Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

Network of Iranian Front Companies Disrupted by OFAC | GCSG

On March 26, 2019 the US Department of the Treasury’s Office of Foreign Assets Control announced it had taken action against a network of 25 individuals and entities that had transferred over a billion dollars to the Islamic Revolutionary Guard Corps and Iran’s Ministry of Defense and Armed Forces Logistics. (Click here for the article) - US, Iran

Trump Says Tariffs Will Stay Until China Complies With Deal | AJOT

“President Donald Trump said he’ll keep tariffs on China until he’s sure Beijing is complying with any trade deal, refuting expectations that the two nations will agree to roll back duties as part of a lasting truce to their trade war.“ (Click here for the article) - US, China

How Compliance Can Empower the Business to Manage Risk | Corporate Compliance Insights

“It’s a time of enormous change for organizations of every type. Gartner’s 2018 survey of CEOs shows that CEOs, who have been focused on growth for years, are now prioritizing firm plans to deliver it — plans that involve IT-related transformation and new corporate structures and cultures.“ (Click here for the article) - US

Managing Risk and Enabling Growth in the Age of Innovation | Corporate Governance

“PWC explores how risk leaders can effectively manage innovation related risk, and by doing so, drive growth and performance.“ (Click here for the article) - US

Malabu Oilfield Scandal: How Multinational Companies Aid Corruption in Nigeria | Ventures Africa

“In 2011, British-Dutch Royal Dutch Shell and Italian multinational oil and gas company, Eni reached an agreement with the Nigerian government to purchase the offshore Oil Prospecting License 245 oilfield. … the deal has resulted in one of Nigeria’s largest corruption scandals in the oil industry.“ (Click here for the article) - Global

UK Lawmakers Demand Breakup of Big Four Accounting Companies | Bloomberg

“The “Big Four” accounting firms should be forced to legally separate their “cash cow” consulting work from their auditing businesses, a U.K. Parliament committee said Tuesday.“ (Click here for the article) - UK

China Announces Detailed VAT Reform Measures | International Trade Compliance

“On March 22, 2019, the State Council announced in a press release that authorities announced detailed measures to implement the country’s value-added tax reform on March 21 to further reduce the tax burden on various industries.“ (Click here for the article) - UK

Registry of Beneficial Ownership Aims at Lifting Curtain on Money Laundering and Tax Evasion | Tri-City News

“On March 22, 2019, the State Council announced in a press release that authorities announced detailed measures to implement the country’s value-added tax reform on March 21 to further reduce the tax burden on various industries.“ (Click here for the article) - Canada

Network of Iranian front companies disrupted by OFAC

On March 26, 2019 the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced(1) it had taken action against a network of 25 individuals and entities that had transferred over a billion dollars to the Islamic Revolutionary Guard Corps (IRGC) and Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).

The evasion scheme included a layered network of front companies and agents based in Iran, UAE, and Turkey that were set up to evade international sanctions and to gain access to the international financial system. The network exchanged devalued Iranian rials for dollars and euros.

We are targeting a vast network of front companies and individuals located in Iran, Turkey, and the UAE to disrupt a scheme the Iranian regime has used to illicitly move more than a billion dollars in fundsCentral to this network and sanctioned today pursuant to our counter terrorism authority is Iran's IRGC-controlled Ansar Bank and its currency exchange arm, Ansar Exchange, both of which used layers of intermediary entities to exchange devalued Iranian rial ultimately for dollars and euros to line the pockets of the IRGC and MODAFL…” (1)

Five front companies- UAE-based Sakan General Trading, Lebra Moon General Trading, and Naria General Trading, and Turkey-based Atlas Doviz, and the Iran-based Hital Exchange provided $800 million in funds to Ansar exchange.

Now more than ever, it is vitally important that global companies implement third-party due diligence and engagement policies. These policies are often risk-based but should be comprehensive and include at a minimum background investigation diligence and ongoing monitoring of distribution networks and contract agents.

Contact our Due Diligence compliance professionals at GCSG today to learn how we can help you mitigate your third-party risk with our due diligence reports, risk-ranking tool, policy development and implementation support, and international boots-on-the-ground third-party Audits.

References

(1) U.S. Department of the Treasury Press Releases - “United States Disrupts Large Scale Front Company Network Transferring Hundreds of Millions of Dollars and Euros to the IRGC and Iran’s Ministry of Defense.” - March 26, 2019

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

US Court of International Trade Upholds Constitutionality of President’s Power | Lexology

“On March 25, 2019, the U.S. Court of International Trade denied a challenge to the constitutionality of Section 232 of the Trade Expansion Act of 1962 in a lawsuit brought by the American Institute of International Steel and other steel importers.“ (Click here for the article) - Global

Ukraine: Court Ruling on Law Means End for Corruption Cases | ABC News

“Ukraine's Constitutional Court has struck down a law against officials enriching themselves, a move that raised concerns about a weakening of the country's fight against endemic corruption and ability to get more aid from the International Monetary Fund.“ (Click here for the article) - Ukraine

The Risk of Solely Relying on Auditors to Find Fraud | FCPA Blog

“Kick-back schemes, corrupt employees, and violations of your code of conduct are all risks facing businesses every day. To combat these threats, companies often rely on auditors to protect them. But are auditors really the answer? The The Association of Certified Fraud Examiners found in 2018 that 53 percent of occupational fraud is detected by employees.“ (Click here for the article) - Global

The Real Risks of Doing Business in Russia | Klink

“Every day there is a new story on corrupted power in Russia and the United States’ efforts to combat it. We know the key players - oligarchs who acquired government assets after the fall of the Soviet Union. The key question is how do we properly protect US business and political interests?“ (Click here for the article) - US, Russia

