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.

Security Council Adopts Resolution on Linkages Between Organized Crime and Terrorism

Wednesday, August 14, 2019
Author: 
Michael Plachta
Volume: 
35
Issue: 
8
Abstract: 

On July 19, 2019, the United Nations Security Council (UNSC) unanimously adopted Resolution 2482 (2019), which addresses the relationship between organized crime and counter-terrorism. This is a topic that has been debated regularly in the UNSC since the first resolution, Resolution 1373 (2001), a month after 9/11, that recognized a “close connection between international terrorism and transnational organized crime, illicit drugs, money-laundering, illegal arms-trafficking, and illegal movement of nuclear, chemical, biological and other potentially deadly materials.” This resolution called for national, regional, and international cooperation to combat terrorism financing and money laundering.

U.S. and Guatemala Sign Safe Country Asylum Agreement Despite Implementation Issues

Tuesday, August 13, 2019
Author: 
Bruce Zagaris
Volume: 
35
Issue: 
8
Abstract: 

On July 16, 2019, Guatemala and the United States signed an agreement that would designate Guatemala as a safe third country for individuals seeking asylum in the United States despite issues in Guatemala about its legality and ability of Guatemala to implement.[1] The White House still has not released the details of the agreement.  President Trump announced the agreement in an unscheduled appearance in the Oval Office with Enrique Degenhart, the Guatemalan minister of government and the acting homeland security secretary Kevin McAleenan.[2]

HSBC Swiss Branch Agrees to Pay Belgium €294.4 Million to Settle and Former HSCB Chief Pleads Guilty

Monday, August 12, 2019
Author: 
Bruce Zagaris
Volume: 
35
Issue: 
8
Abstract: 

On August 6, 2019, the Swiss branch of HSBC agreed to pay €294.4 million (US$330 million) to end a Belgian criminal investigation into tax fraud, money laundering, and provisions of illegal financial services by assisting Belgian taxpayers to move money from Swiss accounts to holding companies in Panama and the British Virgin Islands.[1]  On August 7, 2019, the former HSBC head of private banking in Switzerland pleaded guilty to assisting clients’ hide assets worth at least $1.8 billion.

Gregory Craig Wins Dismissal of One FARA Charge, But Must Go to Trial on the Other[1]

Wednesday, August 7, 2019
Author: 
Bruce Zagaris
Volume: 
35
Issue: 
8
Abstract: 

On August 6, 2019, United States District Judge Amy Berman of the District of Columbia dismissed one of two felony counts against Gregory Craig. In her 57-page memorandum opinion,[2] she found that an October 11, 2013 letter Craig sent to the Foreign Agents Registration Act (FARA) Unit was not part of any formal FARA filing. Hence, the prosecution could not charge him for making false submissions. Judge Jackson rejected Craig’s defense that pursuant to jurisprudence in United States v. Safavian, 528 F.3d 957 (D.C. Cir. 2008) that he was not under a legal duty to disclose and therefore there was no concealment offense in violation of 18 U.S.C. § 1001(a)(1).

Nicole S. Healy, Anti-Money Laundering Deskbook: A Practical Guide to Law and Compliance Casebound 2018 (Practising Law Institute Incorporating Release #4, June 2018).

Monday, August 5, 2019
Author: 
Bruce Zagaris
Volume: 
35
Issue: 
8
Abstract: 

The Deskbook, initially published in 2014, is designed to provide an introduction to the complex and dynamic law of money laundering, structuring, and forfeiture for lawyers whose practice does not primarily involve criminal prosecution or defense, and to help executives and managers of companies understand, identify, and avoid potential risks both inside and outside their organizations. The focus is on U.S. federal law.  As the author notes, individual states and foreign jurisdictions have their own anti-money laundering regimes.  The author is now in private practice. Previously she served as a prosecutor for the U.S. Department of Justice, in the Fraud Section, Criminal Division.

