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

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.

China Tariffs - List 3 Finalized and Taking Effect | Mitchell Silberberg & Knupp LLP

"At the end of the day on September 17, 2018, the U.S. Trade Representative issued notice that List 3 of the China tariffs has been finalized and takes effect with a 10% tariff on September 24, 2018." (Click here for the article) - USA, China

China eases up on winter smog fight as it battles American trade war headwinds  | SCMP

"China will be less severe with its smog curbs this winter as it grapples with slower economic growth and a trade war with the United States, according to a government plan released on Thursday." (Click here for the article) - USA, China

Ferraris, diamond rings: 3 men indicted in massive $364 million Ponzi scheme | USA Today

"Three men have been indicted in an alleged $364 million ponzi scheme that had more than 400 victims who funded their lavish lifestyle, featuring luxury cars, pricey homes and expensive jewelry, federal authorities said." (Click here for the article) - USA

Paris set to triumph as Europe’s post-Brexit trading hub | Financial Times

"Paris is emerging as the favored financial trading hub for continental Europe, as some of the world’s biggest banks and asset managers prepare for life after Brexit by steering their EU operations away from London to the French capital." (Click here for the article) - UK, France, European Union

US reaches trade deal with Canada and Mexico | Politico

"Trade ministers from the U.S., Mexico and Canada have reached a deal to revamp the North American Free Trade Agreement, the Trump administration announced late Sunday night." (Click here for the article) - USA, Mexico, Canada

Rules of Origin are too complicated | FOOD navigator

"Complex rules of origin labelling requirements inhibit trade and SMEs pay a particularly heavy price, trade bodies amfori and EuroCommerce warn. Speaking at a conference on rules of origin in Brussels, the heads of both associations argued that unless rules of origin requirements are reformed, they will continue to discourage European companies from taking advantage of ‘hard won concessions’ in free trade agreements." (Click here for the article) - European Union

North Korean hacking group tried to steal over $1Bn | FireEye

"This new FireEye report reveals a North Korean hacking group tried to steal over $1 billion from banks worldwide." (Click here for the article) - North Korea, Global

USMCA Provision Could Deter Trade Agreements with China | ST&R

"A provision in the updated NAFTA concluded this past weekend could make it more difficult for Canada and Mexico to pursue potential free trade agreements with China. Observers say the Trump administration could look to insert a similar provision in possible FTAs with the European Union and Japan as part of its effort to pressure Beijing to advance economic reforms." (Click here for the article) - USA, Mexico, Canada, China

Dubai enacts changes to anti-money laundering rules | The National

"The Dubai government has enacted changes to the Dubai International Financial Centre's anti-money laundering laws following a self-assessment of the free zone’s capacity to fight financial crime." (Click here for the article) - UAE

Hong Kong Freezes Chairman Assets, Alleges $1.3 Billion Con | Bloomberg

"Hong Kong’s securities regulator froze the assets of an unnamed chairman of a public company on suspicion of fraud totaling $1.3 billion. The person may have conducted two suspicious transactions to make significant profits, the Securities and Futures Commission said in a statement..." (Click here for the article) - Hong Kong, China

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.

Europe, Russia and China join forces with a new mechanism to dodge Iran sanctions | CNBC

"In the latest sign of the growing divide between Washington and its allies, the European Union's foreign policy chief announced Monday that the bloc was creating a new payment mechanism to allow countries to transact with Iran while avoiding U.S. sanctions." (Click here for the article) - USA, Russia, China, European Union

China says US trying to force it to submit on trade as new tariffs kick in | Reuters

"The United States and China imposed fresh tariffs on each other’s goods on Monday as the world’s biggest economies showed no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth." (Click here for the article) - USA, China

Novartis links bonuses to ethics in bid to rebuild reputation | GAN Integrity Inc.

"Swiss drug maker Novartis has revealed its employees only get a bonus if they meet or exceed expectations for ethical behavior as it seeks to address past shortcomings that have damaged its reputation." (Click here for the article) - Switzerland, USA, South Korea, China

Japan mulls bilateral trade deal with U.S. | Reuters

"Japan is mulling a bilateral trade agreement with the United States that would lower tariffs on U.S. agriculture imports in exchange for avoiding higher tariffs on Japanese autos, the Nikkei newspaper said on Saturday." (Click here for the article) - Japan, USA

Potential NAFTA collapse poses major risk to Canada | Financial Post

"Canada’s economic growth could be pared by about a quarter next year if the North American Free Trade Agreement collapses, and the drag will be extended if an automobile trade war emerges, according to a new Conference Board forecast." (Click here for the article) - Canada, USA

British inquiry intensifies Danske Bank money laundering scandal | Reuters

"Danske Bank’s money laundering scandal spread on Friday to Britain where the National Crime Agency said it is investigating the use of UK-registered companies." (Click here for the article) - Finland, Denmark, Estonia, Russia, UK

