Wed, Dec 18, 2013

http://blogs.wsj.com/riskandcompliance/2013/12/17/corruption-currents-from-messi-cleared-to-levinsons-money-laundering-connection/

Bribery:

The arrest count in a series of Turkish corruption scandals rose to 27 in one report and 49 in another, sending shock waves through the political and business communities in Istanbul. No official statements have been made on the mass arrests. (Turkish Weekly, Hurriyet, National Turk, AFP, Guardian)

In addition to ending the practice of paying doctors to promote drugs, GlaxoSmithKlineGSK.LN -1.05% PLC scrapped individual sales targets for its commercial staff. (ProPublica, Reuters, Financial Times sub req)

The reputation of Indonesia’s biggest Islamic party has fallen to the mud amid a massive scandal involving clandestine hotel room sex, money laundering and huge bribes to import beef. (AFP)

Chinese drugmaker Shanghai Pharmaceuticals Holding Co.601607.SH +0.28% said it’s investigating allegations raised by a whistleblower in local media that a subsidiary bribed hospital and industry staff to boost drug sales. (Reuters)

The collapse of the Serious Fraud Office’s case against Victor Dahdahleh represents a low point in a bad year for the SFO. (The Lawyer)

The FCPAProfessor slams rebuttals against a compliance defense proposal. The FCPA Blog runs a China corruption blotter, posts the latest from NCR Corp.NCR +1.17% and finds Industry Canada seeking to improve corporate governance. The FCPAmericas blog forecasts Brazil’s upcoming anti-bribery law. Tom Fox waves goodbye to the SFO case against Mr. Dahdaleh.

A column on the anti-bribery fight in Brazil is here. A client alert on it is here. A client alert considers the coordination of government agencies in the Weatherford case. (Risk Management, Blank Rome LLP, Katten)

Fraud:

The illegal horsemeat allegations in France led to more than 20 arrests. (Guardian)

Money Laundering:

Lionel Messi and his dad were cleared in a Spanish money laundering scandal. They had been reportedly under investigation for allegedly laundering money for drug cartels, among others. (Bleacher Report, Marca, Prensa Latina, Latin Times, Independent.ie, NDTV)

Robert Levinson, an American missing in Iran since 2007 who was reportedly there for an unapproved CIA mission, was there investigating suspicions that Iranian government officials were diverting petroleum funds and laundering them through Canada, his family’s lawyer said. (AP, NY Times, ABC, Reuters)

A New York businessman detained in Bolivia on suspicion of money laundering arrived in the U.S. on Monday, having been spirited out of the country. He has denied the allegations, and Bolivia wants him back. (AP, NY Times, Reuters)

Could Russia sign a FATCA agreement with the U.S. within weeks? (iexpats)

An Omaha-based securities clearing firm must pay a $1 million civil fine for not complying with industry requirements to prevent money laundering and other “extensive” failures, according to the Financial Industry Regulatory Authority. (Reuters)

Money transfer company Ria Financial Services Australia was fined for violating Australian anti-money laundering laws. (Sydney Morning Herald)

A Nepalese bank and the FATF held talks about the country’s progress on money laundering. (ekantipur)

A report said the Mafia laundered 2.4 billion U.K. pounds through Rome restaurants. (IBT)

More than $480,000 in forfeited drug money has been handed over to local and federal law enforcement agencies in the Baton Rouge, La., area. (AP)

Indonesia’s house stalled proposed anti-money laundering legislation. (Jakarta Globe)

The latest in a money laundering scandal at the spot exchange in India is here, here and here. (PTI,

An Indian insurance regulator got involved in anti-money laundering enforcement. The company didn’t comment. (Business Standard)

Sanctions:

Western powers won’t relax their enforcement of Iran sanctions, U.K. and U.S. officials pledged. Companies should beware. How did Congress almost scuttle the interim nuclear deal? European Union governments agreed to suspend some sanctions against Iran as soon as the United Nations nuclear watchdog verifies that Tehran curbed its atomic work. (Wall Street Journal, Financial Times sub req, Roll Call, Sanction Law, Reuters, Xinhua)

Iran canceled a $500 million loan to Pakistan to build a gas pipeline that had led Washington to threaten Islamabad with sanctions. Instead, it’s focusing on a deep-sea route to India. (News.com.au, The Hindu)

Ban Ki-Moon, head of the U.N., called for sanctions on those committing chemical attacks in Syria. (AFP)

General Anti-Corruption:

A court in northern Vietnam sentenced two former executives of a state-owned shipping company to death after they were convicted of embezzlement. (Wall Street Journal)

The chief accountant for China’s national oil company has been taken into custody “to assist in an investigation” into high-level corruption. (Financial Times sub req)

Former AC Milan and Italy midfielder Gennaro Gattuso was placed under investigation for match-fixing, while four more people were arrested in an early morning police sweep in Italy. His agent said the player is stunned, adding that it’s too early to draw conclusions. (Al Jazeera)