New Data Breach Trends: Small Business Identity Records Now #1 Target | CPO Magazine

“A new report by leading cybersecurity and intelligence firm 4iQ is providing the tech world with some eye-popping perspective. This study is of particular interest to small businesses, because it confirms that they are now the favored target of cyber criminals.“ (Click here for the article) - Global

OFAC Designates Iranian Sanctions Evasion Network | EU Sanctions

“OFAC has imposed sanctions on 25 individuals and entities, which comprise a network of front companies based in Iran, the UAE and Turkey used by “the Iranian regime to illicitly move more than a billion dollars in funds” and provide funding to the Islamic Revolutionary Guard Corps and Iran’s Ministry of Defense and Armed Forces Logistics.“ (Click here for the article) - Iran, United Arab Emirates, Turkey

OFAC Agrees $1.86 M Settlement with Stanely Black & Decker | EU Sanctions Blog

“OFAC has announced a $1,869,144 settlement with Stanley Black & Decker and its foreign subsidiary Jiangsu Guoqiang Tools to settle its potential civil liability for 23 apparent violations of the Iranian Transactions and Sanctions Regulations.“ (Click here for the article) - Iran, US

Celebrity Parents and Coaches Charged in Vast College Bribery Scheme | Bloomberg

“Wealthy parents, university coaches and a college-admissions counselor were among dozens charged in a sweeping criminal conspiracy that sought to help applicants win admission to elite schools including Yale, Stanford, UCLA and Georgetown.“ (Click here for the article) - US

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

The High Price of Chinese Money Laundering in Canada | The Globe and Mail

“Canada-China political relations continue their downward spiral following the arrest of Huawei executive Meng Wanzhou in Vancouver, with ongoing retaliatory actions and threats by the Chinese government. As a result, Canadians are increasingly asking themselves what sort of government they are dealing with.“ (Click here for the article) - China, Canada

Wanted: Ethics and Compliance Officers on Boards | Navex Global

“…ethics and compliance officers bring useful experience to a board’s audit committee. That’s where the most difficult questions about investigations, regulatory compliance, and corporate misconduct often get decided, and a compliance officer’s experience handling those issues would be valuable.“ (Click here for the article) - US

Cyber Attacks Proliferate in Finance | FinNews Asia

“The number of cyber attacks on financial services more than doubled last year. The attackers have also become much more aggressive in their approach and developed a strong will to persist with their campaigns.“ (Click here for the article) - Global

Visa Exempt Non-EU Citizens Will Need Authorization to Travel in Europe | Italy Magazine

“The European Parliament has approved the introduction of European Travel Information and Authorization System. It will apply to non-EU citizens who can currently enter the EU Schengen Zone without a visa (i.e. citizens of 61 countries who travel to the Schengen Zone for business or travel purposes for up to 90 days). “ (Click here for the article) - Australia, Canada, Israel, Japan, Mexico, United Arab Emirates, US

CBP Continues to Build New Border Wall | US Customs and Border Protection

“CBP has built & continues to build new border wall along the SW border. CBP has built 38 miles of new border wall system in CA NM & TX—providing new capability by replacing ineffective infrastructure, like Normandy-style barriers designed only to stop vehicles, not people on foot.“ (Click here for the article) - US, Mexico

GCSG Celebrates International Women's Day 2019

GCSG will Balance for Better as we Celebrate International Women's Day 2019

Today, March 8 GCSG celebrates a global day set aside to recognize Women's achievements

PRAIRIEVILLE, Louisiana, March 8, 2019 – Global Compliance Solutions Group LLC (GCSG), an advisory, audit and due diligence firm focused on helping companies manage compliance and risk in their business and with their third parties, celebrates International Women's Day.

"A balanced world is a better world. How can you help forge a more gender-balanced world? Celebrate women’s achievement. Raise awareness against bias. Take action for equality."(1)

GCSG will press for progress and supports the bold for change message of challenging bias and inequality, campaigning against violence, forging women's advancement, celebrating women's achievement, and championing women's education.

For more information: (1) https://www.internationalwomensday.com/

#BalanceforBetter

#IWD2019

 ** *** **

About GCSG

GCSG is headquartered in Louisiana, USA.  We provide Advisory, Audit, and Due Diligence services for our clients across a range of industries in the areas of Import, Export and Customs Compliance, Anti-Bribery and Corruption, Drug Precursor, and Distilled Spirits Plant compliance.  The GCSG service team delivers compliance program assessment, development and implementation support, audit, regulatory interpretation, internal and external audit services, and third-party due diligence and risk management services.  We partner with our clients to solve challenging compliance issues with a strategic, comprehensive, and common sense approach.  GCSG's innovative solutions enable our clients to operate in compliance with the law while facilitating efficient sales and trade.  Our focus on integrity and serving our client's is at the core of what GCSG is about.  More information can be found at: http://www.globalcompliancesg.com

Learn more about GCSG by following us online:

Contact

E   info@globalcompliancesg.com

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

US Rejects New European Dirty-Money Blacklist | Wall Street Journal

“The U.S. Treasury Department on Wednesday told American banks they can ignore an updated European Union blacklist of dirty-money hotspots, calling into question the EU’s methodology for developing the list, which includes several U.S. territories.“ (Click here for the article) - US, Europe, Panama, Puerto Rico

Trump Delays Tariff Deadlines - Citing Progress in China Trade Talks | New York Times

“President Trump delayed his own deadline to increase tariffs on Chinese goods on Sunday as his administration continues a monthslong effort to persuade Beijing to make significant structural changes to its economy that have so far proved elusive.“ (Click here for the article) - US, China

