Money Laundering News

The Basel Committee on Banking Supervision has released new guidance, said to be final guidance on due diligence and transparency, regarding messages dealing or relating to, cross border wire transfers of money.

Details of the guidance can be found on the Basel Committee on Banking Supervision Website.

It has been announced that the Government has scrapped plans to rule out any possibility of creating a super database to hold emails, phone calls, text messages and internet usage. Presumably because doing so would be too difficult!

This however is not such good news as it appears. Apparently rather than create one super database, the Government is planning to obtain the same information but have it on several databases.

Adobe has recently issued a security alert about its discovery of a very serious flaw in its own software. Apparently the flaw accepts Adobe Readers’ execution of Javascript. This permits hackers to run their own code on targeted systems or alternatively crash the current application.

This is the very type of problem reported in our last newspost.

The effects of this could be enormous as the free Adobe Reader is the most widely used programme to read .pdf files.

It goes without saying that a fix is urgently being worked upon.

As long ago as April 2007 the Home Office brought in changes concerning reporting fraud. They were to establish the National Fraud Reporting Centre (NFRC). This should have been operational relatively quickly after recruiting and then training a relevant number of officers. However, it has now been reported that the centre will not be fully operational until the summer of next year. Why should it take three and a quarter years to establish?

For the second day running we regrettably find that we report upon criminal activities involving potential ID theft.

Secunia are reported as saying that third party applications, as opposed to operating systems, are being used by hackers to infiltrate personal computers. The method being used is that when ordinary users load and run certain programmes, the vulnerability of those programmes to attack by criminals is being exploited. The malware embeds itself into the innocent piece of software and when that software is run its malevolent object is automatically achieved.

The problem in curing this type of attack is to ensure that all software suppliers, and there are millions of them, make their software available to security companies so that appropriate safeguards can be embedded. The problem is that the overwhelming majority of programmers do not wish to part with their software, pay for the guards to be incorporated or indeed even know that the safeguards are available.

Security company Finjan have reported that Government departments have been infiltrated by a criminal gang based in the Ukraine. The security firm believes that the command and control centre of this gang is run by a gang of six people.

The report goes on to say that this criminal gang are allowing other criminal gangs access to the information on the infiltrated Government department’s computers and charging $100 a day for their access service.

The capacity of criminals to reap havoc is immense and it can only be hoped that efforts being made to secure the government department computers and to prevent similar infiltrations in the future.

Webwise is a system created by a company called Phorm. That system accesses internet services suppliers’ records and then sells data enabling businesses to send targeted advertising emails to users.

This is regarded as a breach of privacy by the EC and it has been reported that the European commission has launched legal action against the Government for failing to ensure the privacy of UK internet users. This follows Webwise test of the system without people’s consent.

The Council of Europe has a committee of experts whose job it is to evaluate the efficiency of money laundering measures. That committee has recently reported on the Ukraine’s State Financial Monitoring Committee. Their report praises the efforts made in the Ukraine and states, “Ukraine has managed to create a really effective and modern system, which has become a reliable tool in the fight against economic crimes.”

Government watchdogs in the US are so overworked as a result of the work that they have to carry out relating to failed US banks that they are unable to carry out their ordinary function.

The Nasdaq recently carried a report saying that enforcement officers were forced to drop investigations into all sorts of different issues, including money laundering, simply because of the volume of work that they have to carry out. This prevents them keeping a careful eye over the trillions of Dollars that the new American Government has put into programmes in the recent past to combat the recession.

A new form of money laundering apparently has been operating through the Bangalore stock market where black money has been laundered through their secondary market with deals involving penny stocks.

There has been an enormous turnover of the shares of one particular company that has only made a tiny profit and doesn’t declare any dividend. The extent of the fraud and the number of businesses involved is reported to be vast.

Regular readers will know that we have carried numerous reports about the British Government holding DNA data on a very large number of people not found to be guilty of any offence. The European Court ruled that our Government should destroy these records and we are pleased to report that a recent report in the Daily Telegraph stated that the Government was now destroying more than 900,000 such records.