BASF commits to complying with US sanctions on Iran | Politico

"German chemical giant BASF has made a firm commitment to comply with all U.S. sanctions against Iran, becoming the latest in a string of large European companies to back away from ambitious plans to invest in the Islamic Republic following Washington’s withdrawal from the Iran nuclear deal." (Click here for the article) - Germany, Iran, USA

US Sanctions Russia and China-based IT companies for connections to DPRK | WorldECR

"The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has sanctioned a Chinese IT company, its Russian counterpart and its North Korean CEO, targeting revenue repatriated to North Korea (‘DPRK’) through overseas IT workers." (Click here for the article) - Russia, China, North Korea, 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/corruption, fraud, and due diligence news bites, from around the world.

US President signs miscellaneous tariff bill - eliminates tariffs | crowell moring

"On September 13, 2018, President Trump signed the Miscellaneous Tariff Bill (MTB) Act of 2018, which temporarily reduces or eliminates import duties on specified raw materials and intermediate products used in manufacturing that are not produced or available domestically." (Click here for the article) - USA

Danske Bank CEO quits over $234 billion money laundering scandal | Reuters

"Danske Bank’s chief executive Thomas Borgen resigned on Wednesday after an investigation revealed payments totaling 200 billion euros ($234 billion) through its small Estonian branch, many of which the bank said were suspicious." (Click here for the article) - Estonia, Russia, Denmark, European Union

U.S.’s Ross says China must decide on trade talks | CNBC

"It is up to Beijing to take the next steps on trade talks, U.S. Commerce Secretary Wilbur Ross said on Tuesday as China vowed to retaliate after U.S. President Donald Trump imposed initial duties on $200 billion worth of Chinese goods." (Click here for the article) - China, USA

US Legislation Gives BIS Greater Powers | WorldECR

"The US Department of Commerce’s Bureau of Industry and Security (‘BIS’) has been given statutory authority under the Export Control Reform Act (‘ECRA’), to control certain exports. The act was signed into law by President Trump on 13 August." (Click here for the article) - USA

Europe Moves to Target Money Laundering in Response to Scandals | WSJ

"Europe threw a one-two punch to fight money laundering on Wednesday, with the European Commission proposing enhanced powers for a regulator and lawmakers passing a package of new rules." (Click here for the article) - European Union

Foreign Bribery Rages Unchecked in over half of Global Trade | Transparency International

"Transparency International’s new report, Exporting Corruption, finds that only 11 major exporting countries - accounting for about a third of world exports - have active or moderate law enforcement against companies bribing abroad in order to gain mining rights, contracts for major construction projects, purchases of planes and other deals." (Click here for the article) - Global

Canada returning to NAFTA talks earlier than expected | CBC

"NAFTA talks are resuming at the decision-maker level sooner than expected, with Canada's foreign affairs minister set to return to Washington on Tuesday." (Click here for the article) - Canada, USA, Mexico

US - South Korea Free Trade Agreement Changes Published

Details on the changes made to the US - Korea free trade agreement have now been published.(1)  The renegotiated agreement covers areas such as automobiles, customs processes, and investment, as well as the recent US steel and aluminum tariffs.  Some of the key new outcomes include(2):

  • Korea will extend the phase out of the 25% US tariff on trucks until 2041
  • Korea will double the number of US automobile exports, to 50,000 cars per manufacturer per year, that can meet US safety standards and enter the Korean market without further modification
  • US gasoline engine vehicle exports will be able to show compliance with Korea's emission standards using the same tests they conduct to show compliance with US regulations
  • Korea will recognize US standards for auto parts necessary to service US vehicles and reduce labeling burdens for parts
  • Agreement was reached on conducting verification of origin of exports under KORUS

Click here for the document that provides the KORUS text change details.  

References

Singapore Makes Changes to their Strategic Goods Control List

On September 4, 2018 Singapore Customs announced they have modified their Strategic Goods Control List.(1)  The changes, when they come into effect, will bring Singapore's strategic goods control list up to date with the 2017 Wassenaar Arrangement's Munitions List (2), and the 2017 European Union's List of Dual-Use Items.(3)  

The amendments include new controls, removal of controls, and other minor editorial changes.  Singapore Customs published a document with the changes noted in detail.(4)

The changes will become effective on November 1, 2018.

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/corruption, fraud, and due diligence news bites, from around the world.