Israel Arms Exports Will Require KYC and Sanctions Checks | FCPA Blog

“The agency in charge of granting licenses to defense exporters will start to require KYC, blacklist, and sanctions searches to applications for marketing and export licenses. This move is meant to strengthen control by Israeli authorities over marketing and export of military goods, which sometimes allegedly find their way into dubious hands.“ (Click here for the article) - Israel

Canada Ordered to Pay US Company $7M in NAFTA Case | CBC News

“Canada has been ordered to pay $7 million in damages, plus interest, to a U.S. concrete company that used the North American Free Trade Agreement to successfully argue it was wrongly denied permission to build a quarry in Nova Scotia.“ (Click here for the article) - US, Canada

EU Extends Belarus Sanctions | Mr. Watchlist

“On February 25th, Council decided to prolong the restrictive measures against Belarus for one year, until 28 February 2020. These measures include an embargo on arms and on equipment that could be used for internal repression as well as an asset freeze and travel ban against four people designated in connection with the unresolved disappearances of two opposition politicians, one businessman and one journalist in 1999 and in 2000. “ (Click here for the article) - Belarus, Europe

Texas Doctor and Hospital Owner Convicted in $20M Healthcare Scheme | US Dept. of Justice

“A federal jury has convicted a 50-year-old internal medicine doctor and 47-year-old hospital owner of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division.“ (Click here for the article) - USA

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

Anti-Corruption Raids on Property Linked to Brazil Ex-Foreign Minister | Yahoo News

“Brazilian police on Tuesday raided several properties linked to a former foreign minister, Aloysio Nunes, as part of a sprawling anti-corruption probe that has already claimed dozens of political and corporate scalps.“ (Click here for the article) - Brazil

How to Manage Reputational Risk | The ACFE

“As Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” Reputation equals integrity and integrity equals social responsibility.“ (Click here for the article) - US

Despite Sanctions, Iran’s Oil Exports Rise in Early 2019 | Reuters

“Iran’s exports of crude oil were higher than expected in January and are at least holding steady this month, according to tanker data and industry sources, as some customers have increased purchases due to waivers from U.S. sanctions.“ (Click here for the article) - Iran, US

Investigation Planning - Preserving Evidence | Board and Fraud

“The planning phase of the investigation process should include the preservation of evidence.“ (Click here for the article) - US

EU Agrees Sanctions on Russians - Sea of Azov | EU Sanctions

“As foreshadowed, EU Foreign Ministers agreed to add a number of people to its Russia sanctions list in response to recent events in the Sea of Azov.“ (Click here for the article) - Europe, Russia, Ukraine

The Data Dump of 2.2 Billion Breached Accounts | CPO Magazine

“A massive 600 gigabyte file containing about 2.2 billion compromised usernames and passwords has been spotted floating about the dark web, freely available to anyone who cares to download it via torrent.“ (Click here for the article) - US

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

Indicators of Human Trafficking | Homeland Security

“Recognizing key indicators of human trafficking is the first step in identifying victims and can help save a life.“ (Click here for the article) - Global

Wife of Philippines Senator Arrested for Cash Smuggling | ICE

“The wife of a sitting senator in the Philippines has been sentenced to five months of home confinement and 36 months' probation after pleading guilty to charges of bulk cash smuggling resulting from a probe by U.S. Immigration and Customs Enforcement's Homeland Security Investigations.“ (Click here for the article) - Philippines, US

OFAC Enforcement Action: Applichem | Mr. Watchlist

“OFAC assessed AppliChem (the subsidiary) a $5,512,564 civil monetary penalty – note that this is not a settlement, like most of these cases end up.“ (Click here for the article) - Cuba

US Criticizes EU’s Extended Money Laundering Blacklist | Step

“The European Commission has adopted a new blacklist of non-EU countries alleged to have weak anti-money laundering regimes, extending it from 16 to 23 countries.“ (Click here for the article) - Global

Singapore Establishes Independent Corporate Governance Body | Finews - Asia

“Singapore has established the Corporate Governance Advisory Committee at the recommendation of Corporate Governance Council.“ (Click here for the article) - Singapore

Is Background Screening a Regulatory MInefield? | Finews - Asia

“Background screening is often approached warily given the giant web of employment and data privacy regulations that surrounds it. Yet, when done right, it can safeguard organisations.“ (Click here for the article) - Global

Dubai Has Become a Money Laundering Paradise | Forbes

“The Gulf city of Dubai has been slammed as a “money laundering paradise” by leading anti-corruption group Transparency International.“ (Click here for the article) - United Arab Emirates

The Cost of Dirty Money | Bloomberg

“Since the financial crisis, dozens of crackdowns have targeted money launderers who effectively rely on banks, shell companies, and other mechanisms to cover their tracks.“ (Click here for the article) - Global

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

The Cost of Dirty Money | Bloomberg

“Since the financial crisis, dozens of crackdowns have targeted money launderers who effectively rely on banks, shell companies, and other mechanisms to cover their tracks. According to the United Nations Office on Drugs and Crime, shady transactions continue to reach as much as $2 trillion a year.” (Click here for the article) - Global

Trump Secures Another Major Trade Victory | Daily Caller

"The European Commission approved U.S. soybeans to be used in the production of biofuels, a decision that will fulfill President Donald Trump’s demand that the European Union buy more of the product.“  (Click here for the article) - US, Europe

US Blocks Venezuela Oil Deals Using its Financial System | Bloomberg

"Venezuela’s state oil company and its customers will be blocked from using the U.S. financial system by late April, as the Trump administration ratchets up the pressure on President Nicolas Maduro to step aside and allow an opposition leader to take his place.“  (Click here for the article) - US, Venezuela

