Former Honduran head of state & First Lady designated under section 7031(c)

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The U.S. likes what the U.K. is cooking…

July 22, 2021, 10:22 am

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STATEMENTS & REMARKS

Joint Statement by Secretary Janet L. Yellen and Secretary Antony J. Blinken Commending the United Kingdom’s Anti-Corruption Sanctions

July 22, 2021

The United States welcomes the United Kingdom’s announcement today to impose further sanctions under its Global Anti-Corruption Sanctions (GACS) regime, which is designed to fight corruption and illicit finance. We commend the UK’s actions today against four corrupt individuals already designated by the United States and a fifth whose U.S.-based assets purchased with corrupt proceeds were successfully forfeited in U.S. courts.

Corruption has a corrosive effect on society: it undermines democratic institutions, hinders economic development, drains the wealth of nations, and keeps people in poverty. The United States is committed to working with, and supporting, our partners and allies in the fight against corruption. Today’s action by the United Kingdom is an important step in this effort.

Sanctions regimes such as the UK’s GACS and the U.S. Global Magnitsky sanctions program promote accountability for corrupt actors and help limit their access to the international financial system. Effective implementation of our programs can break the cycle of poor governance and poverty sustained by corruption, while supporting global efforts to address systematic vulnerabilities.

The United States will continue working with the United Kingdom and other likeminded allies and partners to impose tangible and significant consequences on those who engage in corruption, as well as to protect the global financial system.

Link:

Treasury Statement

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I knew I forgot something yesterday – OFSI adds 5 to anti-corruption sanctions

July 23, 2021, 6:10 am

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Remember the post yesterday about the U.S. commending the U.K. Global Anti-Corruption sanctions program? Well, there was a reason for that…

The U.K. added the following persons: t

1. AL-SULTAN, Nawfal Hammadi
DOB: 23/02/1964. POB: Iraq a.k.a: (1) AGUB, Nofal (2) AKOUB, Nawfel (3) AL-AKOUB, Nawfel (4) AL-SULTAN, Nofal, Hammadi (5) SULTAN ALBU HAMAD, Nofal, Hammadi (6) SULTAN YOUSEF, Nawfal, Hamadi (7) SULTAN YOUSIF ALBOHAMAD, Nawful, Humadi Nationality: Iraq National Identification no: 71719043 Address: Iraq. Other Information: (UK Sanctions List Ref):GAC0027 (UK Statement of Reasons): Nawfal Hammadi Al-Sultan has been involved in serious corruption in Nineveh province, Iraq involving the misappropriation of state property to his benefit and the benefit of others. In his role as governor of Nineveh province, he misappropriated public funds intended for reconstruction efforts and to provide support for civilians and improperly awarded contracts and other state property. Additional information: in February 2021 Al-Sultan was convicted by the Central Anti-Corruption Criminal Court in Iraq in relation to some of his corrupt activities when governor of Nineveh Governorate. He was convicted of two offences of “harming a public body” under Article 340 of Iraq’s Penal Code and sentenced to a total of five years in prison, for: (i) wasting five billion Iraqi Dinars of public funds of Nineveh Governorate through fictitious works and contracts, and (ii) improperly disposing of 50 tons of asphalt delivered to him for paving the streets and for reconstruction in 2017. (Gender): Male Listed on: 22/07/2021 Last Updated: 22/07/2021 Group ID: 14130.
2. NGUEMA OBIANG MANGUE, Teodoro
Title: Vice President DOB: 25/06/1968. POB: Malabo, Equatorial Guinea a.k.a: TEODORIN Nationality: Equatorial Guinea Address: Malabo, Equatorial Guinea. Position: Vice President Other Information: (UK Sanctions List Ref):GAC0024 (UK Statement of Reasons): Teodoro Nguema Obiang Mangue has been involved in the misappropriation of significant amounts of public assets from Equatorial Guinea as well as bribery, to fund a lavish lifestyle in various countries abroad including the United States and France, where he held assets which were vastly disproportionate in value by comparison to his official salary as an Equatorial Guinean government minister. (Gender): Male Listed on: 22/07/2021 Last Updated: 22/07/2021 Group ID: 14127.
3. PULIDO VARGAS, Alvaro Enrique
DOB: 10/12/1963. POB: Bogota, Colombia a.k.a: (1) CUCHI (2) RUBIO SALAS, German, Enrique Nationality: Colombia Passport Details: PE069914 (Columbia) National Identification no: 79324956 (Columbia) Other Information: (UK Sanctions List Ref):GAC0026 (UK Statement of Reasons): Alvaro Enrique Pulido Vargas (aka German Enrique Rubio Salas) is a close business associate of Alex Saab. With him, he engaged in serious corruption in Venezuela through his participation in two of Venezuela’s public programmes: the ‘Local Committees for Supply and Production’ (CLAP) and the Great Housing Scheme Venezuela (GMVV). In each case, contracts were improperly granted for the benefit of an official and/or for another person including Pulido Vargas himself. In the CLAP programme, basic foodstuffs were provided at highly inflated prices. For GMVV, Global Construction Fund only delivered a small proportion of the products they had agreed to deliver, misappropriating the remainder of the funds. (Gender): Male Listed on: 22/07/2021 Last Updated: 22/07/2021 Group ID: 14129.
4. SAAB MORAN, Alex Nain
DOB: 21/12/1971. POB: Barranquilla, Colombia Nationality: (1) Colombia (2) Venezuela Passport Details: (1) PE085897 (Columbia) (2) 085635076 (Venezuela) National Identification no: (1) 72180017 (Columbia) (2) 21.495.350 (Venezuela) Address: Cape Verde. Other Information: (UK Sanctions List Ref):GAC0025 (UK Statement of Reasons): Alex Nain Saab Moran engaged in serious corruption in Venezuela through his participation in two of Venezuela’s public programmes: the ‘Local Committees for Supply and Production’ (CLAP) and the Great Housing Scheme Venezuela (Spanish acronym: GMVV). In each case, contracts were improperly granted by public officials to companies owned or controlled by Saab Moran, for the benefit of the official(s) and/or for another person, including Saab Moran himself. In the CLAP programme, basic foodstuffs were provided at highly inflated prices. For GMVV, Saab Moran’s company only delivered a small proportion of the products they had agreed to deliver and for which it had been paid, misappropriating the remainder of the funds. (Gender): Male Listed on: 22/07/2021 Last Updated: 22/07/2021 Group ID: 14128.
5. TAGWIREI, Kudakwashe Regimond
DOB: 12/02/1969. POB: Shurugwi, Zimbabwe a.k.a: KUDA Nationality: (1) Zimbabwe (2) South Africa Passport Details: (1) FN920256 (Zimbabwe) (2) EN183928 (Zimbabwe) (3) VUK491921 (Canada) National Identification no: 29135894Z66 Address: 4 Luna Road, Borrowdale, Harare, Zimbabwe. Other Information: (UK Sanctions List Ref):GAC0023 (UK Statement of Reasons): Kudakwashe Regimond Tagwirei profited or otherwise benefitted from the misappropriation of property when his company, Sakunda Holdings, redeemed Government of Zimbabwe Treasury Bills at up to ten times their official value. This meant that Sakunda Holdings and Tagwirei, as its CEO and owner, profited significantly at the expense of macroeconomic stability in Zimbabwe. (Gender):Male Listed on: 22/07/2021 Last Updated: 22/07/2021 Group ID: 14126.

o that regime yesterday – hence the press release.

Link:

OFSI Notice

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OFAC adds Paraguayan parties to Global Magnitsky sanctions

August 24, 2021, 11:10 am

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OFAC has added the following persons:

DOLDAN GONZALEZ, Liz Paola (Latin: DOLDÁN GONZÁLEZ, Liz Paola) (a.k.a. DOLDAN GONZALEZ, Liz Paola Florinda (Latin: DOLDÁN GONZÁLEZ, Liz Paola Florinda)), Avenida Canadones Chaquenos Numero 23, Barrio Obrero, Ciudad Del Este, Paraguay; DOB 07 Sep 1986; POB Pdte. Stroessner, Paraguay; nationality Paraguay; Gender Female; Passport 3379699 (Paraguay); RUC # 3379699-8 (Paraguay) (individual) [GLOMAG]. 
 
HIJAZI, Kassem Mohamad (a.k.a. HIJAZI, Kassem; a.k.a. HIJAZI, Kassem Mohamed), Ciudad del Este, Paraguay; DOB 15 Sep 1972; POB Foz de Iguacu, Brazil; Gender Male; RUC # 3481074-9 (Paraguay); National ID No. 4212398/SP (Brazil) (individual) [GLOMAG]. 
 
HIJAZI, Khalil Ahmad, Ciudad del Este, Paraguay; DOB 22 Aug 1961; POB Paraguay; nationality Paraguay; Gender Male; RUC # 1112312-5 (Paraguay) (individual) [GLOMAG] (Linked To: HIJAZI, Kassem Mohamad).

and entities:

APOLO INFORMATICA S.A. (a.k.a. APOLO INFORMATICA; a.k.a. APOLO INFORMATICA SA; a.k.a. APOLO INFORMATICA SOCIEDAD ANONIMA), Ciudad del Este, Paraguay; RUC # 80068480-0 (Paraguay) [GLOMAG] (Linked To: HIJAZI, Khalil Ahmad). 
 
EMPRENDIMIENTOS INMOBILIARIOS MISIONES S.A. (a.k.a. EMPRENDIMIENTOS INMOBILIARIOS MISIONES SOCIEDAD ANONIMA), Ciudad del Este, Paraguay; RUC # 80068352-8 (Paraguay) [GLOMAG] (Linked To: HIJAZI, Khalil Ahmad). 
 
ESPANA INFORMATICA S.A. (a.k.a. ESPANA INFORMATICA SA (Latin: ESPAÑA INFORMÁTICA SA)), Ciudad del Este, Paraguay; RUC # 80028331-7 (Paraguay) [GLOMAG] (Linked To: HIJAZI, Kassem Mohamad). 
 
MOBILE ZONE INTERNATIONAL IMPORT-EXPORT S.R.L. (a.k.a. MOBILE ZONE INTERNACIONAL IMPORT. EXPORT. S.R.L.; a.k.a. MOBILE ZONE INTERNACIONAL IMPORT-EXPORT S.R.L.), Ciudad del Este, Paraguay; RUC # 80071113-0 (Paraguay) [GLOMAG] (Linked To: DOLDAN GONZALEZ, Liz Paola). 
 
MUNDO INFORMATICO PARAGUAY S.A. (a.k.a. MUNDO INFORMATICO PARAGUAY SOCIEDAD ANONIMA), Ciudad del Este, Paraguay; RUC # 80068367-6 (Paraguay) [GLOMAG] (Linked To: HIJAZI, Khalil Ahmad).

to its Global Magnitsky human rights & anti-corruption sanctions.

And the Treasury Department explained why:

PRESS RELEASES

Treasury Targets Corruption Networks in Paraguay

August 24, 2021

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned three Paraguayan individuals, Kassem Mohamad Hijazi, Khalil Ahmad Hijazi, and Liz Paola Doldan Gonzalez, for their roles in corruption in Paraguay, as well as five associated entities connected with their corruption schemes. These individuals and entities are designated pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world. Corruption degrades the rule of law, weakens economies and stifles economic growth, undermines democratic institutions, perpetuates conflict, deprives innocent civilians of fundamental human rights, and is intrinsically linked to money laundering and lack of financial transparency. Today’s action further demonstrates the U.S. government’s ongoing effort to impose tangible and significant consequences on corrupt actors in order to protect the U.S. financial system from abuse.

“These designations under the Global Magnitsky sanctions program show that we are committed to combatting corruption and promoting accountability for officials who undermine government institutions,” said Office of Foreign Assets Control Director Andrea M. Gacki. “The Treasury Department will continue to use our authorities to prevent illicit actors and their front companies from abusing the international financial system which hurts people around the world who play by the rules.”

Today’s actions were conducted in coordination with the Drug Enforcement Administration (DEA) Miami Field Division, its Special Operations Division’s Counter-Narcoterrorism Operations Center (CNTOC), DEA’s Office of Financial Operations, and the Homeland Security Investigations’ (HSI) Long Island, NY office. The U.S. government is using all available mechanisms to identify acts of corruption and promote accountability for corrupt actors and disrupt their access to the U.S. and international financial system.

ILLICIT FINANCE CONCERNS IN THE TRI-BORDER AREA

This action highlights the illicit finance risks and activities in the Tri-Border Area (TBA) where Argentina, Brazil, and Paraguay converge. Historically, the TBA has been an attractive and permissive financial environment for criminal and terrorist activities. This region is marked by a large number of unregistered money exchange houses, trade based money laundering through export-import and retail businesses in the electronics and automotive sectors, the lack of awareness of money laundering and terrorist financing typologies and risk in the private sector, the intensive use of cash by businesses and individuals, and a large volume of transfers to high risk jurisdictions.

