Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News 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.

British defense contractor under fraud investigation in Algeria | ArabNews.com

"Ultra Electronics on Thursday announced that the UK's Serious Fraud Office had opened a criminal investigation into 'suspected corruption in the conduct of business' by the British defense contractor in Algeria." (Click here for the article) - UK, Algeria

NIST Releases v 1.1 of its Cybersecurity Framework | NIST News

"The U.S. Commerce Department's National Institute of Standards and Technology (NIST) has released version 1.1 of its popular Framework for Improving Critical Infrastructure Cybersecurity..." (Click here for the article) - USA

African Union planning free trade area 7 times larger than the EU | African Union News

"The Extraordinary Summit on the African Continental Free TRADE AfCFTA held from 17 – 21 March 2018 in Kigali , Rwanda, will serve as a platform for the African Union to sign into existence another flagship project that will boost intra-Africa trade: The Treaty Establishing the African Economic Community relating to Free Movement of Persons, Rights of Residence and Right of Establishment." (Click here for the article) - Africa

U.S. publishes list of China-origin products subject to 25% duty | EY

"On 3 April 2018, the United States Trade Representative (USTR) published a proposed list of Chinese goods targeted for assessment of an additional 25% duty upon importation into the United States." (Click here for the article) - China, USA

UK SFO facing judicial review on powers to demand overseas data | Freshfields Bruckhaus Deringer

"The Serious Fraud Office is facing another judicial review of its actions—this time by US engineering and construction company, KBR Inc...The issue in dispute is the SFO’s power to compel KBR Inc to produce data held in the US." (Click here for the article) - UK, USA

China Launches Website to Report Foreign Spies, Corrupt Officials | South China Morning Post

"China has stepped up its campaign against foreign espionage with a website in Mandarin and English encouraging people to report national security threats such as bids to 'overthrow the socialist system'.  The website, 12339.gov.cn, launched by the Ministry of National Security on Sunday, also urges anyone to report attempts by Chinese nationals or foreigners to bribe state or military officials, instigate armed riots or incite ethnic separatism." (Click here for the article) - China

Construction Sector Experiences Heightened Vulnerability to Fraud | Construction Executive

"Ninety-three percent of construction, engineering and infrastructure sector executives said their companies had experienced a cyber incident or information theft, loss or attack in the past year—the highest proportion of all sectors..." (Click here for the article) - Global

Stricter EU Rules on Money Laundering and Terrorism Financing | European Parliament

"To increase transparency and respond to the latest technological developments, MEPs voted on 19 April in favour of an update of EU legislation on money laundering and terrorism financing.  The new directive is aimed at preventing the EU’s financial system from being used to fund criminal activities. It also includes a ban on the large-scale concealment of funds and creates more transparency with regards to the true ownership of companies and trusts." (Click here for the article) - EU

US CBP Expands ISF Importer Definition

/ Global Compliance Solutions Group LLC/

On April 12, 2018, the U.S. Customs and Border Protection (CBP) published a final rule that expands the definition of an Importer Security Filing (ISF) Importer.  The final rule adopts the proposed rule published in the Federal Register on July 6, 2016 (1).

"The changes are necessary to ensure that the definition of ISF Importer includes parties that have a commercial interest in the cargo and the best access to the required information." (2)  

Background

The ISF Importer is required to submit an ISF to CBP before the cargo is loaded on a vessel that is destined to the United States.  Except for foreign cargo remaining on board (FROB), the ISF must be filed no later than 24 hours before any cargo is laden aboard a vessel.  For FROB cargo the ISF is required any time prior to lading.   

ISF Importers (or their agents) are required to submit to CBP (3):

  • 10 data elements for goods intended to be entered into the U.S. or to be delivered to a foreign trade zone (FTZ)
  • 5 data elements for shipments that consist solely of FROB, immediate exportation (IE), and Transportation and Exportation (T&E) in-bond shipments  

What is Changing?

