS ASSESSMENT REPORT

The International Monetary fund (IMF) has released the report of its 2009 assessment of the supervision and regulation of the Cayman Islands financial sector. The IMF noted that the jurisdiction has made “substantial progress” since the IMF's 2003 assessment.

EVENTS

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