Regions

National risk assessment of money laundering and terrorist financing: Lithuania

National risk assessment of money laundering and terrorist financing of Lithuania issued by Financial Crime Investigation Service the Ministry of the Interior of the Republic of Lithuania.

Please see below some highlights from the report.

The national risk assessment assesses the money laundering and terrorist financing risks affecting the internal Lithuanian market and cross border activities that are of priority concern in Lithuania.

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Terrorist groups threat

The activities of terrorists and terrorist groups puts every country at risk. As result, each country has to have a proper understanding of the nature of the exposure to such risks and improve its counter-terrorist-financing regime and the extent to which its financial system is connected to such activity.

Beyond the ISIL core conflict zone – Middle East, threats from Al-Qaida and ISIL affiliates persist globally, especially in Afghanistan and its immediate neighbourhood, but also in parts of Africa and South-East Asia. In East Africa, Al-Qaida affiliate Al-Shabaab maintains a steady pace of attacks on security forces and foreign targets. ISIL affiliates are active in the Philippines, with fighters from Indonesia and Malaysia contributing to insurgent attacks there and in their own countries.

Trends and emerging issues

Small scale, low-value attacks: Over the last several years there has been a tendency  towards small-scale, low-cost terrorist attacks against vulnerable or soft targets. A  particularly disturbing example of this has been the use of cars or trucks to target random groups of individuals, often at public events or other large gatherings.

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Spanish employment company “Terra Fecundis” involved in social fraud

Spanish employment company “Terra Fecundis” involved in a social fraud in France reports LeMonde.fr 

A big social fraud case in France concerning a Spanish temporary work company: Terra Fecundis, with headquarter in Murcia, is on trial at this point in Marseille court, France.

Defendants are accused of having providing for several years, thousands of workers – mainly from Latin America – without having declared them in accordance with the law requirements and by ignoring various obligations relating to minimum wages, overtime , paid holidays, etc. The damage would be heavy for the employed women and men, but also for the French Social Security, not paying  the contributions which, according to the accusation amounts to more than 112 million euros between early 2012 and end of 2015.

More on:
https://www.lemonde.fr/societe/article/2020/04/06/une-affaire-hors-norme-de-fraude-sociale-bientot-devant-la-justice_6035702_3224.html

 

High risk regions for Terrorist Financing

The activities of terrorists and terrorist groups puts every country at risk. As result, each country has to have a proper understanding of the nature of the exposure to such risks and improve its counter-terrorist-financing regime and the extent to which its financial system is connected to those higher risk jurisdiction.

Europe

Homegrown terrorists still represent the principal threat to European countries. These individuals are radicalized online, consult online tutorials and possibly connect with other radical elements through encrypted Internet applications. They do not require contact with the ISIL core or its authorization to claim attacks in its name.

It is reported that European foreign terrorist fighters in the Syrian Arab Republic and Iraq continued to provide an income stream for ISIL through a financing network across Europe. Financing from relatives was regularly observed, including through intermediaries based in Turkey. No observed large-scale organized fundraising in Europe on behalf of ISIL or Al-Qaida. Funds entering the ISIL core area often arrive in Turkey through money service businesses and then reach beneficiaries via hawala or cash courier. 

Despite weaknesses in the current structure, the threat of a planned complex attack in Europe, especially by former expert operatives who have the ability to operate independently, is assessed to persist. Al-Qaida has also shown interest in large-scale attacks against symbolic European targets. In this regard, HAD is assessed to have a global agenda, including international attack planning and the establishment of clandestine structures.

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Report: INTERNET ORGANISED CRIME THREAT ASSESSMENT 2019

Europol Report: INTERNET ORGANISED CRIME THREAT ASSESSMENT (IOCTA) 2019

This annual assessment of the cybercrime threat landscape highlights the persistence and tenacity of a number of key threats.

Ransomware maintains its reign as the most widespread and financially damaging form of cyber-attack, while criminals continue to defraud e-commerce and attack the financial sector. Criminals target and exploit vulnerable minors across the globe. All of these crimes seriously impact the physical, financial and psychological safety, security and stability of our society and require a coherent and coordinated response by law enforcement.

A crucial priority reported by both EU Member States and the private industry is Business Email Compromise (BEC). This scam exploits the way corporations do business, taking advantage of segregated corporate structures, and internal gaps in payment verification processes. Such attacks vary by the degree of technical tools used. Some attacks can successfully employ only social engineering, while others deploy technical measures such as malware and network intrusion.