The existing definition of an ISF Importer is generally defined (4):

  • As the party causing goods to arrive within the limits of a port in the United States by vessel and is generally the goods owner, purchaser, consignee, or agent
    • However, the definition is limited to just certain named parties for FROB, IE and T&E in-bond shipments, and for merchandise being entered into an FTZ
  • To designate the Carrier as the ISF Importer for FROB cargo
  • To designate the party filing the IE, T&E, or FTZ documentation as the ISF Importer for IE and T&E in-bond shipments, and for goods to be delivered to an FTZ

Based on feedback from the trade community, CBP determined that the definition did not always reflect commercial realities.  The updated definition of an ISF Importer now generally (2):

  • Expands the definition for FROB cargo, IE and T&E shipments and for goods to be delivered to an FTZ by:
    • Broadening the definition to include non-vessel operating common carriers (NVOCCs) for FROB shipments
    • Including the goods owner, purchaser, consignee, or agent as a responsible party for IE and T&E in-bond shipments and for goods to be delivered to an FTZ

The vessel operating carrier is the ISF Importer for FROB shipments under the current definition.  In many cases, the carrier does not have access to all the data elements.  As a result, often the NVOCC files the information with CBP (even though legal responsibility remains with the carrier).  In addition, under the current definition, the ISF Importer is the filer of the IE or T&E documentation, but this documentation is often not created until the cargo arrives in the US. 

The expansion of the definition shifts the responsibility to file the ISF, in the instances noted above, to the party that actually has the data.  In many instances this was already occurring so the change is not expected to have a significant impact on the trade community.

What do we need to do?

If your imports into the U.S. require an ISF to be filed:

  • Evaluate if you are currently relying on any carrier's to file your ISF
  • Recognize that in the event you were relying on the carrier to file the ISF, the responsibility to file may now have shifted to your own operation       

The rule becomes effective on May 14, 2018.

Contact the experts at GCSG for more information, assistance with evaluating how the ISF definition change may affect your business, and/or assistance with facilitating the change within your supply chain.    

E  info@globalcompliancesg.com   

References and Definitions:

  • (1) 83 FR 43961-43965 - "Definition of Importer Security Filing Importer"
  • (2) 83 FR 15736-15740 - "CBP Decision No. 18-04; Definition of Importer Security Filing Importer"
  • (3) 19 CFR 149.3 - "Data Elements"
  • (4) 19 CFR 149.1 - "Definitions"
  • ISF Importer (Current) - "means the party causing the goods to arrive within the limits of a port in the United States by vessel.  For shipments other than foreign cargo remaining on board (FROB), immediate exportation (IE) and transportation and exportation (T&E) in-bond shipments, and goods to be delivered to a foreign trade zone (FTZ), the ISF Importer will be the goods' owner, purchaser, consignee, or agent such as a licenses customs broker.  For FROB cargo, the ISF importer will be the carrier.  For IE and T&E in-bond shipments, and goods to be delivered to an FTZ, the ISF Importer will be the party filing the IE, T&E, or FTZ documentation." (4)
  • ISF Importer (New) - "means the party causing goods to arrive within the limits of a port in the United States by vessel. For shipments other than foreign cargo remaining on board (FROB), the ISF Importer will be the goods' owner, purchaser, consignee, or agent such as a licensed customs broker. For immediate exportation (IE) and transportation and exportation (T&E) in-bond shipments, and goods to be delivered to a Foreign Trade Zone (FTZ), the ISF Importer may also be the party filing the IE, T&E, or FTZ documentation. For FROB cargo, the ISF Importer will be the carrier or the non-vessel operating common carrier." (2)
  • U.S. Customs and Border Protection

GCSG announces Jonathan Mellard obtains CFE

/ Global Compliance Solutions Group LLC/

GCSG announces that our very own, Jonathan Mellard recently obtained his Certified Fraud Examiner (CFE) certification

PRAIRIEVILLE, Louisiana, April 14, 2018 – Global Compliance Solutions Group LLC (GCSG), is pleased to announce that Jonathan Mellard, GCSG's Founder, has recently obtained the Certified Fraud Examiner (CFE) certification.

"The Certified Fraud Examiner (CFE) credential denotes proven expertise in fraud prevention, detection and deterrence.  CFEs are trained to identify the warning signs and red flags that indicate evidence of fraud and fraud risk."(1)

Jonathan has more than 18 years of compliance experience and has extensive U.S. and international audit and investigation experience.  He has experience in export/import audits, anti-bribery/corruption and fraud audits and investigations, drug precursor and distilled spirits compliance, and environmental audits.(3)  In addition to the CFE he also holds a Certified Compliance & Ethics Professional (CCEP) certificate.  

