Chinese Gang Laundering Money at Laundries

Spanish police say they arrested 34 Chinese citizens as they smashed a family-run crime gang suspected of importing fake goods and laundering the profits, with the help of a chain of laundries.

The raids in Madrid, Barcelona, Valencia, Cadiz, Seville and Huelva overnight broke up the largest Chinese-linked criminal gang based in Spain, operating since the 1990s, said the Civil Guard overnight.

Police detained 34 Chinese nationals and seized assets worth 11 million euros ($15 million), it said.

The gang may have earned more than 40 million euros ($54.64 million) a year, importing four-to-six containers a month through Valencia packed with fake tobacco, clothes and other goods bound for sale in Spain, Britain, France, Italy and Portugal, they said.

The Chinese family-run gang laundered the proceeds by moving the money around with couriers, making bank transfers of less than 20,000 ($27,318) and by extending high-interest loans to compatriots based in Spain, police said.

The gang recruited Chinese people it had helped to enter Spain, often taking away their passports after they arrived or opening bank accounts in their names to launder illicit gains, they said.

According to police, the organisation had a branch in China, which controlled more than 30 companies including a chain of nearly 1,000 laundries and was used to conceal the source of the profits.

Source: Herald Sun

Macau Bank Denies Laundering North Korean Cash

By Heda Bayron
Hong Kong
20 September 2005

In a statement published Tuesday in major newspapers in Hong Kong and Macau, Banco Delta Asia said it had been engaged in business with North Korean banks and trading companies since the 1970's. But it called the U.S. Treasury Department's accusation that the bank is a money laundering conduit for North Korea "unfounded".

On Thursday, the Treasury Department designated Banco Delta Asia as a "primary money laundering concern" under the USA Patriot Act, which was passed in the aftermath of the September 11, 2001, terrorist attacks on New York and Washington.

The department said Banco Delta has been a "willing pawn" for North Korean agencies and companies to engage in "corrupt financial activities through Macau." It said the bank has met North Korea's needs and demands "with little oversight or control."

Stanley Au, the bank's chairman, told Hong Kong television the allegations are not true.

The bank says it will appeal the designation, and has announced that it has suspended all transactions with North Korean clients.

On Friday and Saturday, thousands of panicked depositors in Macau lined up to withdraw money from the bank.

In a bid to maintain public confidence, the Macau government appointed two independent bankers to help run Banco Delta Asia while it is under investigation. The Hong Kong Monetary Authority Friday also appointed a representative to manage a bank subsidiary in Hong Kong.

Joseph Yam, the head of the Hong Kong Monetary Authority, said Tuesday the investigation into the bank should proceed carefully in order to protect depositors.

The Treasury Department's Financial Crimes Enforcement Network has proposed a new rule that would prohibit U.S. financial institutions from dealing with Banco Delta Asia.

The department characterized Macau as a region in need of "significant improvement" in money laundering controls. The former Portuguese enclave reverted to Chinese sovereignty in 1999, and is best known for its booming gambling industry.

Source: VOA

EU targets 15 states over money laundering rules

BRUSSELS, June 5 (Reuters) - Fifteen European Union states including financial centres Germany and France have been given a final warning for failing to update their rules aimed at choking off finance for terrorist activities, the bloc's executive said.

"If there is no satisfactory reply within two months, the Commission may refer the matter to the European Court of Justice," the European Commission said in a statement on Thursday.

EU countries were obliged to introduce an updated version of the bloc's anti-moneylaundering rules by December last year.

The warnings were sent to Belgium, the Czech Republic, Germany, Greece, Spain, Finland, France, Ireland, Luxembourg, Malta, the Netherlands, Poland, Portugal, Sweden and Slovakia.

The rules apply to the financial sector, lawyers, notaries, accountants, real estate agents, casinos, trusts and company service providers.

The scope also extends to all providers of goods when payments are made in cash over 15,000 euros ($23,140).

Under the rules, a company would have to identify and verify who they are dealing with, report suspicions of moneylaundering or terrorist financing to the public authorities, and ensure personnel are properly trained.



http://www.finance.cz/zpravy/finance/171673-update-1-eu-targets-15-states-over-moneylaundering-rules/

UAE to join hands with 82 nations to fight dirty funds

The UAE said yesterday it will sign new anti-money laundering agreements with 82 countries as part of an intensified strategy to combat dirty funds.

The National Anti-Money Laundering Committee (NAMLC) discussed the plans at a meeting that also covered recent cases of currency fraud and other issues.

The Central Bank, which organised the meeting in Dubai, said the committee heard that a memorandum of understanding (MoU) had so far been signed between the anti-money laundering unit and 21 countries.

They were told that the unit planned to sign MoUs with 82 other nations that were members of the Egmont Group, an international gathering of financial intelligence units.

Some of the countries covered by the agreements have large communities in the UAE and financial sources say the agreements will strengthen the drive to crack down on dirty money and ensure the banking system here remains clean.

"These agreements demonstrate the commitment of the UAE to share financial information with its global partners to co-ordinate the efforts against money laundering, terrorist financing and related crimes," a Central Bank spokesman said after some of the deals were signed earlier this year.