The role of Despachantes in Corruption

Despachantes or dispatchers are individuals skilled at navigating local and federal bureaucracies by using their expansive networks of government officials to aid them in their activities. Complex government bureaucracies coupled with a lack of transparency and accountability
in countries such as Paraguay create business opportunities for these individuals to navigate the lengthy and expensive administrative processes of local and/or federal governments for both licit and illicit purposes. Historically, despachantes have focused on using their networks within customs agencies to accelerate the processing of imported and exported goods over countries’ borders; however, more recently, this practice has expanded in scope to include various other government operations.
Illicit despachantes are known for their ability to bribe customs officials, alter invoices on incoming merchandise, avoid taxation and/or inspections, and provide safe passage for illicit goods coming into Paraguay. Many despachantes have reportedly engaged in paying government officials to expedite certain processes, a practice that is illegal and often flags these individuals as targets of corruption investigations.

THE HIJAZI network

Operating as a despachante in Paraguay since at least 2017, Kassem Mohamad Hijazi (Kassem) commands and controls a money laundering organization based out of Ciudad Del Este, Paraguay, which operates on a global scale with the capability to launder hundreds of millions of dollars. Kassem maintains strong ties with Paraguayan politicians, police officers, district attorneys, and several money exchange brokers located in Ciudad del Este who provide ease, security, warranty, and economic power allowing him to operate in the area since at least 2018. He also maintains connections to Paraguayan government officials to avoid law enforcement action against his money laundering organization. For example, Kassem commands plain-clothed officers of the Investigation and Special Operations Division (Departamento de Investigaciones y Grupo Especial de Operaciones) of the Alto Parana Police Department in Paraguay to carry out activities for him in exchange for monthly payments.

In his role as a despachante, Kassem uses import and export companies, such as Espana Informatica S.A. (Espana)—of which Khalil Ahmad Hijazi (Khalil) is the President—to import merchandise from the United States through ports of entry in Paraguay and sell it in country, the profits of which he then moves through currency exchange offices and banks in Ciudad del Este to the United States, China, and Hong Kong, among other locations. Kassem’s network of front companies and business relationships allow him to move illicit proceeds all around the world with ease, his network extending as far as the United States, South America, Europe, the Middle East, and China.

Kassem uses Espana to coordinate with U.S.- and China-based suppliers for the import of electronic equipment into Paraguay, using several methods and other despachantes to avoid taxation and to launder money through their importation. Kassem coordinated with a company located in Florida for shipments of goods, for which he altered invoices and submitted them to a Paraguayan bank for a wire transfer payment back to the Florida-based company. The altered invoice greatly reduced the stated value of the goods shipped to avoid taxation and allowed Kassem to further launder the profits of his import/export operations. The estimated annual volume of goods imported into Paraguay was several hundred million dollars.

Kassem is designated pursuant to E.O. 13818 for being a foreign person who has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of corruption, including the misappropriation of state assets, corruption related to government contracts, or the extraction of natural resources, or bribery.

OFAC is also designating the following company registered in Paraguay that is owned or controlled by Kassem: Espana Informatica S.A.

Khalil is designated pursuant to E.O. 13818 for being a foreign person who has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of Kassem.
OFAC is also designating the three companies registered in Paraguay that are owned or controlled by Khalil: Emprendimientos Inmobiliarios Misiones S.A., Apolo Informatica S.A., and Mundo Informatico Paraguay S.A.

Liz Paola Doldan Gonzalez

One of Kassem’s associates in the TBA, Liz Paola Doldan Gonzalez (Doldan), was also identified as an intermediary who works with shipments from the United States; intermediaries pay bribes to port workers, despachantes, and Paraguayan customs officials to process imports and exports through Paraguayan customs. In 2008–09, the then-General Director of Paraguayan Customs increased and formalized a system of bribes, wherein intermediaries had to pay Paraguayan customs officials, a system which ensured that every customs official was paid.

In July 2019, as a part of “Operation Phone Call,” Doldan and her network were the targets of the Paraguayan Anti-Corruption Prosecutor’s office. This office, in coordination with the Economic Crimes Special Unit, the National Anti-Drug Secretariat, and the Smuggling Prevention Unit, conducted 15 raids simultaneously in Ciudad del Este and Asuncion, Paraguay. These raids aimed to dismantle an alleged scheme whereby high-end electronics were imported from the United States and subsequently undervalued in their tax declarations to evade taxes.

Doldan used her company based in Paraguay, Mobile Zone International Import-Export S.R.L. (Mobile Zone), to purchase goods from a company based in Miami, Florida, which would subsequently send these goods to several shell companies in Paraguay. As the goods would enter the country destined for these shell companies, Paraguayan Customs would identify the cell phones as cheaper goods, such as printers and printer toner, to simulate the importation of lower-cost items, a practice that would allow Mobile Zone to pay less tax on the imports. According to press reporting, this scheme generated at least $675 million.

Doldan is designated pursuant to E.O. 13818 for being a foreign person who has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of corruption, including the misappropriation of state assets, corruption related to government contracts, or the extraction of natural resources, or bribery.

OFAC is designating the following company registered in Paraguay that is owned or controlled by Doldan: Mobile Zone International Import-Export S.R.L.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or otherwise exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods, or services from any such person.

GLOBAL MAGNITSKY

Building upon the Global Magnitsky Human Rights Accountability Act, E.O. 13818 was issued on December 20, 2017, in recognition that the prevalence of human rights abuse and corruption that have their source, in whole or in substantial part, outside the United States, had reached such scope and gravity as to threaten the stability of international political and economic systems. Human rights abuse and corruption undermine the values that form an essential foundation of stable, secure, and functioning societies; have devastating impacts on individuals; weaken democratic institutions; degrade the rule of law; perpetuate violent conflicts; facilitate the activities of dangerous persons; and undermine economic markets. The United States seeks to impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption, as well as to protect the financial system of the United States from abuse by these same persons.

Links:

Treasury Department Press Release

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State Department statement on Paraguay Global Magnitsky designations

August 24, 2021, 2:23 pm

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United States Sanctions Corrupt Actors in Paraguay

PRESS STATEMENT

AUGUST 24, 2021Share

The United States is imposing financial sanctions on three Paraguayan individuals for their roles in corruption schemes in Paraguay, as well as on five associated entities connected with those schemes, pursuant to Executive Order 13818. This Executive Order builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world.

Today’s actions demonstrate our continued efforts to impose consequences on corrupt actors and to protect the U.S. financial system from abuse. Taken in coordination with the Drug Enforcement Administration and the Department of Homeland Security, these actions represent a whole-of-government effort to combat corruption in the Argentina, Brazil, and Paraguay Tri-Border Area.

The United States is committed to supporting Paraguay’s efforts to combat corruption and promote accountability for those who undermine government institutions. Corruption degrades the rule of law, weakens economies and stifles economic growth, undermines democratic institutions, perpetuates conflict, deprives innocent civilians of fundamental human rights, and is intrinsically linked to money laundering and the lack of financial transparency.

For more information on today’s action, please see the Department of the Treasury’s press release, and the Global Magnitsky Act page.

Link:

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OFSI adds 2 to Myanmar sanctions

September 2, 2021, 6:30 am

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Today, UK regulators added the following person:

1. ZA, Tay
Title: U DOB: 18/07/1964. POB: Yangon, Myanmar a.k.a: (1) TAYZA (2) TEZA Nationality: Myanmar Address: (1) Singapore. (2) Myanmar. Position: Chairman of Htoo Group of Companies Other Information: (UK Sanctions List Ref): MYA0028 (UK Statement of Reasons): The Tatmadaw has a track record of committing serious human rights violations in Myanmar for decades, including the ethnic cleansing of the Rohingya in 2017, ongoing attacks on other ethnic groups and the 2021 coup and associated repression of the civilian population and serious human rights violations including killings, arbitrary detention and torture. U Tay Za has provided support for these activities in his role as an arms dealer for the military, responsible for brokering deals with Russia for arms. Further or alternatively, he has made funds or economic resources available and/or he is or has been involved in the supply of goods and/or technology, which could contribute to serious human rights violations. Further, and/or alternatively, U Tay Za is associated with the military through his extensive links with the former and current junta regimes. (Gender): Male Listed on: 02/09/2021 Last Updated: 02/09/2021 Group ID: 14139.

and entity:

1. HTOO GROUP OF COMPANIES
Address: No 5 Pyay Road, Hlaing Township, Yangon, Myanmar. Other Information: (UK Sanctions List Ref): MYA0029 (UK Statement of Reasons): The Htoo Group of Companies is owned or controlled directly or indirectly by U Tay Za, who is an involved person. Htoo Group of Companies contributed funds to the Tatmadaw in 2017, at a fundraising event for the Rakhine clearance operations held by Commander in Chief, Min Aung Hlaing. There are reasonable grounds to suspect that these funds contributed to serious human rights violations and ethnic cleansing against the Rohingya. Further and/or additionally, Myanmar Avia Export Ltd, a subsidiary of Htoo Group of Companies has connections to the Myanmar military, and has been responsible for brokering aircraft deals and arms with Russia, which, could have been used in serious human rights violations, including killings, arbitrary detention and torture in the Rakhine state and during the 2021 military coup. (Phone number): (1) +95 1 500344 (2) +95 1 500355 (Email address): info@htoo.com (Organisation type): Private Company (Parent company): Htoo Group of Companies Listed on: 02/09/2021 Last Updated: 02/09/2021 Group ID: 14140.

to its Myanmar sanctions program.

Link:

OFSI Notice

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State Department adds 7 to Section 353 List

September 21, 2021, 6:35 am

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United States Announces Actions Against Seven Central American Officials for Undermining Democracy and Obstructing Investigations into Acts of Corruption

PRESS STATEMENT

SEPTEMBER 20, 2021Share

The United States is committed to supporting the people of northern Central America by fortifying democracy, rule of law, and accountability, which are the keys to a brighter future. To advance this priority, today we are adding seven perpetrators to the United States’ Undemocratic and Corrupt Actors list, under section 353 of the United States–Northern Triangle Enhanced Engagement Act, which generally makes the perpetrators ineligible for visas and admission to the United States. These designations respond to recent actions that undermined democracy and obstructed corruption investigations in El Salvador and Guatemala.

The list transmitted to Congress details the following attacks on democracy and on anti-corruption measures:

El Salvador

Elsy Dueñas De Aviles, Oscar Alberto López Jerez, Hector Nahun Martinez Garcia, Jose Angel Perez Chacon, and Luis Javier Suárez Magaña, current Magistrates of the Constitutional Chamber of the Supreme Court, undermined democratic processes or institutions by accepting direct appointments to the Chamber by the Legislative Assembly, in a process that appears to have contravened the Salvadoran constitution. The previous five Magistrates were abruptly removed without legitimate cause following the May 1 seating of the newly elected Legislative Assembly. After being installed, the new Magistrates declared their installation by the Legislative Assembly to have been constitutional. The Magistrates undermined democratic processes or institutions by approving a controversial interpretation of the Constitution authorizing re-election of the President despite an express prohibition in the Constitution forbidding consecutive terms of the Presidency.

Guatemala

Maria Consuelo Porras Argueta De Porres, current Attorney General of Guatemala, obstructed investigations into acts of corruption by interfering with criminal investigations. Porras’ pattern of obstruction included ordering prosecutors in Guatemala’s Public Ministry (MP) to ignore cases based on political considerations and actively undermining investigations carried out by the Special Prosecutor Against Impunity, including by firing its lead prosecutor, Juan Francisco Sandoval, and transferring and firing prosecutors who investigate corruption. Angel Arnoldo Pineda Avila, current Secretary General of the MP, obstructed investigations into acts of corruption by interfering in anticorruption probes. The MP has opened a probe into allegations that Pineda interfered in an anticorruption investigation. Pineda is alleged to have tipped off investigative targets about cases being built against them.

The United States will continue using the tools at our disposal to promote accountability for attacks on the democratic aspirations of the people of Central America. We will continue partnering with government officials who show a dedication to combating corruption and strengthening democratic governance, including as part of an overall policy of addressing the root causes of irregular migration. And we will continue supporting the people of El Salvador and Guatemala as they strive to contribute to and benefit from democratic institutions, generate equitable economic opportunities, and create the futures they desire for themselves and their families.

Link:

NED PRICE, DEPARTMENT SPOKESPERSON

↧

OFAC designates Cambodians under Global Magnitsky sanctions

November 10, 2021, 12:44 pm

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OFAC designated the following persons:

CHAU, Phirun, Cambodia; DOB 02 Mar 1955; POB Svay Rieng, Cambodia; nationality Cambodia; Gender Male; Passport 0074881 (Cambodia) expires 15 Jan 2023 (individual) [GLOMAG]. 
 
TEA, Vinh, Cambodia; DOB 07 Jan 1952; POB Koh Kong, Cambodia; nationality Cambodia; Gender Male (individual) [GLOMAG].

under its Global Magnitsky sanctions program for corruption and/or human rights abuses.

And State:

Public Designation of Cambodian Officials Due to Involvement in Significant Corruption

PRESS STATEMENT

NOVEMBER 10, 2021Share

We are announcing today the public designation of Chau Phirun (Chau), Director-General of the Defense Ministry’s Material and Technical Services Department, and Tea Vinh (Tea), Royal Cambodian Navy Commander, due to their involvement in significant corruption. In their official capacities as Director-General of the Defense Ministry’s Material and Technical Services Department and Royal Cambodian Navy Commander, respectively, Chau and Tea were involved in corrupt acts that undermined the rule of law and the Cambodian public’s faith in their government institutions and public processes, including by using their political influence and official power for personal benefit. In 2020 and 2021, Chau conspired to profit from activities regarding the construction and updating of Ream Naval Base facilities. Additionally, Chau and other Cambodian government officials likely conspired to inflate the cost of facilities at Ream Naval Base and personally benefit from the proceeds.

