The International Enforcement Law Reporter

The International Enforcement Law Reporter is a monthly print and online journal covering news and trends in international enforcement law.

Since September 1985, the International Enforcement Law Reporter has analyzed the premier developments in both the substantive and procedural aspects of international enforcement law. Read by practitioners, academics, and politicians, the IELR is a valuable guide to the difficult and dynamic field of international law.

Former Trump Campaign’s Fund-Raiser Pleads Guilty to FARA Violations Linked to 1MDB: Another Example of Strategic Corruption in the U.S.

Wednesday, October 14, 2020
Author: 
Bruce Zagaris
Volume: 
36
Issue: 
10
Abstract: 

On October 20, 2020, former Trump Campaign fundraiser pleaded guilty to violating Foreign Agents Registration Act (FARA) charges in a criminal information in the U.S. District Court for the District of Columbia.[1] This article discusses the case and how it illustrates the latest incident of “strategic corruption” in the U.S.



[1]    United States v. Elliott Brody, U.S. District Court for the District of Columbia, Case 1:20-cr-00210-CKK, Criminal Information, paragr. 2, Oct. 6, 2020.   U.S. Department of Justice, Elliott Broidy Pleads Guilty for Back-Channel Lobbying Campaign to Drop 1MDB Investigation and Remove a Chinese Foreign National, Press Rel. 20-1134, Oct. 20, 2020.
 

OPCW Confirms Toxic Chemicals in Navalny as EU and Others Prepare Sanctions

Wednesday, October 14, 2020
Author: 
Bruce Zagaris
Volume: 
36
Issue: 
10
Abstract: 

On October 6, 2020, the Organization for the Prohibition of Chemical Weapons (OPCW) issued a report of OPCW’s mission to the Federal Republic of Germany concerning the poisoning of Mr. Alexei Navalny. The German government requested the technical assistance by OPCW on August 20, 2020. The analysis by the OPCW designated laboratories of biomedical samples confirm that Nalvany was poisoned by chemicals banned by the Chemical Weapons Convention and set the stage for additional sanctions against Russia.[1]



[1]    OPCW, OPCW Issues Report on Technical Assistance Requested by Germany, Oct. 6, 2020 https://www.opcw.org/media-centre/news/2020/10/opcw-issues-report-technical-assistance-requested-Germany.

 

 

The Antiquities Coalition’s Recommendations to Combat Financial Crimes in the U.S. Art Market

Friday, October 9, 2020
Author: 
Miranda Bannister
Volume: 
36
Issue: 
10
Abstract: 

On September 24, 2020, the Task Force convened by the think tank of the Antiquities Coalition published its first joint report, Reframing U.S. Policy on the Art Market: Recommendations for Combating Financial Crimes. The report proposes 44 recommendations related to money laundering, sanctions violations, tax evasion, and terrorist financing. The recommendations also address other financial crimes specific to the art market such as forgery and fraud.

U.S. Justice Department Unseals Indictment against McAfee as Spain Arrests Him

Friday, October 9, 2020
Author: 
Bruce Zagaris
Volume: 
36
Issue: 
10
Abstract: 

On October 5, 2020, the United States Department of Justice unsealed an indictment charging John David McAfee with tax evasion and willful failure to file tax returns.[1] The DOJ unsealed the June 15, 2020 indictment in the Western District of Tennessee after Spain arrested McAfee.[2]  Meanwhile, the Securities and Exchange Commission charged McAfee for promoting investments in initial coin offerings (ICOs) to his Twitter followers without disclosing that he was paid to do so. The SEC also charged McAfee’s bodyguard, Jimmy Watson, Jr., for his role in the alleged scheme.[3]



[1]    U.S. Department of Justice, John McAfee indicted for Tax Evasion, Press Re. No. 20-1052, Oct. 5, 2020.

 

[2]    United States v. John David McAfee, U.S. Dist. Court W.D. Tenn., Eastern Div., Indictment, Case 1:20-cr-10029-STA, filed June 15, 2020  https://www.justice.gov/opa/press-release/file/1324536/download

 

[3]    SEC, SEC Charges John McAfee With Fraudulently Touting ICOs, Press Release 2020-246, Oct. 5, 2020.

 

 

Pakistan Issues New Anti-Money Laundering and Counter-Terrorism Financing Regulations

Friday, October 9, 2020
Author: 
Bruce Zagaris
Volume: 
36
Issue: 
10
Abstract: 

On September 30, 2020, the Pakistan government issued a set of three anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. The regulations are supplementary to its policies to comply with the Financial Action Task Force (FATF) recommendations.