While using ransomware to deny an organisation access to its own data may be the primary threat in this year’s report, denying others access to that organisation’s data or services is another significant threat. Distributed Denial of Service (DDoS) Attacks are yet another datafocused threat to cope with. Of all the motivations behind such attacks, those with an extortion element were overwhelmingly the most prevalent.

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Books: Something Will Turn Up

Books: Something Will Turn Up, by David Smith

The Sunday Times economics editor David Smith presents a readable, informative history of the British economy since World War II.

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Great Britain was the first leading manufacturing country. Even as late as 1950, it produced 25% of the world’s manufacturing exports. It generated a trade surplus in manufactured goods that amounted to as much as 10% of its gross domestic product (GDP).

Until the 1970s, the United Kingdom’s West Midlands manufacturing region maintained wage levels just slightly lower than those of the prosperous and diversified southeast region around London. That stands in marked contrast to today’s large income disparity between the regions. When the trade surplus in manufactured goods disappeared in 1982, never to return, it took many well-paid blue-collar Midlands jobs with it.

As the British Empire became the Commonwealth, its countries maintained strong trade links with the United Kingdom, underpinned by continuing preferential trade agreements. In the 1950s, the UK traded 40% of its exports and 35% of its imports with Commonwealth nations. Given the damage World War II had inflicted on mainland Europe’s economy, the captive markets of the Commonwealth gave the UK a postwar advantage. But that contributed to complacency and a lack of investment in British manufacturing; Britain took the Commonwealth markets for granted.

While Europe – and especially Germany – recovered its manufacturing capability in the postwar period, Britain’s manufacturing continued to decline. It suffered from low investment, a “failure to modernize,” inflation and poor industrial relations. High interest rates decimated the sector during the “strong pound recession” of the early 1980s. Four million manufacturing jobs disappeared between 1973 and 1983.

The volume of manufactured goods peaked in 1973 and didn’t regain those heights, in real terms, until 2010. Specialized manufacturing still matters to the United Kingdom. Japanese-owned automobile plants have returned the UK to its status as a net car producer, but other sectors of the economy have since become more important than manufacturing.

AML EU framework

5th Anti-Money Laundering Directive (Amendments to the 4th Anti-Money Laundering Directive)

​The 5th Anti-Money Laundering Directive, which amends the 4th Anti-Money Laundering Directive was published in the Official Journal of the European Union on 19 June 2018. The Member States should have been transposed this Directive by 10 January 2020.

These amendments introduce substantial improvement to better equip the Union to prevent the financial system from being used for money laundering and for funding terrorist activities.

These amendments will:
– enhance transparency by setting up publicly available registers for companies, trusts and other legal arrangements;
– enhance the powers of EU Financial Intelligence Units, and provide them with access to broad information for the carrying out of their tasks;
– limit the anonymity related to virtual currencies and wallet providers, but also for pre-paid cards;
– broaden the criteria for the assessment of high-risk third countries and improve the safeguards for financial transactions to and from such countries;
– set up central bank account registries or retrieval systems in all Member States;
– improve the cooperation and enhance of information between anti-money laundering supervisors between them and between them and prudential supervisors and the European Central Bank.

 

Here you can find the factsheet on the main changes of the 5th Anti-Money Laundering Directive

 

Polaris project and modern human slavery

What human trafficking is…and isn’t?
Human trafficking is the business of stealing freedom for profit. In some cases, traffickers trick, defraud or physically force victims into providing commercial sex. In others, victims are lied to, assaulted, threatened or manipulated into working under inhumane, illegal or otherwise unacceptable conditions. It is a multi-billion dollar criminal industry that denies freedom to 24.9 million people around the world.

Globally, there are two general categories of human trafficking: sex trafficking and labor trafficking. Sex trafficking is the crime of using force, fraud or coercion to induce another individual to perform commercial sex. Common types include escort services, pornography, illicit massage businesses, brothels, outdoor solicitation. Labor trafficking is the crime of using force, fraud or coercion to induce another individual to work or provide service. Common types include agriculture, domestic work, restaurants, cleaning services, and carnivals.

Polaris project it is an American nonprofit organization that stands on global fight to eradicate modern slavery, focused mainly on US cases.

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