These designations are made under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2021. In addition to Chau and Tea, we are publicly designating Chau Pirith, son of Chau; Chau Puleak, son of Chau; Kan Chantrea, spouse of Tea; Tier Leakhena, daughter of Tea; and Tea Sokha, son of Tea. This action renders Chau, Tea, and these immediate family members, ineligible for entry into the United States.

The Department of the Treasury also has designated Chau and Tea for their roles in public corruption, pursuant to Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act.

Today’s actions reaffirm our commitment to supporting the Cambodian people and their aspirations for a peaceful, prosperous, democratic, and equitable future. The United States stands with all Cambodians whose work advances reforms, and the Department will continue to use its authorities to promote accountability for corrupt actors in the region and globally.

For more information, please contact INL-PAPD@state.gov

and Treasury issued press releases:

PRESS RELEASES

Treasury Targets Corrupt Military Officials in Cambodia

November 10, 2021

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two Cambodian government officials, Chau Phirun(Chau) and Tea Vinh (Tea), for their roles in corruption in Cambodia. These individuals are designated pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world. These designations are complemented by the U.S. Department of State’s announcement of visa restrictions under Section 7031(c) of the FY 2021 Department of State, Foreign Operations, and Related Programs Appropriations Act on Chau and Tea, and their eligible immediate family members, due to their involvement in significant corruption. Today’s actions demonstrate the U.S. government’s ongoing efforts to impose significant consequences on those engaged in corruption in Cambodia and globally.

“The United States will not stand by while corrupt officials personally benefit at the expense of the Cambodian people,” said Office of Foreign Assets Control Director Andrea M. Gacki. “This Administration will continue to prioritize anti-corruption efforts and work tirelessly to promote accountability.”

CORRUPTION IN CAMBODIA

The United States has been long committed to combatting corruption and supporting the rule of law in Cambodia and globally. Recent developments in Cambodia, including growing systemic corruption, threaten both U.S. national security interests and the economic growth and prosperity of Cambodia and the region.

The two individuals designated today are members of the Cambodian Ministry of National Defense. Chau is the Director-General of the Defense Ministry’s Material and Technical Services Department. Tea is the Royal Cambodian Navy Commander. In 2020 and 2021, Chau conspired to profit from activities regarding the construction and updating of Ream Naval Base facilities. Additionally, Chau, Tea, and other Cambodian government officials likely conspired to inflate the cost of facilities at Ream Naval Base and personally benefit from the proceeds. Tea and Chau planned to share funds skimmed from the Ream Naval Base project.

Chau and Tea are designated pursuant to E.O. 13818 for being foreign persons who are current or former government officials, or persons acting for or on behalf of such an official, who are responsible for or complicit in, or have directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

SANCTIONS IMPLICATIONS

GLOBAL MAGNITSKY

They also added this:

SECTION 7031(C) OF THE FY 2021 DEPARTMENT OF STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS ACT

Section 7031(c) provides that, in cases where the Secretary of State has credible information that foreign officials have been involved in significant corruption or a gross violation of human rights, those individuals and their immediate family members are ineligible for entry into the United States. Click here to view more information on the Section 7031(c) designations.

about the State Department action.

Links:

NED PRICE, DEPARTMENT SPOKESPERSON

Press Releases – State, Treasury

↧

We’re not done yet… Multiagency Cambodia Business Advisory

November 11, 2021, 6:52 am

≫ Next: FINMA takes enforcement action against two banks

≪ Previous: OFAC designates Cambodians under Global Magnitsky sanctions

Business Advisory and GSP Assessment for Cambodia

PRESS STATEMENT

NOVEMBER 10, 2021Share

The United States has a long history of commitment to combatting corruption and supporting the rule of law in Cambodia and globally. Recent developments in Cambodia, including systemic corruption, transnational organized crime, and human rights abuses, threaten both U.S. national security interests and the fundamental freedoms of people in Cambodia. U.S. officials have regularly raised these concerns with Cambodia’s leaders, but regrettably there have been no meaningful changes.

Today, the U.S. Department of State, the U.S. Department of the Treasury, and the U.S. Department of Commerce have jointly issued a business advisory to caution U.S. businesses currently operating in, or considering operating in, Cambodia to be mindful of interactions with entities involved in corrupt business practices, criminal activities, and human rights abuses.

This advisory addresses two primary areas of exposure for U.S. companies in Cambodia:

Illicit financial activities and related risks in the financial, real estate, casino, and infrastructure sectors; and
Entanglements with Cambodian entities involved in trafficking in persons, wildlife and narcotics trafficking, and related risks in some areas of the manufacturing and timber sectors.

Businesses should apply appropriate due diligence to mitigate the reputational, economic, and possible legal risks associated with potential exposure to entities in Cambodia that engage in corruption, criminal activities, illicit financial activities, or human rights abuses.

Additionally, the United States Trade Representative will conduct an assessment of Cambodia’s Generalized System of Preferences (GSP) eligibility as part of a broader GSP evaluation. This assessment will be conducted following reauthorization of the program benefits and will include any new or amended eligibility criteria established by Congress.

The United States will continue to promote accountability for criminal activities, corrupt business practices, and human rights abuses through a whole-of-government effort and in close coordination with the private sector and our allies and partners.

Read the full business advisory here: https://www.state.gov/cambodia-business-advisory-on-high-risk-investments-and-interactions/.

And here is the Summary section of the Advisory – I will publish the other parts in separate posts:

Summary: The U.S. Department of State, U.S. Department of the Treasury, and U.S. Department of Commerce are issuing this advisory to caution U.S. businesses currently operating in or considering operating in Cambodia to be mindful of interactions with entities and sectors potentially involved in human rights abuses, criminal activities, and corrupt business practices.

This advisory addresses two primary areas of risk exposure for U.S. companies:

• Illicit finance activities in Cambodia and related risks for the financial, real estate, casino, and infrastructure sectors.
• Involvement with Cambodian entities involved in trafficking in persons, wildlife, and narcotics trafficking in Cambodia and related risks for the manufacturing and timber sectors.

Businesses with potential exposure to entities in Cambodia that engage in human rights abuses, criminal activities, or corruption should be aware of the reputational, economic, and possible legal risks. To mitigate these risks, businesses should apply appropriate due diligence policies and procedures.

Links:

Multiagency Business Advisory

↧

FINMA takes enforcement action against two banks

November 18, 2021, 6:33 am

≫ Next: December 6, 2021: OFAC Global Magnitsky Designations & updates related to Dan Gertler

≪ Previous: We’re not done yet… Multiagency Cambodia Business Advisory

News

18 November 2021 Press release Combating money laundering 2021

Money laundering: FINMA concludes final proceedings connected with Venezuela

The Swiss Financial Market Supervisory Authority FINMA has concluded two further proceedings focusing on Venezuelan business relationships. In these, it found that Banca Zarattini & Co. SA along with CBH Compagnie Bancaire Helvétique SA breached their obligations to combat money laundering and seriously violated supervisory law. It has imposed measures on the banks as a result. The conclusion of these two proceedings brings to an end all enforcement proceedings against banks in the context of Venezuela and in particular linked to PDVSA.

FINMA opened enforcement proceedings against Banca Zarattini in August 2019 to investigate information it had received regarding possible violations of money-laundering rules. The information was received in the context of the alleged cases of corruption linked to the Venezuelan oil company PDVSA. FINMA opened enforcement proceedings against CBH in February 2020. Here too, it had received information regarding possible violations of money-laundering rules in connection with Venezuelan clients.

The proceedings, now concluded, found that both Banca Zarattini (in the period between 2014 and 2018) and CBH Bank (in the period between 2012 and 2020) were in breach of obligations to combat money laundering and their duties to put in place an appropriate risk management policy, representing a serious infringement of supervisory law. Both banks failed to carry out sufficient economic background clarifications into business relationships and transactions with increased money-laundering risks. Adequate documentation was also lacking in these areas.

FINMA imposes restrictions on the opening of new client relationships

Banca Zarattini and CBH Bank cooperated well during the proceedings. Prior to and during the FINMA proceedings, both banks had already implemented operating, structural and HR-related measures to remove the deficiencies in their organisation in combating money laundering. If they are implemented consistently, FINMA considers these measures to be suitable for addressing the identified shortcomings.

It therefore rules that both banks must now implement these measures consistently in order to restore compliance with the law. FINMA has also imposed a temporary ban on accepting new Venezuelan and PEP clients on Banca Zarattini. The measures imposed on CBH Bank include the termination of all remaining business relationships with Venezuelan clients. In addition, CBH must review other especially risky client relationships and terminate these if necessary.

FINMA will carry out checks at both banks to ensure that the measures are implemented effectively.

Proceedings against banks in the context of Venezuela

FINMA was in contact with over 30 Swiss banks in connection with alleged cases of corruption in the context of Venezuela and in particular linked to the Venezuelan oil company PDVSA. FINMA investigated whether and to what extent the banks were involved in this case and whether the provisions of Swiss supervisory law were upheld. FINMA ultimately opened five enforcement proceedings in order to investigate specific information it had received regarding possible violations of money-laundering rules. These proceedings have now all been concluded.

Link:

FINMA Notice

↧

December 6, 2021: OFAC Global Magnitsky Designations & updates related to Dan Gertler

December 7, 2021, 7:19 am

≫ Next: More corruption? More OFAC!

≪ Previous: FINMA takes enforcement action against two banks

Yesterday, OFAC added the following person:

MUKONDA MAYANDU, Alain, Kivu 32 BIS, Salongo, Kintambo, Kinshasa, Kinshasa, Congo, Democratic Republic of the; DOB 09 Feb 1976; nationality Congo, Democratic Republic of the; Gender Male; Passport OP0110491 (Congo, Democratic Republic of the) (individual) [GLOMAG] (Linked To: GERTLER, Dan).

and entities:

ASHDALE SETTLEMENT GERCO SAS (f.k.a. GERCO SAS), 67 Boulevard Du 30 Juin, Immeuble Golf, 5eme etage, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; 32 BIS, Avenue KIVU, Ngaliema, Kinshasa, Kinshasa, Congo, Democratic Republic of the; 8eme etage, immeuble 1113, Boulevard Du 30 Juin No. 110, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; 70 Batetela, Immeuble Tilipia, 5eme etage, Municipality of Gombe, Kinshasa, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/17-B-01379 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: MUKONDA MAYANDU, Alain). 
 
GEMINI S.A.S.U., 8eme etage, Immeuble 1113, Boulevard Du 30 Juin No. 110, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-01223 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: OPERA). 
 
KALTONA LIMITED SASU, Immeuble 1113, 8eme etage, No. 110 Boulevard Du 30 Juin, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-01271 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: GEMINI S.A.S.U.). 
 
KINTALEG LIMITED, 57/63, Line Wall Road, Gibraltar GX11 1AA, Gibraltar; Organization Type: Activities of holding companies; Target Type Private Company [GLOMAG] (Linked To: MUKONDA MAYANDU, Alain). 
 
MULTREE LIMITED SASU, Immeuble 1113, 8eme etage, No. 110 Boulevard Du 30 Juin, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-01272 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: GEMINI S.A.S.U.). 
 
OPERA, 8eme etage, Immeuble 1113, Boulevard Du 30 Juin No. 110, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; Organization Type: Activities of holding companies; Target Type Private Company; Commercial Registry Number CD/KNG/RCCM/18-B-01188 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: ASHDALE SETTLEMENT GERCO SAS). 
 
PALATINA SARLU, 67 Boulevard Du 30 Juin, Immeuble Golf, 5eme etage, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-00090 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: ASHDALE SETTLEMENT GERCO SAS). 
 
ROSEHILL DRC SASU, Immeuble 1113, 8eme etage, No. 110 Boulevard Du 30 Juin, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-01317 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: WOODFORD ENTERPRISES LIMITED SASU). 
 
VENTORA GLOBAL SERVICES, 110 Boulevard Du 30 Juin, Immeuble Onze Treize, 8th Floor, Kinshasa, Kinshasa, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-00322 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: MUKONDA MAYANDU, Alain). 
 
VENTORA MINING S.A.S.U. (a.k.a. VENTORA MINING), 8th floor, Immeuble 1113, Boulevard Du 30 Juin No. 110, Gombe, Kinshasa, Kinshasa, Congo, Democratic Republic of the; Identification Number 01-83-N36154C (Congo, Democratic Republic of the); Commercial Registry Number CD/KNG/RCCM/18-B-01222 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: MUKONDA MAYANDU, Alain). 
 
WOODFORD ENTERPRISES LIMITED SASU, 8eme etage, Immeuble 1113, No. 110 Boulevard Du 30 Juin, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-01274 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: GEMINI S.A.S.U.). 
 