Retaliatory tariffs on US chem exports to China threaten $18Bn in economic harm | ICIS

"The $11Bn worth of tariffs on US chemical exports enacted by China put almost $18Bn in domestic activity at risk along with nearly 55,000 US jobs..." (Click here for the article) - USA, China

New Sanctions Against Russia Have Unfavorable Impact on Defense Sector | BakerHostetler

"the U.S. State Department published new sanctions against Russia based on the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 after determining that the government of Russia had used chemical weapons in violation of international law..." (Click here for the article) - USA, Russia

Trump Rejects EU Offer to Remove Tariffs on Industrial Goods | ST&R Trade Report

"President Trump said Aug. 30 that a European Union offer to remove all tariffs on two-way trade in automobiles and other industrial goods is "not good enough."  (Click here for the article) - USA, European Union

'Urgency' for Asia Pacific mega trade deal | CNBC

"While the administration of U.S. President Donald Trump is considering slapping another $200 billion in tariffs on Chinese goods, 16 economies in Asia Pacific are racing to conclude a mega trade deal that would become the largest trading bloc in the world." (Click here for the article) - 10 ASEAN nations plus China, Japan, South Korea, India, Australia, New Zealand, 

EU lifts five-year old restrictions on solar panels from China | South China Morning Post

"The European Union will end its five-year-old restrictions on solar panel imports from China, officials said on Monday, as Brussels and Beijing increase their own trade cooperation in the face of protectionist steps from the United States." (Click here for the article) - EU, China

Kim struggles to revive North Korean economy battered by sanctions | Nikkei Asian Review

"In the two and a half months since his historic summit with U.S. President Donald Trump, North Korean leader Kim Jong Un has temporarily shelved de-nuclearization talks in favor of inspecting farms and factories to underscore his focus on improving an economy hamstrung by years of sanctions." (Click here for the article) - USA, North Korea, South Korea

Trump reportedly wants to hit China with tariffs on $200Bn worth of goods | Business Insider

"Bloomberg reported Thursday that Trump had told aides that he wants to follow through on a threat to impose tariffs on another $200 billion worth of Chinese goods as early as next week. That would mean more than half of all Chinese imports would be subject to tariffs." (Click here for the article) - USA, China

China may soon regret slapping tariffs on US soybeans | CNN Money

"One of China's major moves in the trade war with the US is in danger of backfiring on its own farmers.  They're facing a potential shortage of soybeans, one of China's biggest imports from the United States, after Beijing slapped a 25% tariff on them last month in retaliation for US tariffs on a swath of Chinese goods." (Click here for the article) - USA, China

Former DP World Manager must pay Dh5 million fine over bribe plot | The National UAE

"A former DP World manager who sought bribes from two companies in exchange for helping them win lucrative construction projects has had her 18-month jail term upheld – and been told she must still pay a fine of nearly Dh5 million." (Click here for the article) - UAE

Wells Fargo bankers fired after falsifying dinner receipts | Fox Business

"Yet another scandal has reportedly broken out at Wells Fargo.  The bank has fired or suspended at least a dozen employees at its investment bank - Wells Fargo Securities - over allegations these individuals doctored after-hours dinner receipts..." (Click here for the article) - USA

An overview of the Danske Bank money laundering scandal | Berlingske Business

"Berlingske has spent more than a year investigating the extensive money laundering at Danske Bank. Here is an overview of the case – with links to the most important articles (some are in Danish)...For years, large and deeply suspicious money flows were channelled unhindered through Danske Bank’s branch in Estonia – in what experts say was in breach of anti-money laundering laws." (Click here for the article) - Denmark, Estonia, Russia

 

US Trade Representative Issues Trade Fact Sheet on US-MX Trade Agreement

The Office of the United States Trade Representative (USTR) recently published a fact sheet detailing the key components of the recently agreed upon US-Mexico Trade Agreement.  Some of the key changes proposed in the rule include:

  • Auto sector: At least 75% of a vehicle must have been built in either the US or Mexico in order for the vehicle to sell in the US without tariffs.  The original NAFTA agreement only required 62.5%.
  • Intellectual property: The agreement extends US copyright protection into Mexico and strengthens the patent protections in the pharmaceutical and agricultural sectors.  It also addresses digital trade, something that was not covered under NAFTA.
  • Labor and Environmental: The agreement requires companies to "prohibit the importation of goods produced by forced labor, to address violence against workers exercising their labor rights, and to ensure that migrant workers are protected under labor laws.".  It also addresses air quality issues.
  • Duty free limits: The agreement raises the "de minimis" level from $50 to $100 for duty free entry from the US into Mexico for Mexican citizens.  U.S. citizens are allowed to import up to $800 worth of goods duty free.
  • Sunset Clause: The pact, if agreed upon would run for 16 years.  After 6 years both sides would met and decide if they wanted to renew for another 16 years.      

The deal requires approval from the US Congress before it can become law.  The Administration intends to submit the paperwork to get the process started in Congress as early as Friday.  This timeline potentially gives Canada only a week to sign-on to the deal.  

Click here for the full Fact Sheet.  

Key Link(s):