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Commission steps up fight against money laundering and terrorist financing

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The European Commission has today put forward a comprehensive approach to further strengthen the EU’s fight against money laundering and terrorist financing.

The Commission has published an ambitious and multifaceted Action Plan, which sets out concrete measures that the Commission will take over the next 12 months to better enforce, supervise and coordinate the EU’s rules on combating money laundering and terrorist financing. The aim of this new, comprehensive approach is to shut down any remaining loopholes and remove any weak links in the EU’s rules.

Executive Vice-President Valdis Dombrovskis said: “We need to put an end to dirty money infiltrating our financial system. Today we are further bolstering our defences to fight money laundering and terrorist financing, with a comprehensive and far-reaching Action Plan. There should be no weak links in our rules and their implementation. We are committed to delivering on all these actions – swiftly and consistently – over the next 12 months. We are also strengthening the EU’s global role in terms of shaping international standards on fighting money laundering and terrorism financing.”

The Commission has also published today a more transparent, refined methodology to identify high-risk third countries that have strategic deficiencies in their anti-money laundering and countering terrorist financing regimes that pose significant threats to the EU’s financial system. This will enhance our engagement with third countries and ensure greater cooperation with the Financial Action Task Force (FATF).

Finally, the Commission has also adopted a new list of third countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks.

Action Plan for a Comprehensive EU policy on Preventing Money Laundering and Terrorist Financing

Today’s Action Plan is built on six pillars, each of which is aimed at improving the EU’s overall fight against money laundering and terrorist financing, as well as strengthening the EU’s global role in this area. When combined, these six pillars will ensure that EU rules are more harmonised and therefore more effective. The rules will be better supervised and there will be better coordination between Member State authorities.

The six pillars are as follows:

Effective application of EU rules: the Commission will continue to monitor closely the implementation of EU rules by Member States to ensure that national rules are in line with the highest possible standards. In parallel, today’s Action Plan encourages the European Banking Authority (EBA) to make full use of its new powers to tackle money laundering and terrorist financing.

A single EU rulebook: while current EU rules are far-reaching and effective, Member States tend to apply them in a wide variety of different manners. Diverging interpretations of the rules therefore lead to loopholes in our system, which can be exploited by criminals. To combat this, the Commission will propose a more harmonised set of rules in the first quarter of 2021.

EU-level supervision: currently it is up to each Member State to individually supervise EU rules in this area and as a result, gaps can develop in how the rules are supervised. In the first quarter of 2021, the Commission will propose to set up an EU-level supervisor.

A coordination and support mechanism for Member State Financial Intelligence Units: Financial Intelligence Units in Member States play a critical role in identifying transactions and activities that could be linked to criminal activities. In the first quarter of 2021, the Commission will propose to establish an EU mechanism to help further coordinate and support the work of these bodies.

Enforcing EU-level criminal law provisions and information exchange: Judicial and police cooperation, on the basis of EU instruments and institutional arrangements, is essential to ensure the proper exchange of information.The private sector can also play a role in fighting money laundering and terrorist financing. The Commission will issue guidance on the role of public-private partnerships to clarify and enhance data sharing.

The EU’s global role: the EU is actively involved within the Financial Action Task Force and on the world stage in shaping international standards in the fight against money laundering and terrorist financing. We are determined to step up our efforts so that we are a single global actor in this area. In particular, the EU will need to adjust its approach to third countries with deficiencies in their regime regarding anti-money laundering and countering terrorist financing that put our Single Market at risk. The new methodology issued alongside this Action Plan today provides the EU with the necessary tools to do so. Pending the application of the revised methodology, today’s updated EU list ensures better alignment with the latest FATF (Financial Action Task Force) list.

To ensure inclusive discussions on the development of these policies, the Commission launched a public consultation today on the Action Plan. Authorities, stakeholders and citizens will have until 29 July to provide their feedback.

Refined methodology

The Commission has today published a new methodology to identify high-risk third countries that have strategic deficiencies in their national anti-money laundering and countering terrorist financing regimes, which pose significant threats to the EU’s financial system. The aim of this new methodology is to provide more clarity and transparency in the process of identifying these third countries. The key new elements concern: (i) the interaction between the EU and FATF listing process; (ii) an enhanced engagement with third countries; and (iii) reinforced consultation of Member States experts.The European Parliament and the Council will have access to all relevant information at the different stages of the procedures, subject to appropriate handling requirements.