WOODHAVEN DRC SASU, Immeuble 1113, 8eme etage, No. 110 Boulevard Du 30 Juin, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-01347 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: ROSEHILL DRC SASU).

to its Global Magnitsky sanctions program, in this case for corruption in the Democratic Republic of the Congo. The following existing designations were also updated:

CAPRIKAT LIMITED, Akara Building, 24 Castro Street, Wickhams Cay 1, P.O. Box 3136, Road Town, Tortola, Virgin Islands, British; Public Registration Number 1577164 (Virgin Islands, British) [GLOMAG] (Linked To: FLEURETTE PROPERTIES LIMITED). -to- CAPRIKAT LIMITED (n.k.a. ALBERTINE DRC S.A.S.U), Akara Building, 24 Castro Street, Wickhams Cay 1, P.O. Box 3136, Road Town, Tortola, Virgin Islands, British; Boulevard du 30 Juin No 110, Building 1113, 8eme etage, Municipality of Gombe, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-00168 (Congo, Democratic Republic of the); Public Registration Number 1577164 (Virgin Islands, British) [GLOMAG] (Linked To: FLEURETTE PROPERTIES LIMITED). 
 
FLEURETTE PROPERTIES LIMITED (a.k.a. FLEURETTE DUTCH GROUP; a.k.a. FLEURETTE GROUP; a.k.a. GROUPE FLEURETTE; a.k.a. KARIBU AU DEVELOPMENT DURABLE AU CONGO; a.k.a. VENTORA MINING), Strawinskylaan 335, WTC, B-Tower 3rd floor, Amsterdam 1077 XX, Netherlands; Gustav Mahlerplein 60, 7th Floor, ITO Tower, Amsterdam 1082 MA, Netherlands; 70 Batetela Avenue, Tilapia Building, 5th floor, Kinshasa, Gombe, Congo, Democratic Republic of the; 57/63 Line Wall Road, Gibraltar GX11 1AA, Gibraltar; Public Registration Number 99450 (Gibraltar) [GLOMAG] (Linked To: GERTLER, Dan). -to- FLEURETTE PROPERTIES LIMITED (a.k.a. FLEURETTE DUTCH GROUP; a.k.a. FLEURETTE GROUP; a.k.a. GROUPE FLEURETTE; a.k.a. KARIBU AU DEVELOPMENT DURABLE AU CONGO; a.k.a. VENTORA INVESTMENTS S.A.SU), Strawinskylaan 335, WTC, B-Tower 3rd floor, Amsterdam 1077 XX, Netherlands; Gustav Mahlerplein 60, 7th Floor, ITO Tower, Amsterdam 1082 MA, Netherlands; 70 Batetela Avenue, Tilapia Building, 5th floor, Gombe, Kinshasa, Congo, Democratic Republic of the; 57/63 Line Wall Road, Gibraltar GX11 1AA, Gibraltar; 8eme Etage, Immeuble 1113, Boulevard Du 30 Juin No 110, Commune De La Gombe, Kinshasa, Congo, Democratic Republic of the; Commercial Registry Number CD/KNG/RCCM/18-B-00630 (Congo, Democratic Republic of the); Public Registration Number 99450 (Gibraltar) [GLOMAG] (Linked To: GERTLER, Dan). 
 
VENTORA DEVELOPMENT SASU, Congo, Democratic Republic of the [GLOMAG] (Linked To: AFRICA HORIZONS INVESTMENT LIMITED). -to- VENTORA DEVELOPMENT SASU, 08eme etage, Immeuble 1113, Boulevard Du 30 Juin No 110, Gombe, Kinshasa, Kinshasa, Congo, Democratic Republic of the; Identification Number 01-9-N36511Y (Congo, Democratic Republic of the); Commercial Registry Number CD/KNG/RCCM/18-B-01273 (Congo, Democratic Republic of the) [GLOMAG] (Linked To: AFRICA HORIZONS INVESTMENT LIMITED).

And the Treasury:

PRESS RELEASES

Treasury Targets Corruption Linked to Dan Gertler in the Democratic Republic of Congo

December 6, 2021

Treasury’s Designation Action the First in a Week of Actions Leading to the Summit for Democracy

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned one individual, Alain Mukonda (Mukonda), for providing support to sanctioned billionaire Dan Gertler, as well as 12 entities linked to Mukonda or companies associated with him in the Democratic Republic of the Congo and Gibraltar. Mukonda and the 12 entities are designated pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world.

Corruption allows bad actors to abuse their authority and extract unfair gains at the expense of others. Treasury’s strategy to combat corruption and combat these illicit activities will make the U.S. economy — and the global economy — stronger, fairer, and safer from corrupt actors and national security threats. Treasury is uniquely equipped with tools to root out corruption at home and abroad by targeting the financial systems and flows that allow bad actors to profit from corruption.

“Treasury is committed to supporting the Democratic Republic of the Congo’s anti-corruption efforts by going after those that abuse the political system for economic gain and unfairly profit from the Congolese state,” said Deputy Secretary of the Treasury Wally Adeyemo. “Treasury recognizes that corruption fuels instability and conflict, and undercuts efforts to achieve the economic growth and the rule of law necessary to overcome fragility. We stand with the Congolese people in their efforts to combat this scourge.”

Today’s actions demonstrate the U.S. government’s ongoing effort to coordinate with civil society partners to impose significant consequences on those engaged in corruption in the DRC and globally.

PARTNERS IN THE FIGHT AGAINST CORRUPTION

Since the inception of the Global Magnitsky sanctions program, Treasury has worked hand in hand with civil society and foreign partners to develop and pursue investigations targeting perpetrators of corruption. Civil society organizations around the world are often eyewitnesses to corruption and human rights abuses and can shine a light on activities that corrupt actors and authoritarian regimes try to keep hidden. In determining whether to impose sanctions, Treasury considers credible information obtained by Non-Governmental Organizations (NGO) that monitor violations of human rights. Treasury highly values the information shared by NGOs all over the globe to expose corruption and human rights abuse, which can be used to support and develop cases like Treasury’s action today.

As highlighted by Treasury’s recent sanctions review, sanctions are most effective when coordinated where possible with allies and partners who can magnify the economic and political impact. Treasury sanctions comport with efforts by local partners to combat corruption, from law enforcement investigations into corrupt actors to legal reforms to strengthen key areas like enhanced transparency on beneficial owners and improved public procurement processes. Today’s action would not have been possible without the support and cooperation of DRC officials, who have demonstrated a clear commitment at the highest levels to root out corruption.

A FINANCIAL LIFELINE FOR GERTLER

Government officials in the DRC have prioritized promoting investment opportunities and increasing access to global finance due to the growth potential in a number of commercial sectors that have the potential to lift millions out of poverty. However, corruption, opaque business practices, and a patchwork legal framework have constrained economic growth and deterred private investment. Promoting accountability for corrupt actors is an important step in deterring future corruption.

Dan Gertler was included in the Annex to E.O. 13818 for his involvement in corruption in the DRC. On December 21, 2017, OFAC announced the designation of 19 companies and one associate, Pieter Albert Deboutte, for their ties to him. As previously noted in the December 2017 actions, Gertler amassed his fortune through hundreds of millions of dollars’ worth of opaque and corrupt mining and oil deals in the DRC. Gertler has used his close friendship with former DRC President Joseph Kabila to act as a middleman for mining asset sales in the DRC, requiring some multinational companies to go through Gertler to do business with the Congolese state. As a result of Gertler’s actions, between 2010 and 2012 alone, the DRC reportedly lost more than $1.36 billion in revenues from the underpricing of mining assets that were sold to offshore companies linked to Gertler. In June 2018, OFAC took further action to target Gertler’s vast commercial network, designating 14 companies owned or controlled by him.

OFAC is designating Mukonda today for providing support to Gertler. Following Gertler’s identification in the Annex in 2017, Mukonda opened bank accounts and made payments into proxy bank accounts for Gertler and those linked to Deboutte. He made 16 cash deposits totaling between 11 and 13.5 million dollars into accounts of companies he incorporated that ultimately belong to Gertler’s family. He also re-domiciled several of Gertler’s companies from Gibraltar and the British Virgin Islands to the DRC. With today’s action, the number of sanctioned entities and individuals in Gertler’s network, including the identification of Gertler in the Annex to E.O. 13818, totals 46. Treasury is committed to ensuring that Gertler is not able to corruptly profit from continued access and influence in the DRC and globally.

Mukonda is designated pursuant to E.O. 13818 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of Gertler, a person whose property and interests in property are blocked pursuant to E.O. 13818.

Additionally, OFAC is designating 11 entities based in the DRC, as well as one entity in Gibraltar, pursuant to E.O. 13818:

Kintaleg Limited, based in Gibraltar and owned or controlled by Mukonda.
Ventora Global Services, based in the DRC and owned or controlled by Mukonda.
Ventora Mining S.A.S.U., based in the DRC and owned or controlled by Mukonda.
Ashdale Settlement Gerco SAS, based in the DRC and owned or controlled by Mukonda.
Opera, based in the DRC and owned or controlled by Ashdale Settlement Gerco SAS.
Palatina SARLU, based in the DRC and owned or controlled by Ashdale Settlement Gerco SAS.
Gemini S.A.S.U., based in the DRC and owned or controlled by Opera.
Kaltona Limited SASU, based in the DRC and owned or controlled by Gemini S.A.S.U.
Multree Limited SASU, based in the DRC and owned or controlled by Gemini S.A.S.U.
Woodford Enterprises Limited SASU, based in the DRC and owned or controlled by Gemini S.A.S.U.
Rosehill DRC SASU, based in the DRC and owned or controlled by Woodford Enterprises Limited SASU.
Woodhaven DRC SASU, based in the DRC and owned or controlled by Rosehill DRC SASU.

These designations are the first in a series leading up to International Anti-Corruption Day and International Human Rights Day that demonstrate the whole-of-government approach to combatting corruption through the Treasury’s unique position and powerful tools.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or otherwise exempt, all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods, or services from any such person.

GLOBAL MAGNITSKY

and State Departments:

Designation of Targets Linked to Corruption by Dan Gertler in the Democratic Republic of the Congo

PRESS STATEMENT

DECEMBER 6, 2021Share

The Department of the Treasury, in consultation with the Department of State, is designating Alain Mukonda for providing support to sanctioned billionaire Dan Gertler as well as 12 entities linked to Mukonda, or companies associated with him, in the Democratic Republic of the Congo and Gibraltar. These designations are pursuant to Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world. Corruption allows bad actors to abuse their authority and enrich themselves at the expense of others. It also fuels instability and conflict, undermines the rule of law, and undercuts efforts to achieve inclusive economic growth.

Under the U.S.-DRC Privileged Partnership for Peace, Prosperity, and Preservation of the Environment, the United States will continue to partner with the Tshisekedi administration and the Congolese people to fight corruption, end impunity, and promote accountability with all tools at our disposal.

issued press releases.

Links:

Press Releases: State, Treasury

↧

More corruption? More OFAC!

December 8, 2021, 9:02 am

≫ Next: OFAC celebrates Anti-Corruption Day in the usual way…

≪ Previous: December 6, 2021: OFAC Global Magnitsky Designations & updates related to Dan Gertler

Today, OFAC added the following persons:

BOJIC, Andrija Zheljko, Kosovo; DOB 02 Mar 1993; Gender Male (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
BOJIC, Zeljko (a.k.a. BOJIC, Zeljko Radoslav), Lole Ribar Street, Number L3/10/2, Mitrovica North, Kosovo; DOB 16 Jul 1969; POB Mitrovica, Kosovo; nationality Kosovo; Gender Male; Passport P00608659 (Kosovo) expires 19 Mar 2025 (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
LUNA MEZA, Osiris (a.k.a. LUNA, Osiris), San Salvador, El Salvador; DOB 08 Feb 1989; POB San Salvador, El Salvador; nationality El Salvador; Gender Male; Passport A04056212 (El Salvador) expires 11 Aug 2020; National ID No. 040562123 (El Salvador) (individual) [GLOMAG]. 
 
MARROQUIN CHICA, Carlos Amilcar, Mejicanos, El Salvador; DOB May 1986; POB San Salvador, El Salvador; nationality El Salvador; Gender Male; Passport B03539817 (El Salvador) expires 19 Sep 2024; National ID No. 035398179 (El Salvador) (individual) [GLOMAG]. 
 
MEZA OLIVARES, Alma Yanira, San Salvador, El Salvador; DOB 15 Jul 1963; POB San Salvador, El Salvador; nationality El Salvador; Gender Female; Passport A01497316 (El Salvador) expires 10 Dec 2019; National ID No. 014973168 (El Salvador) (individual) [GLOMAG] (Linked To: LUNA MEZA, Osiris). 

 
MIHAJLOVIC, Milan, Susica Village, Kosovo; DOB 27 Apr 1983; POB Nis, Republic of Serbia; nationality Serbia; Gender Male; Identification Number 2704983730021 (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
NEDELJKOVIC, Sinisa (a.k.a. "METAL, Senisa"; a.k.a. "NEDELJKOVIC, Sinis"; a.k.a. "NEDELJKOVIC, Sinisa Stevan"), Kral Petar Street, Zvecan, Kosovo; DOB 26 Mar 1970; POB Zvecan, Kosovo; nationality Kosovo; alt. nationality Serbia; Gender Male; Identification Number 1501722452 (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
RADIC, Radovan, Kosovo; DOB 19 Oct 1981; nationality Serbia; Gender Male; Identification Number 005221713 (Serbia) expires 25 Mar 2024 (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
RADISAVLJEVIC, Miljan, Donji Jasenovik, Zubin Potok, Kosovo; DOB 10 Dec 1972; POB Village Babudovici, Zubin Potok, Kosovo; nationality Serbia; Gender Male; Identification Number 1502104612 (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
RADISAVLJEVIC, Miljojko (a.k.a. "RADISAVLJEVIC, Milojko"), Donji Jasenovik, Zubin Potok, Kosovo; DOB 23 Apr 1978; POB Village Babudovici, Zubin Potok, Kosovo; nationality Serbia; Gender Male (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
RADOJCIC, Milan Rajko (a.k.a. "RADOICIC, Milan"; a.k.a. "RADOJICIC, Milan"), Serbia; Lola Ribar Street, number 58/7, Mitrovica, Kosovo; DOB 21 Feb 1978; POB Djakovica, Kosovo; nationality Kosovo; Gender Male; Driver's License No. 20177871 (Kosovo); Identification Number 1174669941 (individual) [GLOMAG]. 
 