The “China Initiative”: The U.S. Department of Justice’s Country Specific Focus on the People’s Republic of China

Wednesday, September 30, 2020
Author: 
Dennis Boyle
Volume: 
36
Issue: 
10
Abstract: 

Allegations by the American Administration of intellectual property theft emanating from the People’s Republic of China (PRC) are not new. In June 2018, the White House Office of Trade and Manufacturing Policy issued a report entitled “How China’s Economic Aggression Threatens the Technologies and Intellectual Property of the United States and the World.”[1] In the 35-page Report, the Administration accuses the Chinese government itself of engaging in “two major strategies and various acts and practices . . .seeking to acquire the intellectual property and technologies of the world and to capture emerging high-technology industries that will drive future economic growth.”[2] Of course, many countries, including the United States, would like to dominate future intellectual property and technology development and growth as a means of securing economic prosperity. China is different from other countries, according to the Report, because of its systematic use of criminal activity authorized at the highest levels of the government and the Communist Party of the PRC.

 

No Innocence for Inocente: Spain Sentences Former El Salvadoran Colonel to 133 Years in Prison Pursuant to Universal Jurisdiction for Atrocities during the Civil War

Wednesday, September 30, 2020
Author: 
Mitchell Beebe
Volume: 
36
Issue: 
10
Abstract: 

            Spain’s National Court convicted Ex-El Salvador military leader, Inocente Orlando Montano Morales, to 133 years in prison for the murder of five Spanish Jesuit priests. Justice was carried out nine years after Mr. Montano was first taken into custody in the U.S. for immigration fraud charges and subsequently extradited to Spain in 2017. The decision vindicated Spain’s universal jurisdiction law and may ultimately lead to reconciliation for the people of El Salvador.

U.S. Indicts Oil Trader for Bribery and Money Laundering on Payments to Ecuadorian Officials

Wednesday, September 30, 2020
Author: 
Bruce Zagaris
Volume: 
36
Issue: 
10
Abstract: 

                On September 22, 2020, a federal grand jury in the U.S. District Court for the Eastern District of New York indicted a trader at the U.S. subsidiary of a multinational oil distributor and trading company (Trading Company) for his alleged participation in a five-year international bribery and money laundering scheme involving corrupt payments to Ecuadorian officials.[1]



[1]    U.S. Department of Justice, Oil Trader Indicted in International Bribery and Money Laundering Conspiracy Involving Corrupt Payments to Ecuadorian Officials, Press Rel. No. 20-984, Sept. 22, 2020.

 

 

European Authority Calls for More Robust Tax Information Exchange to Counter Withholding Tax Fraud

Wednesday, September 30, 2020
Author: 
Bruce Zagaris
Volume: 
36
Issue: 
10
Abstract: 

                On September 23, 2020, the European Securities and Market Authority (ESMA) issued a report, calling for more robust exchange of information on request to counter the increasing amount of alleged large-scale tax fraud schemes known as “Cum/Ex.”  ESMA’s report responded to the Resolution 2018/2900 (RSP) adopted on November 29, 2018 by the European Parliament, requesting ESMA to perform a study into dividend arbitrage, Cum/Ex and Cum/Cum schemes.[1]



[1]    European Securities and Market Authority (ESMA), Final Report on Cum/Ex, Cum/Cum and Withholding Tax Reclaim Schemes, ESMA 70-155-20172, Sept. 23, 2020 https://www.esma.europa.eu/document/final-report-cum-ex-and-other-multiple-withholding-tax-reclaim-schemes.

 

 

British Share Evidence with the U.S. to Prosecute ISIS ‘Beatles’ After UK Approves

Friday, September 25, 2020
Author: 
Bruce Zagaris
Volume: 
36
Issue: 
10
Abstract: 

On September 22, 2020, the British government shared evidence with the United States Department of Justice to prosecute the ISIS ‘Beatles’ after the Queen’s Bench Division of the High Court of Justice ruled that the mother of El Shafee Elsheikh, one of the defendants, has no more grounds to block the transfer of criminal evidence to U.S. prosecutors.[1]



[1]   Ellen Nakashima and Rachel Weiner, British court allows U.S. to prosecute ISIS ‘Beatles’, Wash. Post, Sept. 23, 2020.

 

 

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