Fake Eyelash Kits Sourced from N. Korea Put Cosmetics Firm in US Crosshairs | Wall Street Journal

"A California cosmetics company agreed to pay about $1 million to settle allegations it violated U.S. sanctions regulations by importing fake eyelash kits from China-based suppliers that had sourced materials from North Korea.“  (Click here for the article) - US, North Korea

Potential Disaster at St. James Waste Pile | The Advocate

"Hundreds of trucks a day will be traveling this week through a mushy cane field north of Mosaic Fertilizer's huge phosphogypsum waste pile in St. James Parish to dump 150,000 cubic yards of earth in hopes of blunting a slow-moving, potential environmental disaster.“  (Click here for the article) - US

Money Laundering: Arrest in Oxford Over Cryptocurrency Theft | KYC360

"A man has been arrested over allegations of fraud and money laundering at an address in Oxford, UK, following the theft of around €10 million in the IOTA cryptocurrency from over 85 victims worldwide since January 2018.“  (Click here for the article) - Global

Correction: United Nations - Periodic Table Story | New York Times

"In a story Jan. 30 about the periodic table, The Associated Press erroneously reported the year it was first published. The periodic table was first published in 1869, not 1969.“  (Click here for the article) - Global

US Slips Out of Top 20 in Global Corruption Index | Time

"The U.S. has plummeted in an annual corruption index, falling out of the top 20 countries for the first time since 2011, watchdog Transparency International said in a new report that links the global erosion of democracy and tidal wave of autocrats to an uptick in graft. “  (Click here for the article) - Global

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

USTR Grants First Round of Section 301 Tariff Product Exclusions | US Trade Representative

The Office of the United States Trade Representative recently published a notice of product exclusions related to the Section 301 tariffs that were imposed on certain product imports from China on July 6, 2018. The product exclusions apply as of July 6, 2018 and will extend for one year after the date of the publication of the exclusion notice (published on December 28, 2018). (Click here for the article) - US, China

EU to Boost Exports of Generic Pharmaceuticals | European Council

"The EU has come a step closer to adopting new rules that will boost the export of generic medicines and biosimilar products to third countries.“  (Click here for the article) - EU, Global

How AI is Transforming the Fight Against Money Laundering | AMLabc

"As Kai-Fu Lee explains in his recent book, AI Superpowers: China, Silicon Valley and the New World Order, artificial intelligence and machine learning have moved from the age of discovery to the application and implementation stage."  (Click here for the article) - Global

China Anti-corruption Hunt Catches “Tiger” Official | Reuters

"China’s anti-graft watchdog has launched an investigation into the former top official of the central province of Shaanxi, the latest “tiger” to be ensnared in President Xi Jinping’s crackdown on corruption."  (Click here for the article) - China

Bipartisan Bill Could Ban US Tech Exports to Some Chinese Telecoms | Meritalk

"Members of the House and Senate announced introduction of the Telecommunications Denial Order Enforcement Act today, which would require the Trump administration to issue export denial orders for Chinese telecommunications companies caught breaking export control laws and sanctions."  (Click here for the article) - China, US, Canada

3 Ways to Mitigate Trade Compliance Risk | Flash Global

"The one constant in international trade is change, and it’s happening at a breakneck pace. New tariffs, shifting alliances, and renegotiated trade agreements have rocked markets and supply chains."  (Click here for the article) - Global

US Seeks Duty Free Status for Apparel and Textiles in EU Trade Agreement | Sourcing Journal

"The U.S. wants comprehensive duty free treatment for textiles and apparel products as part of its proposed trade agreement with the European Union. "  (Click here for the article) - USA, Europe

WHO Investigates Claim it’s Rife with Sexism, Corruption & Racism | UK Daily Mail

"The head of the World Health Organization has ordered an internal investigation into allegations the U.N. health agency is rife with racism, sexism and corruption."  (Click here for the article) - Global

USTR Grants First Round of Section 301 Tariff Product Exclusions

The Office of the United States Trade Representative (USTR) recently published a notice of product exclusions(1) related to the Section 301 tariffs that were imposed on certain product imports from China on July 6, 2018. The product exclusions apply as of July 6, 2018 and will extend for one year after the date of the publication of the exclusion notice (published on December 28, 2018).

The general and specific product exclusions that were granted are listed below:

(i) Linear acting steering actuators and cylinders: 8412.21.0075

(ii) Water Dispensers: 8418.69.0120

(iii) Injection molding tools: 8480.71.8045

(iv) Radial Bearings/ Radial Ball Bearings: 8482.10.5044

(v) Ball Bearings: 8482.10.5048

(vi) Ball Bearings: 8482.10.5052

(vii) Citizen Band Radios: 8525.60.1010

(viii) Spark-ignition engines for marine propulsion, outboard, each rated at not less than 29.83 kW but not more than 44.74 kW (described in statistical reporting number 8407.21.0080)

(ix) Welded hydraulic linear acting (cylinders) engines and motors, each with piston bore of 12.7 mm or more but not over 34.6 mm, with stroke not over 11.43 m, overall length not over 15.24 m and rod diameter not over 1.219 m (described in statistical reporting number 8412.21.0030)

(x) Stretchers of stainless steel, designed to move rollers to adjust tension of paper fabric to be dried, each with a pivoting arm with an actuator, linear rail movement with an actuator, and front and back units with mounting holes for tube roll bearing housings (described in statistical reporting number 8419.90.2000)

(xi) Roller machines with dies for embossing paper, manually powered (described in statistical reporting number 8420.10.9080)

(xii) Salad spinners of plastics, with capacity of at least 2.4 liters but not more than 3.8 liters (described in statistical reporting number 8421.19.0000)