Be carefule, the latest phishing scam is an email that purportedly comes from the Alliance and Leicester asking you to confirm your passwords etc. Don't be folled. It's a phishing attempt.

When in doubt phone the Society to check up on the email.

Drug traffickers may have thought that they were safe in their home state of Columbia. That is no longer the case. SOCA have reported that they have successfully applied for and obtained the extradition from Columbia of a man charged with eleven offences of money laundering linked to drugs supply in the UK.

Yesterday we were to an extent critical of a SOCA press release concerning sentencing of drug dealers which might not have been necessary, however, it is to be hoped that drug dealers in Columbia learn of the extradition of one of their compatriots to face trial and potential long prison sentences within the UK.

On the 29th March SOCA (the Serious Organised Crime Agency) issued a warning to drug traffickers that they will face a long time behind bars if they attempt to import drugs into the United Kingdom. Was this warning really necessary? Do criminals not already know?

The warning follows the sentencing from two men from Tobago. They were jailed for 18 and 15 years for their roles in a cocaine trafficking conspiracy.

Of course criminals should be aware of the potential downturn to their illegal trade but one wonders about the efficacy of a press release of this.

The Philippines appeared for a very short time on the OECD tax haven blacklist. The effect was almost immediate and the Philippines are now preparing to revise their bank secrecy laws.

The power of the anti-money laundering regulatory regimes being imposed across the world are having an affect.

Hardly a day passes without their being a news item concerning piracy and the vast sums of money that the pirates receive as ransom for the vehicles that are high jacked off of the horn of Africa.

What happens to the money? Why has this money not been traced and frozen and therefore the profits of this monstrous crime taken away from the pirates. If their money was frozen there would be no point in piracy.

Reports are that the amount taken in ransoms is at least £56m this year alone. It may be that banks in Somalia protect the pirates’ assets but the money sitting in a Somalian bank does the pirates no good as there is nothing for them to buy.

This is an excellent opportunity for the regulatory authorities to exercise the power given to them under international anti-money laundering regulation.

Regular readers will possibly recall that we have reported on international assistance donated by wealthier countries with possibly more developed banking systems, to so called third world counties to assist them in their money laundering efforts.

The latest assistance comes from Canada who are providing that an additional $330,000 to the United Nations office on drugs and crime in Vietnam. The total aid granted by Canada now exceeds $700,000. Although primarily intended as a fight against drugs, it is understood that the methods being used are tracing dealers via anti money laundering techniques.

We are all conscious of ID theft and the danger to our very security created by viruses and Trojans.

The newly formed Police Central E-Crime Unit has recently had its first success when arresting and charging two Uzbekistan nationals and seven other East Europeans in connection with a conspiracy to defraud. The persons arrested were using Trojans to obtain information leading to ID theft and the laundering of illicit proceeds of their crime.

Some months ago we reported on the criticism being levelled towards Antigua and Barbados. They clearly have taken that criticism very seriously and have now made a number of regulatory changes, especially to their online gambling industry in order to combat money laundering and terrorism financing.

A case has been reported of a new variant to a phishing attack. Rather than receiving an email, the person targeted was telephoned. The caller announced that he was calling from an internet security company and that he was aware that a number of computers had been affected by a virulent virus. He asked that the person switch on his computer and he would then talk him through the steps necessary to remove the virus.

In the reported case the computer owner was sufficiently vigilant to ask the caller a series of questions and it soon became apparent that the caller was not genuine and that the caller was merely trying to obtain password and information necessary to steal ID.

On no account should you give information to any caller. You should not ask for the person’s number and telephone back on that number.

You should ask where the caller was calling from, look up that company on the internet and if the company is a known company such as a well known bank, then telephone them and report the situation.

There is still and open question as to whether ID cards will become compulsory in the future. In an answer to a question the Home Secretary has admitted that if the government were now to scrap the ID idea then the cost to the next incoming government would be £40m which would have to be paid in compensation to suppliers.

We have previously reported the finding of the European Court in respect of database of DNA profiles. Notwithstanding that report it appears that some 1.4million new records have been added to the UK National DNA Database over the last two years alone.

Chip and pin was introduced not as a complete remedy for credit card losses but as a significant additional safety resource.