Chinese National and Company Indicted for Fraud to Avoid U.S. Customs Duties on Imported Aluminum

Sunday, August 4, 2019
Author: 
Bruce Zagaris
Volume: 
35
Issue: 
8
Abstract: 

On July 31, 2019, the U.S. Attorney for Los Angeles unsealed a federal grand jury indictment[1], alleging a complex financial fraud scheme in which a Chinese company exported large amounts of aluminum disguised as “pallets” to the United States to avoid customs duties of up to 400 percent and “sold” the purported pallets to related entities to fraudulently inflate the company’s revenues and deceive investors worldwide.[2] According to the indictment, which was returned on May 7, 2019, China Zhongwang Holdings Limited, Asia’s largest aluminum extrusion company; Zhongtian Liu, the company’s former president and chairman; and several individual and corporate co-defendants lied to U.S. Customs and Border Protection to avoid paying the United States $1.8 billion in anti-dumping and countervailing duties (AD/CVD), that were imposed in 2011 on certain types of extruded aluminum imported into the United States and China.

US Trade Representative Blocks Illegal Timber Imports from Peru, Again

Friday, August 2, 2019
Author: 
Bruce Zagaris
Volume: 
35
Issue: 
8
Abstract: 

On July 26, 2019, United States Trade Representative Robert Lighthizer directed the United States Customs and Border Protection (CBP) to block future timber imports from Inversiones WCA E.I.R.L. (WCA), a Peruvian exporter, based on illegally harvested timber in its supply chain.  Twice, the Trump administration has brought enforcement action under the United States – Peru Trade Promotion Agreement’s (PTPA) Annex on Forest Sector Governance (Forest Annex), showing its increased efforts to prevent illegal timber from entering the United States.[1]

U.S. Court of Appeals Affirms Contempt Order Against 3 Chinese Banks for Subpoena Noncompliance

Thursday, August 1, 2019
Author: 
Bruce Zagaris
Volume: 
35
Issue: 
8
Abstract: 

On July 30, 2019, the United States Court of Appeals for the D.C. Circuit unanimously affirmed a contempt order against three Chinese banks that failed to comply with subpoenas from the U.S. Department of Justice (DOJ).[1] On April 30, 2019, the U.S. District Court for the D.C. Circuit unsealed an opinion issued on March 18, 2019, by Chief Judge Beryl A. Howell enforcing grand jury subpoenas and an administrative subpoena against three Chinese banks for records of transactions for a now-defunct Hong Kong-based front company for North Korea’s state-operated company

Flynn Intel Group Founder Convicted of FARA Violations after Trial

Saturday, August 3, 2019
Author: 
Bruce Zagaris
Volume: 
35
Issue: 
8
Abstract: 

On July 23, 2019, a federal jury in Alexandria, VA convicted Bijan Rafiekian, 67, of San Juan Capistrano, CA of conspiring to act as an agent of a foreign government, making false statements to the Justice Department, and acting as a foreign agent.[1] Court records and evidence presented at the trial showed that Rafiekian, along with his co-conspirator, Kamil Ekim Alptekin, 42, of Istanbul, a Turkish national with close links to the highest levels of the Government of Turkey, participated in a conspiracy to covertly influence United States politicians and public opinion against a Turkish national, Fethullah Gulen, who is living in Pennsylvania.  The Turkish government filed two extradition requests for Gulen, and has tried to persuade the Department of Justice to extradite Gulen to Turkey since 2015.  The conspiracy involved using the Flynn Intel Group (FIG), a company Rafiekian and Michael T. Flynn founded.  It provided services based upon Flynn’s national security expertise.

Dutch Supreme Court Reduces Responsibility of the Netherlands In 1995 Srebrenica Massacre

Thursday, August 1, 2019
Volume: 
35
Issue: 
8
Abstract: 

On July 18, 2019, the Dutch Supreme Court delivered a judgment that confirmed the Netherlands was partly liable for the deaths in 1995 of 350 Muslim males who were expelled from a Dutch U.N. base after the surrounding area was overrun by Bosnian Serb troops. Contrarily, from the Court of Appeal, the Supreme Court reduced the state’s liability for the 1995 Srebrenica massacre during the Bosnian war, saying peacekeepers (also known as Dutchbat) only had a “slim” chance of preventing the deaths of hundreds of Muslim men. Judges reduced the Dutch state’s responsibility from 30 percent to 10 percent for compensation to the families of the 350 victims killed by Bosnian Serb forces who overran the safe haven.

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