(xiii) Nonelectric water filtration apparatus consisting of three cylinder-shaped filter cartridges, each measuring 6.35 cm by 26.67 cm, having water storage tank and plastic tubing measuring 0.63 cm or more but not over 0.95 cm, presented with installation kit (described in statistical reporting number 8421.21.0000)

(xiv) Winches, each having a winch frame with a corrosion resistant coating and stainless steel mandrel with nylon bushings, operated manually by a worm gear mechanism (described in statistical reporting number 8425.39.0100)

(xv) Elevators, comprising L-shaped steel buckets bolted to a steel chain, with guide rollers and a drive system (described in statistical reporting number 8428.32.0000)

(xvi) Belt conveyors, each comprising a frame with leveling feet, electric motor and food grade plastic conveyor belt (described in statistical reporting number 8428.33.0000)

(xvii) Belt conveyors, each comprising a welded frame with leveling feet and casters, electric motor and food grade plastic modular conveyor belt (described in statistical reporting number 8428.33.0000)

(xviii) Guards of stainless steel, designed to shield operators of papermaking machines from moving or rotating equipment, each with dimensions ranging from 30 cm by 30 cm by 50 cm to 50 cm by 50 cm by 4 m, weighing 30 kg or more but not over 100 kg (described in statistical reporting number 8439.99.1000)

(xix) Scrapers (“doctors”) of stainless steel, designed to scrape impurities from the rotating roll surface of the forming and press sections of papermaking machines, each comprising a beam with a blade of non-symmetrical cross section, long aspect ratio, and mounting journals and turning devices on either end, with dimensions ranging from 50 cm by 50 cm by 8 m to 60 cm by 6 m by 11 m, weighing 1 metric ton or more but not over 3 metric tons (described in statistical reporting number 8439.99.1000)

(xx) Frameworks of the forming and press section of papermaking machines, of stainless steel or cladded mild steel with stainless or acid proof steel, each with dimensions ranging from 1 m by 1 m by 1 m to 2.3 m by 2.3 m by 12 m, weighing 500 kg or more but not over 40 metric tons (described in statistical reporting number 8439.99.1000)

(xxi) Guides of stainless steel, designed for locating conveyer belts on papermaking machines, each with a moving arm with an actuator and front and back units with mounting holes for tube roll bearing houses, each with dimensions ranging from 40 cm by 50 cm by 30 cm to 1 m by 1 m by 50 cm, weighing 300 kg or more but not over 500 kg (described in statistical reporting number 8439.99.1000)

(xxii) Rollers of steel and cast iron (“nip rollers”) with bearing journals on either end, designed for use in paper manufacturing to mechanically compress paper web to remove water or impart desired mechanical properties in paper web, each with a polymer cover, the foregoing with length of 7 m or more but not over 12 m, with diameter of 1 m or more but not over 1.5 m, weighing 15 metric tons or more but not over 30 metric tons (described in statistical reporting number 8439.99.1000)

(xxiii) Open containers (“savealls”) of stainless steel, designed to catch water run off generated in the papermaking process, constructed of large square shaped plates and flat constructions with mounting holes on ends, each with dimensions ranging from 50 cm by 50 cm by 50 cm to 1.5 m by 1 m by 10 m, weighing 50 kg or more but not over 2 metric tons (described in statistical reporting number 8439.99.1000)

(xxiv) Stretchers of stainless steel, designed to move rollers of papermaking machines to adjust tension of fabric, each with a pivoting arm with an actuator, linear rail movement with an actuator and front and back units with mounting holes for tube roll bearing housings (described in statistical reporting number 8439.99.1000)

(xxv) Suction boxes of stainless steel, which remove water from paper web or papermaking fabrics during papermaking, each with dimensions ranging from 50 cm by 50 cm by 8 m to 1 m by 1 m by 10 m, weighing 1.5 metric tons or more but not over 2 metric tons (described in statistical reporting number 8439.99.1000)

(xxvi) Rollers of stainless steel or cast iron, designed for use in paper manufacturing to support and convey papermaking cloth (i.e. fabric) or the paper web, each weighing 7 metric tons or more but not over 20 metric tons, measuring 7 m or more but not over 12 m in length, with diameter of 40 cm or more but not over 1.5 m, presented with bearing journals on either end and a polymer cover (described in statistical reporting number 8439.99.1000)

(xxvii) Work stands designed to use with miter saws, each with metal tube frame, 4 metal legs and 2 metal extension arms (described in statistical reporting number 8466.92.5010)

(xxviii) Work stands designed for use with miter saws, each with wheels to make work stand mobile and with sides that fold up to extend the work area (described in statistical reporting number 8466.92.5010)

(xxix) Angle cock handle assemblies, of iron and steel, each measuring 11.43 cm by 21.59 cm by 5.08 cm and weighing 0.748 kg (described in statistical reporting number 8481.90.9040)

(xxx) Radiation therapy systems, each encased by steel-based structural shell with gantry cover comprising three pairs of plastics-based panels (described in statistical reporting number 9022.14.0000)

(xxxi) Thermostats designed for air conditioning or heating systems, not designed to connect to the internet, the foregoing designed for wall mounting (described in statistical reporting number 9032.10.0030)

Contact GCSG’s Trade Compliance professionals for more guidance and information.