Unfortunately as with all IT matters there is a leapfrogging effect. Fraudsters take a step, authorities take a counter step and so on and so forth. Unfortunately while chip and pin of course does have an affect, fraudsters appear to have leapfrogged to that effect so that it has now been reported that British cardholders alone were unable to account for £10.8bn worth of transactions last year.

No matter how careful we are, we are all vulnerable and can only hope that the next leapfrog step by the ‘good guys’ offers a further means of protection at least for a time

The EU has warned internet companies about the degree of customer profiling that they are now able to carry out as a result of customer purchases via the internet. The EU considers that the degree to which profiling now takes place is tantamount to an invasion of privacy and have issued a warning that they will pass appropriate regulations if the industry does not self-regulate to minimise customer profiling to an acceptable degree.

The Anti Phishing Working Group have announced a new public education initiative. The intention is to deliver video instructions to consumers to show them how to avoid, money muling schemes.

Money muling schemes induce job seekers into purported clerical jobs but the jobs really are nothing other than money laundering mechanisms organised by crime gangs.

The initiative comes as a result of the stunning increase in money muling operations whereby money is unwittingly received by job seekers who then transfer these sums from their own clean bank accounts.

Some weeks ago the world’s top 20 economies resolved to put pressure on tax havens around the world. As a result of their meeting Switzerland has been put on a grey list of tax havens. The Swiss authorities have been extremely upset by such a description and said that Switzerland was not actually a tax haven. They noted that their department of justice has shown an increase of SARs from 795 in 2007 to 851 last year.

It has been announced that the IMF (International Monetary Fund) will shortly launch a trust fund to finance technical assistance in the fight in combating money laundering and terrorism.

As from the 1st May of this year something like $31m will be available over five years to help develop strategies and systems for the fight. Apparently Switzerland, Norway, Japan, Saudi Arabia, the UK, Luxembourg, Korea and France will provide about two thirds of the funds that will be made available.

Normally something that is free is worth what you pay for it, however, a helpful website giving free financial advice online is available. It can be found at www.bettermoneyskills.com.

The Government had proposed to share public data between different departments. This proposal was strenuously opposed both by Liberal Democrats, Conservatives and even some Labour MP’s.

The Information Commissioner similarly felt that the measure was unsuitable and after a fiery debate during the relevant bill’s second reading the Government decided to drop the relevant clause from the Coroners and Justice Bill.

The Directive came into force in the UK on the 15th March last. Under the Directive UK internet service providers have to retain data about all correspondence for a year. Police and other security experts will be able to request access to the information in their fight against terrorism and cyber-crime but apparently only with a Court Order.

It should not be forgotten however that Court Orders can be obtained easily by an officer making a request on oath in which all he has to do in effect is say that he suspects one or other type of crime. It is a brave magistrate who would then take the trouble or indeed the time to go deeper into any such question.

People are correctly wary of I.D and internet fraud. Unfortunately their very wariness has made them vulnerable to scammers who play on their fears.

Security firm Finjan has reported that there are many inexperienced hackers who are making millions of pounds by getting people to buy bogus software. Hacking tools can be bought cheaply so that even amateur hackers can prey on the fears of the cautious

. If amateurs can catch people out, then think what the professionals can and do!

The Times newspaper was sued over two news reports that alleged that a Russian businessman was linked to money laundering. The matter finally ended up before the European Court. There were delays and more than one claim was issued. The Times argued that as a matter of law that the only actionable publication of a newspaper article on the internet is the article which occurs when it is first posted onto the internet. This is known as the Single Publication Rule. The Rule applies in the USA.

The English Courts rejected The Times’ Single Publication argument applying a 150 year old legal rule where an article published in the 1830’s was read seventeen years after publication, and found that the delivery of that article seventeen years later was a fresh publication.

The problem therefore is that if something is on the internet it often is there for good and could be said to be republished time and time again each time somebody downloaded it. The relevant article under the European Convention of Human Rights is Article 10 which in effect, for this instance, said that “after a significant lapse of time” in respect of an online report, “may well in the absence of exceptional circumstances give rise to a disproportionate interference with press freedom.”