Updated List

Under the Anti-Money Laundering Directive (AMLD), the Commission has a legal obligation to identify high-risk third countries with strategic deficiencies in their regime regarding anti-money laundering and countering terrorist financing. Pending the application of the above-mentioned refined methodology, the Commission has today revised its list, taking into account developments at international level since 2018. The new list is now better aligned with the lists published by the FATF.

Countries which have been listed: The Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar, Nicaragua, Panama and Zimbabwe.

Countries which have been delisted: Bosnia-Herzegovina, Ethiopia, Guyana, Lao People’s Democratic Republic, Sri Lanka and Tunisia.

The Commission amended the list in the form of a Delegated Regulation. It will now be submitted to the European Parliament and Council for approval within one month (with a possible one-month extension).Given the Coronavirus crisis, the date of application of today’s Regulation listing third countries – and therefore applying new protective measures – only applies as of 1 October 2020. This is to ensure that all stakeholders have time to prepare appropriately. The delisting of countries, however, is not affected by this and will enter into force 20 days after publication in the Official Journal.

Background

The Commission’s Anti-Money Laundering Package of July 2019 highlighted a number of weaknesses in the EU’s anti-money laundering / countering the financing of terrorism framework. While the transposition and entry into force of recent legislation will address some of these issues, other problems remain. In response to this package, the European Parliament and the Council invited the Commission to investigate what steps could be taken to achieve a more harmonised set of rules, better supervision, including at EU level, as well as improved coordination among Financial Intelligence Units. Today’s Action Plan is the Commission’s reply to this call for action, and the first step to achieve the Commission’s priority to deliver a new, comprehensive framework to fight money laundering and terrorist financing. The new methodology to identify and mitigate threats that strategic deficiencies in the anti-money laundering and countering terrorist financing of third countries pose to the integrity of the EU’s financial system, also issued today, will further equip the EU to deal with external risks.

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Uzbekistan’s Artel joins UN’s ‘Orange The World’ campaign against gender-based violence

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Artel Electronics LLC (Artel), Central Asia’s largest home appliance and electronics manufacturer, has teamed up with the UN Population Fund (UNFPA) on a public information campaign against gender-based violence.

The campaign is in line with the UN’s 16 Days of Activism against Gender-Based Violence, which utilizes the color orange to symbolize a brighter future. Artel’s green branding turned orange for several days in advertising material throughout Uzbek capital Tashkent, and public figures made statements to raise awareness.

Artel joins an international movement that kicked off on 25th November and lasts for 16 days. Since 1991, it has been used by individuals and organizations to call for the prevention and elimination of violence against women and girls.

This is the second year the company has ‘gone orange’. Artel Electronics HR Director, Lazizbek Mamatov, also took part in a panel discussion about Gender Equality in the Workplace hosted by the UNFPA at Westminster International University in Tashkent in line with the campaign.

Shohruh Ruzikulov, CEO of Artel, said “It is a privilege to once more work with the UN in raising awareness about the issue of Gender Based Violence. In Uzbekistan, this conversation is at a relatively young stage. We are proud to stand against domestic violence and continue Artel’s work in all areas to contribute to a better society.”

Mr. Yu Yu, Country Representative of the United Nations Population Fund, said “We are delighted to partner with a company like Artel on such an important issue. The public reach of the private sector is vital in ensuring our message to stand against domestic violence can be heard across all segments of society. We are grateful to Artel for taking leadership on this important issue in Uzbekistan. Together, we can make the change.”

The true rate of domestic violence in Uzbekistan is not known. However, the government alongside diplomatic partners and aid organizations are prioritizing the issue. In recent years the Presidential Administration has issued decrees targeted at domestic violence prevention, the government has adopted laws guaranteeing equal rights for women, and funding has been provided for information campaigns and rehabilitation centers.

Support for this campaign is just one of Artel’s initiatives to support women’s empowerment. Internally, the company has introduced whistle-blowing mechanisms, and is implementing an internal legal clinic to improve the legal literacy of employees. Over the last year, the proportion of women in the company’s 10,000 employees has risen by 5%, to 35%. The global average for the manufacturing industry is thought to be around 30%.