ROSIC, Marko, Kosovo; DOB 28 Jun 1993; POB Mitrovica, Kosovo; Gender Male (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
STEVIC, Radule (a.k.a. "STEVIC, Rade"), Kral Petar Street, Zvecan, Kosovo; DOB 02 Jun 1970; POB Leposavic, Kosovo; nationality Serbia; Gender Male; Identification Number 1501796081 (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
VESELINOVIC, Zharko Jovan (a.k.a. "VESELINOVIC, Zarko"), Kralj Peter St., Mitrovica, Kosovo; DOB 23 Feb 1985; POB Dolane Village, Zvecan, Kosovo; nationality Serbia; alt. nationality Kosovo; Gender Male; Driver's License No. 2806 (Serbia); Identification Number 1502145386 (individual) [GLOMAG]. 
 
VESELINOVIC, Zvonko, Kralj Peter St., Mitrovica, Kosovo; DOB 30 Dec 1980; POB Dolane Village, Zvecan, Kosovo; nationality Kosovo; alt. nationality Serbia; Gender Male (individual) [GLOMAG]. 
 
VULOVIC, Srdjan Milivoje, Kosovo; DOB 03 Dec 1975; POB Ostrace, Leposavic Municipality, Kosovo; nationality Kosovo; Gender Male (individual) [GLOMAG] (Linked To: VESELINOVIC, Zvonko).

and entities:

BETONJERKA DOO ALEKSINAC (a.k.a. PRIVREDNO DRUSTVO ZA PROIZVODNJU BETONSKIH STUBOVA, TRAFO-STANICA I PRATECIH ELEMENATA ZA IZGRADNJU I ODRZAVANJE ELEKTROENERGETSKIH OBJEKATA BETONJERKA DOO ALEKSINAC), Autoput Bb, Aleksinac 18220, Serbia; Organization Established Date 28 Feb 1992; Organization Type: Manufacture of articles of concrete, cement and plaster; V.A.T. Number 100302988 (Serbia) [GLOMAG] (Linked To: INKOP DOO CUPRIJA). 
 
CIVIJA KOMERC (a.k.a. SAMOSTALNA TRGOVINSKA RADNJA CIVIJA KOMERC ZVONKO VESELINOVIC PREDUZETNIK SABAC), Macvanska 65, Sabac 15000, Serbia; Organization Established Date 22 Mar 2000; Organization Type: Sale of motor vehicle parts and accessories; V.A.T. Number 100081430 (Serbia) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
DOLLY BELL DOO BEOGRAD-NOVI BEOGRAD (a.k.a. "DOLLY BELL"), Partizanske Avijacije 4/III, Belgrade 11000, Serbia; Organization Established Date 12 May 2015; V.A.T. Number 108981819 (Serbia) [GLOMAG] (Linked To: INKOP DOO CUPRIJA). 
 
DOO BABUDOVAC BRNJAK (a.k.a. DOO BABUDOVAC PREDUZECE ZA PROIZVODNJU, TRGOVINU I USLUGE, BRNJAK), Brnjak Bb, Srpska Crnja, Serbia; Organization Established Date 22 Dec 2005; V.A.T. Number 104219987 (Serbia) [GLOMAG] (Linked To: RADISAVLJEVIC, Miljojko). 
 
DOO MM KOM INTER BLUE DONJI JASENOVIK (a.k.a. PREDUZECE ZA PROIZVODNJU PROMET TRGOVINU I USLUGE MM KOM INTER BLUE DOO DONJI JASENOVIK), Donji Jasenovik 38228, Serbia; Organization Established Date 08 Mar 2013; Organization Type: Wholesale of other machinery and equipment; V.A.T. Number 107969124 (Serbia) [GLOMAG] (Linked To: RADISAVLJEVIC, Miljan). 
 
DOO RAD 028 ZVECAN (a.k.a. DRUSTVO SA OGRANICENOM ODGOVORNOSCU RAD 028 ZVECAN), Prote Stojana 4/2, Zvecan, Serbia; Organization Established Date 20 Jan 2014; Organization Type: Construction of other civil engineering projects; V.A.T. Number 108374390 (Serbia) [GLOMAG] (Linked To: STEVIC, Radule). 
 
FARMA IZVORI B.I., Izvore, Kosovo; Organization Established Date 29 May 2015; Organization Type: Growing of pome fruits and stone fruits; Registration Number 71168433 (Kosovo) [GLOMAG] (Linked To: NEDELJKOVIC, Sinisa). 
 
FERARI PREDUZEEE ZA USLUGE I PROMET POLOVNIM VOZILIMA SH.A., 40000 Mitrovice, Kosovo; Organization Established Date 20 Aug 2002; Organization Type: Wholesale of other machinery and equipment; Registration Number 80673094 (Kosovo) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
GARAC INZENJERING OOD, Tsar Osvoboditel, 168, Kyustendil 2500, Bulgaria; Organization Established Date 04 Dec 2014; V.A.T. Number BG203318394 (Bulgaria) [GLOMAG] (Linked To: RADOJCIC, Milan Rajko). 
 
INKOP DOO CUPRIJA (a.k.a. GRADJEVINSKO PREDUZECE INKOP DOO CUPRIJA; a.k.a. "INKOP"), Karadordeva 6, Cuprija 35230, Serbia; Organization Established Date 12 May 1992; Organization Type: Construction of roads and railways; V.A.T. Number 100245351 (Serbia) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
MARKOM METAL COMMERCE DOO ZVECAN (a.k.a. MARKOM METAL COMMERCE DRUSTVO SA OGRANICENOM ODGOVORNOSCU, GRABOVAC), Grabovac 37240, Serbia; Organization Established Date 23 Jun 2008; V.A.T. Number 105767318 (Serbia) [GLOMAG] (Linked To: NEDELJKOVIC, Sinisa). 
 
METAL-ROBNA KUCA (a.k.a. METAL-ROBNA KUCA ZVECAN), Kosovskih Junaka Bb, Zvecan 38227, Serbia; Organization Established Date 2005; Organization Type: Wholesale of construction materials, hardware, plumbing and heating equipment and supplies; Registration Number 20110708 (Serbia) [GLOMAG] (Linked To: NEDELJKOVIC, Sinisa). 
 
NAUTIKACENTAR D. O. O. (a.k.a. NAUTIKACENTAR DRUSTVO S OGRANICENOM ODGOVORNOSCU ZA DJELATNOST MARINA, TRGOVINU I USLUGE), Zdravka Kucica 43, Rijeka 51000, Croatia; Organization Established Date 01 Jan 2000; V.A.T. Number HR12533377925 (Croatia) [GLOMAG] (Linked To: VESELINOVIC, Zharko Jovan). 
 
NOVI PAZAR-PUT D.O.O. NOVI PAZAR (a.k.a. DRUSTVO SA OGRANICENOM ODGOVORNOSCU NOVI PAZAR-PUT NOVI PAZAR), Sabana Koce 67, Novi Pazar 36300, Serbia; Organization Established Date 20 Apr 2004; Organization Type: Construction of roads and railways; V.A.T. Number 100744723 (Serbia) [GLOMAG] (Linked To: INKOP DOO CUPRIJA). 
 
P.P. BABUDOVAC B.I. (a.k.a. P.P. BABUDOVAC), 40650 Jasenovik I Poshtem, Kosovo; Organization Established Date 05 Feb 2004; Organization Type: Wholesale of food, beverages and tobacco; V.A.T. Number 600570825 (Kosovo) [GLOMAG] (Linked To: RADISAVLJEVIC, Miljan). 
 
P.P.ROBNA KUCA METAL B.I., Kralja Petra I 90, Zvecan, Kosovo; Organization Established Date 29 Aug 2013; Organization Type: Wholesale of other machinery and equipment; Registration Number 70985691 (Kosovo) [GLOMAG] (Linked To: NEDELJKOVIC, Sinisa). 
 
RAD D.O.O., Kralja Petra I B.B., Zveqan 43000, Kosovo; Organization Established Date 01 Feb 2018; Organization Type: Construction of buildings; Registration Number 810091687 (Kosovo) [GLOMAG] (Linked To: STEVIC, Radule). 
 
RADOVAN RADIC B.I., P.P. EU RR GRADNJA, Zupc 40650, Kosovo; Organization Established Date 13 Feb 2014; Organization Type: Construction of other civil engineering projects; V.A.T. Number 601071814 (Kosovo) [GLOMAG] (Linked To: RADIC, Radovan). 
 
RADULE STEVIC B.I., P.T.P. RAD, Prote Sfojaha, Zveqan 38227, Kosovo; Organization Established Date 04 Apr 2013; Organization Type: Construction of buildings; Tax ID No. 600953708 (Kosovo) [GLOMAG] (Linked To: STEVIC, Radule). 
 
ROBNA KUCA METAL D.O.O., Kralja Petra I 90, Zveqan 38227, Kosovo; Organization Established Date 21 Aug 2017; Organization Type: Wholesale of other machinery and equipment; Registration Number 810051061 (Kosovo) [GLOMAG] (Linked To: NEDELJKOVIC, Sinisa). 
 
S.Z.T.R. PRIZMA B.I. (a.k.a. SAMOSTALNA ZANATSKA TRGOVINSKA RADNJA PRIZMA), 40000 Mitrovice, Kosovo; Organization Established Date 10 Dec 2001; Organization Type: Construction of other civil engineering projects; Registration Number 80581564 (Kosovo) [GLOMAG] (Linked To: VESELINOVIC, Zvonko). 
 
SINISA NEDELJKOVIC B.I., P.T.P. METAL, 90, Kralja Petra I, Zveqan 38227, Kosovo; Organization Established Date 09 Aug 2001; Organization Type: Wholesale of other machinery and equipment; V.A.T. Number 600351845 (Kosovo) [GLOMAG] (Linked To: NEDELJKOVIC, Sinisa). 
 
SINISA NEDELJKOVIC I.B., Glavna Bb, Shterpce 73000, Kosovo; Organization Established Date 03 Sep 2015; Organization Type: Restaurants and mobile food service activities; V.A.T. Number 601337753 (Kosovo) [GLOMAG] (Linked To: NEDELJKOVIC, Sinisa). 
 
ZARKO VESELINOVIC B.I., S.T.R. KRISTAL (a.k.a. ZARKO VESELINOVIC B.I.), Kralja Petra I, Mitrovice 40000, Kosovo; Organization Established Date 21 Feb 2005; Registration Number 70234903 (Kosovo) [GLOMAG] (Linked To: VESELINOVIC, Zharko Jovan).

under its Global Magnitsky sanctions program, under the anti-corruption designation authority.

And the U.S. State Department:

Designation of Corruption Networks Linked to Transnational Organized Crime

PRESS STATEMENT

DECEMBER 8, 2021Share

In concert with the goals of this week’s Summit for Democracy, the United States is imposing sanctions today on 16 individuals and 24 entities from several countries in Europe and the Western Hemisphere. These sanctions target perpetrators of corruption pursuant to Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act.

The United States Strategy on Countering Corruption, released December 6, highlights the importance of addressing the nexus between corruption, criminal, and other illicit activity as a national security priority. Transnational organized crime is destabilizing, with these groups often colluding with public officials to shield themselves from prosecution and accountability. Transnational criminal organizations also operate across borders, undermining the international financial system and complicating law enforcement efforts to disrupt and dismantle transnational crime globally. We also know that organized crime backed by corrupt actors can destabilize rule of law, erode confidence in public institutions, and weaken democratic governance.

We will continue to use all available tools to break the links between criminal activity and corruption. Today’s actions, with the Department of the Treasury’s designations of corrupt actors linked to transnational criminal organizations in El Salvador, Kosovo and Serbia, are part of our whole-of-government efforts to break these links and promote accountability for corrupt actors.

and Treasury Department:

PRESS RELEASES

Treasury Targets Corruption Networks Linked to Transnational Organized Crime

December 8, 2021

Global Magnitsky Designations Target Nexus Between Public Corruption and Organized Crime

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is targeting 16 individuals and 24 entities across several countries in Europe and the Western Hemisphere. Today’s actions are taken pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act, and targets perpetrators of corruption and serious human rights abuse.

“Transnational organized crime and corruption often go hand in hand with massively destabilizing effects on rule of law and democratic governance,” said Director of the Office of Foreign Assets Control Andrea M. Gacki. “Treasury will continue to aggressively dismantle links between transnational criminal organizations and corrupt activity, especially by those in office who hold the public’s trust.”

These designations follow previous actions this week targeting corruption in the Democratic Republic of Congo and persons contributing to repression and the undermining of democracy around the world.