The government has issued a warning to law firms and others that a number of countries actually pose a serious threat to their business. Named amongst the countries which the government claims do not have proper procedures and systems in place to prevent money laundering are Iran, Uzbekistan, Turkmenistan, Pakistan, Azerbaijan and Sao Tome.

The Treasury warned that anyone dealing with those countries would have to employ enhanced vigilance in compliance with rules.

In evidence recently given by the Law Society to a Parliamentary committee, the Law Society’s chief executive has said that solicitors in the UK bear a heavier burden of compliance with anti-money laundering regulations than their counterparts elsewhere in Europe.

The chief executive actually described the wide definition of criminal property in the UK and the costs borne by solicitors in England and Wales as being, “absurd.”

The Irish Government has decided that it wishes to take measures against problem gambling, money laundering and child involvement while still recognising that people wish to gamble.

They are establishing a committee under the Minister of Justice to licence and regulate casino gambling. The effect will be to bring and regulate the 50 or so private members clubs that, in reality, currently operate as casinos.

The European Union has announced that it will penalise any nation that refuses to share information on tax evasion. Both Switzerland and Lichtenstein have agreed to cooperate and, for the first time, make tax evasion a crime which they will recognise to as to break their secrecy laws

Cooperative saving societies around the world, such as Christmas funds which are common in the UK, have been identified as a new target for money launderers.

What happens in practice is that the fund will open an account with a bank. The credentials of those opening the account are not questioned. The monies are received by the cooperative society and then paid into that single account thereby bypassing banks’ extensive security measures.

This creates an opening for money launderers and we can be certain that they will not be slow in finding and taking advantage of it.

The scale of cooperative societies should never be underestimated not only in the so called developed world but also in the third world.

Apple have been caught in a simple scam. Apparently an iPod repairman in America has managed to break into and copy data and then using it received 9,000 iPods.

He had no particular training and the question must arise that if it is so easy for a repairman to steal data then what could organised criminals achieve?

http://www.rapidrequest.co.uk/2/Go.aspx?tvRaDxrNtS9N/B67hQtTWzMDiv0julAjCHA1E3GDJwdy/Uac6J6AMg==

Despite all of the problems on breaches of data security the government is fixed on its course of introducing ID cards. It will be possible later this year for British nationals to obtain cards on a voluntary basis.

Those of you wishing to keep up to date with developments on ID cards can keep themselves up to date by going to Hyperlink "www.ips.gov.uk/identify"

Below please see a genuine looking email that we appear to have received from PayPal. We are members of PayPal but we do not use eBay, hence when we received the email below we were suspicious. We forwarded the email to PayPal who confirmed that it was a phishing attempt.

We could easily have been fooled if we were eBay users, so be careful. Don't fall for tricks like this:_

Dear PayPal Member,

This email confirms that you have sent an eBay payment of ЎМ147.85 to
johnny9123@yahoo.co.uk for an eBay item.

-----------------------------------
Payment Details
-----------------------------------

Amount: ЎМ147.85

Transaction ID: 2LC956793J776333Y

Subject: Digimax 130

-----------------------------------
Item Information
-----------------------------------

eBay User ID: john22

----------------------------------------------------------------
John Harrell's UNCONFIRMED Address
----------------------------------------------------------------

John Harrell
145 Church Lane East
Aldershot, Hampshire, GU11 3ST
United Kingdom

Important Note: John Harrell has provided an Unconfirmed Address. If
you are planning on shipping items to Edward Harrell, please check the
Transaction Details page of this payment to find out whether you will
be covered by the PayPal Seller Protection Policy.

Note:

If you haven't authorized this charge ,click the link below to cancel transaction

Cancel Transaction:

https://www.paypal.com/cgi-bin/webscr/cgi-bin/webscr?login-run.webscrcmd=_account-run.CaseIDNumberPP-046-631-789

*SSL connection:
PayPal automatically encrypts your confidential information
in transit from your computer to ours using the Secure
Sockets Layer protocol (SSL) with an encryption key length
of 128-bits (the highest level commercially available)
----------------------------------------------------------------

Thank you for using PayPal!
The PayPal Team
PayPal Email ID PP118

The following appears in the current Law Society email update:

"Supporting solicitors with AML compliance Free MLRO group networking events: new date added A new date in Nottingham has been added to our series of free Money Laundering Reporting Officer (MLRO) networking groups. The groups are a great opportunity for MLROs in law practices, and their deputies, to discuss the challenges they face with anti-money laundering compliance. The events will also provide an update on current Law Society activities, recent case law and new methodologies. Each event is free and qualifies for 2 hours CPD."

On the question of security of data the Information Commissioner’s Office has sent a very strong warning to local Health Trusts to the effect that they must take care of patient’s personal data. This arises after the Commissioner took out an enforcement action against an NHS Trust for breach of security.

The problem of course is that if Mr A or Mr B is suffering from a particular illness then it is of course private to him but other records which show his name, address, date of birth etc. contain information that is valuable to those seeking, for nefarious reasons, to steal identities. The Information Commissioner must strengthen procedures.

A few months ago the press was full of reports that this government department or that government department had lost a database containing personal information of individuals. The fact that these reports seem to have dropped out of the news does not mean that government has tightened its security measures and that personal information is no longer being lost. The Information Commissioners Office has reported that almost 100 incidents of breaches of data security were reported between November 2008 and the end of January 2009. This should be compared to the 277 breaches reported during the whole of the previous twelve months.

Government leaks and the leaks are getting worse!

We have all been reading about powers granted widely for entities such as local authorities to be able to monitor e-mails etc.

The government proposes to keep an even closer check on individuals. The current proposal is for a centralised database which will be part of the governments E-Borders Project. This will electronically track everybody entering or leaving the country. The purpose is said to obtain information about the movements of potential terrorists. There is a point though about individual liberty and the rights to privacy. Where, does this start and where does it end. We have already reported that the government has received a bloody nose over keeping a DNA database of persons who have been acquitted of offences

Argentina has introduced an amnesty on unpaid taxes and penalties for Argentinean people who bring back to Argentina monies that they have invested overseas but have not paid tax either thereon or on the income that has been derived. T

he amnesty has been criticised by many as offering Argentineans the opportunity to launder both the principle and the income but the situation has been defended vigorously by Argentina’s internal tax agency. They have said that the amnesty plan will not relieve financial entities or other people from their obligations under their anti-money laundering regime but will hopefully solve a problem that is taking up considerable resources and will repatriate an estimated very large amount of capital into the country.

The Law Society has made representations to the House of Lords over the enormous cost burdens that are placed on solicitors as a result of the anti-money laundering regime.

A full report of the Law Society’s response to the House of Lords Home Affairs Sub-Committee’s request for evidence can be found at:

No one is immune from criticism about the economic downturn. Hedge funds are villains as are banks and the FSA for not overseeing everything properly.

The latest is that in an FSA commissioned survey of its anti-crime measures two of Britain’s biggest banks and life companies say that the FSA should have no future role in dealing with financial crime. This apparently reflects great dissatisfaction amongst city companies concerning the FSA’s handling of money laundering and fraud matters.

It is very easy to simply criticise but criticism alone frequently is not only non-productive but is liable to be counter-productive. On the other hand criticism with suggestions for improvement can be positive

The European Parliament has passed a resolution whereby it requires that countries who have implemented the Unfair Commercial Practices Directive should pass equivalent laws incorporating the provision into the local law of the member country.

The UCP Directive has been implemented in the UK law under the guise of the Unfair Trading Regulations 2008. The effect is to prohibit misleading or aggressive commercial practices and it will be possible for somebody who has suffered as a result to being their own prosecution without waiting either for government or local authority action.

This of course begs the question that in the event of an unsuccessful prosecution who pays the costs.

Security experts have warned of an anticipated surge in attacks on PC’s through USB memory keys. There was recently an incident in Australia where USB keys shipped with some HP Proliant servers were infected with worms.

If new but infected HP products can be supplied then it is very difficult to advise on what measures should be taken for self-protection. Clearly it is not good enough to just rely upon major and respected hardware suppliers. It is easy to say be careful but that is about as useful as saying be careful when crossing the road. Nevertheless be careful

Jersey continues its reforms and confirms that it is determined to bring its tax cooperation in line with other European countries. To that end it signed a Tax Information Exchange Agreement with Germany. The agreement would involve Jersey and Germany sharing information on tax related matters when it is requested.

Germans who have hidden investments in Jersey will no longer be protected by secrecy laws.

The Law Society Gazette web site carries useful information on an up to date H. M. Treasury announcement on money laundering.

Our regular readers will note that Jersey was criticised for having fallen behind in its anti-money laundering regime. Following that criticism Jersey put its house in order. Jersey has been so successful in doing so that Ed Shorrock of Baker Platt Group was an invited guest speaker and took the limelight at a recent world-wide gathering of law makers in Kuwait.

The Home Office and Serious Organised Crime Agency have reported that they estimate that £618 on average is recovered from criminals for each suspicious activity report. This has to be contrasted with the cost of anti-money laundering training which, every person in the regulated sector must have. Failure to train staff to recognise possible money laundering operations is a criminal offence for which the directors of a company or the partners in a professional firm are personally responsible.

The cost of training far exceeds the current estimated return on monies recovered. However nothing will be done as recovered monies go to the government not to the individual firms who train. It is all very well to ask, ‘what price justice?’ but the legislation in effect turns persons within the regulated sector into informers and policemen who not only have to operate without pay but also at considerable cost. Nevertheless, the question, ‘what price justice?’ still remains pertinent and justice the overwhelming ideal.

The House of Lords Constitution Committee has reported that spying on the British public by the government is, ‘pervasive and routine.’

This finding has been published in the Committee’s investigation into the rise of surveillance and data collection. The Committee was especially concerned about the DNA database which is the largest in proportionate terms in the world.

The Committee was taking evidence before the finding against the UK government by the European Court on the question of DNA database on persons not guilty of any crime.

It is always easy to make an accusation but care must always be exercised in doing so.

Elections are due in Senegal in a few weeks. Their former Premier, Macky Sall, has been questioned over money laundering. He may or may not be guilty but the simple fact is that he has been arrested and questioned. His political position must therefore have been affected and it is not unreasonable to ask whether this is a proper application of regulations relating to money.

There has long been a campaign for plain English to be used by government and commercial bodies for some time. Attention is now switching to the privacy notices generally attached to emails. It is accepted that the overwhelming majority of privacy notices are almost incomprehensible to the man in the street and so a new campaign is being launched by the Information Commissioners Office into wording of these notices.

We appreciate that there has been publicity on this point before but it is worthy of mention again.

The police and MI5 have obtained new powers following a decision by the European Union Ministers in Brussels to extend the use of intrusive surveillance. Not only can police and MI5 officers hack into personal computers without a warrant but French, German and all the other EU forces can also ask British officers to pass over any material that they have gleaned.

Human Rights organisations of course consider this to be a devastating blow and they apparently are preparing a legal challenge under the European Convention on Human Rights.

The European Court of Human Rights has ruled that in circumstances where someone has not been found guilty of any offence then it is against human rights for police authorities to retain details of their DNA. The finding is pursuant to Article 8 of the Human Rights Convention and covers the right to respect your private and family life.

UK police forces may be forced to destroy major parts of the database that they hold.

Who, one wonders, will police the police?

The Cheque and Credit Clearing Company has introduced an online tool which is intended to give assistance to customers and especially to help them understand clearance times. The free tool has been developed so that users can see the stages of cheque clearing and the online checker, it is hoped, will assist customers to protect themselves against fraud.

The ridiculous thing about the report that we have read concerning this probably valuable tool is that it does not show the address from which the tool can be downloaded. However a search of the Cheque and Credit Clearing Company should allow people to find the relevant address.

The e-mail apparently emanates from e-bay and asks us for information about our account.

MLRO free networking groups

The Law Society is running a series of free Money Laundering Reporting Officer (MLRO) networking groups around England and Wales.

The groups are a great opportunity for MLROs in law practices, and their deputies, to discuss the challenges they face with anti-money laundering compliance. The events will also provide an update on current Law Society activities, recent case law and new methodologies.

Each event is free and qualifies for 2 hours CPD. Numbers are limited so please book early to ensure your place.

The Law Society has published a new VAT Practice Note. Their email notification and link appears below:

VAT on disbursements: new practice note

HM Revenue and Customs and solicitors sometimes mean different things by a disbursement. Our practice note seeks to clarify this issue to help you identify what is or is not a disbursement under VAT rules.
Read our practice note

The Law Society has published a new Data Protection Practice Note. Their email notification and link appears below:

Data protection: new practice note

Our practice note sets out how solicitors can comply with the Data Protection Act 1998. It highlights the requirement to notify the Information Commissioner before you process personal data. Failure to notify may lead to prosecution.
Read our practice note

There has been a campaign for plain English to be used by government and commercial bodies for some time. Attention is now switching to the privacy notices generally attached to emails. It is accepted that the overwhelming majority of privacy notices are almost incomprehensible to the man in the street and so a new campaign is being launched by the Information Commissioners Office into wording of these notices.

The European Court of Human Rights has ruled that in circumstances where someone has not been found guilty of any offence then it is against human rights for police authorities to retain details of their DNA. The finding is pursuant to article 8 of the Human Rights Convention and covers the right to respect private and family life.

UK police forces may be forced to destroy major parts of the database that they hold.

Who, one wonders, will police the police.

The Cheque and Credit Clearing Company has introduced an online tool which is intended to give assistance to customers and especially to help them understand clearance times. The free tool has been developed so that users can see the stages of cheque clearing and the online checker, it is hoped, will assist customers to protect against fraud.

The ridiculous thing about the report that we have received concerning this probably valuable tool is that it does not show the address from which the tool can be downloaded. However a search of the Cheque and Credit Clearing Company should allow people to find the relevant address.

You have probably already invested substantially in spam blockers, anti-virus software and in email security. Unfortunately today's defences shield against yesterday's threats and may not fend off tomorrow’s threats. Trend Micro are offering free advice which can be obtained by clicking the link below:

The Office of Fair Trading has updated its guide.

The intention is for businesses to be able to understand and comply with the law and for consumers to understand their rights. The new updated guide can be accessed via their website.

While this news website is basically intended to deal with money laundering matters only, occasionally we print matters that we consider to be of general interest.

Readers will be possibly pleased to learn that both BBC1 and BBC2 are now live online and can be watched via the BBC website.

Streaming TV will be available to internet users and even to mobile telephones with compatible software.

The ASA is seeking to widen its powers concerning misleading adverts on company websites.

The problem is that at the moment a company can make wild advertising claims on certain websites and the ASA is powerless to act. The ASA is not only seeking control of these but also of pop-ups and virtual adverts.

The Law Society has issued a practice note on amendments to the Land Registration Act. The Land Registry have accepted an amendment to its original proposal concerning ID. The guidance note can be seen at:

A few days ago we carried an article concerning the recruitment of mules as the economic downturn bites.

An example of the recruitment can be seen in Australia where 329 pensioners and other recipients of state benefits apparently bought 45million Australian dollars worth of gaming chips in Queensland’s four casinos over a period of just 16 months. Impossible, we hear you say, but the report is carried on the internet by a reputable source.

We cannot say whether or not the story is true and equally we do not know the details of how the apparent scam has been carried out but the point that we make is that the economic downturn is not necessarily a downturn for everyone and criminals may well be trying to cash in by recruiting the needy.

Our regular readers will recall that we have posted a number of items relating to the apparent tardiness of the Channel Islands to catch up with the money laundering regulations in force on the main land. Each of the Channel Islands has been taking vigorous action to bolster their regulatory network. One of the latest steps has been undertaken by Guernsey which now restricts the sale or purchase of precious metals, stones or jewellery in cases where payment in cash exceeds £10,000.

This is not quite up to the UK standard on this type of transaction but it is a step in the right direction.

The transport of dirty money in cash is a problem faced by all criminals. Mules are needed be they physical or, more often, people’s bank accounts.

Reports indicate that people affected by the economic downturn are being tempted to aide money launderers by what they believe is easy cash. Perfectly honest people who would not steal appear to make a moral distinction between placing money in their bank account and remitting it out, with other crimes with clearly identifiable victims.

Specially trained dogs have become commonplace at UK airports. Not only are they now trained to sniff out drugs but they also are used to sniff out large caches of cash being carried by travellers.

The dogs have proved so effective in the UK that British trained dogs are now being recruited by Italian police in their fight against Mafia money laundering.

The first dogs were employed in Milan at their airport. It was only minutes before a British dog identified an Italian man carrying $40,000 in cash in his suitcase. A couple of hours later another British dog identified an Albanian man carrying 46,000 Euros in 500 Euro notes being carried in his underpants.

In the first two days of the deployment of the dogs currency worth a total of £130,000 being illegally carried was seized.

Prague is an ancient small city, the capital of the relatively newly formed Czech Republic. Despite being small visitors will have noticed that there are gaming bars on every street corner. In fact there are something like 1,500 of them. The mixture of alcohol and gaming is permitted unlike in UK casinos where alcohol is not permitted at gaming tables.

Gaming is traditionally one of the routes used by money launderers to clean their illicit gains. The Prague gaming bars probably make more money (illegally) from money laundering than from actual gaming. It is not surprising therefore that Prague City Council has announced that it is taking measures to control the position but, proposals like blacklisting gaming clubs located near schools do not go anywhere near far enough!

Hedge funds, the bad boys of the world’s current financial difficulties have been criticised again. Seven years ago in the USA the Patriot Act required every financial institution to establish a programme to fight money laundering but hedge funds somehow escape the net. It is believed that roughly £2 trillion have been invested and that they are free of anti money laundering regimes. Proposals were made by the US treasury department but the Washington Post reported at the beginning of November that the US Treasury Department formally withdrew its proposed rules.

One wonders what are the rules and regulations covering UK funds. They must clearly fall within the ordinary law and there is no reason for the identity of investors and all of the general ‘know your client’ rules not to apply.

Yesterday we reported on the tightening of regulations in Holland. It is not only Holland that is adjusting its regulatory affairs. Bermuda has taken sufficient steps for the UK Treasury Secretary, Stephen Timms, to praise their government for its commitment to the OECD standards.

The European Commission has criticised various countries over laxness in their money laundering regulations. One of the countries that has been singled out for criticism is the property sector in Holland. The Dutch Justice Minister has recognised the weakness and recently told a TV audience that he would be in acting measures to tighten regulations in relation to the property sector.

Computers talk to computers. Information held on one computer is easily transferred automatically to another computer which in turn automatically can check records.

ABC News in Australia has carried a report that several aged and disability pensioners have been caught by Australia’s anti money laundering regulations. Under those regulations casinos around the country give information about gamblers to the Federal Authorities which who turn are able to hand that information onto Revenue authorities. The report says that a pensioner may, for example, go into a casino with a hundred dollars and gamble all day winning and losing and at the end of the day end up with the same hundred dollars. However, all of the wins are regarded as income but with a massive turnover that results from an ordinary proportion of wins it is easy to be seen as having a very high income with resultant tax enquiry.

Surely there must be some limit on the way that information is used.

Welcome back to our news page. We regret that slight delay in coming back on line.

You will not be surprise to note that the scammers are not only still out there but are more active than ever. You must be more vigilant than ever before.

We recently received the email below. It looks authentic but don't be deceived. We had an advantage in spotting it as a fraud attempt simply becasue we do not bank with Santander. If you do have, don't be fooled.

Readers may be interested to learn that the Law Society has a new web page dedicated to advising solicitors on anti-money laundering advice.

We regret not having restarted our new page. Quite simply the writer is currently heavily engaged in Court work.

We hope to resume on Monday 2nd February

Manchester – 18 March 2009	Oxford – 22 April 2009	Guildford – 30 April 2009
Newcastle – 2 April 2009	Birmingham – 22 April 2009	Cardiff – 30 April 2009
Bristol – 14 April 2009	Maidstone – 27 April 2009	Cambridge – 7 May 2009
Plymouth – 15 April 2009	Crawley – 28 April 2009
York – 20 April 2009	Llanelli – 29 April 2009