"These agreements were aimed at further supporting the UAE's continued co-operation with the international community on subjects of mutual concern and on ways to strengthen co-operation on combating money laundering."

MoUs were signed with the financial intelligence units of Lebanon, Belgium, Brazil, Croatia, Estonia, Isle of Man, Macedonia, Malawi, Monaco, Nigeria, Portugal, the Philippines, Serbia, South Africa and other countries.

The agreements followed a pledge by the UAE last year to push ahead with an extensive campaign against money laundering and terrorist funding through intensified regional and international co-operation.

Source: Emirates Business 24/7

Macedonia signs agreements on money laundry prevention with Turkey and UAE

Macedonia's Administration for Money Laundering Prevention and Terrorism Financing (USPPFT) signed memo of cooperation with the financial intelligence units (FIUs) of Turkey and United Arab Emirates at sidelines of the Egmont Group annual session, being held past week in Doha, Qatar.

A delegation of Macedonia's Administration for Money Laundering Prevention and Terrorism Financing, led by Director Vane Cvetanov, also held talks with the FIUs of Britain, Portugal and Nigeria, focused on signing cooperation memos in the near future.

Thus far USPPFT has signed cooperation agreements with 26 countries.

Source: Mina

BES Madeira offices searched over money laundering case- report

LISBON (AFX) - Banco Espirito Santo SA's offices in Madeira were searched on Friday by Spanish and Portuguese authorities regarding the 'Operation Sweater' money laundering case currently being investigated by Spanish Judge Baltazar Garzon, Diario Economico reported without citing a source.

The search follows raids on BES and BNP Paribas (other-otc: BNPZY.PK - news - people ) branches over the same case in Madrid and Barcelona a month ago which led to 5.5 bln eur of funds of BES clients being frozen.

According to the newspaper, judges and prosecutors from Spain and Portugal were present at Friday's raid, as well as representatives from both nation's police forces.

Diario Economico cited the bank as denying having committed any illegal activity in relation to the case.

http://www.forbes.com/business/feeds/afx/2006/12/18/afx3262369.html

Prosecutors mull Macau bribe charges

December 09, 2006

Macau's prosecutors were Friday examining evidence to determine whether to charge detained disgraced former transport minister Ao Man-long with corruption.

Ao, 50, who was arrested last Wednesday, and 11 other suspects were taken to the prosecution office in handcuffs, where evidence was laid out before them. They face allegations of taking and receiving bribes and of laundering money overseas through a network of bank accounts to disguise the transactions.

Among the suspects were Ao's father Ao Wing-kwong, younger brother Ao Man-fu and a sister-in-law.

A statement from Macau's Commission Against Corruption, or CCAC, named the alleged bribers as a merchant surnamed Ho, a general manager surnamed Ioeng and an accountant surnamed Leung, of a company contracted for big construction projects.

Ao and another eight men and three women were arrested Wednesday night following more than 150 hours of investigations launched last week, the statement said.

"According to [the] source of information, the CCAC suspected that someone had abused his position and power in order to accept bribes. He [Ao] registered some shell companies abroad and cleaned the corrupt money in a secretive and zig-zag way through bank account networks," it alleged.

It said police conducted raids on the suspects' homes and offices and found more than HK$97,000 worth of Macau patacas and Hong Kong dollars. Police also confiscated contracts in newly bought apartments.

"Someone admitted opening bank accounts to operate illegal financial activities, during the investigation," it added.

The Independent Commission Against Corruption, which is cooperating in the investigation, refused to comment on, or confirm, that Hong Kong residents were among those arrested and that local bank accounts were being probed.

The merchant has been identified as Ho Meng-fai, president of San Meng Fai Engineering and Construction Company, one of the largest contractors in Macau.

Prior to the handover in 1999 San Meng Fai had not been involved in any government contract, but following the handover some 15 out of 24 construction projects conducted by the company, estimated to be worth at least HK$1 billion, had been awarded by the government, 12 of them by Ao's department.

A company spokesperson said San Meng Fai was one of the leading developers in Macau, responsible for many construction projects around the world, employing about 300 workers in Macau and at least 5,000 workers around the world.

According to the company Web site, San Meng Fai Engineering and Construction Company was established by Ho in 1982.

Describing the incident as heartbreaking, Macau Chief Executive Edmund Ho Hau-wah said the central government had agreed to the removal of Ao from official duties.

He stressed the government placed confidence in public servants and told them to look at the issue objectively, stay away from hearsay and stand by the facts, and be confident in the Judiciary to make a just judgment.

News of the arrests shocked the former Portuguese enclave, which has worked hard in recent years to shake off its reputation as a haven for gambling- related sleaze and criminality.

Since the handover central and local authorities have clamped down on loan sharks, pimps and triad gangs that flourished under Lisbon's lax control.

If Ao is charged, the case will be sent straight to the Court of Final Appeal due to his senior rank, in accordance with Macau law.

http://www.thestandard.com.hk/news_detail.asp?pp_cat=11&art_id=33735&sid=11267427&con_type=1