ORGANIZED CRIME AND CORRUPTION

The United States’ Strategy on Countering Corruption, released December 6, highlights the importance of addressing the nexus between corruption, criminal, and other illicit activity as a national security priority. Organized crime and corruption are often linked — organized crime groups destabilize civil society and collude with public officials to insulate themselves from prosecution. Corruption erodes confidence in democratic institutions, particularly where criminal groups benefit from cooperation with public officials, and when illicit actors are allowed to operate with impunity. Organized crime often achieves a transnational reach, where criminal groups operate across borders, undermine the integrity of the international financial system, and complicate law enforcement efforts.

NORTHERN KOSOVO-BASED TRANSNATIONAL ORGANIZED CRIME: ZVONKO VESELINOVIC AND HIS ORGANIZED CRIME GROUP

Zvonko Veselinovic (Veselinovic), the leader of the Zvonko Veselinovic Organized Crime Group (OCG), is one of Kosovo’s most notorious corrupt figures. The Veselinovic OCG is engaged in a largescale bribery scheme with Kosovar and Serbian security officials who facilitate the group’s illicit trafficking of goods, money, narcotics, and weapons between Kosovo and Serbia. The group has also conspired with various politicians in several quid pro quo agreements, including the early 2019 bribery of Kosovar security officials to allow their smuggling operations between Serbia and Kosovo and the late 2017 bribery of Kosovar border security officials to allow safe passage for smugglers. As of late 2017, Veselinovic and his brother Zharko Jovan Veselinovic (Zharko) had agreements with politicians to help their party win elections, secure political victories for their candidates, and contribute large sums of money to candidates. In return, these politicians would grant the brothers control of certain areas for their businesses and where they could conduct their illicit business activities without interference by Serbian authorities, and would also provide proprietary business information to support the brothers’ business investments. The politicians would also reward the Veselinovic brothers by working to grant the brothers the best infrastructure contracts. As of late 2017, Veselinovic and Zharko made donations as a method of laundering money originating from their criminal enterprise. Zharko has been a leader in the Veselinovic OCG, working with his brother and the OCG in their smuggling activities, their violent intimidations of businesses, their construction and infrastructure projects, and their telecommunications development projects. Additionally, Veselinovic and his group were indicted for their alleged involvement in the murder of political party leader Oliver Ivanovic in January 2018. Veselinovic and fellow members of the OCG, Milan Rajko Radojcic (Radojcic), Zeljko Bojic (Bojic), and Marko Rosic (Rosic), were all named in the indictment for the murder, each serving their role in the assassination for the criminal enterprise.

Veselinovic, Zharko, and Radojcic are designated pursuant to E.O. 13818 for being foreign persons who are or have been a leader or official of an entity, including any government entity, that has engaged in, or whose members have engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery, related to their tenure.

Bojic is designated pursuant to E.O. 13818 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Veselinovic.

Rosic
Andrija Zheljko Bojic
Srdjan Milivoje Vulovic
Milan Mihajlovic
Miljan Radisavljevic (Miljan)
Miljojko Radisavljevic (Miljojko)
Radovan Radic (Radic)
Sinisa Nedeljkovic (Nedeljkovic)
Radule Stevic (Stevic)

OFAC designated four entities across Europe that are owned or controlled by Veselinovic pursuant to E.O. 13818:

Inkop DOO Cuprija (Inkop), based in Serbia
Civija Komerc, based in Serbia
S.Z.T.R. Prizma B.I., based in Kosovo
Ferari Preduzeee Za Usluge I Promet Polovnim Vozilima SH.A., based in Kosovo

OFAC designated three entities across Europe that are owned or controlled by Inkop pursuant to E.O. 13818:

Betonjerka DOO Aleksinac, based in Serbia
Dolly Bell DOO Beograd-Novi Beograd, based in Serbia
Novi Pazar-Put D.O.O. Novi Pazar, based in Serbia

OFAC designated two entities across Europe that are owned or controlled by Zharko pursuant to E.O. 13818:

Zarko Veselinovic B.I., S.T.R. Kristal, based in Kosovo
Nautikacentar D. O. O., based in Croatia

OFAC designated three entities across Europe that are owned or controlled by Stevic pursuant to E.O. 13818:

DOO Rad 028 Zvecan, based in Serbia
Radule Stevic B.I., P.T.P. Rad, based in Kosovo
Rad D.O.O., based in Kosovo

OFAC designated seven entities across Europe that are owned or controlled by Nedeljkovic pursuant to E.O. 13818:

Markom Metal Commerce DOO Zvecan, based in Serbia
Metal-Robna Kuca, based in Serbia
Sinisa Nedeljkovic B.I., P.T.P. Metal, based in Kosovo
P.P.Robna Kuca Metal B.I., based in Kosovo
Farma Izvori B.I., based in Kosovo
Robna Kuca Metal D.O.O., based in Kosovo
Sinisa Nedeljkovic I.B., based in Kosovo

OFAC designated two entities across Europe that are owned or controlled by Miljan pursuant to E.O. 13818:

DOO MM Kom Inter Blue Donji Jasenovik, based in Serbia
P.P. Babudovac B.I., based in Kosovo

OFAC also designated three entities across Europe that are owned or controlled by other members of this organized crime group pursuant to E.O. 13818:

DOO Babudovac Brnjak, based in Serbia and owned or controlled by Miljojko
Garac Inzenjering OOD, based in Bulgaria and owned or controlled by Radojcic
Radovan Radic B.I., P.P. Eu Rr Gradnja, based in Kosovo and owned or controlled by Radic

ORGANIZED CRIME IN EL SALVADOR: OSIRIS LUNA MEZA, CARLOS AMILCAR MARROQUIN CHICA, AND ALMA YANIRA MEZA OLIVARES

An investigation into officials of the Government of El Salvador and incarcerated leaders of gangs, such as Treasury-designated Mara Salvatrucha 13 (MS-13), has revealed covert negotiations between government officials and the criminal organization. MS-13 was designated on October 11, 2012 pursuant to E.O. 13581 for its involvement in serious transnational criminal activities, including drug trafficking, kidnapping, human smuggling, sex trafficking, murder, assassinations, racketeering, blackmail, extortion, and immigration offenses. Osiris Luna Meza (Luna) and Carlos Amilcar Marroquin Chica (Marroquin) led, facilitated, and organized a number of secret meetings involving incarcerated gang leaders, in which known gang members were allowed to enter the prison facilities and meet with senior gang leadership. These meetings were part of the Government of El Salvador’s efforts to negotiate a secret truce with gang leadership.

In 2020, Salvadoran President Nayib Bukele’s (Bukele) administration provided financial incentives to Salvadoran gangs MS-13 and 18th Street Gang (Barrio 18) to ensure that incidents of gang violence and the number of confirmed homicides remained low. Over the course of these negotiations with Luna and Marroquin, gang leadership also agreed to provide political support to the Nuevas Ideas political party in upcoming elections. Nuevas Ideas is the President’s political party and won a two-thirds super majority in legislative elections in 2021. The Bukele administration was represented in such transactions by Luna, the Chief of the Salvadoran Penal System and Vice Minister of Justice and Public Security, and Marroquin, Chairman of the Social Fabric Reconstruction Unit. In addition to Salvadoran government financial allocations in 2020, the gangs also received privileges for gang leadership incarcerated in Salvadoran prisons, such as the provision of mobile phones and prostitutes.

Amidst the COVID-19 pandemic, Luna also negotiated an agreement with gang leaders from MS-13 and Barrio 18 for the gangs’ support of President Bukele’s national quarantine in gang-controlled areas. Separately, Luna participated in a scheme to steal and re-sell government purchased staple goods that were originally destined for COVID-19 pandemic relief. These items were transferred to private companies and then resold on the private market or back to the government. Luna’s mother, Alma Yanira Meza Olivares (Meza), acted as the negotiator in some of these transactions. Additionally, Luna and Meza developed a scheme to embezzle millions of dollars from El Salvador’s prison commissary system. They also created fraudulent job positions within the prison system, in which supposed “employees” would receive monthly paychecks and return most of the earnings back to Luna and Meza.

Luna and Marroquin are designated pursuant to E.O. 13818 for being foreign persons who are current or former government officials, or persons acting for or on behalf of such an official, who are responsible for or complicit in, or have directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

Meza is designated pursuant to E.O. 13818 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Luna.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or otherwise exempt, all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods, or services from any such person.

GLOBAL MAGNITSKY

issued press releases about it.

Links:

Press Releases – Treasury, State

↧

OFAC celebrates Anti-Corruption Day in the usual way…

December 9, 2021, 7:41 am

≫ Next: State Department also celebrates Anti-Corruption Day

≪ Previous: More corruption? More OFAC!

Today, OFAC added the following persons:

FRAGOSO DO NASCIMENTO, Leopoldino (a.k.a. "DINO"), Luanda, Angola; DOB 05 Jun 1963; POB Luanda, Angola; nationality Angola; Gender Male; Passport N1999980 (Angola) expires 08 Apr 2036 (individual) [GLOMAG]. 
 
GIOVETTY, Luisa de Fatima (a.k.a. GEOVETTY, Luisa de Fatima), Avenida 4 de Fevereiro, No. 32, 5 Esquerdo, Bairro Marginal, Municipio de Ingombata, Luanda, Luanda, Angola; DOB 14 Jul 1962; POB Sambinzanga, Angola; alt. POB Luanda, Angola; nationality Angola; Gender Female (individual) [GLOMAG] (Linked To: BAIA CONSULTING LIMITED). 
 
JOHNSON, Prince Yormie (a.k.a. JOHNSON, Prince; a.k.a. JOHNSON, Prince Y.), Nimba County, Liberia; DOB 06 Jul 1952; POB Gomaplay, Liberia; nationality Liberia; Gender Male (individual) [GLOMAG]. 
 
MARTINEZ OLIVET, Manuel Victor, Guatemala; DOB 03 Oct 1980; nationality Guatemala; Gender Male; Passport 179006614 (Guatemala) expires 29 Jun 2020; National ID No. 1790066140101 (Guatemala) (individual) [GLOMAG]. 
 
PORTNOV, Andriy Volodymyrovych (Cyrillic: ПОРТНОВ, Андрій Володимирович) (a.k.a. PORTNOV, Andrij Volodymyrovych; a.k.a. PORTNOV, Andriy), Ukraine; DOB 27 Oct 1973; POB Luhansk, Ukraine; nationality Ukraine; Gender Male; Passport PU262444 (Ukraine); National ID No. CO168696 (Ukraine) (individual) [GLOMAG]. 
 
RECINOS DE BERNAL, Martha Carolina (a.k.a. RECINOS, Carolina), El Salvador; DOB 25 Jan 1964; nationality El Salvador; Gender Female (individual) [GLOMAG]. 
 
VIEIRA DIAS, Manuel Helder (a.k.a. VIEIRA DIAS JUNIOR, Manuel Helder; a.k.a. "KOPELIPA"), Rua de Coimbra, No 3, Luanda, Luanda, Angola; DOB 04 Oct 1953; POB Luanda, Angola; nationality Angola; Gender Male; Passport N2360712 (Angola) expires 07 Aug 2028 (individual) [GLOMAG].

and entities:

ANDRIY PORTNOV FUND (Cyrillic: ФОНД АНДРІЯ ПОРТНОВА) (a.k.a. CHARITABLE ORGANIZATION ANDRIY PORTNOV FUND (Cyrillic: БЛАГОДІЙНА ОРГАНІЗАЦІЯ ФОНД АНДРІЯ ПОРТНОВА)), Yevhena Konovalʹtsya Street, Building 36-В, Apartment 50, Kyiv 01133, Ukraine (Cyrillic: ВУЛИЦЯ ЄВГЕНА КОНОВАЛЬЦЯ, будинок 36-В, квартира 50, Київ 01133, Ukraine); Target Type Charity or Nonprofit Organization; Company Number 43465723 (Ukraine) [GLOMAG] (Linked To: PORTNOV, Andriy Volodymyrovych). 
 
ARC RESOURCES CORPORATION LTD (a.k.a. AFRICA RESOURCE CORPORATION - ARC; a.k.a. AFRICAN RESOURCE COMPANY; a.k.a. AFRICAN RESOURCE CORPORATION; a.k.a. AFRICAN RESOURCE CORPORATION LIMITED; a.k.a. ARC CONSTRUCTION COMPANY LIMITED; a.k.a. ARC LIMITED GROUP), 7300-7398 Juba Rd, Juba, South Sudan; ARC Head Office, Kakora Road, Nimra-Talata, Juba, South Sudan; Organization Established Date 17 Jan 2019; Registration Number 31137 (South Sudan) [GLOMAG] (Linked To: BOL MEL, Benjamin). 
 
BAIA CONSULTING LIMITED (a.k.a. CONSULTADORIA BAIA LIMITADA), 7th Floor, Lun Pong Building, No. 763 Avenida da Praia Grande, Macau; Avenidada Praia Grande, No. 763, Edificio Lun Pong, 7 Andara, Macau; Organization Established Date 26 Jan 2016; Registration Number 60367 SO (Macau) [GLOMAG] (Linked To: VIEIRA DIAS, Manuel Helder). 
 
COCHAN HOLDINGS LLC, Marshall Islands; Organization Established Date 23 Jul 2010; Enterprise Number 961733 (Marshall Islands) [GLOMAG] (Linked To: FRAGOSO DO NASCIMENTO, Leopoldino). 
 