In 2021, Artel became a full participant of the UN Global Compact (UNGC), the world’s largest business community focused on sustainable development. In doing so, the company committed to promoting ten principles covering human rights, labor rights and environmental protection.

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Douglas Macgregor: ‘Russia will establish Victory on its own terms’

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The Biden administration repeatedly commits the unpardonable sin in a democratic society of refusing to tell the American people the truth: contrary to the Western media’s popular “Ukrainian victory” narrative, which blocks any information that contradicts it, Ukraine is not winning and will not win this war, notes in his new article Douglas Macgregor, Col. (ret.), who was the former advisor to the Secretary of Defense in the Trump administration.

Months of heavy Ukrainian casualties, resulting from an endless series of pointless attacks against Russian defenses in Southern Ukraine, have dangerously weakened Ukrainian forces.

Predictably, NATO’s European members, which bear the brunt of the war’s impact on their societies and economies, are growing more disenchanted with Washington’s Ukrainian proxy war.

European populations are openly questioning the veracity of claims in the press about the Russian state and American aims in Europe.

The influx of millions of refugees from Ukraine, along with a combination of trade disputes, profiteering from U.S. arms sales, and high energy prices risks turning European public opinion against both Washington’s war and NATO.

After concluding that the underpinning assumptions regarding Washington’s readiness to negotiate and compromise were invalid, Putin directed the STAVKA to develop new operational plans with new goals:

– first, to crush the Ukrainian enemy;

– second, to remove any doubt in Washington and European capitаls that Russia will establish Victory on its own terms;

– and, third, to create a new territorial Status Quo commensurate with Russia’s national security needs.

It is now possible to project that the new Russian armed forces that will evolve from the crucible of war in Ukraine will be designed to execute strategically decisive operations.

The new military establishment will consist of much larger forces-in-being that can conduct decisive operations on relatively short notice with minimal reinforcement and preparation.

Put differently, by the time the conflict ends, it appears Washington will have prompted the Russian State to build up its military power, the very opposite of the fatal weakening that Washington intended when it embarked on its course of military confrontation with Moscow.

Biden’s “take no prisoners” conduct of U.S. foreign policy means the outcome of the next phase of the Ukrainian War will not only destroy the Ukrainian state. It will also demolish the last vestiges of the postwar liberal order and produce a dramatic shift in power and influence across Europe, especially in Berlin, away from Washington to Moscow and, to a limited extent, to Beijing, writes Douglas Macgregor.

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Politicians and journalists targeted by spyware to testify at Council of Europe parliamentary hearing in Paris

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Politicians and journalists from Poland, Spain and Greece who have been targeted by the Pegasus or similar spyware are to give testimony at a public hearing of the Parliamentary Assembly of the Council of Europe (PACE) in Paris on 12 December 2022, to be live-streamed in English.

The hearing, organised by PACE’s Committee on Legal Affairs and Human Rights, will focus on the role played by spyware in secret state surveillance, as part of a report on this topic being prepared for the Assembly by Pieter Omtzigt (Netherlands, EPP/CD).

Participants include:

  • Krzysztof Brejza, a member of the Polish Sejm from the opposition Civic Platform party, and a former member of PACE (accompanied by his lawyer, Dorota Brejza).
  • Diana Riba, a Spanish member of the European Parliament from Catalonia’s Republican Left Party, and Vice-Chair of the European Parliament’s committee of inquiry which is also currently investigating the use of Pegasus and similar spyware.
  • Thanasis Koukakis, an investigative journalist from Greece specialising in financial affairs, who has reported on corruption and money laundering (via teleconference).

In two earlier hearings, the committee heard from journalists who first revealed the spyware surveillance, as well as data protection and legal experts, and the UN High Commissioner for Human Rights.

In an April 2022 introductory memorandum, Mr Omtzigt listed the different Council of Europe member states where it is alleged Pegasus has been used, those individuals targeted, and the different national inquiries into its use that have been launched, as well as international reaction so far.

He concluded that the use of this software had “serious implications” for the human rights of those targeted, and questioned whether its use on journalists, lawyers, politicians and human rights activists could be justified on national security grounds or to investigate crime.

Mr Omtzigt’s final report is due for possible plenary debate by PACE in June 2023. The Assembly, which brings together 306 parliamentarians from the 46 member states of the Council of Europe, has powers to investigate human rights abuses in member states and make recommendations to Council of Europe governments.

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