"CFEs must pass a rigorous test on the four major disciplines that comprise the fraud examination body of knowledge: Fraud Investigation Methods, Financial Transactions and Fraud Schemes, Law, and Fraud Prevention and Deterrence."(1)

For more information:

  • (1) http://www.acfe.com/cfe-skill-set.aspx

  • (2) http://www.acfe.com/about-the-acfe.aspx

  • (3) http://www.globalcompliancesg.com/gcsg-team-1/

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About the ACFE

"The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education.  Together with nearly 85,000 members, the ACFE is reducing business fraud worldwide and inspiring public confidence in the integrity and objectivity within the profession." (2) 

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About GCSG

GCSG is headquartered in Louisiana, USA.  We provide Advisory, Audit, and Due Diligence services for our clients across a range of industries in the areas of Import, Export and Customs Compliance, Anti-Bribery and Corruption, Drug Precursor, and Distilled Spirits Plant compliance.  The GCSG service team delivers compliance program assessment, development and implementation support, regulatory interpretation, internal and external audit services, fraud investigation, and third-party due diligence and risk management services.  GCSG partners with our clients to provide innovative solutions that enable their ability to operate in compliance with the law while facilitating efficient sales and trade.  Our focus on integrity and serving our client's is at the core of what GCSG is about.  For more information about us visit:  http://www.globalcompliancesg.com/about-us/

Learn more about GCSG by following us online:

Contact us here.

Italy Expands Whistleblower Protections

/ Global Compliance Solutions Group LLC/

Italy's Anti-corruption law, known as the Severino law (1), was promulgated in 2012.  The Severino law included public sector whistleblower protection provisions but it did not include protections for many private sector whistleblowers.  On November 30, 2017 a new law ("Law 179") was passed that included enhanced protections for public sector employees as well as more general protections for private sector whistleblowers. (2) 

Some of the important elements of Law 179 as it relates to public sector employees include:

  • A public employee that reports illegal conduct is not to be retaliated against
  • The anti-retaliation provisions for public employees now include employees of public economic entities, private law employees subject to public scrutiny, and to employees of contractors of companies supplying goods or services to the public administration
  • Allows for the reporting of violations to an internal officer, to the National Anti-Corruption Authority (3), an accounting authority, or to the judiciary
  • Reinforces the protection of the anonymity of a whistleblower

Some of the important elements of Law 179 as it relates to private sector employees:

  • Extends private sector employee protections beyond just the finance sector, insurance companies, and specific activities such as worker health and safety (4,5,6)
  • Requires companies that already have compliance programs to develop a whistleblower reporting program that includes at least one reporting mechanism allowing employees to report illegal conduct or potential violations and at least one confidential reporting mechanism that protects the whistleblower's identity
  • Requires companies should have a department responsible for managing the whistleblower program, procedures that provide guidance on what is covered and the protections provided, and allow for the discipline of employees that violate the procedures
  • Includes a prohibition against whistleblower retaliation  
  • The Company bears the burden of proof when a whistleblower makes a retaliation claim

Law 179 entered into force on December 29, 2017.

References:

Vietnam's anti-corruption laws bolstered

/ Global Compliance Solutions Group LLC/

On January 1, 2018 Vietnam's new Penal Code (the "New Code") became effective.  The New Code enhances Vietnam's anti-corruption laws and expands the range of covered offences to the private sector for profit-based commercial entities.

Till the new Code requirements came into effect Vietnam's bribery statutes focused on the bribery of public officials.  Now, the new Code prohibits offering bribes to persons in the private sector and introduces corporate criminal liability for tax evasion and money laundering.      

Key Amendments

  • Prohibits bribes offered to or accepted by "persons with positions and/or powers" in the public and private sector
  • Prohibits bribing foreign public officials
  • Introduces corporate liability for tax evasion (Article 200); terrorist financing (Article 300); and money laundering (Article 324)
  • The death penalty for receiving bribes has been removed

Other Observations

  • The new Code does not extend liability for commercial bribery offences to corporations - it is still only applicable to individuals
  • To be applicable, the inducements must be offered with corrupt intent
  • Penalties for giving and receiving bribes depend on a trigger threshold of 88 USD (VND 2 million)

Key Link(s):

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News 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.

South Korea's Ousted President, Gets 24 Years in Prison | The New York Times

"Park Geun-hye, South Korea's impeached and ousted president, was sentenced on Friday to 24 years in prison on bribery and other charges in a case that exposed the entrenched, collusive ties between the government and huge conglomerates like Samsung." (Click here for the article) - South Korea

U.S. seeks about 20 years prison for Turkish banker in Iran sanctions case | Reuters

"U.S. prosecutors on Wednesday asked a federal judge to sentence a Turkish banker convicted of helping Iran evade U.S. sanctions to about 20 years in prison." (Click here for the article) - U.S., Turkey

Metro-Atlanta travel agency operators charged with Fraud scheme | US DOJ

"Elisabeth Greenhill and Jonathan Greenhill have been charged for running a fraud scheme that targeted faith-based and humanitarian groups conducting mission work overseas." (Click here for the article) - U.S.

Ukraine's Privatbank files $3 bn lawsuit against PWC subsidiaries | Reuters

"Ukraine's largest bank, PrivatBank, said on Monday it had filed a $3 billion lawsuit against the Ukrainian and Cypriot subsidiaries of international accounting firm PwC for alleged breaches during audits of the lender in 2013-2015." (Click here for the article) - Ukraine

Trudeau sees high chance of NAFTA deal with Mexico | Yahoo

"Canadian Prime Minister Justin Trudeau signaled Thursday he saw a strong chance of reaching a deal with the US and Mexico to revamp the North American Free Trade Agreement." (Click here for the article) - Mexico, Canada, U.S.

Third Gas Pipeline Data System Shuts One Day After Cyber-attack | RigZone

"A third U.S. pipeline company reported its electronic system for communicating with customers has stopped working, a day after a cyber-attack resulted in a similar shutdown." (Click here for the article) - U.S.

US and South Korea Reach Agreement on KORUS FTA | USTR Press Release

"...the United States and the Republic of Korea have reached an agreement in principle on the general terms of amendments and modifications to the United States-Republic of Korea Free Trade Agreement." (Click here for the article) - U.S.

 

GCSG Celebrates International Women's Day 2018

/ Global Compliance Solutions Group LLC/

GCSG will Press for Progress as we Celebrate International Women's Day 2018

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

PRAIRIEVILLE, Louisiana, March 8, 2017 – Global Compliance Solutions Group LLC (GCSG), an advisory, audit and due diligence firm focused on helping companies manage compliance and risk in their business and with their third parties, celebrates International Women's Day.

"Now, more than ever, there's a strong call-to-action to press forward and progress gender parity.  There's a strong call to "PressforProgress motivating and uniting friends, colleagues and whole communities to think, act and be gender inclusive."(1)

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

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

#PressforProgress

#IWD2018

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About GCSG

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

Learn more about GCSG by following us online:

BIS Export Controls Update: May 14-15, 2018 in D.C.

/ Global Compliance Solutions Group LLC/

The U.S. Department of Commerce, Bureau of Industry and Security (BIS) announced it will hold its annual export controls update conference on May 14-15, 2018 in Washington, D.C.  The conference will be hosted at the Marriott Marquis Hotel.  For additional information contact BIS at: UpdateConference@bis.doc.gov or +1 (202) 482-6031.

Key Link(s):

GCSG Marks Second Anniversary

/ Global Compliance Solutions Group LLC/

Press Release

Global Compliance Solutions Group LLC (GCSG) marks second anniversary

GCSG celebrates growth and impact in its second year  

PRAIRIEVILLE, Louisiana, March 1, 2018 – GCSG, an advisory, audit and due diligence firm focused on helping companies manage compliance and risk in their business and with their third parties, marks our second anniversary today.  Two years after our launch, GCSG is delivering innovative solutions to our growing client base across the United States, Europe, and Asia.

Our expertise focuses on the overlapping compliance triad of trade compliance, anti-bribery and corruption, and third party risk management.  Our core values of integrity, service, and accountability matched with common sense solutions tailored to our client’s individual business model help our clients reduce risk, stay compliant and facilitate sales and trade.     

“Year two is a transition milestone for any company.  In 2017, we enjoyed an exciting year bringing services to our clients and expanding our relationships and partnerships.  We focused heavily on developing our global network so we can bring maximum value to our client's.  As we grow and improve our core products and services over the next year we look forward to continuing to deliver exceptional value to our clients.” says Jonathan Mellard, Founder, GCSG.

Over the last year, we’ve passed a lot of promising milestones and we’ve launched several new products and services, including but not limited to the following:

  • Expanded our key partnerships in Italy, Singapore, China, and Malaysia;

  • More than doubled our client base; and

  • Launched a weekly compliance news feature.

“It’s been exciting to watch our growth and we are sincerely grateful for our clients and our partnerships.  We couldn’t have done any of this without them.  As we continue to grow we remain committed to our core values of integrity, a service mindset, and being accountable to our clients and our profession,” added Mellard. 

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About GCSG

Global Compliance Solutions Group LLC was founded in 2016 and is headquartered in Louisiana, USA.  We provide Advisory, Audit, and Due Diligence services for our clients across a range of industries in the areas of Import, Export and Customs Compliance, Anti-Bribery and Corruption, Drug Precursor, and Distilled Spirits Plant compliance.  The GCSG service team delivers compliance program assessment, development and implementation support, audit, regulatory interpretation, internal and external audit services, and third-party due diligence and risk management services.  We partner with our clients to solve challenging compliance issues with a strategic, comprehensive, and common sense approach.  GCSG's innovative solutions enable our clients to operate in compliance with the law while facilitating efficient sales and trade.  Our focus on integrity and serving our client's is at the core of what GCSG is about.  More information can be found at: http://www.globalcompliancesg.com

Learn more about GCSG by following us online:

Contact us here.

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News 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.

Corruption Perceptions Index 2017 | Transparency International

"This year's Corruption Perceptions Index highlights that the majority of countries are making little or no progress in ending corruption..." (Click here for the article) - Global

US DOJ Files False Claims Act Complaint Against Pharmacy, PE Firm, and 2 Pharmacy Executives | The US Department of Justice

"The US has filed a complaint in intervention against Diabetic Care Rx LLC...two pharmacy executives...and a private equity firm..." (Click here for the article) - U.S.

Pakistan Avoids Inclusion on International Terror-Financing Watch List | Wall Street Journal

"Saudi Arabia joined Turkey and China in a move to block a U.S.-led attempt this week to place Pakistan on an international terror-financing watch list..." (Click here for the article) - Pakistan, Turkey, Saudi Arabia, China, U.S.

Compliance Needs to Adapt as Prosecutors Cooperate More | Wall Street Journal

"Greater cooperation among global law enforcement agencies to resolve corporate crime issues through settlements means companies need to be prepared to deal with a more complex set of rules..." (Click here for the article) - Global

UK Attorney-General Backs More Funding for Fraud Office | Financial Times

"The UK's attorney-general has backed more funding for the Serious Fraud Office to help it recruit top lawyers and reduce its reliance on "blockbuster funding" for handling big cases." (Click here for the article) - UK

Canada Customs Audits Reveal 66% Tariff Classification Non-Compliance | 3CE Technologies

"For the third straight year, CBSA published its list of trade verification priorities.  Tariff classification remains the agency's primary focus, with 1,267 companies being, or have recently been, audited for HS classification accuracy." (Click here for the article) - Canada

 

GCSG Celebrates the formation of the NAWSA

/ Global Compliance Solutions Group LLC/

February 18, 2018

Global Compliance Solutions Group LLC (GCSG) Celebrates the formation of the National American Woman Suffrage Association on February 18, 1890

Today, February 18 GCSG celebrates the day the National American Woman Suffrage Association (NAWSA) was formed in 1890

PRAIRIEVILLE, Louisiana, February 18, 2018 – GCSG, an advisory, audit and due diligence firm focused on helping companies manage compliance and risk in their business and with their third parties, celebrates the great past achievements of the NAWSA.

The NAWSA was formed to work for women's suffrage in the United States.  It was created "in 1890 by the merger of the two major rival women's rights organization - the National Woman Suffrage Association and the American Woman Suffrage Association."(1)

The primary focus of the organization was winning the right to vote for women.  It's membership grew from about seven thousand to two million and at its height was the largest voluntary organization in the nation. 

The NAWSA played an important role in the passing of the Nineteenth Amendment to the U.S. Constitution, which passed in 1920, guaranteeing women the right to vote.

The NAWSA later became the League of Women Voters (2), still active today. 

"I have given my life and all I am to it, and now I want my last act to be to give it all I have, to the last cent." - Susan B. Anthony

For more information:

(1) https://www.britannica.com/topic/National-American-Woman-Suffrage-Association (1)

(2) https://www.lwv.org/

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About GCSG

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

Learn more about GCSG by following us online:

Contact us here.

Proposed Amendment to Australian Bribery Offence

/ Global Compliance Solutions Group LLC/

On December 6, 2017, the Australian government proposed to amend the Criminal Code Act of 1995.  The Crimes Legislation Amendment (Combating Corporate Crime) Bill 2017 proposes to amend the offence of bribery by:

  • Extending the definition of foreign public official to include a candidate for office
  • Removing the requirement that the foreign official must be influenced in the exercise of the official's duties
  • Replacing the requirement that a benefit and business advantage must be 'not legitimately due' with the concept of 'improperly influencing' a foreign public official
  • Extending the offence to cover bribery to obtain a personal advantage
  • Creating a new offence of failure of a corporation to prevent foreign bribery
  • Creating a new deferred prosecution agreement scheme  

Key Link(s):

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News 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.

Not so global Britain - Muddled attitudes towards free trade | The Economist

"Public views of trade deals are more complicated than politicians allow" (Click here for the article) - UK, EU

Hezbollah in South America: The Threat to Business | Stratfor

"Businesses must take a variety of threats from Hezbollah into account when operating in South America.  Chief among these is corruption, which Hezbollah exploits - and which can also adversely impact business operations..." (Click here for the article) - South America, Lebanon, U.S.

Novartis bribery probe: ten Greek ex-ministers allegedly involved | The LOCAL ch

"Two former Greek prime ministers and eight former ministers have been implicated in an alleged corruption scandal involving Swiss pharmaceutical giant Novartis..." (Click here for the article) - Greece, Switzerland, China

World Bank Group Announces Debarment of Three companies | The World Bank

"The World Bank today announced the debarment of three companies – Gavinor, S.R.L., J.C. Segura Construcciones S.A., and a joint-venture, Constructura J.C. Segura Construcciones S. A.-Gavinor S.R.L.-UTE – for 18 months in connection with the companies’ fraudulent practice of knowingly misrepresenting work progress during a contract..." (Click here for the article) - Argentina

U.S. Becomes World's Second-Biggest Tax Haven | The Wall Street Journal

"The U.S. rose for the third straight time in a ranking of tax havens, becoming the world's second-largest..." (Click here for the article) - U.S., Global

Samsung Heir Freed, to Dismay of South Korea's Anti-Corruption Campaigners  | The NY Times

"When Lee Jae-yong, the de facto leader of Samsung, walked free on Monday after spending barely a year in jail, it reaffirmed a pattern South Koreans have fought for decades to break: Business tycoons convicted of corruption here hardly spend any time behind bars..." (Click here for the article) - South Korea

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News 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.

UK will leave Customs Union and negotiate a free-trade deal | Sky News

"Speaking to Sky News Political Editor Faisal Islam, she said: "We are leaving the Customs Union.  Then we are going to negotiate a free-trade agreement with the EU." (Click here for the article) - UK, EU

U.S. slaps sanctions on network run through Laos casino | The Wall Street Journal

"The U.S. Treasury Department on Tuesday put sanctions on Laos-based alleged crime network it said operated through a casino and engaged in..." (Click here for the article) - Laos, US

U.S. becomes world's second-biggest tax haven | The Wall Street Journal

"The U.S. rose for the third straight time in a ranking of tax havens, becoming the world's second-largest, according to the latest analysis by a research..." (Click here for the article) - Global

Volkswagen supplier to face criminal case in emissions fraud | The Wall Street Journal

"A supplier for Volkswagen AG is in discussions with the U.S. Justice Department to resolve an impending criminal case arising from its alleged..." (Click here for the article) - Germany, U.S.

Whistleblower lawyers see a growth area: Customs Fraud | The Wall Street Journal

"Whistleblower lawyers see room for extra business on a new front: chasing customs-linked wrongdoing ranging from failing to label imported goods to shipping rhinoceros horn across the border..." (Click here for the article) - U.S.

FDA recognizes third-party certification accreditation body

/ Global Compliance Solutions Group LLC/

On January 31, the U.S. Food and Drug Administration announced it has recognized the first accreditation body under the Accredited Third-Party Certification Program (the "Program").  The program was created by the FDA Food Safety Modernization Act (FSMA).  In addition, the FDA announced the launch of the Voluntary Qualified Importer Program (VQIP).  

The ANSI-ASQ National Accreditation Board (ANAB) is the organization being recognized.  The ANAB is jointly owned by the American National Standards Institute (ANSI) and the American Society for Quality (ASQ).  

The accreditation bodies that are recognized by the FDA will be able to accredit third-party auditors in order to conduct food safety audits of foreign food facilities.  The VQIP will offer expedited review and entry of human and animal food into the U.S.  

For more information read the FDA press release here.

Key Link(s):

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News 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.

Canada, Mexico Reject Proposal to Rework NAFTA Corporate Arbitration System | WSJ

"Mexico and Canada have rejected a proposal by the Trump administration to remake a corporate arbitration system that is a key part of the North American Free Trade Agreement...." (Click here for the article) - Canada, Mexico, United States

Tanker full of Russian Gas to Land in Boston Despite Sanctions | The Daily Caller

"Despite sanctions, a shipment of liquid natural gas from a blacklisted Russian company in Siberia is expected to be unloaded in Boston this weekend." (Click here for the article) - United States, Russia

Saudi Prince Alwaleed bin Talal freed amid corruption probe veiled in secrecy | Chicago Tribune

"Billionaire Saudi Prince Alwaleed bin Talal, who had been held in a luxury hotel since November in a wide-reaching anti-corruption probe that has been shrouded in secrecy and intrigue, was released on Saturday..." (Click here for the article) - Saudi Arabia

Prosecutors charge 6 in multiyear scheme to help KPMG pass inspections of its work | The Washington Post

"KPMG, one of the world's largest accounting firms was repeatedly tipped off about regulator's plans to inspect its work..." (Click here for the article) - Global

Texas man sentenced for conspiring to illegally export radiation hardened integrated circuits to Russia and China | US DOJ

"Peter Zuccarelli, 62, of Plano, Texas was sentenced today to 46 months in prison for conspiring to smuggle and illegally export from the U.S..." (Click here for the article) - United States, China, Russia

U.S. Sanctions Additional Russian Entities

/ Global Compliance Solutions Group LLC/

On Friday, January 26, 2018, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned an additional nine entities, and 21 individuals related to Russia and Ukraine.  In addition, OFAC identified 12 subsidiaries that are 50% or more owned by previously sanctioned Russian companies.  

The action is related to Russia's occupation of Crimea and is intended to pressure Russia to fully implement its commitments under the Minsk agreements.  U.S. Persons (1, 2) are generally prohibited from conducting transactions involving these persons (2).

"The U.S. government is committed to maintaining the sovereignty and territorial integrity of Ukraine and to targeting those who attempt to undermine the Minsk agreements," - Secretary of the Treasury Steven T. Mnuchin (3)

Summary of OFAC Actions Taken

  • Designated 11 Ukrainian separatists - Pursuant to Executive Order (EO) 13660
  • Designated 3 individuals and 4 entities (ZAO Vneshtorgservis, Gaz-Alyans OOO, Doncoaltrade Sp. ZOO and Ugolnye Tekhnologii OOO) who have supported the illicit coal trade - Pursuant to EO 13660
  • Authorized sanctions against 4 individuals and 2 entities (Evro Polis Ltd., Instar Logistics) related to the Russian government - Pursuant to EO 13661
  • Authorized sanctions against one construction entity (VAD, AO) and two associated individuals - Pursuant to EO 13685
  • Designated one individual and 2 entities (Limited Liability Company Foreign Economic Association Technopromexport, PJSC Power Machines) related to Russia's transfer of four turbines to Crimea
  • Identified 12 subsidiaries of Surgutneftegaz as being 50% or more owned by Surgutneftegaz which was added to the Sectoral Sanctions Identification list in September 2014
    • Kaliningradnefteprodukt OOO
    • Kinef OOO
    • Kirishiavtoservis OOO
    • Lengiproneftekhim OOO
    • Media-Invest OOO
    • Novgorodnefteprodukt OOO
    • Pskovnefteprodukt OOO
    • Sngb AO
    • SO Tvernefteprodukt OOO
    • Sovkhoz Chervishevski PAO
    • Strakhovove Obshchestvo Surgutneftegaz OOO
    • Surgutmebel OOO

References and Key Link(s):

U.S. Sanctions NK and Chinese entities supporting Kim Regime

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On January 24, 2018, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned an additional nine entities, 16 individuals, and six vessels related to North Korea's violations of UN Security Council Resolutions (UNSCRs).  

The actions target actors located in North Korea, China, Russia, and Georgia.

"Treasury continues to systematically target individuals and entities financing the Kim regime and its weapons programs, including officials complicit in North Korean sanctions evasion schemes," - Secretary of the Treasury Steven T. Mnuchin (1)

Summary of OFAC Actions Taken

  • Designated 10 representatives of the Korea Ryonbong General Corporation (Ryonbong) and one Workers' Party of Korea official - Pursuant to Executive Order (EO) 13687
  • Designated 5 additional North Koreans with links to North Korean financial networks - Pursuant to EO 13810 or 13687
  • Designated Beijing Chengxing Trading Co. Ltd., Dandong Jinxiang Trade Co., Ltd., and Hana Electronics JVC - Pursuant to EO 13810
  • Designated five North Korean shipping companies (Gooryong Shipping Co Ltd, Hwasong Shipping Co Ltd, Korea Kumunsan Shipping Co, Korea Marine & Industrial Trdg, and CK International Ltd) and blocked six vessels (Goo Ryong, Hwa Song, Kum Un San, Un Ryul, Ever Glory, and UL JI Bong 6) as property of these five companies - pursuant to EO 13810
  • Sanctioned the North Korean Ministry of Crude Oil Industry

Key Link(s):

India joins the Australia Group

/ Global Compliance Solutions Group LLC/

On January 19, 2018 the Indian Ministry of External Affairs announced that India has joined the Australia Group (AG).  The AG, in a consensus decision, admitted India as the 43rd participant.  

The Australia Group, established in 1985, is a voluntary and informal export control arrangement in which 42 countries, as well as the European Union, coordinate their national export controls.  The purpose is to limit the supply of chemicals and biological agents-as well as related equipment, technologies, and knowledge-to countries and entities that are suspected of pursuing chemical or biological weapons capabilities. 

GCSG's compliance experts closely follow dual-use developments.  Contact us at info@globalcompliancesg.com with any additional question's or for more information.

Key Links:

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News (published Tuesday the week of Jan 22) 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.

The Impact of Retroactive Transfer Pricing Adjustments on the EU Customs Valuation | KPMG Meijburg & Co

"With its judgment of December 20, 2017 in the Hamamatsu Photonics Deutschland case, the Court of Justice of the European Union finally provided some clarity about the impact of retroactive transfer pricing adjustments...." (Click here for the article) - European Union

UK companies will face huge new VAT burden after Brexit | The Guardian

"More than 130,000 UK firms will be forced to pay VAT upfront for the first time on all goods imported from the European Union after Brexit...." (Click here for the article) - UK, European Union

Ban Ki-Moon's Nephew Pleads Guilty in Bribery Case | The Wall Street Journal

"Joo Hyun Bahn, the nephew of former United Nations Secretary-General Ban Ki-Moon, pleaded guilty on Friday to U.S. charges connected to a scheme to bribe a foreign official...." (Click here for the article) - Vietnam, U.S., Global

Canada takes the U.S. to WTO in wide-ranging trade complaint | The Globe and Mail

"The Canadian government is taking the United States to the world's trade court in a wide-ranging complaint that accuses Washington of flouting the rules of commerce." (Click here for the article) - Canada, U.S.

Deferred prosecution agreements proposed to take companies task | The Straits Times

"A new legal framework that can grant companies amnesty for certain corporate offences is being proposed in Singapore." (Click here for the article) - Singapore

Cigarettes and Murky Joint Ventures Help North Korea Evade Crackdown  | The Wall Street Journal

"Global businesses faced a deadline last week to exit joint ventures operating in North Korea, but dozens of them are still there." (Click here for the article) - North Korea, U.S., South Korea, China, Global

US Company Settles Whistleblower Lawsuit, Pays for Importer's Customs Fraud  | Global Trade Magazine

"Federal prosecutors in New York recently announced the settlement of a remarkable lawsuit relating to a scheme to evade import duties." (Click here for the article) - U.S.

SFO opens investigation into Chemring Group PLC and its subsidiary  | U.K. Serious Fraud Office News Release

"The SFO confirms it has opened a criminal investigation into bribery, corruption and money laundering arising from the conduct of business by Chemring Group plc and CTSL..." (Click here for the article) - U.K.