COCHAN S.A. (a.k.a. COCHAN ANGOLA; a.k.a. COCHAN GROUP; a.k.a. GRUPO COCHAN; a.k.a. "COCHAN"), Av. 1 Congresso Do Mpla, Edificio CIF 17 Andar, Luanda, Angola; Organization Established Date 06 May 2009; Registration Number 1001537110 (Angola) [GLOMAG] (Linked To: FRAGOSO DO NASCIMENTO, Leopoldino). 
 
GENI NOVAS TECNOLOGIAS S.A. (a.k.a. GENI NOVAS TECNOLOGIAS), Luanda, Angola; Organization Established Date 24 Jun 2003; Organization Type: Other information technology and computer service activities [GLOMAG] (Linked To: FRAGOSO DO NASCIMENTO, Leopoldino). 
 
GENI SARL (a.k.a. GENI GROUP; a.k.a. GENI S.A.; a.k.a. "GENI"), Rua Marechal Bros Tito No 13, Ingombotas Predio Do Kinaxixi, Luanda, Angola; Cabinda, Angola; Organization Established Date 01 Jan 1996; Organization Type: Wholesale of other household goods [GLOMAG] (Linked To: FRAGOSO DO NASCIMENTO, Leopoldino). 
 
WINNERS CONSTRUCTION COMPANY LIMITED (a.k.a. "WINNERS CONSTRUCTION"), South Sudan; Organization Established Date 06 Sep 2019; Organization Type: Construction of roads and railways; Registration Number 32696 (South Sudan) [GLOMAG] (Linked To: BOL MEL, Benjamin).

to its Global Magnitsky program (these are for corruption – GLOMAG is also for human rights abuses). The following existing listing:

AL-CARDINAL, Ashraf Seed Ahmed (a.k.a. HUSSEIN, Ashraf Said Ahmed; a.k.a. HUSSEIN, Ashraf Seed Ahmed; a.k.a. SEED AHMED, Asharaf; a.k.a. SEED AHMED, Ashraff; a.k.a. SEEDAHMED, Ashiraf; a.k.a. "ALI, Ashraf Sayed"; a.k.a. "HUSSEIN ALI, Ashraf"), 1 College Yard, Winchester Avenue, London, England NW6 7UA, United Kingdom; 207 Jersey Road, Osterley, London TW7 4RE, United Kingdom; DOB 01 Jan 1957 to 31 Jan 1957; nationality Sudan; Gender Male (individual) [GLOMAG]. -to- AL-CARDINAL, Ashraf Seed Ahmed (a.k.a. ALI, Ashraf Seedahmed Hussein; a.k.a. HUSSEIN, Ashraf Said Ahmed; a.k.a. HUSSEIN, Ashraf Seed Ahmed; a.k.a. SEED AHMED, Asharaf; a.k.a. SEED AHMED, Ashraff; a.k.a. SEEDAHMED, Ashiraf; a.k.a. "ALI, Ashraf Sayed"; a.k.a. "HUSSEIN ALI, Ashraf"), 1 College Yard, Winchester Avenue, London, England NW6 7UA, United Kingdom; 207 Jersey Road, Osterley, London TW7 4RE, United Kingdom; Dubai, United Arab Emirates; DOB 01 Jan 1957 to 31 Jan 1957; POB Sudan; nationality Sudan; Gender Male; Passport B00018325 (Sudan) expires 16 Feb 2023; National ID No. 11945710905 (Sudan); alt. National ID No. 784195754986941 (United Arab Emirates) (individual) [GLOMAG].

was also updated.

And Treasury issued the following press release:

PRESS RELEASES

Treasury Issues Sanctions on International Anti-Corruption Day

December 9, 2021

Designations target corrupt individuals and networks in Central America, Europe, and Africa

WASHINGTON — Today, on International Anti-Corruption Day, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is targeting fifteen individuals and entities across several countries in Central America, Africa, and Europe. Today’s actions are taken pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of corruption and serious human rights abuse. Treasury’s actions today are complemented by the U.S. Department of State’s announcement of visa restrictions under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, targeting several corrupt current and former officials, as well as their immediate family members, and making them ineligible for entry into the United States.

“Corrupt acts take resources from citizens, undermine public trust, and threaten the progress of those who fight for democracy,” said Secretary of the Treasury Janet L. Yellen. “Treasury is committed to countering those who seek personal enrichment at the expense of the people who trust them to to serve — especially in the middle of a global pandemic. We are taking these actions today to expose and hold corrupt leaders accountable.”

International Anti-Corruption Day has been observed annually on December 9 since the United Nations General Assembly adopted the United Nations Convention against Corruption (UNCAC) on October 31, 2003, to raise public awareness of the importance of anti-corruption initiatives in countering corruption and preventing it from undermining democratic institutions, eroding governmental stability, and slowing economic development. There are currently 189 parties to the UNCAC. Countering the transnational nature of corruption requires strong international partnerships and robust anti-money laundering and counter terrorist financing regimes. Today’s actions reinforce the priority placed upon curbing corruption through strategic and regulatory action at the Summit for Democracy.

Corruption allows bad actors to abuse their authority and extract unfair gains at the expense of others. Fighting corruption is one of the pillars of the Summit, because it is a critical part of engendering the trust in institutions that undergirds democracies. Treasury is equipped with powerful tools to root out corruption by targeting the financial systems and flows that allow bad actors to profit from corruption, and Treasury is committed to using these tools to protect and strengthen democracy around the world. Today’s actions are one part of a series of actions taken to fight corruption in line with the U.S. Strategy on Countering Corruption released on Monday. Treasury’s actions to further this strategy by combating these illicit activities will make our economy — and the global economy — stronger, fairer, and safer from criminals and national security threats.

CORRUPTION RELATED TO COVID-19 PROCUREMENT

Corruption involving procurement of life-saving medical supplies represents a profound betrayal of public trust and a waste of critically needed resources. Corruption also undermines public trust during a time in which that trust is critical for governments’ pandemic response. Crises such as the COVID-19 pandemic expose the dangers of systemic corruption, whether it manifests as a lack of transparency in public procurement. facilitating contract awards to unqualified companies, or as a diversion of funds meant for essential healthcare services.

CORRUPTION IN EL SALVADOR: MARTHA CAROLINA RECINOS DE BERNAL

Martha Carolina Recinos De Bernal (Recinos) was the head of a multiple-ministry, multi-million dollar corruption scheme involving suspicious procurements in the construction of a hospital, in addition to directing various government ministers to authorize several suspicious pandemic-related purchases, including millions of dollars in surgical masks and millions more on hospital gowns from companies with no apparent ties to the healthcare or manufacturing industries. As of summer 2021, Salvadoran officials awarded millions of dollars in inflated contracts related to the government’s response to the COVID-19 pandemic, which in turn allowed for kickbacks to Salvadoran government officials and some of President Bukele’s advisors. Relatedly, Bukele administration officials, including Chief of Cabinet Recinos, reportedly resold donated personal protective equipment and other medical aid at significant markups for their personal benefit.

Additionally, Recinos also directed a corruption scheme in which government-purchased food baskets intended for COVID-19 relief were diverted for the use of specific Nuevas Ideas candidates to garner support in the February 2021 municipal and legislative elections. Instead of delivering the items as a service from the government, the food baskets were used to obtain votes and support in the lead up to the elections.

Recinos is designated pursuant to E.O. 13818 for being a foreign person who is a current or former government official, or person acting for or on behalf of such an official, who is responsible for or complicit in, or has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

CORRUPTION IN GUATEMALA: MANUEL VICTOR MARTINEZ OLIVET

In March 2021, Manuel Victor Martinez Olivet (Martinez) was accused of engaging in various acts of misappropriation, fraud, and abuse of authority during his tenure as the Director of the Santa Rosa Health Area within the Guatemalan Ministry of Public Health. Guatemalan authorities initially began their investigation into Martinez’s activities following press reporting alleging that Martinez favored companies related to his family and directly awarded contracts to them without going through the public bidding process, circumventing the regular procurement process.

Martinez is designated pursuant to E.O. 13818 for being a foreign person who is a current or former government official, or person acting for or on behalf of such an official, who is responsible for or complicit in, or has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

CORRUPTION IN SOUTH SUDAN: ARC RESOURCES CORPORATION LTD AND WINNERS CONSTRUCTION COMPANY LIMITED

OFAC designated ARC Resources Corporation Limited (ARC Resources) and Winners Construction Company Limited (Winners) for being owned or controlled by Benjamin Bol Mel (Bol Mel), an individual included in the Annex of E.O. 13818 in December 2017. Bol Mel previously oversaw ABMC Thai-South Sudan Construction Company Limited (ABMC), which was awarded contracts worth tens of millions of dollars by the Government of South Sudan (GoSS) and allegedly received preferential treatment from high-level GoSS officials in a non-competitive process for selecting ABMC to do roadwork throughout South Sudan. ARC Resources is linked to ABMC, and has been used by senior members of GoSS for laundering money. Both ARCResources and Winners have been used to evade sanctions and travel restrictions on Bol Mel, and have been awarded noncompetitive and substantial oil-backed contracts from the GoSS for road construction.

ARC Resources and Winners are designated pursuant to E.O. 13818 for being owned or controlled by, directly or indirectly, Bol Mel, a person whose property and interests in property are blocked pursuant to E.O. 13818.

CORRUPTION IN LIBERIA: PRINCE YORMIE JOHNSON

Prince Yormie Johnson (Johnson) is a former warlord and current member of the Liberian Senate. He is the former Chairman of the Senate Committee on National Security, Defense, Intelligence, and Veteran Affairs. In 1990, he was responsible for the murder of former Liberian President Samuel Doe, and Johnson is named in Liberia’s Truth and Reconciliation Report as having committed atrocities during the country’s first civil war.

As a Senator, Johnson has been involved in pay-for-play funding with government ministries and organizations for personal enrichment. As part of the scheme, upon receiving funding from the Government of Liberia (GOL), the involved government ministries and organizations launder a portion of the funding for return to the involved participants. The pay-for-play funding scheme involves millions of U.S. dollars. Additionally, Johnson receives an undeserved salary from the GOL as a salaried intelligence “source” yet he does not provide any form of intelligence reporting to the GOL; Johnson is reportedly being paid in order to maintain domestic stability. Johnson has also offered the sale of votes in multiple Liberian elections in exchange for money.

Johnson is designated pursuant to E.O. 13818 for being a foreign person who is a current or former government official, or a person acting for or on behalf of such an official, who is responsible for or complicit in, or has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

CORRUPTION IN UKRAINE: ANDRIY PORTNOV

Andriy Portnov (Portnov), the former Deputy Head of the Ukrainian Presidential Administration under former President Yanukovych, has cultivated extensive connections to Ukraine’s judicial and law enforcement apparatus through bribery. Widely known as a court fixer, Portnov was credibly accused of using his influence to buy access and decisions in Ukraine’s courts and undermining reform efforts. As of 2019, Portnov took steps to control the Ukrainian judiciary, influence associated legislation, sought to place loyal officials in senior judiciary positions, and purchase court decisions. In mid-2019, Portnov colluded with a high ranking Ukrainian government official to shape the country’s higher legal institutions to their advantage and influence Ukraine’s Constitutional Court. Additionally, Portnov has been involved in an attempt to influence the Ukrainian Prosecutor General.

Portnov is designated pursuant to E.O. 13818 for being a foreign person who is a current or former government official, or a person acting for or on behalf of such an official, who is responsible for or complicit in, or has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

Additionally, OFAC designated the Andriy Portnov Fund pursuant to E.O. 13818 for being owned or controlled by Portnov.

CORRUPTION IN ANGOLA: LEOPOLDINO FRAGOSO DO NASCIMENTO AND MANUEL HELDER VIEIRA DIAS JUNIOR

Leopoldino Fragoso do Nascimento (Nascimento) and Manuel Helder Vieira Dias Junior (Dias Junior) are former government officials that stole billions of dollars from the Angolan government through embezzlement. Nascimento and Dias Juniorcolluded with other Angolan individuals and Treasury-designated Sam Pa to misappropriate funding intended for infrastructure development projects, including the use of phantom projects. Pa was designated on April 17, 2014 for undermining democratic processes and institutions in Zimbabwe, facilitating public corruption by Zimbabwean senior officials through illicit diamond deals, and providing financial and logistical support to the Government of Zimbabwe and Specially Designated Nationals (SDNs). The two are also suspected of siphoning off millions of dollars from Angolan infrastructure projects and then using their positions in the Angolan economy to protect themselves from the possibility of criminal charges. As part of a military equipment deal, Dias Junior brokered with a third-country defense manufacturer an additional large sum of money for other senior Angolan government officials.

Nascimento and Dias Junior are designated pursuant to E.O. 13818 for being foreign persons who are current or former government officials, or persons acting for or on behalf of such an official, who are responsible for or complicit in, or has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

Additionally, OFAC is also designating four entities that are owned or controlled by Nascimento: Cochan S.A., Cochan Holdings LLC, Geni SARL, and Geni Novas Tecnologias S.A..

OFAC is also designating one entity, Baia Consulting Limited (Baia), pursuant to E.O. 13818 that is owned or controlled by Dias Junior, and his spouse, Luisa De Fatima Giovetty, for materially assisting, sponsoring, or providing financial, material, or technological support for, or goods or services to or in support of, Baia.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or otherwise exempt, all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods, or services from any such person.