References

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

Oil trading houses caught in Brazil corruption sting | Argus Media Group

"Brazil's state-controlled Petrobras has temporarily suspended trading business with Switzerland-based Glencore, Vitol and Trafigura following allegations the firms engaged in widespread corruption."  (Click here for the article) - Brazil, Switzerland

Airbus hit by US probe into alleged corruption | The Scoop

"Shares in European aerospace group Airbus tumbled Thursday after a French report that US authorities are investigating the firm for suspected bribery and corruption, exposing it to billions of dollars in potential fines."  (Click here for the article) - France, Asia, European Union, USA, UK

Ex-Credit Suisse bankers arrested over $2bn fraud scheme | BBC News

"Three former Credit Suisse bankers have been arrested over their alleged role in a $2bn (£1.5bn) fraud scheme connected to firms in Mozambique, according to US authorities."  (Click here for the article) - USA, Switzerland, Mozambique

Iran approves anti-money laundering bill to ease foreign trade | Reuters

"A powerful Iranian council approved an anti-money laundering bill on Saturday, state media reported, a major step towards reforms that would bring Iran into line with global norms and could facilitate foreign trade in the face of U.S sanctions."  (Click here for the article) - Iran, USA

Chemicals Company Prosecuted for Export Control Violations | Mr. Watchlist

"HM Revenue & Customs has prosecuted a Leicestershire company for illegally shipping controlled chemicals and metal to foreign territories, despite being refused an export licence."  (Click here for the article) - UK

How Asian companies are navigating the trade war | Nikkei Asian Review

"Already, the prospect of further tariffs is prompting companies to move more factories from China to lower-cost countries in Asia. About 30% of American companies operating in China say they are looking to buy components or build products outside of both the U.S. and China to avoid tariffs, according to a recent survey by AmCham China and AmCham Shanghai."  (Click here for the article) - Asia, USA

Colin Steven avoids jail for bribery by helping investigators | Corporate Jet Investor

"Colin Steven, a former Embraer Executive Jet salesperson, has been spared jail after admitting to bribing a Saudi government official to win an aircraft sale. Steven pleaded guilty to various offenses in December 2017 and was given a “non-incarceratory” sentence on December 12, 2018."  (Click here for the article) - Saudi Arabia, South Africa, USA, UK

Iran Executes businessman convicted of fraud, bribery | AP News

"Iran has executed a businessman convicted of fraud, bribery and embezzlement. State TV reported that Hamid Reza Bagheri Dermani was hanged Saturday. The Supreme Court in November upheld his October death sentence and conviction on a charge of spreading corruption on Earth. He was also ordered to pay a more than $100 million cash fine."  (Click here for the article) - Iran

Vietnam tested by multinationals seeking trade war detour to avoid US tariffs on China  | South China Morning Post

"But the idea of shipping through a third country to avoid tariffs has flourished in recent months due to the trade war between the United States and China, and multiple companies producing products in China are exploring Vietnam to find out how they might do so."  (Click here for the article) - Vietnam, China, USA

Happy New Year from your GCSG Services Team!

The GCSG team wishes you and yours a Happy New Year! We extend our best wishes to you for a 2019 year that is full of promise and unmatched success.  

Beginning in December and going through January 25th, GCSG will make a special corporate donation on behalf of our clients and other business partners.  We'd like to invite you to choose one of the charities listed below to receive a donation. 

   Send a contact form with just the name of one of the three charities listed below in the subject or body of the form and we will make a donation to the charity you've chosen.  

   We are grateful to you for partnering with GCSG, and we look forward to continuing our successful partnership in 2019! 

Happy New Year,

The GCSG Services Team

** *** **

About GCSG

We provide Advisory, Audit, and Due Diligence services for our clients across a range of industries in the areas of Import, Export and Customs compliance, Anti-Bribery and Corruption, Drug Precursor, and Distilled Spirits Plant compliance.  The GCSG service team delivers compliance program assessment, development and implementation support, audit, fraud investigation, and third-party and acquisition due diligence and risk management services.

Learn more about GCSG by following us online or contacting us directly:

  • Facebook - http://www.facebook.com/globalcompliancesg.com

  • Twitter - https://twitter/com/GCSGLLC

  • LinkedIn - https://www.linkedin.com/company/global-compliance-solutions-group-llc

  • Instagram - http://instagram.com/globalcompliancesg.com


Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

Anti-Corruption Risks: Global Enforcement Means Global Detection | Volkov Law

"Over the last year, we have seen the Justice Department and SEC’s international coordination efforts bear fruit. DOJ has expended time and efforts to train prosecutors and law enforcement on anti-corruption investigations and prosecutions strategy."  (Click here for the article) - Global

Iran Executes Businessman Convicted of Fraud, Bribery | AP News

"Iran has executed a businessman convicted of fraud, bribery and embezzlement."  (Click here for the article) - Iran

Vietnam Tested by Multinationals Seeking Trade War Detour to Avoid US Tariffs on China | South China Morning Post

"It looked like a one-off case in late 2016 when The European Anti-Fraud Office determined that certain organic coated steel products that originated in China had been shipped through Vietnam to avoid anti-dumping duties."  (Click here for the article) - Vietnam, China, USA

The Three Biggest Corporate Misconduct Stories of 2018 | GAN Integrity

"There was certainly no shortage of significant corruption and white collar crime stories this year."  (Click here for the article) - Denmark, Brazil, Malaysia, USA

Dealership Controller Embezzles $1.1 Million | Auto News

"When the controller of a Connecticut BMW store used embezzled funds to buy a car, she didn't opt for a 3 series or an M240i convertible."  (Click here for the article) - USA

China-US Trade War Providing a Business Bonus for SE Asian Exporters | BDP

"Shippers serving the US import market may have already begun voting with their feet and moving production out of China in response to the looming threat of a full-blown trade war between the world’s largest two economies."  (Click here for the article) - China, USA, Mexico, SE Asia, Vietnam

Empty Container Volumes Rise in US-China Trade War | BDP

"West Coast ports point to a strong holiday season and a rush to beat tariffs as reasons for near record-breaking import volumes in November 2018. "You’re seeing the opposite effect on the other side of the ocean," Port of Long Beach Executive Director Mario Cordero said in a press release."  (Click here for the article) - USA, China

Guatemala’s Uphill Battle Against Corruption | Fair Observer

"Guatemala’s history over the last century has been one of the most troubled, as well as most heavily influenced by foreign interventions, in all of Central America."  (Click here for the article) - Guatemala, Mexico, Colombia

ICC issues conflict of interest guidelines

The International Chamber of Commerce (ICC)(1) recently published enterprise guidelines for conflicts of interest.(2) The guidelines were prepared by the ICC’s Commission on Corporate Responsibility and Anti-Corruption.

The guidelines “provide recommendations to Enterprises on how to monitor and manage Conflicts of Interest facing their directors, officers, employees, agents and representatives.”(3)

Managing conflict of interest situations is important to the governance of any organization. If these situations are not properly managed they have the potential to result in instances of corruption and ultimately a loss of integrity for the organization. The ICC Rules on Combating Corruption say the following about Conflicts of Interest:

“Conflicts of interest may arise when the private interests of an individual or of his/her close relatives, friends or business contacts diverge from those of the Enterprise or organisation to which the individual belongs. These situations should be disclosed and, wherever possible, avoided because they can affect an individual’s judgment in the performance of his/her duties and responsibilities. Enterprises should closely monitor and regulate actual or potential conflicts of interest, or the appearance thereof, of their directors, officers, employees and agents and should not take advantage of conflicts of interest of others.”(4)

Conflicts of Interest, if left unresolved, can result in corrupt practices within an organization.

For more information on how to establish Conflict of Interest policies within your organization Contact GCSG’s Compliance and Ethics professionals.

References:

  1. ICC - “International Chamber of Commerce - Home Page

  2. ICC - “Guidelines on Conflicts of Interest in Enterprises” - Web page

  3. ICC - “Guidelines on Conflicts of Interest in Enterprises.pdf

  4. ICC - “Rules on Combating Corruption” - Web Page

EU - Japan trade agreement effective on Feb 1, 2019

On February 1, 2019 the European Union (EU) - Japan Economic Partnership Agreement (EPA) becomes effective. The EPA creates a trading area that covers 600 million people and close to a third of global gross domestic product.

The EPA is the biggest trade agreement concluded to date by the EU. 99% of the tariffs applied on EU exports to Japan which currently amount to €1 billion, will be removed.”(1)

The EU exports more than 58 billion in goods and 28 billion in services to Japan each year.(2)

References

  1. European Council Press Release - “EU-Japan trade agreement will enter into force on 1 February 2019” - 21/12/2018

  2. European Commission - “EU-Japan Economic Partnership Agreement” - Official Page

  3. European Commission - “Fact sheets about the agreement” - News archive

Merry Christmas from your GCSG Services Team!

The GCSG team wishes you and yours a happy and safe Christmas holiday season.  We extend our best wishes for a New Year full of promise and success.  

   From now till the end of the year, GCSG will make a special corporate donation on behalf of our clients and other business partners.  We'd like to invite you to choose one of the charities listed below to receive a donation. 

   Send a contact form with just the name of one of the three charities listed below in the subject or body of the form and we will make a donation to the charity you've chosen.   

   This holiday season we are grateful to you for partnering with GCSG, and we look forward to continuing our successful partnership in 2019! 

Happy Holidays,

The GCSG Services Team

** *** **

About GCSG

We provide Advisory, Audit, and Due Diligence services for our clients across a range of industries in the areas of Import, Export and Customs compliance, Anti-Bribery and Corruption, Drug Precursor, and Distilled Spirits Plant compliance.  The GCSG service team delivers compliance program assessment, development and implementation support, audit, fraud investigation, and third-party and acquisition due diligence and risk management services.

Learn more about GCSG by following us online or contacting us directly:

  • Facebook - http://www.facebook.com/globalcompliancesg.com

  • Twitter - https://twitter/com/GCSGLLC

  • LinkedIn - https://www.linkedin.com/company/global-compliance-solutions-group-llc

  • Instagram - http://instagram.com/globalcompliancesg.com

Happy Thanksgiving from the GCSG Team!

GCSG wishes you and your family a happy and safe Thanksgiving holiday!

This Thanksgiving we are thankful for all our clients and vendors and for the many successes we have achieved together this past year!

We are always here to partner with our clients to solve challenging compliance issues with a strategic, comprehensive, and common sense approach.  We strive to exceed our clients expectations by providing high quality compliance products and services while staying true to our core values of integrity, service and accountability.

Kindest regards,

GCSG Services Team

** *** **

About GCSG

We provide Advisory, Audit, and Due Diligence services for our clients across a range of industries in the areas of Import, Export and Customs compliance, Anti-Bribery and Corruption, Drug Precursor, and Distilled Spirits Plant compliance.  The GCSG service team delivers compliance program assessment, development and implementation support, audit, fraud investigation, and third-party due diligence and risk management services.

Learn more about GCSG by following us online or contacting us directly:

  • Facebook - http://www.facebook.com/globalcompliancesg.com

  • Twitter - https://twitter/com/GCSGLLC

  • LinkedIn - https://www.linkedin.com/company/global-compliance-solutions-group-llc

  • Instagram - http://instagram.com/globalcompliancesg.com

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery and corruption, fraud, and due diligence news bites, from around the world.

Global Executives Cooling on M&A Deals Amid Trade Uncertainty | Industrial Distribution

"Executives around the world are cooling to the idea of mergers and acquisitions in the face of rising trade tensions, notably between the U.S. and China, a leading adviser on international corporate deals said Monday." (Click here for the article) - Global

US Imposes Additional Sanctions on Russia | Thompson Hine

"The United States has announced additional financial sanctions on three individuals and nine entities supporting Russia’s attempt to integrate the Crimea region of Ukraine through private investment and privatization projects or engaging in serious human rights abuses in furtherance of Russia’s occupation or control over parts of Ukraine." (Click here for the article) - EU, US, Russia, Ukraine

Africa church leaders join fight against graft | The FCPA Blog

"Eliud Wabukala, a retired Anglican archbishop, became chairman of Kenya's Ethics and Anti-Corruption Commission in 2017. In September, he launched a bible-based anti-graft campaign that includes an anti-corruption bible study." (Click here for the article) - Kenya, Africa

The Growing Menace of Cyber Attacks in the Asia-Pacific region | Entrepreneur Asia Pacific

"Over the past few years, cyber attacks have emerged as one of the biggest global threats to businesses and governments. In September, the largest social networking platform, Facebook announced that data of at least 50 million accounts have been exposed to hackers through a breach." (Click here for the article) - Asia-Pacific region

Top Ten Things to Know About Expanded US Sanctions on Iran | Latham & Watkins

"As reported in the Latham Client Alert dated May 10, 2018, President Trump announced on May 8 that the United States was withdrawing from the Joint Comprehensive Plan of Action (JCPOA), the January 2016 nuclear non-proliferation agreement among China, France, Germany, Russia, the United Kingdom, the US and Iran..." (Click here for the article) - US, Iran

US DOJ Unveils New China Initiative | Thompson Hine

"On November 1, 2018, U.S. Attorney General Jeff Sessions announced the creation of a “China Initiative” aimed at identifying priority Chinese trade theft cases for investigation and enforcement." (Click here for the article) - US, China

Illicit Procurement Network Used Firms in China, Portugal, and Turkey to Supply Iran | Iran Watch

"A recently unsealed indictment provides detail on Iran’s use of deceptive practices to procure export controlled items with military applications from the United States and elsewhere. The indictment details an elaborate, multi-year conspiracy directed by an Iranian-born Canadian to procure such items for an Iranian firm, with help from co-conspirators in China, Portugal, and Turkey." (Click here for the article) - US, Iran, Canada, China, Portugal, Turkey

Romanian anti-corruption prosecutors targeted by new work requirement| Euractiv

"Romanian prosecutors said they feared for their jobs and the rule of law after a new government ordinance increasing the years of professional experience required of them was published...Prosecutors will now need at least 10 years experience to work in the country’s National Anti-corruption Directorate, the anti-mafia bureau or the Public Prosecutor’s office." (Click here for the article) - EU, Romania

Weekly Compliance News - Around the World

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

EU and Japan to Recognize the Other’s Persona Data Protection System | JDSupra - K&L Gates LLP

"On 17 July 2018, the EU and Japan reached an agreement to recognize each other’s data protections systems as “equivalent”, and each commits to complete internal procedures by fall 2018 (the “Data Agreement”). Once adopted, this will allow businesses to transfer personal data from the European Economic Area to Japan and vice versa without being required to provide further additional safeguards for each transfer." (Click here for the article) - EU, Japan

Chinese Intelligence Officer Charged with Economic Espionage | US DOJ

"A Chinese Ministry of State Security (MSS) operative, Yanjun Xu, aka Qu Hui, aka Zhang Hui, has been arrested and charged with conspiring and attempting to commit economic espionage and steal trade secrets from multiple U.S. aviation and aerospace companies.  Xu was extradited to the United States yesterday." (Click here for the article) - USA, China

Cyber Tests Showed ‘Nearly All’ New Pentagon Weapons Vulnerable to Attack | NPR

"Passwords that took seconds to guess, or were never changed from their factory settings. Cyber vulnerabilities that were known, but never fixed. Those are two common problems plaguing some of the Department of Defense's newest weapons systems, according to the Government Accountability Office." (Click here for the article) - USA, China

Security firm uncovers new cyber group targeting government and military sectors | The Hill

"A new cyber group appears to have been targeting government and military organizations this past year as part of an espionage campaign, a security firm said on Wednesday." (Click here for the article) - Eastern Europe, Middle East

Oil Industry snubs EU effort to defy US sanctions on Iran | Financial Times

"Big European oil companies are spurning the EU’s attempt to shield Iranian crude from US sanctions because of fears the effort would leave businesses exposed to harsh penalties from the Trump administration." (Click here for the article) - Europe, Iran, USA

Mitigating Compliance Pitfalls in Manufacturing | Manufacturing.net

"The U.S. Department of Justice and the Securities and Exchange Commission have stepped up efforts recently to enforce the Foreign Corrupt Practices Act (FCPA). For manufacturers, this involves regulations surrounding exports and international conduct, including those related to U.S. economic sanctions and export control laws." (Click here for the article) - USA

French ports planning for ‘No-Deal’ Brexit | freightweek

"Norlink Ports, an association of 25 ports and inland gateways in the northern Hauts-de-France region, is planning measures to reduce the commercial impact of Britain leaving the European Union without a trade agreement." (Click here for the article) - UK, France, EU

Three Audit Employees Investigated in Probe of Vehicle Certifications | WSJ

"German prosecutors have launched an investigation into three employees of Volkswagen AG’s luxury car unit Audi suspected of falsifying documents to obtain roadworthiness certifications needed for vehicles to be exported to South Korea…" (Click here for the article) - Germany, South Korea

Countries Face Rising Exposure to Money Laundering | WSJ

"More countries are showing heightened risks of exposure to money laundering, according to an annual ranking of countries assessing their money-laundering risk." (Click here for the article) - Global