GLOBAL MAGNITSKY

The U.S. Department of Homeland Security’s Human Rights Violators and War Crimes Center assisted OFAC in identifying perpetrators of serious human rights abuse and corruption.

Links:

Treasury Press Release

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State Department also celebrates Anti-Corruption Day

December 9, 2021, 8:51 am

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Elevating Anti-Corruption Leadership and Promoting Accountability for Corrupt Actors

PRESS STATEMENT

DECEMBER 9, 2021Share

On International Anti-Corruption Day 2021, the United States reiterates its commitment to elevating anti-corruption as a core national security priority and a key pillar of the Summit for Democracy. I am pleased to announce today the State Department is establishing a Coordinator on Global Anti-Corruption, who will integrate and elevate the fight against corruption across all aspects of U.S. diplomacy and foreign assistance. The coordinator, working closely with interagency and international partners, will lead State Department implementation of the U.S. Strategy on Countering Corruption, announced this week by the White House, as we bring all our resources to what President Biden has called “the challenge of our time.”

The United States is also taking additional bold actions today to combat corruption and promote accountability through sanctions and visa restrictions under the Global Magnitsky sanctions program and Department of State’s Section 7031(c) visa restriction authority.

Together, these complementary actions promote accountability for corrupt actors across the globe to disrupt and deter those who would seek to act with impunity, disregard international standards, and undermine democracy and rule of law.

These designations are made under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2021. Under this authority, the Secretary shall deny entry into the United States to officials of foreign governments involved in significant corruption and their immediate family members.

The Department of State is designating the following individuals for their involvement in significant corruption:

Carlos Julián Bermeo Casas, a former prosecutor within the Colombian Jurisdicción Especial para la Paz (JEP), for engaging in significant corruption by accepting a monetary bribe in exchange for obstructing the extradition to the United States of a suspected narco-trafficker. As part of this action, Bermeo’s spouse, Nohora Fernanda Giron Cifuentes, and minor child are also designated.
Manuel Víctor Martínez Olivet, the former Director of the Santa Rosa Health Area in Guatemala, for corrupt activities through the misappropriation of state assets and fraud related to government purchases. As part of this action, Olivet’s spouse, Yohanna Massiel Duarte Aguliar, and minor child are also designated. Olivet was also designated by the Department of the Treasury under Global Magnitsky for his role in corruption.
Nestor Moncada Lau, a national security advisor to the Nicaraguan Ortega-Murillo regime, for engaging in significant corruption by accepting a monetary bribe in exchange for using his control over the Nicaraguan tax and customs authorities to enable and perpetuate an import and customs fraud scheme to enrich members of the Ortega-Murillo regime. Moncada’s spouse, Lydia Vargas de Moncada, and children Claudia Vanessa Moncada Solis, Ernesto David Moncada Solis, Allan Roberto Moncada Vargas, Nestor Jose Moncada Vargas, and Lidia Mercedes Moncada Vargas are also designated under this action. Nestor Moncada Lau was also designated by the Department of the Treasury in 2018 for his role in corruption in support of the Ortega-Murillo regime.
Martha Carolina Recinos de Bernal, current Chief of Cabinet in El Salvador, for engaging in significant corruption by misusing public funds for personal benefit and participating in a money laundering scheme. As part of this action, her husband Efren Arnoldo Bernal Chevez and her son German Alfredo Bernal Recinos are also designated. Recinos was also designated by the Department of the Treasury under Global Magnitsky for her role in corruption.
Osiris Luna Meza, Vice Minister of Justice and Bureau of Prisons Director and Carlos Amilcar Marroquin Chica, Director of Tejido Social (Social Cohesion), in El Salvador, for involvement in significant corruption by misappropriating public funds and interfering in public processes for personal profit. Marroquin and Luna were also designated by the Department of the Treasury under Global Magnitsky for their role in corruption.
Prince Yormie Johnson, current senator in Liberia, for his role in significant corruption through engagements involving millions of dollars in bribery and pay-for-play funding schemes. His spouse, Ameria Bovidee Johnson, and child, Blessing Johnson, are also covered as part of this action. Prince Yormie Johnson was also designated by the Department of the Treasury under Global Magnitsky for his role in corruption.
Leopoldo Fragoso do Nascimento, “Dino,” former head of communications for Angolan President, and Manuel Helder Vieira Dias, “Kopelipa,” former Angolan General, for their involvement in significant corruption through the embezzlement and misappropriation of billions of dollars in state funds for personal benefit. As part of this action, Nascimento’s spouse, Amelia Maria Coelho da Cruz Nascimento, and Dias’s spouse, Luisa de Fatima Giovetty, and children Lidiane Rafaela Giovetty and Carlos de Ancieto G Vieira Dias Junior are also designated. Nascimento, Manuelo Dias, and Luisa Dias were also designated by the Department of the Treasury under Global Magnitsky for their role in corruption.
Isabel dos Santos, former Chair of an Angolan state-owned enterprise, for her involvement in significant corruption by misappropriating public funds for her personal benefit.
Oleksandr Tupytskyi, the former Chairman of the Constitutional Court of Ukraine, for significant corrupt acts to include the acceptance of a monetary bribe while serving in the Ukrainian judiciary. Tupytskyi’s spouse, Olga Tupytska, was also designated as part of this action.

A complete list of the Department of the Treasury’s actions can be found here . The United States is committed to working with international partners, allies, and civil society to combat corruption and promote accountability and good governance. The United States commends Australia and the United Kingdom for adopting anti-corruption accountability legislation and sanctions regimes this year, and calls on other like-minded partners to do the same.

Link:

www.dfat.gov.au | DFAT Sanctions website | DFAT Consolidated List

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DOJ gets Guilty Plea in International Bribery and Money Laundering Scheme

December 13, 2021, 6:40 am

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Department of JusticeOffice of Public Affairs

FOR IMMEDIATE RELEASEThursday, December 2, 2021

Panamanian Intermediary Pleads Guilty in Connection with International Bribery and Money Laundering Scheme

Luis Enrique Martinelli Linares (Luis Martinelli Linares), 39, a citizen of Panama and Italy, pleaded guilty today in the Eastern District of New York before U.S. District Judge Raymond J. Dearie for laundering $28 million in connection with a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate.

According to court documents, the scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.

Luis Martinelli Linares admitted that he agreed with his brother, Ricardo Alberto Martinelli Linares, and others to establish offshore bank accounts in the names of shell companies to receive and disguise over $28 million in bribe proceeds from Odebrecht for the benefit of his close relative, a high-ranking public official in Panama. To advance the scheme, Luis Martinelli Linares agreed with others to cause the wiring of the Odebrecht bribe funds into and out of the United States, and used some of the proceeds of the scheme to purchase a yacht and a condominium in the United States.

Luis Martinelli Linares pleaded guilty to one count of conspiracy to commit money laundering. He also agreed to a forfeiture amount of approximately $18.9 million. He is scheduled to be sentenced on May 20, 2022, and faces a maximum penalty of 20 years in prison. Judge Dearie will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Ricardo Alberto Martinelli Linares was arrested, along with his brother Luis Martinelli Linares, at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. The defendants were charged on Feb. 4, 2021, in a five-count indictment in connection with this bribery and money laundering scheme. The United States continues its efforts to have Ricardo Martinelli Linares returned to the United States to face justice.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division made the announcement.

The FBI’s International Corruption Unit in New York is investigating this case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Luis Martinelli Linares.

Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorney Laura Mantell of U.S. Attorney’s Office for the Eastern District of New York’s Civil Division is handling forfeiture matters.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov.

An indictment is merely an allegation, and Ricardo Alberto Martinelli Linares is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Link:

DOJ Press Release

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Contractor pays bribes to mayor… both go to jail

December 16, 2021, 6:33 am

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Department of Justice

U.S. Attorney’s Office

District of Puerto Rico

FOR IMMEDIATE RELEASE

Thursday, December 2, 2021

Mayor of Cataño Pleads Guilty to Accepting Bribes in Exchange for Millions in Municipal Contracts and Contractor Arrested for Paying Bribes

SAN JUAN, PUERTO RICO – A mayor pleaded guilty yesterday in Puerto Rico on a criminal charge related to his involvement in a bribery conspiracy in which he received weekly cash payments in exchange for awarding municipal contracts to “Company A.” In a separate indictment, a businessman was arrested today on criminal charges related to his alleged involvement in a scheme to bribe the mayor.

Félix Delgado-Montalvo, 40, was the mayor and highest-ranking government official in the municipality of Cataño. According to court documents, Delgado-Montalvo unjustly enriched himself by accepting things of value, including cash payments, from “Person A,” whose business, Company A, would then benefit by being awarded municipal contracts.

Delgado-Montalvo pleaded guilty to one count of conspiracy. He is scheduled to be sentenced on March 8, 2022, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

A separate indictment returned yesterday, alleges that beginning in or around June of 2017, Mario Villegas-Vargas, 42, of Gurabo, who owned an asphalt and paving company in Puerto Rico with “Individual B,” paid kickbacks and bribes to Delgado-Montalvo. In exchange for those payments, Delgado-Montalvo exerted his influence on municipal officials in Cataño to ensure that Villegas-Vargas’s business was awarded municipal contracts. The indictment alleges that Villegas-Vargas’s bribe payments and his efforts to conceal those payments resulted in his business being awarded over $9.9 million in municipal contracts in Cataño.

Villegas-Vargas is charged with one count of conspiracy, one count of federal program bribery, and one count of use of an interstate facility in aid of racketeering. If convicted, Villegas-Vargas faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

“These investigations are not over,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Today’s announcement makes clear that the citizens of the District of Puerto Rico expect their public officials to act with honesty and integrity, and not for personal gain. I would like to thank the dedicated efforts and support of the FBI and the Department of Justice’s Public Integrity Section in these cases.”

“Public corruption takes resources away from those who need it most and into the pockets of those who are sworn to serve the people. This behavior hurts the people’s trust in our institutions and undermines the work of honest officials who genuinely want to make a difference,” said Joseph González, Special Agent in Charge of the FBI in Puerto Rico. “This is why we will not allow this kind of behavior to go unpunished. There is still much work to be done and I want to thank our local partners for their assistance in this case and continued support of the FBI mission.”

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, and Special Agent in Charge Joseph Gonzalez of the FBI’s San Juan Field Office made the announcement.

The investigation was conducted by the FBI’s San Juan Field Office. Assistant United States Attorneys Scott H. Anderson and Nicholas W. Cannon of United States Attorney’s Office for the District of Puerto Rico, and Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section, are prosecuting the cases.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Link:

DOJ Press Release

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Australia adds anti-corruption, human rights and cyber autonomous sanctions

December 22, 2021, 6:36 am

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Dear Subscribers,

The Autonomous Sanctions Regulations 2011 have been amended to establish thematic sanctions regimes in relation to serious violations or serious abuses of human rights, serious corruption and significant cyber incidents. The new sanctions regimes commenced on 21 December 2021.

The Government can now consider possible listings. The Minister for Foreign Affairs has discretion to list a person or entity when in the national interest, following the agreement of the Attorney-General and consultation with any other Ministers as appropriate.

The new sanctions regime gives effect to the Australian Government’s responseto the December 2020 report of the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) inquiry into the use of sanctions to target human rights abuses, ‘Criminality, corruption and impunity: Should Australia join the Global Magnitsky movement?’.

Further details are on DFAT’s sanctions webpage: Australia and sanctions | Australian Government Department of Foreign Affairs and Trade (dfat.gov.au).

Kind regards

Australian Sanctions Office

Department of Foreign Affairs and Trade

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2 Former Maltese Officials get 7031(c) coal in their stockings for corruption

December 22, 2021, 6:47 am

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Public Designation of Former Maltese Public Officials Konrad Mizzi and Keith Schembri Due to Involvement in Significant Corruption

PRESS STATEMENT

NED PRICE, DEPARTMENT SPOKESPERSON

DECEMBER 22, 2021Share

Today, the U.S. Department of State announces the public designation of former Maltese public officials Konrad Mizzi and Keith Schembri due to their involvement in significant corruption. In their official capacities as Minister of Energy and Conservation of Water and Chief of Staff to the Prime Minister, Mizzi and Schembri were involved in corrupt acts that included using their political influence and official power for their personal benefit. Specifically, there is credible information that Mizzi and Schembri were involved in a corrupt scheme that entailed the award of a government contract for the construction of a power plant and related services in exchange for kickbacks and bribes. Their actions undermined rule of law and the Maltese public’s faith in their government’s democratic institutions and public processes.

This designation is made under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2021. In addition to Mizzi and Schembri, the Department of State is designating Mizzi and Schembri’s immediate family members: Mizzi’s wife, Sai Mizzi Liang, and his two minor children; Schembri’s wife, Josette Schembri Vella, his daughter Juliana Schembri Vella, and his minor child. This action renders Mizzi and Schembri, and each of these members of their immediate families, ineligible for entry into the United States.

This designation reaffirms the U.S. commitment to supporting the rule of law and strengthening democratic institutions in Malta. The Department will continue to use authorities like this to promote accountability for corrupt actors in this region and globally.

For more information, please contact INL-PAPD@state.gov.

Link: